Adani Properties (APPL) has been named the highest bidder for the redevelopment of Motilal Nagar, a housing project in the Indian state of Mumbai, with an estimated cost of Rs360bn ($4.12bn)
The Motilal Nagar redevelopment project, encompassing Motilal Nagar I, II, and III and spanning 143 acres in the Goregaon West suburb, is set to become one of the largest housing redevelopment initiatives in Mumbai, reported PTI via Business Standard.
APPL is a part of Adani Group, which is a diversified Indian organisation with ten publicly traded companies.
Adani Properties outbid its closest competitor, Larsen & Toubro (L&T), by offering a greater built-up area. The letter of allotment will be issued in the near future.
Following the Dharavi slum redevelopment project, this marks the second redevelopment venture by Adani Group in Mumbai.
The Mumbai High Court recently authorised the Maharashtra Housing and Area Development Authority (MHADA) to proceed with the redevelopment of Motilal Nagar, designating it as a ‘special project’.
MHADA will maintain control over the project, engaging a construction and development agency (C&DA) due to its own constraints in executing such a substantial redevelopment.
In the aformentioned Dharavi redevelopment project, now known as Navbharat Mega Developers, Adani Group holds an 80% stake, with the remaining interest held by the state government.
The rehabilitation period for the project is anticipated to be seven years from its commencement date.
According to the tender specifications, the chosen C&DA must supply a housing stock of 383,000m². APPL secured the bid by agreeing to hand over 397,000m² to MHADA, surpassing L&T’s offer of 260,000m².
MHADA’s full authority over the project includes land ownership and the right to approve any mortgage, finance, sale, or transfer of rights by the private developer.
The selected C&DA will be responsible for the entire redevelopment process.
This includes design, approvals, construction, infrastructure development, and rehabilitation, catering to 3,372 residential units, 328 commercial units, and 1,600 slum tenements eligible under the country’s 1971 Slum Act.
