Stalled Bengaluru Projects Revived as Ramky Takes Over and Secures SWAMIH Fund
Real estate conglomerate Ramky Estates and Farms Ltd, the infrastructure arm of Ramky Group, has announced the takeover of 4.3 million square feet in stalled real estate projects in Bengaluru, previously under development by Skylark Builders. The completion of these projects will benefit 1,881 homebuyers who have been waiting for years to take possession of their apartments.
Projects Details
- Lumina in Electronics City: 60% completion, expected delivery by the end of 2026
- Fortuna in Whitefield suburb: 75% completion, expected delivery later
Financing and Revenue Potential
Ramky Estates has secured Rs 600 crore from the SWAMIH fund, an alternative investment fund dedicated to completing stressed and stalled projects in the mid and affordable sector. The two projects, Lumina and Fortuna, have a combined revenue potential of around Rs 2,000 crore.
Comment from Executive Director
"This is not just a takeover; it is a responsibility towards over 1,800 families who have placed their trust in these projects. Our focus is to bring stability, transparency, and execution certainty through disciplined processes and a long-term commitment to delivery," said Sharan Alla Reddy, executive director of Ramky Estates.
Recent Trends in Revival of Stressed Projects
The revival of stressed projects is a recent trend where established builders take over to bring them to conclusion, especially in the mid-to-affordable sector. This trend is driven by rising input costs and high costs of credit, making projects unviable.
Examples of Project Takeovers
- NBCC taking over multiple Supertech projects in the National Capital Region
- Aspect Realty taking over multiple stuck projects in Mumbai under the Slum Rehabilitation Authority
- Ashwin Sheth Group partnering with PAG to take over the One Marina project near Marine Drive in Mumbai
Lenders Seeking Alternative Builders
Lenders to various projects have been active in seeking alternative builders to take over the development, in order to complete them within timelines and avoid cost spillovers.