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realty developer Labdhi Lifestyle has acquired a stressed project of Rajesh Lifespace near Mumbaibusiness district of Bandra-Kurla Complex (BKC) through quadripartite agreement between both the developers and the financiers of the project Mirae Asset And JM Financial,
The new developer will now be responsible for the execution of the premium residential development-led mixed-use project. Labdhi Lifestyle will invest over ₹200 crore to develop the project, which also includes repayment of loans taken from both the lenders.
With this acquisition, Labdhi will be the lead developer of the project now known as Labdhi Serene, while Rajesh Lifespaces exits completely. of the financial partners, JM Financial has already been given the exit facility, while Mirae Asset will be paid in the next few days.
The project is spread over a 1.25-acre land parcel with a total development potential of 2 lakh sq ft of carpet area across residential, commercial and retail spaces. The total development is expected to be completed in 2 years and is estimated to have a total revenue potential of ₹600 crore. Rajesh Lifespaces had conceptualized the project in 2012 and started development in 2016, however, execution was delayed due to financial difficulties. The development is part of a slum rehabilitation project and Rajesh Lifespaces has already completed the rehabilitation part.
Vikas Jain, CEO of Labdhi Lifestyle, told ET, “We are trying to create an ecosystem where Labdhi Lifestyle can take over such projects with revenue visibility and turn them around with the help of its execution capability and balance sheet strength. Could.
This is Labdhi Lifestyle’s second acquisition of a stressed project in Mumbai. The developer had acquired a similar project spread over three-quarters of an acre in central Mumbai’s Wadala area in January 2020, before the outbreak of the Covid-19 pandemic. In this project, the company has implemented both rehabilitation and free-sale components.
Wadala project with 1 lakh sq ft carpet area and ₹220 crore revenue is 85% complete. Jain said that with around 90% of sales, it is expected to be delivered by the end of 2023.
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