Real estate developer Prestige Estates Projects has won the highest bid for the bankrupt and stagnant Ariisto Developer real estate project in the Mulund, suburb of Mumbai.
Under the terms approved by NCLT Mumbai, Prestige will pay around Rs 369 crore to creditors of the project. Along with 8 lakh square foot non-residential space to be built up as part of the project for creditors.
The company’s guaranteed lenders include HDFC, Piramal Capital, and India Infoline. Apart from these, it also has other unsecured lenders and over 500 home buyers.
The total receivables from lenders and other stakeholders, including creditors and operational creditors, amount to Rs 2,500 crore. NCLT acknowledged and started liquidation proceedings over the developer in November 2019.
Venkat K. Narayana, Prestige CEO, confirmed this news, saying the NCLT court in Mumbai announced this decision on Tuesday. The potential revenue from this project expected to be about Rs 10,000 crore with an area of total 7.5 million square feet. We start the first phase of the project in May and the second in December. Out of 32 acres of land, Ariisto Developer has formed a joint venture with a local landlord for development. At the same time, some of the vacant land was acquired by the company alone.
The site land also contained part of the slum, the company carried out part of the project in the form of rehabilitation work approved by the Slum Rehabilitation Authority (SRA).