Adani Group Seeks to Acquire 87 Properties from Distressed Sahara Group
Indian billionaire Gautam Adani's property arm is seeking court approval to acquire 87 properties, including hotels and malls, from a distressed real estate group. This move could significantly bolster the conglomerate's relatively small business.
The domestic Sahara Group is looking to sell hotels, shopping centers, residential buildings, and office buildings to raise funds to repay billions of dollars to investors. The bond scheme that raised this capital was later ruled illegal, leading to the need for repayment.
Adani is aiming to buy all of these assets, as stated by his lawyer Mukul Rohatgi to the judges at the Supreme Court, which has been overseeing Sahara's repayment process. Rohatgi did not disclose the financial offer Adani is making for the properties.
The Supreme Court has requested the views of government agencies on the proposal and will next hear the case in November. Neither the Adani Group nor Sahara responded to emails seeking comment.
Sahara Group, once the sponsor of India's national cricket teams and the owner of New York's Plaza Hotel and the Grosvenor House in London, is due to repay nearly $2.82 billion to investors. Adani Properties, the unlisted arm of the Adani Group, is currently redeveloping Asia's densest slum, Dharavi, in Mumbai.
One of Sahara's most prominent properties is the 9,000-acre luxury township, Aamby Valley, situated near Mumbai. This township includes an airstrip, golf course, man-made lakes, and luxury villas. A source familiar with Adani's planning stated that the Sahara portfolio would provide Adani with access to a substantial land bank, as the list of properties includes various land parcels.
"It also helps Adani get into hospitality as (luxury Hotel) Sahara Star is also included in this, and so is Aamby Valley," the source added. This acquisition could significantly enhance Adani's presence in the hospitality sector and provide a strong foundation for future real estate developments.
