 Bengaluru: Mounting debt and inability to generate cash flows are forcing mid-sized and small developers in Bengaluru to shrink portfolios by divesting real estate assets.
Citrus Ventures, a realty firm that buys "special situation" and redevelopment assets, has taken over two incomplete projects of IDEB Projects Pvt. Ltd.
Citrus, a real estate start-up formed this year, acquired IDEB's semi-finished Springville project in south Bengaluru, with 65 villas planned on a 3.5 acre plot. The project was stuck since 2009 and buyers refused to pay further instalments.
Citrus Ventures has entered the project in the capacity of investor and developer. It has already cleared the project liabilities and is currently marketing the 15% of the units that are to be sold. The project is expected to be complete in the next 12 months.
"The entry costs are much lower in such projects and so are the risks. Much of the hard work such as land acquisition, getting approvals is already done when we enter, and so what is required is cleaning up the project and packaging it," said Vinod Menon, director and chief executive, Citrus Ventures.
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