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The new developer will be now be responsible for the execution of the mixed-use project led by premium residential development. Labdhi Lifestyle will be investing over ₹200 crore to develop the project including repayment of debt raised from both the lenders.
With this acquisition, Labdhi will be the lead developer of the project to be now known as Labdhi Searene, while Rajesh LifeSpaces makes a complete exit. Of the financial partners, JM Financial has already been provided an exit, while Mirae Asset will be repaid in the next few days.
The project is spread over a 1.25-acre land parcel with a total development potential of 2 lakh sq ft carpet area across residential, commercial, and retail spaces. The total development is expected to be completed in 2 years and is estimated to have revenue potential of a total ₹600 crore. Rajesh LifeSpaces had conceived the project in 2012 and started the development in 2016, however, financial difficulties led to delay in execution. The development is part of a slum rehabilitation project and Rajesh LifeSpaces has already completed the rehabilitation portion.
“We are trying to build an ecosystem where Labdhi Lifestyle can take over such projects with revenue visibility and turn them around with the help of its execution capability and balance sheet strength,” Vikas Jain, CEO, Labdhi Lifestyle, told ET.
This is Labdhi Lifestyle’s second acquisition of a stressed project in Mumbai. The developer acquired a similar project spread over three-fourth of an acre in central Mumbai’s Wadala locality in January 2020 before the outbreak of Covid-19 pandemic. In this project, the company has executed both the rehabilitation and free-sale component.
The Wadala project with 1 lakh sq ft of carpet area and revenue of ₹220 crore has been 85% completed. With nearly 90% sales concluded, it is expected to be delivered by the end of 2023, Jain said.
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