Adani Enterprises Limited (Adani Group) plans to bid for the bankrupt Jaiprakash Associates Limited vast apartment complexes, villas and golf courses in the National Capital Region, making a grand entry into the country's biggest property market through the insolvency court.
Adani may spend up to $1 billion for the real estate assets of Jaypee, the country's biggest bankruptcy case involving more than INR 500,000 million in bank loans. The transaction, if successful, will expand the conglomerate's real estate business four-fold.
This will be part of a "planned packaged offer" to the lenders in the insolvency proceedings of Jaiprakash Associates Ltd, the of Jaypee Group. Adani has already planned to bid for Jaypee's cement assets. "As a resolution package, Adani may offer around INR 150,000 million in total to the lenders to take over two businesses of Jaypee Group-real estate and cement.
Jaypee Group's realty assets range from premium golf-centric residences to sprawling townships. The 452-acre Jaypee Greens township in Greater Noida offers luxury villas and apartments with golf courses, parks and lakes, a sports complex, a 60-acre nature park and a 5-star Spa resort in collaboration with Thailand's Six Senses Spa.
Jaypee Greens Wish Town Noida is a 1,063-acre township with villas, high-rise apartments, penthouses and commercial shops, a golf facility, a 500-bed super-specialty Jaypee Hospital and a school.
The synergies (between Adani and Jaypee) are high, but the deal is at a planning stage. There could be significant changes in the plan, depending on the creditors' demand.
