Real estate developer M3M has acquired a 73-acre land parcel in Noida for Rs 900 crore in one of the largest all-cash deals in recent times, said three persons aware of the development.
The land in Sector 128 and on the expressway, belonged to Kadam Developers—a subsidiary of NCR-based Shipra group—but was mortgaged with Indiabulls Housing Finance after the builder defaulted.
The transaction has been concluded, however, the Delhi High Court has ordered the parties to maintain status quo on the land.
“The High Court of Delhi is currently seized of the sale of plot of land measuring 73 Acres, Sector 128, Noida and has also vide Order dated 7th July 2021 directed the parties to maintain status quo in relation to the aforesaid land,” said a Shipra group spokesperson.
Shipra group had earlier filed a petition after Indiabulls housing finance issued notices for default.
On 10th December, 2020, Indiabulls issued a notice under Section 95 of the Insolvency and Bankruptcy Code, 2016 to the personal guarantor of the loan agreements seeking repayment of outstanding dues within 14 days from receipt of the notice.
Indiabulls has a financial exposure of Rs 1763 crores across the 14 loan agreements.
“Indiabulls Housing Finance had invited expressions of interest and some of the leading developers had shown interest, considering the location of the land parcel. The deal was concluded last week with M3M buying 100 per cent shares of Kadam Developers, through its subsidiary Creative Souls Pvt Ltd, for an upfront cash payment of Rs 900 crore to Indiabulls,” said one of the persons quoted above.
M3M is also in talks with multiple stressed developers in Gurgaon to acquire land parcels.
Another person said Indiabulls enforced its security over the land when the Shipra group defaulted on its debt.
M3M and Indiabulls Housing Finance did not respond to email queries till press time.
Last year, M3M had acquired a 25-acre land parcel at Rs 250 crore in Golf Course Road Extension in Gurgaon to develop a low-rise housing society.
M3M group has repaid close to Rs 1000 crore debt in FY 20-21 and plans to clear the balance liabilities by March 2022.
The company, which has over 2,200 acres of land in the National Capital Region (NCR), is currently developing 25 million square feet of projects with a construction outlay of Rs 4,500 crore.
M3M has delivered 12 projects in eight months.
The company has committed sales receivables of Rs 6,050 crores with an inventory of Rs 6250 crores, including Rs 1,300 crores of luxury residential Trump Tower project it’s developing in Gurugram.
