Kochra Realty acquires stressed project in Dahisar

In a strategic move, real estate developer Kochra Realty has taken the reins of a Rs 700-crore residential project in Dahisar, a Mumbai suburb, which has long been beset by delays. The company's ambitious plan involves revitalising the stagnant project and targeting its full completion by early 2025.Previously under the stewardship of Ashapura Housing, the project, which boasts nearly 600 homeowners, was financially backed by an alternate investment fund. Kochra Realty has taken charge of the project's debt and assumed control of the redevelopment venture, which encompasses a total of five towers previously managed by the former developer.In the wake of this acquisition, an estimated 384 apartments out of the project's overall inventory are anticipated to be handed over to homeowners by year-end, while the remaining units across two towers are scheduled for delivery by early 2025.Ali Kochra, Director of Kochra Realty, expressed the company's commitment to this sizable undertaking: This project has a substantial number of homeowners and their families invested in it. As a developer that specializes in rescuing stalled projects and distressed assets, our immediate goal is to employ our tried-and-tested advanced processes to deliver as many as 384 units to homeowners in the coming months.According to estimations, completing the project with a total worth of Rs 700 crore will require an investment of approximately Rs 215 crore.Kochra Realty's primary focus lies in acquiring distressed and halted projects, with the ultimate aim of accelerating their revival, ensuring timely delivery, and yielding superior returns. The company has already commenced similar initiatives in Mumbai's western suburbs, including Bandra and Andheri. Presently, Kochra Realty is actively pursuing a project pipeline consisting of six to seven such ventures.The predicament of stalled and distressed real estate projects has been a major concern, not only for homeowners but also for financial institutions that have extended loans to these projects. Lenders are increasingly inclined to address this issue by enlisting capable developers to oversee project completion.Notably, several substantial projects facing financial stress have found willing buyers in recent quarters, with examples including the Prestige Group's takeover of multiple DB Realty projects and the Lodha Group's acquisition of projects previously managed by Rajesh Lifespace in Kandivali.It's worth noting that, apart from the government-backed Special Window for Completion of Affordable and Mid-Income Housing Projects (SWAMIH), smaller stalled projects have struggled to attract investors and buyers.