Indian Billionaire Seeks $11 Billion Slum Redevelopment

Indian billionaire Gautam Adani is eyeing a high-profile slum in Mumbai for his next redevelopment project.

Adani is looking at turning the Dharavi slum — made famous by the Oscar-winning film “Slumdog Millionaire” — into a modern Mumbai township to the tune of more than $10 billion, Bloomberg reported. The shipping, electricity and construction magnate won the right to develop the land from the government.

Using his Navbharat Mega Developers company, Adani will develop 151 acres of Dharavi’s 641 acres to rehouse residents, which is expected to cost the firm $11 billion over seven years. Another 118 acres is able to host offices and apartments that will be sold on the open market, with the rest allocated to public infrastructure, according to Bloomberg.

In total, Adani may be able to develop between 21 million and 60 million square feet of property and sell it on the open market. At about $232 per square foot, it could generate as much as $14 billion in revenue for Navbharat, in which Adani holds an 80 percent stake, with the rest owned by the state government.

Applying the industry-average profit margin of 25 percent, the project would net up to $3 billion for Adani.

“Mumbai holds a pivotal place in our growth strategy, both as a real estate market and as a city of global significance,” Pranav Adani, Adani Realty managing director and Gautam Adani’s nephew, told Bloomberg. “Dharavi represents more than just a redevelopment initiative. It is a chance to reimagine inclusive urban living at an unprecedented scale.”

Adani Realty has also been reviving stalled projects in Mumbai such as the development of a 15-tower apartment complex near the Bandra Kurla Complex, the city’s main business hub. The $530 million project, now called “Ten BKC,” got $50 million in new funding to restart construction.

In the past two years, Adani Realty has secured government contracts for other projects in Mumbai, including a $4.1 billion housing development in the north of the city and a $3 billion residential and commercial complex in the upscale Bandra West neighborhood.

Adani has been investing in real estate for decades and has helmed the development of projects including a country club and township in Ahmedabad and luxury towers in Mumbai through his Adani Realty arm. With a net worth of nearly $67 billion according to Forbes, Adani is the second-richest person in Asia today.

— Chris Malone Méndez