In one of the largest debt resolution exercises, the developer has also entered into a Rs 545 crore agreement with vendors including contractors to barter future construction work related dues against the inventory, taking the value of this inancial restructuring to over Rs 1,100 crore.
Interestingly, this is the first such restructuring in the country wherein stakeholders including financier, homebuyers and vendors have come together to resolve the financial hurdles for the project that had run to rough weather last year.
The project, one of the biggest residential developments in Mumbai, was scheduled to be delivered back in 2018 but has been facing uncertainty since mid-2019. The development was hit by a major cash flow challenge post NBFC crisis coupled with a bearish market and onslaught of Covid19 pandemic and had put the fate of around 1,000 homebuyers in limbo.
The combined efforts of all stakeholders have saved the project from getting entangled into any legal imbroglio that could have put a question mark on the project’s future as was seen in other major cases such as Amrapali and Jaypee Infratech.
As part of the rescheduling, Indiabulls Housing Finance has also received mortgage of an additional 5-acre plot from the company. The developer had drawn Rs 600 crore from Indiabulls Housing Finance out of Rs 1,000 crore sanctioned loan.
ET’s email queries to Indiabulls Housing Finance and Omkar Realtors remained unanswered until the time of going to press.
Following the restructuring with all stakeholders, the developer now aims to complete and deliver two towers in Alta Monte consisting of around 830 apartments including unsold inventory and 580 apartments in new project Signet within the revised RERA timelines. The first phase of the project with two towers was already delivered three years ago.
The Rs 5,000-crore, four-towered redevelopment project, designed as the city’s tallest residential towers bunched together, had also added another mid-income residential project Signet in its 5-acre plan in mid-2017. The projects’ second phase of completion consisting of 990 apartments holding a market value of over Rs 2,000 crore had run into issues despite achieving a financial closure.
While the developer has already delivered two of the four towers in Alta Monte in 2018, remaining towers and the new project with around 580 apartments in the same layout will now be delivered starting mid-2021 as per the revised RERA timeline. One of the towers The new project Signet was fully sold out with a balance around 10% inventory now earmarked for construction barter agreement.
Omkar Realtors, which is known for slum rehabilitation projects in Mumbai with some of the prime land parcels in the city, has been working on new business structures to reduce risk and overcome funding challenges. It has entered into alliances with Godrej Properties, L&T Realty and Piramal Realty for jointly developing major redevelopment parcels across Mumbai.