Suraksha Group Identifies Land Parcels for Lenders as Part of Jaypee Infratech Resolution Plan
Suraksha Group, the firm that acquired Jaypee Infratech JIL through an insolvency process, has made significant progress in its resolution plan for the bankrupt real estate company. As part of this plan, Suraksha Group has identified 2,552 acres of land parcels for the lenders of Jaypee Infratech.
Suraksha Group took control of JIL on June 4 after its successful bid was upheld by the National Company Law Appellate Tribunal NCLAT. In its efforts to streamline the resolution process and recover the lenders’ dues, Suraksha Group has dedicated 2,372 acres of land to the assenting lenders and an additional 180 acres specifically for ICICI, one of the lenders involved.
To assist in the identification process, Suraksha Group has enlisted the services of renowned real estate consultant CBRE. Jaypee Infratech, prior to its bankruptcy, owned approximately 6,250 acres of land in the Delhi-NCR region and surrounding areas.
Funds Injection and Loan Facilities to Complete Unfinished Projects
In a bid to revive Jaypee Infratech’s unfinished projects and ensure the completion of around 20,000 flats in the Delhi-NCR region, Suraksha Group has injected a total of Rs 2.5 billion. Of this amount, Rs 1.25 billion was provided as equity, while the remaining Rs 1.25 billion was given as debt.
To support its completion efforts, Suraksha Group has secured a substantial loan facility of Rs 30 billion. This funding is crucial for the group as it works towards finishing approximately 160 residential towers across various Jaypee Infratech projects.
Available Cash in Jaypee Infratech
The Jaypee Infratech balance sheet currently reflects an impressive cash holding of around Rs 10 billion. This accumulated cash stems from the company’s real estate business profits and the toll income it generates from the Yamuna Expressway, a prominent stretch connecting Greater Noida and Agra. With the inclusion of the recently injected Rs 2.5 billion, the total available cash in JIL amounts to Rs 12.50 billion.
Hurdles in Completing Jaypee Infratech’s Projects
As Suraksha Group takes charge of Jaypee Infratech, it faces the daunting task of completing nearly 160 residential towers across multiple projects. Prior to the group’s takeover, construction activities were continuing only in 62 towers, while work on the remaining 97 towers had completely halted. The successful completion of these unfinished projects will require a substantial investment of Rs 65-70 billion.
Suraksha Group’s resolution plan for Jaypee Infratech, along with its land allocation and injection of funds, represents a ray of hope for stakeholders. By revitalizing these projects, the group aims to honor their commitments to the homebuyers and lenders associated with Jaypee Infratech. With the assistance of real estate consultants CBRE and the newly secured loan facility, Suraksha Group seems well-positioned to undertake the challenges ahead and pave the way for the successful completion of the real estate projects under Jaypee Infratech’s umbrella.
