Kochra Realty, a real estate firm, has taken over a long-delayed residential project in Mumbai's Dahisar suburb worth Rs 700 crore. The company plans to revive and complete the project by early 2025, bringing relief to nearly 600 homebuyers. Ashapura Housing previously managed the project but encountered financial difficulties. Kochra Realty has assumed the project's debt and ownership, with the aim of delivering 384 apartments by the end of this year, while the rest will be ready by early 2025. This move aligns with the trend of established developers rescuing stalled projects to ensure their completion.
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Kochra Realty, a prominent player in the real estate sector, has assumed control of a long-delayed residential project in the Dahisar suburb of Mumbai, valued at a substantial Rs 700 crore. The company is gearing up to breathe new life into this stagnant project, aiming to deliver it in its entirety by early 2025, much to the relief of nearly 600 prospective homeowners who have been eagerly waiting.
Ashapura Housing initially led the project with financial backing from an alternate investment fund. However, financial challenges arose, compelling Kochra Realty to intervene and take over the project. The real estate developer has taken over the project's debt and assumed responsibility for the redevelopment, which includes a total of five towers previously managed by another developer.
This strategic acquisition is expected to result in the delivery of approximately 384 apartments from the project's total inventory by the end of this year. The remaining apartments spread across two towers will find their rightful owners by early 2025, marking a significant milestone in the project's revival.
Kochra Realty specializes in revitalizing stagnant projects and distressed assets, and for this venture, the developer is committed to leveraging its proven advanced processes to deliver a maximum number of units to 384 homebuyers in the coming months.
The estimated investment required to complete the project successfully stands at approximately Rs 215 crore. Kochra Realty's expertise lies in acquiring and reinvigorating troubled and stagnant projects, with a strong track record of ensuring timely delivery and generating favourable returns. The developer has already embarked on similar initiatives in Mumbai's western suburbs, including Bandra and Andheri, and currently maintains a project pipeline consisting of 6-7 ventures, all aimed at breathing new life into dormant assets.
Stressed and stalled real estate projects have posed significant challenges, not only for homebuyers but also for the financial institutions that have extended debt to support such projects. Lenders have been actively seeking solutions, often by enlisting capable developers to oversee these projects through to their successful completion.
In recent times, several large-scale projects grappling with financial difficulties have found suitable candidates to take over, underscoring the industry's commitment to addressing these issues. For instance, the Prestige Group assumed control of numerous DB Realty projects, while the Lodha Group acquired projects previously managed by Rajesh Lifespace in Kandivali. Although government-backed initiatives like the Special Window for Completion of Affordable and Mid-Income Housing Projects (SWAMIH) have provided a lifeline to larger projects, mid-sized and smaller stalled endeavours have faced challenges in attracting investors.
In response to the disruptions caused by the Covid-19 pandemic, financial institutions and bankers have called on established developers to support smaller developers facing project challenges. In line with this directive, branded developers and financiers specializing in distressed assets have stepped in to bridge the gap and support these projects, demonstrating the industry's adaptability and resilience in the face of adversity.
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