Realty firm Supertech Ltd on Saturday said the company plans to sell its four commercial assets at Meerut and Haridwar for an estimated Rs 1,000 crore, as part of its efforts to expedite construction in existing projects and repay debt.
The company had put these commercial assets on sale a few years ago but could not succeed as the hospitality and retail sectors were badly impacted during the COVID pandemic.
In a statement, Noida-based Supertech Ltd said that the company has put its assets -- shopping malls and hotels -- in Meerut and Haridwar on sale with the "target of raising funds to the tune of Rs 1,000 crore."
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In Meerut, Supertech has one shopping mall and one hotel and in Haridwar, the realty firm has one shopping mall and one hotel.
On June 10, the National Company Law Appellate Tribunal (NCLAT) ordered starting of insolvency proceedings in only one of the housing projects of realty firm Supertech Ltd and not the entire company, and directed constitution of the Committee of Creditors for the said project only.
A two-member NCLAT bench limited the Corporate Insolvency Resolution Process (CIRP) to only "Eco Village II Project" located at Greater Noida (West).
Post NCLAT Order, Supertech said the company has resumed operations in large scale at all projects, which earlier remained suspended due to uncertainty after the NCLT order.
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On March 25, the Delhi bench of the National Company Law Tribunal (NCLT) had ordered to initiate the insolvency process against Supertech Ltd over a petition filed by the Union Bank of India for non-payment of dues of around Rs 432 crore.
However, this was challenged by Supertech promoter R K Arora before the NCLAT.
Arora said in the statement that the NCLAT has also allowed the company to settle with creditors most of whom are banks and private equity funds whose repayment was affected due to the recession after COVID-19.
To achieve this, he said the company has put few commercial assets on sale.
"Further, several investors have shown keen interest in investing as interim funding in the projects of the company and it has been able to sign term sheets for investment worth Rs 50 crore and more are in the pipeline," Arora said.
He claimed that the company has been able to give delivery of 923 units in different projects since the date of NCLAT order.
Supertech said it has been able to collect about Rs 25 crore against receivables from customers since the NCLAT order and the target is to collect Rs 100 crore per month in next 3 to 4 months from existing homebuyers.
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"... All efforts are being put to speed up and complete construction and deliver units to allottees at the earliest," Arora said.
According to property consultant Anarock, homebuyers who booked flats in housing projects in the Noida-Greater Noida property market are worst affected, with over 1.65 lakh flats worth Rs 1.18 lakh crore currently stalled or significantly delayed in these two cities.
In its research, the consultant has taken only those housing projects that were launched in 2014 or before.
Thousands of homebuyers are stuck in projects of Jaypee Infratech, Unitech and Amrapali -- the three major defaulting companies in the Delhi-NCR market.
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