Adani Group Seeks to Acquire 87 Properties from Sahara Group to Expand Real Estate Portfolio

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, a move that could bolster the conglomerate's relatively small business.

The domestic Sahara Group is looking to sell hotels, shopping centres, residential and office buildings to raise funds to repay billions of dollars to investors who put their money in a bond scheme that was later ruled to be illegal.

Adani is seeking to buy all of those assets, according to its lawyer Mukul Rohatgi, who spoke to judges on Tuesday at the Supreme Court. The Supreme Court, which has been overseeing how Sahara repays its investors, has asked government agencies for their views on the proposal and will next hear the case in November.

Rohatgi did not disclose the amount Adani was offering for the properties. The Supreme Court has asked government agencies for their views on the proposal and will next hear the case in November. Adani Group and Sahara did not respond to emails seeking comment.

Sahara Group, once the sponsor of India's national cricket teams and which used to own 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 power-to-coal conglomerate, is redeveloping Asia's densest slum Dharavi in Mumbai.

One of Sahara's marquee properties is a 9,000-acre luxury township - Aamby Valley - situated near Mumbai, which includes an airstrip, golf course, man-made lakes, and luxury villas. A source with direct knowledge of Adani's planning said the Sahara portfolio would give it access to a huge land bank, as the list of properties includes land parcels.

It also helps Adani get into hospitality as the luxury hotel Sahara Star is also included in this, and so is Aamby Valley. The acquisition would significantly expand Adani's real estate footprint and diversify its portfolio, potentially opening new revenue streams in the hospitality and residential sectors.

The move underscores Adani's strategic focus on expanding its real estate business, which, despite its size, has the potential to become a significant contributor to the group's overall revenue. The acquisition of these assets could also help Adani gain a competitive edge in the rapidly growing Indian real estate market.

The Supreme Court's decision will be closely watched by investors and industry observers, as it could set a precedent for future acquisitions and restructuring in the Indian real estate sector. The court's next hearing on the case is scheduled for November, and the outcome could have far-reaching implications for both Adani and Sahara.