To finish a housing project in Greater Noida that has been stalled, the Hawelia Group intends to invest Rs. 750 Cr.
In order to finish a 22-acre housing project in Greater Noida at an estimated cost of Rs 750 crore, real estate business Hawelia Group has applied for co-promotional status with the Uttar Pradesh government.
The Delhi-based Hawelia Group, which has already finished two residential projects in Greater Noida West’s Noida Extension, has reached an agreement with the project’s current promoter to finish SJP Infracon’s “Shri Radha Sky Gardens,” which has been in limbo.
Around 2,800 units still need to be finished, and up to 1,200 homes have already been delivered.
“Delhi-NCR, particularly Noida and Greater Noida, has a large number of abandoned projects. We have asked the state government and the development authorities in Noida and Greater Noida to draft a co-development strategy, according to Hawelia Group MD Nikhil Hawelia.
According to him, the state government and authorities are thinking about implementing a co-development strategy and approving this project on a trial basis.
According to Hawelia, the firm has asked the state government for permission to become a co-promoter in the abandoned project that was started in 2011, since doing so would allow it to complete the project’s financial closure by obtaining funding from banks and other financial organizations.
He provided information on the halted project and said that there are around 2,850 units remaining to be finished and handed over to clients, of which 850 have been sold and roughly 2,000 have not.
Regarding the financial ramifications, Hawelia said that the firm would need to pay off land debts of between Rs 175-200 crore, as well as Rs 20 crore to different suppliers and Rs 65 crore to banking institutions.
Aside from that, he said that the project’s anticipated construction cost is Rs 450 crore, bringing the total investment to around Rs 750 crore.
Hawelia said that the business will provide some early funding to the project in order to get the building process started. This project might be finished with the support of construction financing and unsold apartment income.
If we were to join up with another developer to finish this abandoned housing project, the average price realisation of the unsold units would rise dramatically, he said.
Homebuyers, the Greater Noida Authority, financial institutions, suppliers, the current promoter and the new co-developer would all benefit, he said.
A number of builders, notably Jaypee Infratech, Unitech, and Amrapali, have defaulted on delivery of their residential and commercial projects, causing the Delhi-NCR real estate market to be plagued with postponed developments. These delayed developments have thousands of homebuyers trapped inside.
Many customers in Noida and Greater Noida already have ownership of their apartments, but registrations are being delayed because developers have not paid their land debts to the development authority. While buyers continue to live in their unregistered apartments, the state government loses money on stamp duty.
