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In a quadripartite deal between the developers and the project's financiers, Mirae Asset and JM Financial, a stressed Rajesh LifeSpaces project close to Mumbai's business centre Bandra-Kurla Complex (BKC) has been acquired by real estate developer Labdhi Lifestyle. The execution of the mixed-use project which is being headed by a luxury residential development will now fall under the purview of the new developer.
In addition to repaying the debt obtained from both lenders, Labdhi Lifestyle will invest more than Rs.200 crore in the project's development. After this acquisition, Rajesh LifeSpaces will completely leave the project and Labdhi will take over as the principal developer under the name Labdhi Searene. JM Financial one of the financial partners has already been given a way out and Mirae Asset will soon get payment.
With a total development potential of 2 lakh square feet across residential, commercial, and retail areas the project is spread out over a 1.25-acre land piece. The entire development is anticipated to be finished in two years and has a total projected income potential of Rs.600 crore. The concept was conceived by Rajesh LifeSpaces in 2012 and construction began in 2016 but implementation was delayed due to financial issues. Rajesh LifeSpaces has already finished the rehabilitation component of the development's slum rehabilitation project.
This is Mumbai's second stressed project that Labdhi Lifestyle has purchased. Before the Covid-19 epidemic broke out in January 2020, the developer purchased a project of a comparable size covering a third-fourth of an acre in the Wadala neighbourhood of downtown Bombay. The company has carried out both the rehabilitation and free-sale components of this project. The Wadala project which has a 1 lakh square feet carpet area and a turnover of 220 crore is 85% finished. It is anticipated to be delivered by the end of 2023 with about 90% of the sales completed.
As part of the deal, Labdhi Lifestyle will acquire a controlling stake in Rajesh LifeSpaces, which will enable the former to expand its presence in the Mumbai real estate market. Rajesh LifeSpaces has a strong portfolio of projects in Mumbai, including residential and commercial properties, and the acquisition is expected to complement Labdhi Lifestyle's existing portfolio. The deal is subject to regulatory approvals and is expected to be completed in the coming months.
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