Kotak Investment Advisor Ltd (KIAL) has agreed to invest Rs 450 crore in Supertech’s stuck project in sector 94, Noida. The company will also pay Rs 310 crore to existing lenders, to resume the construction work of the project, which is marred with delays.
The 5 million sq ft project is 50% completed and includes tallest residential tower of NCR.
Once completed, the project has a revenue potential of more than Rs 7,000 crore.
Noida authority, which has to recover dues of Rs 3,319 crore from the project, has asked KIAL to deposit Rs 50 crore with the authority and an agreement will be done between Supertech, KIAL and Noida authority to open an escrow account.
“We decided to bring Kotak in Supernova for repayment to existing lenders and funding to complete construction. Kotak’s proposal is approved by the board of Noida authority, where land dues will be cleared through escrow account. Kotak will pay Rs 310 crore to existing lenders to give them exit,” said Supertech chairman R K Arora.
According to Noida authority, the 70,000 sq metre plot was allotted to the Supertech group in March 2011, and the developer has dues of Rs 3,319 crore till May 2024.
KIAL had requested the authority to start giving NOC for map and registry so that the buyers can start paying the balance amount.
“KIAL will get a third party audit done of the project. The financial audit should include the receivable from sold and unsold units. The amount generated from sale and registry will go to the escrow account. Once KIAL deposit the Rs 50 crore payment, we will start the registry process and sanction the revised map,” Noida authority has said in a statement.
Supernova project has four towers – Spira, the Iconic Tower, which is India’s tallest mixed use development of 80 floors standing at 300 meters, Nova East, Nova West and Astralis tower.
While majority of the residential units are delivered, the builder has to construct a mall and serviced apartment.
The revival will help Supertech to restart other projects as well which are stuck for last many years.
The Noida-headquartered real estate developer has to deliver over 15,000 homes.
Supertech’s total liabilities including dues to banks and development authority amount to about Rs 8,000 crore, while project receivables from both launched and yet-to-be-launched projects exceed Rs 14,000 crore, making the projects’ net worth positive.
The company has already submitted a proposal to the Uttar Pradesh government for the revival of the company.It is in the process of selling some land parcels to provide an exit for lenders and using the remaining funds to expedite construction on stalled projects.
