Hiranandani to acquire distressed assets, ties up land parcels

Realty developer House of Hiranandani is looking at acquiring distressed real estate assets as smaller players find it difficult to survive in the new regulatory regime and amidst a tightening of credit supply to the sector. “So far, we have only been monetising our land bank, but now we will also look at distressed assets. We have already identified several opportunities in this regard and have tied up a few land parcels. We are in the process of tying up several more,” Surendra Hiranandani, founder and MD, House of Hiranandani, told media. The scenario in the post-RERA [Real Estate (Regulation and Development) Act] era has prompted many cash-strapped local developers to tie up with organised players. With the advent of RERA, meeting deadlines is important and collaboration helps in completing projects within shorter timelines. “It reduces the capital outgo by developers as the focus is on construction funding and delivery rather than land acquisition. It allows better cash-flow management, which leads to a reduction in overall project costs,” he said.