As part of a bankruptcy settlement, JM Financial Products, a non-banking finance company, has been allotted more than 142,000 square feet of office space spanning four floors in a new commercial building in Mumbai’s eastern suburb of Mulund, confirmed a report by Economic Times. The market value of the allotted space is around Rs 150 crore.
The acquisition, it added, is part of a court-mediated corporate insolvency resolution process (CIRP) connected to takeover of a stalled project formerly promoted by Ariisto Realty.
JM Financial Products is a non-deposit-taking non-banking financial company (NBFC-ND-SI) registered with the Reserve Bank of India (RBI).
The investment-focussed NBFC has been allotted floors 40, 41, 42 and 44 in the office wing of the project. While the ownership transfer was formalised on April 4, the property’s possession is expected by December end.
The land is owned by Avdhut Properties Pvt Ltd (APPL), a company linked to Ariisto, according to registration documents accessed by Economic Times via the real estate data platform Propstack.
“This is part of a structured settlement reached during the resolution of liabilities involving multiple parties, where built-up commercial real estate was transferred in lieu of financial dues,” a person familiar with the development told the publication.
Mumbai-based Ariisto, with stalled residential and commercial projects in Mulund, entered corporate insolvency in November 2018 due to Rs 2,200-2,500 crore of debt.
In March 2021, the Mumbai branch of the National Company Law Tribunal (NCLT) approved a plan by a Bengaluru-based developer to settle Rs 1,650 crore in liabilities. The plan involved paying Rs 370 crore in cash and giving creditors 800,000 sq ft of commercial space.
The plan aims to ensure that the project will be finished in a few years. It also gives creditors both cash and built property.