The JLL Property Consultants informed the Maharashtra State Road Development Corporation (MSRDC) that of the three bidders for the redevelopment of the 24-acre Bandra Reclamation project, Larsen & Toubro is financially far stronger than Adani Realty and Mayfair Housing. JLL serves as MSRDC's worldwide property consultant.
The JLL Property Consultant is analysing the three bidders' technical and financial capacities. JLL consultants requested additional time to finish the technical evaluation prior to turning in their final report during a meeting on February 12.
It seems, though, that the battle will ultimately come down to Larsen & Toubro and Adani Realty. Mayfair Housing is "financially weaker" than the other two, according to media reports. They will have to withdraw from the competition. MSRDC vehemently insisted that Mayfair Housing hasn't pulled out as of yet.
Tough requirements were outlined in the tender document for the MSRDC bidding process, one of which was the difficult requirement that the bidder have a minimum consolidated net worth of at least INR 15,000 crore on March 31, 2023. The majority of developers are unable to satisfy this requirement as a single entity.
Recall that eighteen premier players, including Godrej Properties, Adani Realty, Sunteck Realty, K Raheja Corp., L&T Realty, Wadhwa Group, Runwal, Oberoi Realty, Lodha, Sattva, Phoenix Realty, Sahana Group, JSW, Mahindra Lifespaces, Wellspun, and Sumitomo, were present at the pre-bid meeting hosted by JLL three weeks prior.
The Bandra Reclamation plot is being redeveloped, and just three major players—Adani Realty, Larsen and Toubro, and Mayfair Housing—have replied to the MSRDC's invitation to submit an online bid on February 7.
Numerous others, who wished to remain anonymous, questioned the tendering process's qualifying requirements during the meeting. Serious concerns were raised when some of the industry's best builders said that the bids were "tailor-made for a select few" and that MSRDC preferred "one or two big developers."
Kailas Jadhav, Joint MD of MSRDC, said the developer offering the highest percentage of revenue will "be the obvious choice" because the bids were based on a revenue-sharing plan. It will be challenging for the largest among them to adhere to these standards. One or two builders will only be able to take advantage of this chance if a financial requirement of having a net worth of INR 15 crore is met by one firm.
Under the condition of anonymity, another builder stated that the rules are strict because the developer must pay the MSRDC INR 8,000 crore over a nine- to-fourteen-year period.
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