Latest News | Hawelia Group Plans to Invest Rs 750 Cr to Complete Stalled Housing Project in Gr Noida; Seeks State Govt Nod
Get latest articles and stories on Latest News at LatestLY. Realty firm Hawelia Group plans to take over a 22-acre stalled housing project in Greater Noida and complete it with an estimated cost of Rs 750 crore, and the company has approached the Uttar Pradesh government seeking approval to become a co-promoter.
New Delhi, Aug 21 (PTI) Realty firm Hawelia Group plans to take over a 22-acre stalled housing project in Greater Noida and complete it with an estimated cost of Rs 750 crore, and the company has approached the Uttar Pradesh government seeking approval to become a co-promoter.
Delhi-NCR based Hawelia Group, which has completed two residential projects in Noida Extension (Greater Noida West), has entered into an understanding with the existing promoter of the stalled project of SJP Infracon's 'Shri Radha Sky Gardens' for completion of this project.
As many as 1,200 flats have already been delivered and about 2,800 apartments are yet to be completed.
"There are many stalled projects in Delhi-NCR, especially Noida and Greater Noida. We have proposed to the state government as well as Noida and Greater Noida development authorities to come up with a co-development policy," Hawelia Group MD Nikhil Hawelia said.
The state government and authorities are considering introducing co-development policy and approve this project on pilot basis, he said.
Hawelia said the company has sought approval from the state government to allow it to become a co-promoter in the stalled project, which was launched in 2011, as this would enable it to do financial closure of the project by raising funds from banks and other financial institutions.
Giving details about the stalled project, he said there are around 2,850 flats -- 850 sold and about 2,000 unsold -- to be completed in this project and handed over to customers.
On financial implications, Hawelia said the company would require to clear Rs 175-200 crore land dues to the development authority, Rs 20 crore to various vendors and Rs 65 crore to financial institutions.
That apart, he said the estimated construction cost to complete this project is Rs 450 crore, taking the total investment to around Rs 750 crore.
To fund this project, Hawelia said the company would put in some initial fund to kickstart the construction work. The revenue from unsold flats and construction finance would help in completing this project.
"The average price realisation of the unsold flats would increase significantly if we come as a co-developer to complete this stalled housing project," he said.
"It will be a win-win situation for all stakeholders -- homebuyers, Greater Noida authority, financial institutions, vendors, existing promoter and new co-developer," he added.
Delhi-NCR property market has been plagued with stalled projects with several builders, including Jaypee Infratech, Unitech and Amrapali, defaulting in deliveries of their residential and commercial projects. Lakhs of homebuyers are stuck in these stalled projects.
A large number of buyers have got possession of the flats in Noida and Greater Noida but registrations are not happening because developers have not cleared their land dues to development authorities. The state government is losing on stamp duty revenue while buyers are staying in their unregistered flats.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)