In case of Omkar’s Alta Monte & Signet projects, lead lender Indiabulls Housing Finance has rescheduled a Rs 600-crore project loan.
Mumbai-based redevelopment firm Omkar Realtors in conjunction with leading private lending institutions Indiabulls and Yes Bank and cooperation from its 3,000-strong customers have put three of its struggling mega residential projects back on track.
The projects with a topline of over Rs 8,000 crore, namely Alta Monte, Signet and Lawns & Beyond located in city’s prime micro-markets had been bogged down by liquidity crisis, sluggish demand and covid-induced operational challenges since mid-2019. After a year-long hiatus, construction work at all the three sites has resumed in full swing.
While both the lenders combined have a Rs 1,400 crore financial exposure in these projects, the projects still enjoy a healthy Rs 2,350 crore internal accruals status on its books along with a Rs 500-crore unsold inventory. In addition, the developer has successfully put together a high volume barter agreement for construction work for its flagship Alta Monte and Signet projects.
In case of Omkar’s Alta Monte & Signet projects, lead lender Indiabulls Housing Finance has rescheduled a Rs 600-crore project loan. The Rs 1,100-crore resurrection exercise excluding internal accruals from more than 1410customers is the first of its kind exercise to safeguard a mega project from getting caught up in legal uncertainty.
Alta Monte, located in Malad, was as western suburbs tallest residential towers bunched together. The Rs 3,500 crore plus four-towered redevelopment project had also added another low-ticked sized residential offering namely Signet in its 5-acred outlay in 2018.
While, Alta Monte launched in December 2012, delivered its phase 1 of two residential towers three years ago, work on the remaining two towers in phase 2 consisting of 830 apartments holding a market value of approx. Rs 2,400 crore was delayed. The company has already sold more than 500 units. One of the remaining towers (Tower D) is expected to be delivered by May-June 2021.
The Signet (580 units) project located in the same compound was launched in mid-2018 and its revised RERA timeline for completion stands at December 2022. The project was fully sold out with approx. 10 per cent of the inventory earmarked for construction barter.
From its combined Alta Monte and Signet projects, the company will be garnering from its customers an estimated amount of approx. Rs 825 crore from internal accruals and sales revenue of Rs 500 crore plus from its unsold inventory apart from introducing fresh sales inventory in the near future. With construction on track, the company is currently witnessing encouraging sales response in the market.
Even in the case of company’s Lawns & Beyond, another mega residential project, located in the western suburbs of Mumbai, the lead banker Yes Bank based on project feasibility and other due diligence parameters backed the project. The bank has a Rs 800-crore commitment in this project.
Lawns & Beyond, launched in December 2017, is part of company’s 65-acre land bank inventory located adjacent to Andheri east highway, entailing rehabilitation of slum pockets and construction of 11 free-sale residential towers spanning 7.5 acre space. The project’s phase 2 inventory which has been sold out includes 400 residential units taking the combined project inventory to 1469 nos. Close to 90% of the inventory stands sold.
While, construction activity at this project was halted in January 2020 and recently revived in October 2020, the management is now confident of meeting its provisional delivery deadline (RERA) by September 2022 post leveraging the 6-month covid extension.
Omkar has prioritised to channelize internal accruals towards project development. The project enjoys a health internal accruals book of approximately over Rs 1550 crore from its 1400 customers who have extended their cooperation to adhere to the timely payment schedule. The inventory consists of 1/2 BHK units with the ticket size ranging from Rs 93 lakh onwards.
Source: IANS
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)
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