Mapletree Investments Acquires Prime 41-Acre Land in Bengaluru from Adarsh Developers for INR 1900 Crore

Major Land Acquisition in Bengaluru

Adarsh Developers, a prominent real estate development firm, has finalized the sale of a 41-acre land parcel in Bengaluru to Singapore-based private equity fund Mapletree Investments. The transaction, valued at over ₹1,900 crore, is part of Adarsh Developers’ strategic move to reduce debt. The land boasts a development potential of approximately 7 million square feet.

Debt Reduction and Growth Strategy

According to sources familiar with the deal, the funds from this greenfield development will be utilized to reduce Adarsh Developers’ debt, which stood at ₹3,300 crore as of March 2024. Over the past two years, the firm has successfully refinanced debt exceeding ₹3,000 crore. This land sale is seen as the final step in Adarsh's land monetization strategy aimed at reducing net debt by an additional ₹1,000 crore.

Continued Focus on Luxury and Mid-Income Housing

In 2022, Adarsh Developers sold two land parcels in Bengaluru to Godrej Properties for approximately ₹180 crore. The company has a strong focus on luxury homes priced above ₹1.4 crore, with 20% of its portfolio dedicated to mid-income housing projects.

HDFC and Other Major Investments

In 2023, HDFC Capital Advisors, a subsidiary of HDFC, India's largest private mortgage lender, invested over ₹1,600 crore in a portfolio of 12-13 residential projects by Adarsh Developers. These projects, all located in Bengaluru, cover a total area of 10 million square feet and include both ongoing and approved developments. Additionally, Adarsh Developers has secured capital from Oaktree and Edelweiss to refinance old debt and support growth initiatives.

Expansion and Development Plans

Adarsh Developers plans to allocate approximately ₹7,000 crore over the next seven years to develop 25 million square feet of residential properties in Bengaluru. This includes ongoing apartment projects covering 17.10 million square feet, plotted developments spanning 2.80 million square feet, and villa developments totaling 4.62 million square feet. The capital infusion aims to foster expansion, ensure operational funds, and expedite the completion of current projects.

Strengthening Market Position

These strategic moves by Adarsh Developers highlight their commitment to reducing debt and focusing on growth. The acquisition by Mapletree Investments underscores the continued attractiveness of Bengaluru’s real estate market to global investors.