New Delhi: Real estate developer Alpha Corp. Development Pvt. Ltd is planning to invest Rs.600-700 crore in distressed real estate assets in the Delhi-National Capital Region.
“We are in negotiations with at least three-four developers, to take over their projects, re-brand them, talk to customers and revamp the project completely,” said Ashish Sarin, chief executive officer of Alpha Corp.
The Gurgaon-based company is looking at areas such as Golf Extension road, Gwal Pahadi and Dwarka Expressway, which have many uncompleted projects. Alpha Corp. is looking for projects ranging from 8 lakh sq.ft to 1.3 million sq.ft, and are 25-30% sold.
While the developer will raise most of the capital from banks, private equity firms such as government of Singapore Investment Corp. Pte Ltd (GIC) and Proprium Capital Partners have also shown interest in investing in the company’s distressed projects business, Sarin said.
Real estate firms in Mumbai such as Radius Developers and Orbit Corp. have also forged partnerships with stressed developers to finish stuck projects, and the model is gaining traction in the Delhi-NCR region also.
Alpha Corp. will have to rejig the design and build smaller units which would be more affordable and have a better chance of selling. The company will also re-submit the entire master plan and take existing buyers’ consent.
“We are also trying to get in touch with government because people are approaching the government to help in the stuck projects,” Sarin said, adding that few buyers from a project of Unitech Ltd have also approached him to take over the project.
Alpha Corp. is also foraying into the facilities management business where it will be competing with established consultants such as Jones Lang LaSalle India and Cushman & Wakefield.
The company, which is also developing industrial township and residential projects in tier II cities such as Meerut and Fatehabad, is expecting a turnover of Rs.300-400 crore for 2017-18 and is planning to invest Rs.400 crore in its ongoing projects over the next 3-4 years.