Sunday, Sep 27, 2020 | Last Update : 04:54 PM IST

187th Day Of Lockdown

Maharashtra130045899280634761 Andhra Pradesh6614585881695606 Tamil Nadu5693705138369148 Karnataka5572124503028417 Uttar Pradesh3785333136865450 Delhi2644502284365147 West Bengal2410592110204665 Odisha201059165432820 Telangana1858331544991100 Bihar175898161510881 Assam167374136712625 Kerala160935111327636 Gujarat1303911105923394 Rajasthan1247301042881412 Haryana1205781012731273 Madhya Pradesh117588932382152 Punjab107096840253134 Chhatisgarh9856566860777 Jharkhand7770964515661 Jammu and Kashmir69832495571105 Uttarakhand4533233642555 Goa3107125071386 Puducherry2548919781494 Tripura2412717464262 Himachal Pradesh136799526152 Chandigarh112128677145 Manipur9791760263 Arunachal Pradesh8649623014 Nagaland5768469311 Meghalaya5158334343 Sikkim2707199431 Mizoram178612880
  Business   In Other News  21 Nov 2019  Realty sees 115 insolvency cases, $1 billion stressed deals

Realty sees 115 insolvency cases, $1 billion stressed deals

THE ASIAN AGE. | SANGEETHA G
Published : Nov 21, 2019, 1:39 am IST
Updated : Nov 21, 2019, 1:39 am IST

As per the Insolvency and Bankruptcy Board of India, a total 115 insolvency cases have been filed as of September 2019 under real estate category.

The real estate sector has filed 115 insolvency cases till September and $1 billion has already been transacted under stressed asset deals in 2019.
 The real estate sector has filed 115 insolvency cases till September and $1 billion has already been transacted under stressed asset deals in 2019.

Chennai: The real estate sector has filed 115 insolvency cases till September and $1 billion has already been transacted under stressed asset deals in 2019.

Corporates saddled with huge debt have been increasingly liquidating real estate assets and investors are evaluating options including acquiring non-performing assets, distress sale and entity level stake. Around $1 billion has already been transacted in the current year, as per the data from JLL India.

 

Some of the recent stressed asset deals include sale of an IT park in Bengaluru by Café Coffee Day Enterprise for $385 million to reduce its debt. Blackstone and Salarpuria Sattva Developers have acquired the 90-acre, IT-focussed Global Village Tech Park. Similarly in hospitality sector, Brookfield has received approvals to acquire assets of Hotel Leela Venture comprising key hotel properties in Delhi, Bangalore, Udaipur and Chennai for $564 million.

As per the Insolvency and Bankruptcy Board of India, a total 115 insolvency cases have been filed as of September 2019 under real estate category. Of these 87 cases are under process while 28 are closed.

 

Residential real estate segment presents the maximum number of stressed assets. India’s residential sector has been reeling under the pressure of delayed/stalled projects with 4.54 lakh units running behind their completion dates. Some of them are already under bankruptcy proceedings. The value of these projects is estimated to be $66 billlion, according to JLL.

“The capital commitment by institutional investors gives comfort to the lenders leading to faster resolution in these deals. Such deals also provide opportunity for investors to optimise their returns in line with underlying risks,’ said Ramesh Nair, CEO and country head, India, JLL.

 

Though government has announced a special fund to infuse liquidity into the sector, it will fall short of meeting the entire requirement. So, several projects will move into insolvency process, providing an opportunity for investors.

Tags: real estate sector, jll india