Alpha Corp to invest Rs 500 crore in three stuck projects of Earth Infrastructure following the National Company Law Tribunal’s approval of the real estate developer’s resolution plan.
The NCLT had approved the plan earlier this month, offering a glimmer of hope to more than 1,000 homebuyers who have been stuck in the projects since 2015.
“We understand that investment in residential spaces not just involves hard-earned and lifetime savings of the buyers but it also encompasses an emotional value attached with the security of having a home,” Alpha Corp CEO Ashish Sarin told ET. “Protection of a buyer’s interest has always been our topmost priority and we have always stepped in to complete and deliver stalled projects to maintain investors’ trust in the market.”
According to the NCLT order, a copy of which has been seen by ET, the insolvency process had started in June 2018. Five projects of Earth Infrastructure were stuck and the NCLT had allowed bidders to submit separate resolution plans for each project instead of asking them to submit one plan for the company.
“We will need Rs 150 crore to start the project and for that we will approach the banks and SWAMIH fund. The project will be completed in the next three-five years,” said Santosh Agarwal, chief financial officer, Alpha Corp.
The company has taken over three projects – Earth Copia, Earth Sapphire and Earth Techone.
Earth Copia is a residential project on Dwarka Expressway in Gurgaon with more than 600 flats while Earth Techone is a commercial project on Yamuna expressway with a development capacity of 2 million sq ft.
Earth Sapphire is a commercial and retail project, spread over 1.5 million sq ft, where 60% of the work has been done.
“The residential real estate is now completely a buyer’s market and customer centricity has taken the centre stage. We are confident of completing the stalled projects,” said Agarwal.
The resolution plan along with the scheme submitted by Alpha Corp has been approved by the committee of creditors with a majority of 99.97%. The NCLT rejected the objection raised by HDFC Bank against the resolution plan.
Alpha Corp plans to invest nearly Rs 1,000 crore in reviving 10 stuck projects in Delhi-National Capital Region. With the help of the buyer associations in these projects, the company had submitted bids in the Delhi High Court and the NCLT.
According to property consultant Anarock, NCR has 292 projects comprising about 190,110 units launched by 2013 that were stuck or delayed at the end of 2020. These projects are worth more than Rs 1,19,291 crore.
