Goenka added they are curating a portfolio of stressed commercial assets worth Rs 200-300 crore. “Many such assets have come to us in April and May. Rents are under pressure and many LRD (lease rental discounting) projects have sought refinancing,” he said.
Vishal Srivastava, president (corporate finance) of Anarock Capital, said in a recent note that stalled projects need a new source of last-mile funding. “If they get it, the developer will be ready to pay a premium for completing the project with incremental capital, while the NBFC can recover its dues and ease its balance sheet. Buyers will get their flats, and more buyers will line up to buy completed units,” said Srivastava.
According to Srivastava, there are various foreign funds with visibility above Rs 35,000 crore, besides the Rs 25,000-crore SWAMIH fund. A large slice of this pie — around 60 per cent — is from US-based funds, followed by 31 per cent from Asia (excluding India), 6 per cent from India, and 3 per cent from Europe-based funds.
This capital is being raised for projects primarily in Noida, Greater Noida, and Gurugram in NCR, Mumbai and Thane in MMR, along with Bengaluru, Hyderabad, and Pune. The projects in question have 100-800 units, with ticket sizes ranging from Rs 28 lakh in Noida to Rs 15 crore in Mumbai, he said. Existing funds of Motilal Oswal are also looking to invest in stalled projects.
“We are looking at last-mile deals for projects that could lead to completion with our capital and buying out loans of viable projects,” said Sharad Mittal, CEO of Motilal Oswal Real Estate.