INDIA BUSINESS WORLD - MAY 2006
THE MONTH THAT WAS...

ADANIS 48-ACRE MUMBAI DEAL RAISES REALTY BAR

 The Ahmedabad-based Adani Group has finalised India's largest land deal with the Housing Development and Infrastructure Ltd (HDIL) for Rs 2,250 crore to develop a commercial and retail hub in Mumbai's landmark commercial business district, the Bandra Kurla Complex (BKC).

At Rs 2,250 crore, the deal beats Unitech's recent Rs 1,583-crore land acquisition in Noida. HDIL is a pan-India infrastructure and realty company promoted by the Wadhawan family. The family is also promoting one of the leading housing finance company in the country, Dewan Housing Finance Company.

 The deal involves the sale and development of over 2.1 million sq ft of land (around 48 acres) at BKC. The land development project will bedriven jointly by the Adani Group and HDIL over the next couple of years. There are also plans to set up a commercial complex, retail zone, multiplex, hotels and service apartments.

India's red-hot real estate sector is witnessing surging demand for property driving up prices across the board. Earlier this month, Unitech agreed to buy 340 acres of land in Noida worth Rs 1,583 crore.

“This landmark deal will set the tone for our dynamic growth plans across India. We are pleased to partner with the Adani Group to develop the much-needed global infrastructure for Mumbai,” told HDIL managing director Sunny Wadhawan.

Though Mr Wadhawan was reluctant to divulge more details, it is learnt that as per the agreement, the Adani group will have the rights to develop a commercial hub that would house hotels, service apartments, shopping malls and offices in BKC while HDIL will have the construction rights. The project, to be executed by Adani Realty Holdings, a wholly-owned subsidiary of Adani Exports, marks the group's entry into Mumbai's real estate business.

Sources said the company would be acquiring land at a floor space index (FSI) of 2, which implies the total floor area of the building could be up to two times the gross area of the lot on which it is located. Once the work begins, the project would be completed in two years.