Kotak Invests in Revival of Supertech Stalled Project in Noida
Kotak Investment Advisors Ltd (KIAL) has committed to investing Rs 450 crore in Supertech stalled project in Noida, Sector 94. This investment aims to resume construction on the 5 million sq ft development, which is currently 50% completed and includes the tallest residential tower in the National Capital Region (NCR). Additionally, KIAL will pay Rs 310 crore to existing lenders to facilitate the continuation of the project, which has faced significant delays.
The Noida Authority, which is owed Rs 3,319 crore by the project, has requested KIAL to deposit Rs 50 crore. An agreement will be established between Supertech, KIAL, and the Noida Authority to open an escrow account. This account will manage the funds generated from the sale and registry of units, ensuring that land dues are cleared. Supertech Chairman R K Arora stated that Kotak’s involvement is crucial for repaying existing lenders and funding the project’s completion. The Noida Authority has approved Kotak’s proposal, which includes the clearance of land dues through the escrow account.
The Supernova project, which spans a 70,000 sq meter plot allocated to Supertech in March 2011, consists of four towers: Spira, the Iconic Tower (India’s tallest mixed-use development at 80 floors and 300 meters), Nova East, Nova West, and Astralis Tower. While most residential units have been delivered, a mall and serviced apartments are yet to be constructed. The revival of this project is expected to enable Supertech to restart other stalled projects, benefiting the delivery of over 15,000 homes.
Supertech’s total liabilities, including dues to banks and development authorities, amount to approximately Rs 8,000 crore. However, project receivables from both launched and upcoming projects exceed Rs 14,000 crore, indicating a positive net worth. The company has submitted a revival proposal to the Uttar Pradesh government and is in the process of selling some land parcels to provide an exit for lenders and accelerate construction on stalled projects.
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