Real estate developer Prestige Estates Projects has successfully emerged as the top bidder for the troubled and stagnant Ariisto Developer real estate project situated in the Mulund suburb of Mumbai. This acquisition, which the National Company Law Tribunal (NCLT) Mumbai has formally approved, involves a payment of approximately Rs 369 crore to the creditors associated with the project. Additionally, part of the redevelopment will also include a substantial 8 lakh square feet of non-residential space that is slated to be constructed for these creditors.
Among the guaranteed lenders affiliated with this venture are notable financial institutions such as HDFC, Piramal Capital, and India Infoline. Beyond these secured loans, the project is coupled with other unsecured lenders and more than 500 individual home buyers, underscoring its extensive stakeholder involvement.
The total receivables from banks, lenders, and various stakeholders, which encompass creditors and operational creditors, stand at a daunting Rs 2,500 crore. The NCLT initiated liquidation proceedings concerning the original developer in November 2019, paving the way for this redevelopment opportunity.
Venkat K. Narayana, the CEO of Prestige, confirmed the decision made by the NCLT court in Mumbai on Tuesday. He projected that the revenue potential stemming from this newly acquired project could reach around Rs 10,000 crore, with a massive total area of 7.5 million square feet earmarked for development. The company is set to commence the first phase of the project by May, followed by the second phase in December. Currently, the land involved spans 32 acres, where Ariisto Developer has engaged in a joint venture with a local land owner for the developmental facets of the project. Additionally, some portions of the vacant land were directly acquired by Prestige Estates.
Notably, the land associated with this project includes a segment of slum area, prompting the company to implement a rehabilitation component of the project, which has already received approval from the Slum Rehabilitation Authority (SRA).