ReaRCo Revives Stalled Project with SWAMIH Fund for 400 Buyers

REAL-ESTATE
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AuthorAarav Shah|Published at:
ReaRCo Revives Stalled Project with SWAMIH Fund for 400 Buyers
Overview

ReaRCo Private Limited has acquired KV Developers through insolvency, reviving a decade-old Greater Noida project and offering hope to nearly 400 stranded homebuyers. The company secured ₹195 crore from the SWAMIH Fund to complete construction of 646 units by year-end, clearing significant dues to financial institutions and the development authority.

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Construction Underway After SWAMIH Funding

ReaRCo Private Limited's acquisition of KV Developers is bringing relief to approximately 400 homebuyers in Greater Noida. The real estate asset resolution firm secured ₹195 crore from the government-backed SWAMIH Fund. This capital infusion is funding the completion of the stalled project. Construction of 646 units across five towers is now underway, with possession targeted by year-end.

Financial Resolution and Buyer Refunds

The project, launched between 2012 and 2013, faced significant delays leading to insolvency proceedings in 2019. Under ReaRCo's approved plan, substantial dues are being cleared, including ₹35 crore to financial institutions and ₹60 crore to the development authority. For the 40 homebuyers who opted for an exit, refunds totaling ₹10 crore have been disbursed.

ReaRCo's Growth Strategy

Construction in the five towers is over 90% complete, with 74% of the SWAMIH funds already deployed. About 15% of units remain for sale. ReaRCo also plans future development for two additional towers. The total estimated construction cost for the entire project is ₹250 crore, with projected revenues of ₹500 crore. The firm indicated its intention to acquire more stalled projects undergoing insolvency proceedings at the National Company Law Tribunal (NCLT).

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