Mumbai, March 10, 2023: Labdhi Lifestyle, a premium developer from Mumbai has acquired Rajesh Lifespaces’ stressed project at Bandra Kurla Complex (BKC) through an agreement between both the developers and the project’s financiers Mirae Asset and JM Financial. Labdhi Lifestyle will be investing over Rs. 200 crores to develop a mixed-use project, including repayment of debt raised from both lenders. Labdhi Lifestyle will now be the lead developer of the project giving it a revenue earning potential of Rs. 600 crores, expected to be completed within the next 2 years. This acquisition by Labdhi Lifestyle will see a complete exit of Rajesh Lifestyle and JM Financial, while Mirae Asset will be repaid soon.
The project is spread across 1.25 acres of land at BKC with a total development potential of 2 lakh sq ft carpet area across residential, commercial, and retail spaces. The project will consist of around 300 units, in 2 & 3 BHK configurations with ticket sizes starting from 2 crores onwards.
Speaking on the occasion, Mr. Vikas Jain, CEO, Labdhi Lifestyle said, “We are trying to bridge the gap between stressed balance sheets and a sound real estate project executor. We are building an ecosystem wherein we takeover such stressed projects and turn them around with our execution capability and balance sheet strength. There are a number of such stalled projects that need a bailout. Home buyers who have invested their life savings in these projects bear the brunt due to inordinate delays in such stressed projects.”
Labdhi Lifestyle has chalked out massive plans to become a dedicated asset monetization company, in its quest to bail out distressed companies. Generally, many such stressed housing projects are stuck due to insufficient funds. Labdhi Lifestyle is at the forefront of taking over stressed projects and turning them around. Stressed projects have become a bane for home buyers across the country. In our country, there are thousands of residential projects that are completely stalled due to a lack of funds.
According to data by MahaRERA, the number of lapsed or stalled projects in Maharashtra has risen by around 26 percent. Their number now stands at 5,756, up from 4,555 in March 2022. In 1,882 of the stalled projects, 70 percent of the work has been completed.
Recently, the Maharashtra Real Estate Regulatory Authority (MahaRERA) sought assistance from Self Regulatory Organizations (SROs) of developers in assessing accurate information of about 5,000 lapsed real estate projects across Maharashtra.
This acquisition by Labdhi Lifestyle is in line with MahaRERAs appeal to SROs requesting their assistance in resolving this issue of stressed housing projects.