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The project named ‘Harbour Heights’ is being developed on 10 acres of land (7.5 football grounds) on P D’mello Road at Mazagon. It will house four high-rise residential towers and a mall.
Standard Chartered Bank Monday invited offers for its ₹569 crore debt, which includes ₹305 crore principal loan and ₹264 core interest charged on that loan, according to a notice inviting asset reconstruction companies (ARC) to bid for the project.
The bank has set a reserve price of ₹230 crore, it added. The bank has invited expressions of interest from ARCs by November 6.
Radius Sumers Developers is a special-purpose vehicle (SPV) jointly formed by Sanjay Chabaria promoted by Radius Group and Sumer Buildcorp. The total project cost is estimated at ₹1,683 crore, funded by term loans of ₹600 crore, promoter contribution of ₹368 crore and advances from customers of ₹715 crore, according to a rating report by Brickworks dated December 2, 2022.
The total cost incurred on the project until April 2019 was ₹1,057 crore (including land and land development expenses), the same rating report stated.The company defaulted on ₹600 crore loans given by Standard Chartered Bank at ₹325 crore and PNB Housing Finance at ₹275 crore, the rating report stated. The project has a saleable area of around 1 million sq ft and was initially estimated to complete by December 2025, however it has not progressed as per the timeline. In 2005, Summer Buildcorp acquired the land at Mazgaon, and in 2014 Radius Group approached Sumer for joint development of the project.The sale of loans comes when the lender and the corporate are negotiating a settlement. The British bank has petitioned the Mumbai National Company Law Tribunal to admit the real estate developer for corporate insolvency.
At a hearing on September 13, the legal counsel of Radius and Standard Chartered Bank informed the tribunal that both parties were negotiating a settlement and requested additional time to close the deal. The tribunal has yet not updated the details of the next hearing on its website.
In the previous hearing on August 8, Radius requested additional time for settlement while informing the tribunal that they had offered their own house as collateral to give comfort to the financial creditor, according to the NCLT website.
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