Mumbai, June 30 -- Adani Airport Holdings will invest Rs 200 billion (Rs 20,000 crore) in the first phase of developing airport cities across six airports as part of a strategy to convert aviation assets into integrated commercial and urban hubs and to diversify revenues beyond the core airport business. The investment will be channelled through Adani Airport City, a wholly owned subsidiary, which will lead planning, development and partnerships for the new districts.
The programme covers 655 acres across Mumbai, Navi Mumbai, Ahmedabad, Lucknow, Jaipur and Guwahati and will focus on mixed use development. The initial stage is expected to deliver around 22 mn sq ft of commercial real estate comprising hotels, office space, retail, entertainment, convention centres and other lifestyle infrastructure. Nearly 70 per cent of the investment will be directed to Mumbai and Navi Mumbai, where the group holds about 440 acres.
Projects are being designed as integrated, walkable districts linked to airports, Metro networks and city transport systems, following an airport city model seen at global hubs such as Singapore Changi, Dubai International, Amsterdam Schiphol and Seoul Incheon. The company indicated that successful airport districts around the world have become centres of commerce, tourism and urban growth and that India's expanding aviation market offers an opportunity to create value beyond aviation. It said the developments would generate investment, employment and sustained economic activity around the airports while improving the passenger experience.
As part of the initiative, Adani Airport City has signed hotel management agreements with IHG Hotels & Resorts to develop five premium and luxury hotels and to introduce the Kimpton brand to India, and it is in discussions with domestic and global partners across hospitality, food and beverage, retail and entertainment. All projects have received LEED Gold pre certification from the US Green Building Council, signalling a focus on sustainable and energy efficient urban development. AAHL, India's largest private airport operator, manages eight airports and regards airport cities as a central pillar of long term growth.
Published by HT Digital Content Services with permission from Construction World.