Adani Realty outbids Larsen & Toubro for Mumbai's Bandra Reclamation redevelopment

Adani leads redevelopment: Adani Realty has secured the top position in the bidding process for the redevelopment of a 24-acre area in Mumbai's Bandra Reclamation, surpassing Larsen & Toubro. The company proposed a revenue share of 22.7 per cent, outmatching L&T's offer of 18 per cent. The final decision rests with the Maharashtra State Road Development Corporation (MSRDC) board, scheduled for next week.

This land, valued at approximately Rs 30,000 crore ($4.1 billion), boasts a potential development space of 45 lakh square feet (sq ft). Adani Realty previously won the bid to revamp Dharavi, Asia's largest slum cluster, in November 2022, with a bid of Rs 5,069 crore.

Adani Realty, the real estate division of Adani Group, has clinched the highest bid for the redevelopment of a 24-acre section at Bandra Reclamation in Mumbai, surpassing Larsen & Toubro.

Kailas Jadhav, the joint MD of Maharashtra State Road Development Corporation (MSRDC), confirmed this development to the media, stating that Adani Realty offered the highest revenue share at 22.7 per cent, compared to L&T's bid of 18 per cent. Adani Group emerged as the preferred bidder, denoted as H1.

Strategic development decision

The MSRDC board is set to make the final decision next week. The land parcel, which faces Mahim Bay and lies along the sea link approach road, includes a casting yard and the MSRDC office. It is earmarked for both commercial and residential purposes under the Development Control and Promotion Regulations 2034, with an estimated value of Rs 30,000 crore. The potential development area spans 45 lakh sq ft, with residential prices in Bandra Reclamation averaging around Rs 83,000 per sq ft.

Despite several prominent developers participating in the pre-bid meeting, including Godrej Properties Limited, Runwal Group, K Raheja Corp, Oberoi Realty Phoenix Group, Lodha Group, and Mahendra Lifespaces, only three contenders remained due to stringent eligibility criteria, with Mayfair Housing being the third bidder alongside Adani Realty and L&T.

Redevelopment revenue target

The MSRDC aims to generate a minimum revenue of Rs 8,000 crore from this venture to fund infrastructure projects. The winning bidder will initially tackle 6-7 acres, including the MSRDC office space, and must relocate the office while providing a fully furnished 50,000 sq ft office within a five-kilometer radius of its current location, as per bid terms.

In November 2022, Adani Group secured the mandate for the Rs 23,000-crore Dharavi redevelopment project with a bid of Rs 5,069 crore.