Gurugram-based realty firm Alpha Corp will invest around Rs 900 crore to complete three stalled projects of Earth Infrastructure that it acquired through the insolvency process, a senior company official said. The three projects, comprising a developable and saleable area of around 4.5 million sq ft, are located in Gurugram and Greater Noida.
“We have acquired three projects of Earth Infrastructure which were stalled. Buyers have already paid around 70 percent of their money but did not get their units,’ Alpha Corp CFO and Executive Director Santosh Agarwal told PTI. These projects were launched during 2010-12, but not completed in the stipulated time period. ‘As per our estimate, the total investment required to complete these projects is around Rs 900 crore,” Agarwal said. Alpha Corp expects around Rs 300-350 crore collections from existing buyers, he said.
“We will invest the remaining amount of around Rs 500 crore through a mix of equity and debt to complete these projects over the next 4-5 years,” Agarwal added. Asked about the financial viability of these projects, the CFO said the company estimates that around 30-40 percent of the total 4.5 million sq ft saleable area should be unsold. ‘We expect the realization of around Rs 1,100 crore from these projects including receivables from customers against sold units and sales value of unsold stocks,’ Agarwal said. Alpha Corp’s team is currently compiling and verifying the data of sold and unsold units in these three projects.
Agarwal said the works should start in these projects within 6-9 months, subject to approvals from various development authorities. Approximately 2,900 units are to be developed in these projects. Ananta by Alpha Corp ( erstwhile Earth Copia) – Sector 112, Gurugram is a housing project launched in February 2011; Earth Sapphire Court, Greater Noida, is a commercial project launched in July 2010; and Earth Techone, located on Yamuna Expressway in Greater Noida, is a mixed-use project launched in June 2012.
Agarwal pointed out that the Gurugram project is only 30-40 percent complete, while Greater Noida projects is 60-70 percent complete. The project on Yamuna Expressway is only 20-30 percent complete. Agarwal said the insolvency process started in June 2018 Submission of separate resolution plans was allowed to each project as per the National Company Law Tribunal (NCLT) order, he added. Agarwal said the company is looking to acquire more stalled projects in the NCR and then complete those. Alpha Corp is currently developing many projects in Haryana, Uttar Pradesh, Punjab, and Gujarat.