Adani-Maharashtra SPV to Sell 10-12.5 Million Sq Ft Annually
Real Estate

Adani-Maharashtra SPV to Sell 10-12.5 Million Sq Ft Annually

Navbharat Mega Developers Private Limited (NMDPL), the special purpose vehicle (SPV) formed by the Maharashtra government and Adani Group for the 600-acre Dharavi redevelopment project, will sell 10 to 12.5 million sq ft of properties annually once the project is completed. The SPV aims to complete the redevelopment in seven years.

“Depending on market conditions, we will decide how much to release,” said SVR Srinivas, CEO of the Dharavi Redevelopment Project.

Adani Group holds an 80% stake in the SPV, while the Maharashtra government owns the remaining 20%. The SPV will monetize the project’s transferable development rights (TDR) and decide between selling TDR and the free-sale component. However, Srinivas refrained from specifying how much will be monetized via TDR.

Property experts believe the project will not disrupt the Mumbai real estate market due to high housing demand. “Half the people in Mumbai live in slums, and there is a continuous influx into the city. This new supply across affordable, mid, and premium housing segments will expand the market,” said Niranjan Hiranandani, founder and MD of Hiranandani Group.

The Maharashtra government is also considering a rule requiring developers in Mumbai to purchase 50% of their TDR from the Dharavi project. Srinivas noted that this regulation would aid in slum rehabilitation and redevelopment.

The total investment in the project, including rehabilitation and infrastructure, is pegged at Rs 3 lakh crore. The SPV has already secured Rs 4,000 crore from Adani Group and plans to raise further funds through compulsorily convertible preference shares (CCPS).

The first phase has begun in Matunga, where land has been acquired from the railways. The SPV has also conducted the country’s largest slum survey, numbering 90,000 households so far. The master plan is expected to be completed in the coming weeks.

Navbharat Mega Developers Private Limited (NMDPL), the special purpose vehicle (SPV) formed by the Maharashtra government and Adani Group for the 600-acre Dharavi redevelopment project, will sell 10 to 12.5 million sq ft of properties annually once the project is completed. The SPV aims to complete the redevelopment in seven years. “Depending on market conditions, we will decide how much to release,” said SVR Srinivas, CEO of the Dharavi Redevelopment Project. Adani Group holds an 80% stake in the SPV, while the Maharashtra government owns the remaining 20%. The SPV will monetize the project’s transferable development rights (TDR) and decide between selling TDR and the free-sale component. However, Srinivas refrained from specifying how much will be monetized via TDR. Property experts believe the project will not disrupt the Mumbai real estate market due to high housing demand. “Half the people in Mumbai live in slums, and there is a continuous influx into the city. This new supply across affordable, mid, and premium housing segments will expand the market,” said Niranjan Hiranandani, founder and MD of Hiranandani Group. The Maharashtra government is also considering a rule requiring developers in Mumbai to purchase 50% of their TDR from the Dharavi project. Srinivas noted that this regulation would aid in slum rehabilitation and redevelopment. The total investment in the project, including rehabilitation and infrastructure, is pegged at Rs 3 lakh crore. The SPV has already secured Rs 4,000 crore from Adani Group and plans to raise further funds through compulsorily convertible preference shares (CCPS). The first phase has begun in Matunga, where land has been acquired from the railways. The SPV has also conducted the country’s largest slum survey, numbering 90,000 households so far. The master plan is expected to be completed in the coming weeks.

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