Kochra Realty acquires Rs 700 crore stressed residential project in Mumbai’s Dahisar

Realty developer Kochra Realty has taken over a Rs 700-crore stressed residential project that has been delayed for long in Mumbai’s Dahisar suburb. The company is planning to revive the stalled project and is aiming to deliver it completely by early 2025.

The project with nearly 600 homebuyers was earlier being developed by Ashapura Housing and was financially supported by an alternate investment fund. Kochra Realty has taken over the debt and has acquired the redevelopment project with a total five towers from the earlier developer.

Following the project’s acquisition, around 384 apartments out of the total inventory are expected to be delivered by the end of this year and the homebuyers of the remaining apartments across two towers will be provided possession by early 2025.

“It is a large project with hundreds of homebuyers and their families invested in. As a developer that primarily focuses on stuck projects and distressed assets, our aim for now, is to deliver a maximum number of units to 384 homebuyers in the next few months with our tested advanced processes,” Ali Kochra, Director, Kochra Realty, told ET.
According to estimates, the project with a topline of Rs 700 crore needs a total investment of around Rs 215 crore for its completion.Kochra Realty focusses on acquiring stressed and stalled projects with the objective of turning them around at a faster pace to ensure delivery and superior returns. It has already started such projects in Mumbai’s western suburbs including Bandra and Andheri. Currently, the developer is working on a project pipeline of 6-7 such projects.Stressed and stalled real estate projects have been a key concern not only to homebuyers but also to financial institutions that have extended debt to such projects. The lenders are now increasingly looking to resolve the issue by bringing in a capable developer to ensure the project’s completion.So far, large-sized projects facing stress have found suitors and many such deals have taken place over the last few quarters including Prestige Group taking over several DB Realty projects and Lodha Group acquiring Rajesh Lifespace’s projects in Kandivali.

With an exception of the government-backed last-mile financing platform Special Window for Completion of Affordable and Mid-Income Housing Projects (SWAMIH), mid-sized stalled projects have not found many takers.

During Covid 19 pandemic, financial institutions and bankers recommended that bigger developers should come to the rescue of smaller developers’ stressed projects. Post that, branded developers or distressed asset financiers began to bridge the gap and finance such projects. Ends