Nimbus group raises Rs 150 crore from Bajaj Finance to revive a stuck housing project in Noida

Nimbus Projects Ltd, a listed real estate developers headquartered in New Delhi, has raised Rs 150 crore from Bajaj Finance to revive a stuck housing project in Sector 168, Noida.

The company will have to invest Rs 1,100 crore which includes the construct cost and payment to lenders and authority and the original promoter.

The developer said balance fund can be generated through sale.


“Of around Rs 1,100 crore investment, about Rs 180 crore is the dues towards authority, Rs 42 crore is for lenders and around Rs 500 crore is construction cost. We have to pay money to original promoter as well. We are expecting around Rs 1,400 crore revenue from the project,” said Bipin Agarwal, CMD, Nimbus Group.

While Nimbus will deliver the common areas for existing buyers of the stuck project, Sunworld Arista, it will get about a million sq ft of saleable area.

Noida authority has given approval to the project under the Uttar Pradesh government’s co-development policy to revive stalled projects.

“Builder had launched the project in 2011-12 and while some part of it is delivered, we will develop and deliver the balance part. There were few buyers in the undelivered part, who have given us NOC to take over and complete the project,” said Agarwal.

The first project under the UP stalled project policy formulated by a committee headed by Amitabh Kant, who is now India’s G20 sherpa, is being carried out by realty developer Hawelia Group, which has taken over a 22-acre partially delivered project, Shree Radha Sky Garden in Greater Noida.

According to the Confederation of Real Estate Developers’ Associations of India (Credai), 190,000 housing units worth Rs 1 lakh crore are stuck in Noida, Greater Noida and Ghaziabad. In Greater Noida region alone, at least 36 real estate projects are facing insolvency proceedings.

Under the co-development policy, the new developer will have to settle RERA cases filed by the buyers. The developer could raise debt for financial closure of such projects on its net worth and credit ratings.

The earlier promoters are already under default and do not have the required credit ratings to raise debt for completion of such stalled projects.

It is estimated that Rs 40,000 crore is due to the Noida, Greater Noida and Yamuna Expressway authorities, including premium, interest, and penal interest against allotted plots on which real estate projects are in different stages of execution.