Mumbai: Prominent Mumbai-based real estate firms, including Rustomjee Group, Wadhwa and Runwal Group, are in the process of submitting bids for debt-ridden Ariisto Developers, two people aware of the matter said, requesting anonymity.
This is the second time the bankruptcy resolution professional for Ariisto Developers has invited expressions of interest from prospective buyers to revive the Mumbai-based company. In the first round, Rustomjee was the sole bidder. However, the builder’s committee of creditors (CoC) rejected its resolution plan, said the first person.
In November, the National Company Law Tribunal (NCLT) had admitted insolvency proceedings against Ariisto Developers, which owed around ₹2,500 crore to lenders, including HDFC Ltd, IIFL Trustee Ltd and Indiabulls Housing Finance Ltd.
“Fresh expression of interest (EoI) has been invited...We have received response from prospective resolution applicants and the list will be finalized by 10 September," said Jayesh Sangkhrajka, the resolution professional appointed by the NCLT to manage the company. He declined to comment further on the matter. The last date for submitting the bids is 1 September.
Ariisto’s housing project, spread across 32 acres in suburban Mulund, is yet to take off. The development potential of the land could be as much as 4-6 million sq. ft, the first person added.
Large developers, including L&T Realty Ltd and Godrej Properties Ltd, have entered Mulund’s housing market in the last few years. Other big developers in the micro-market include Oberoi Realty and Wadhwa Group. According to local brokers, Ariisto’s Mulund land could be worth ₹1,000 crore as per the current market rate. “Unlike last time, there could be at least three-four bidders," said the first person.
Boman R. Irani, chairman and managing director, Rustomjee Group, said the company will be making a revised offer.
“Our earlier offer was market-based. It was a little conservative as it was based on the current market situation. Obviously, their (Ariisto’s) outstandings are a lot more. I guess there are many secured and unsecured credit. Maybe they (creditors) thought if they called for fresh bids, they would get a better offer," Irani added.
A few other developers, including Wadhwa Group, have already submitted their EOIs. “We are keenly looking at stressed opportunities through IBC where we will be partnering with a few stressed assets funds. We are also working directly with lenders to operationally turn around their stuck projects," said Vrushank Mehta, vice-president, corporate strategy and investment, Wadhwa Group.
A spokesperson of Sandeep Runwal-led Runwal Group said the company has already submitted its EoI, but is yet to make a final bid. He, however, did not divulge further details. Last week, Mumbai-based Housing Development and Infrastructure Ltd (HDIL) was admitted for insolvency proceedings.
The insolvency plea was filed by public sector lender Bank of India to recover its outstanding due of around ₹520 crore. Several other large realty firms, including Jaypee Infratech Ltd and Lavasa Corp. Ltd, are facing insolvency proceedings.