Adani Group might sell non-core real estate holdings to raise money for future projects

The Adani Group is reportedly considering the monetisation of select real estate assets deemed non-core to its operations. After identifying certain assets for potential sale, the group is expanding the list to generate funds for its new real estate ventures.

One of the properties being targeted for sale is Inspire BKC, a commercial real estate project situated on the periphery of Mumbai's Bandra-Kurla Complex (BKC), a prime business district housing numerous multinational corporations and Indian corporate giants. The Adani Group has initiated discussions with potential buyers, including Brookfield Asset Management, in search of a non-binding term sheet. The preliminary valuation stands at an estimated Rs 650 crore.

Inspire BKC boasts an impressive leasable area of 800,000 square feet. The property has achieved full occupancy, with renowned tenants such as Novartis, Reliance Nippon

Life Insurance, and MUFG Bank. However, both Adani Group and Brookfield haven't confirmed the talks. The Adani Group is also believed to have identified additional real estate holdings within its group companies, ACC Ltd and Ambuja Cements, which were acquired from Holcim last year. These newly identified assets are also being considered for potential monetisation, according to the report. This includes around 16 acres owned by ACC in Thane near Mumbai, the report quoted.

By divesting certain non-core real estate holdings, the Adani Group aims to secure the necessary funds for its ambitious new real estate endeavors. The Adani Group's decision to monetise its non-core real estate assets aligns with its strategic realignment plan. The funds generated from these divestments will be directed towards fulfilling the investment requirements of the group's ongoing real estate projects.

The Adani Group has swiftly ventured into developing commercial and real estate projects in highly sought-after markets across western India. Additionally, the group has secured the redevelopment bid for Dharavi with an initial investment of approximately Rs 5,069 crore.