NEW DELHI: ReaRCo Private Limited, a real estate asset resolution firm, has acquired KV Developers through the insolvency resolution process. This development offers renewed hope to nearly 400 homebuyers in Greater Noida who invested in the project back in 2013.
The company has also secured ₹195 crore from the government-backed SWAMIH Fund to complete the project.
“We are currently constructing 646 units across five towers, with the aim of enabling possession for existing homebuyers by the end of the year. The project has been significantly upgraded to enhance comfort and amenities for the residents,” stated Geetanjali Khanna, founder and managing director of ReaRCo.
Initially launched in 2012-13, the project came to a halt, leading to insolvency proceedings that began in 2019. ReaRCo took over after its resolution plan was approved.
According to the resolution plan, the firm has paid off ₹35 crore in dues to financial institutions and ₹60 crore to the development authority in phases.
Most homebuyers from this long-stalled project have been relocated to the five under-construction towers to expedite home delivery.
Approximately 40 homebuyers who opted to exit the project have received refunds totaling ₹10 crore.
“Construction in the five towers is over 90% complete. We have utilized 74% of the funds approved by SWAMIH, and only 15% of the units remain unsold. Work on the remaining two towers will commence in the future,” Khanna added.
The total estimated construction cost for the project stands at ₹250 crore, with the company anticipating revenues of ₹500 crore.
ReaRCo is also looking to acquire additional stalled projects currently undergoing insolvency proceedings.
“Once a project is taken over from the NCLT (National Company Law Tribunal), most legal issues are resolved. There are numerous stalled projects in the market that can be addressed, allowing us to assist homebuyers,” Khanna remarked.
