Kotak Investment Advisor Ltd (KIAL) has committed to investing Rs 4.5 billion to revive Supertech's stalled project in Sector 94, Noida. This investment will cover Rs 3.1 billion to settle existing lenders, enabling the resumption of construction on the 5 million sq ft project, which is currently 50% completed and features NCR's tallest residential tower. The project's total revenue potential exceeds Rs 70 billion.
The Noida Authority, which is owed Rs 33.19 billion from the project, has instructed KIAL to deposit Rs 500 million. An agreement will be established between Supertech, KIAL, and the Noida Authority to open an escrow account for this purpose.
"We decided to involve Kotak to repay existing lenders and fund the completion of the project. The Noida Authority's board has approved Kotak?s proposal, and land dues will be cleared through the escrow account. Kotak will pay Rs 3.1 billion to provide an exit for existing lenders," said R K Arora, Chairman, Supertech.
The Supernova project includes four towers: Spira, the Iconic Tower (India's tallest mixed-use development at 80 floors and 300 meters), Nova East, Nova West, and Astralis Tower. While most residential units have been delivered the construction of a mall and serviced apartments remains.
This revival effort is expected to also enable Supertech to restart other long-stalled projects. The company has over 15,000 homes to deliver and its total liabilities, including dues to banks and development authorities, amount to approximately Rs 80 billion. However, the receivables from both launched and future projects exceed Rs 140 billion, indicating a positive net worth. Supertech has proposed a revival plan to the Uttar Pradesh government and is also in the process of selling land parcels to exit lenders and accelerate construction on other stalled projects. (ET)
