The firms aim to address issues faced by developers and help them revive projects that have been stuck besides assisting them with fund-raising, land acquisition, balance sheet management, operations, marketing strategy etc
Bengaluru: Real estate startups Unitern Advisors Pvt Ltd and Flow Realty on Tuesday said they have partnered to offer solutions to property developers stuck with stressed projects.
Both firms aim to address the issues faced by developers and help them revive projects that have been stuck. The duo will also help them with fund-raising, land acquisition, balance sheet management, operations, marketing strategy as well as sales and collections.
The broader vision is to create a model where mid-tier developers who do not have large management teams can outsource some or all of these services.
Continued distress in India’s residential property market has thrown up opportunities for real estate executives to launch new ventures offering stress resolution to both developers and investors.
Despite the apparent revival in recent months, the stress in the residential segment is deep-rooted, with stalled and delayed projects, cash flow issues and an ongoing liquidity crunch.
“The partnership with Flow Realty strengthens our promise to provide specialized and focused product design, marketing strategies, sales, CRM and above all bring in professionalism among developers in the sales and marketing field and manage their cash flows," said Navin Dhanuka, CEO, Unitern.
Dhanuka, formerly with Piramal Fund Management, along with Srinivasan Gopalan, former CEO at Bengaluru-based realty firm Ozone Group co-founded Unitern Advisors to help stressed developers in operational efficiency, financial management, sales and overall strategic management.
In the residential sector, in particular, sales have been largely concentrated in projects by so-called branded developers numbering 15-20 across cities, with buyers remaining skeptical about the others.
The government has announced a number of initiatives, particularly for stalled projects, such as the special window for affordable and mid income housing (SWAMIH) scheme that will enable the completion of 71,559 dwelling units across states. But, clearly, that’s not enough.
“In a development management model, a larger brand takes over a stressed asset and turns it around from a funding and sales perspective for a management fee, but the Unitern-Flow partnership aims at helping developers retain their brand and project, while streamlining the cashflow, sales and operations cycles. Unitern will work with Flow Realty to manage marketing and sales of its projects and Flow Realty will have Unitern as its operational arm for asset monetization as well as running the operations of the developers," said Unitern’s Gopalan.
The two have signed a Hyderabad-based developer’s project in north Bengaluru’s Hennur locality that has been stuck.
“Partnership with Unitern enhances our vision of providing specialized solutions to monetize assets. With this, we wil be able to able to offer all solutions that generate liquidity the developers including asset sales, joint ventures, joint development agreements, investor relationships, resolutions plans to investors and the like," said Arun Anand, co-founder, Flow Realty.
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