Realty firm, Ansal Buildwell will receive ₹47 crore from the government-backed stress fund, SWAMIH to complete a housing project, comprising 900 units in Faridabad.
Financial advisory firm, Sambhav Consultancy facilitated the deal.
Ansal Buildwell launched a residential project, 'Ansal Crown Heights' a decade ago in Sector 80, Faridabad, Haryana, in an equal joint venture with a local builder.
The construction of this 18-acre project got delayed because of the dispute with the joint venture partner.
Ansal Buidwell bought back the 50 per cent stake of its partner in the JV firm, Ansal Crown Infrabuild Pvt Ltd to end the dispute. Ansal Crown Infrabuild Pvt Ltd is now a 100 per cent subsidiary of Ansal Buildwell.
"SWAMIH fund has sanctioned ₹47 crore to complete Ansal Crown Heights project. The disbursal has started to kickstart construction activities," Ansal Buildwell CFO, Ravinder Kumar Jain said.
In November 2019, the Centre announced a ₹25,000-crore fund, named Special Window for Affordable and Mid-Income Housing (SWAMIH), to help complete stalled housing projects across the country. SBICAP Ventures is managing this fund.
When contacted, Irfan A Kazi, chief investment officer, SWAMIH Investment Fund, SBICAP Ventures Ltd, declined to comment on specific funding deals.
"It was a tough deal due to several complexities involved," said Vaibhav Jain, Director, Sambhav Consultancy, a real-estate focussed financial advisory firm that facilitated the transaction.
Plans for project completion
The first phase comprising 527 units is almost complete and will be handed over in 4-6 months. The second phase, having around 350 units, is 70 per cent complete and will be completed by December 2023.
Ansal Buildwell will launch the third phase of around 150 units, once the second phase reaches near completion.
More info about the fund
"In the Delhi-NCR market that is suppressed with delayed deliveries of homes, this deal will help provide relief to hundreds of troubled homebuyers. We helped raise funds for Ansal Crown Heights project, which is a large stalled project in Faridabad, and this will enable its completion in due time," Vaibhav Jain added.
As per the data compiled by real estate consultant, Anarock, 4,79,940 units worth ₹4,48,129 crore are "stalled or heavily delayed" across Delhi-NCR, Mumbai Metropolitan Region, Kolkata, Chennai, Bengaluru, Hyderabad, and Pune as of May 31, 2020.
In its research, the consultant has taken those housing projects that were launched in 2014 or before.
Homebuyers who booked flats in housing projects in the Noida-Greater Noida property market are the worst affected, with over 1.65 lakh flats worth ₹1.18 lakh crore stalled or significantly delayed in these two cities, according to Anarock.