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SARE Gurugram Private Limited Company admitted under Corporate Insolvency Resolution Process Investment Teaser May 2021
SARE Gurugram Private Limited
Company admitted under Corporate Insolvency Resolution Process
Investment Teaser
May 2021
Disclaimer
2
➢ The information contained in this document is as provided by the Corporate Debtor and the creditors of the Corporate Debtor. No representation
or warranty, express or implied, is given by the RP or his advisors (unless specifically mentioned under the provisions of the IBC) as to the
accuracy or completeness of the contents of this document or any other document or information supplied, or which may be supplied at any time
or any opinions or projections expressed herein or therein.
➢ Recipient of this document shall maintain confidentiality of the information contained in this document and shall not use such information to
cause undue gain or undue loss to itself or to any other persons and shall consider this information as strictly confidential. No responsibility or
liability is accepted for any loss or damage, howsoever arising, that a recipient may suffer as a result of this document and any and all
responsibility and liability is expressly disclaimed by RP and his advisors.
➢ Should this document reach any person(s) other than the intended recipient through the act or default of such recipient and without the written
consent of the RP and, as a result thereof, any loss or damage or other liabilities (including all associated costs) is suffered, directly or indirectly,
by the RP and/or his advisors, the recipient shall indemnify the RP and/or his advisors against any such loss or damage or other liabilities
(including all associated costs).
➢ Objective of this document is to provide summary information to interested parties for the limited purpose of enabling them submit an expression
of interest for participating in the resolution process of the Corporate Debtor.
➢ The document may not have considered issues relevant to any third parties. Use of this document by any third party for whatever purpose
should not, and does not, absolve such third party from using its own due diligence in verifying the document’s contents. Such third parties may
choose to make use of our report entirely at their own risk and we shall have no responsibility whatsoever in relation to any such use.
➢ We accept no duty of care or liability of any kind whatsoever to any such third party, and no responsibility for damages, if any, suffered by any
third party as a result of decisions made, or not made, or actions taken, or not taken, based on this document.
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➢ This disclaimer forms an integral part of the document.
SARE Gurugram Private Limited May 2021
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SARE Gurugram Private Limited
BHK Bedroom, Hall and Kitchen
Bn Billion
CAGR Compounded Annual Growth Rate
CF Corporate Finance
CFIB Corporate Finance & Investment Banking
CIRP Corporate Insolvency Resolution Process
CoC Committee of Creditors
Code Insolvency and Bankruptcy Code, 2016
Cr Crore
DTCP Directorate of Town and Country Planning
EoI Expression of Interest
EWS Economically Weaker Sections
FC Financial Creditors
Ft. Feet
FYXX Financial Year in the year ending 31 March 20XX
HRERA Haryana Real Estate Regulatory Authority
IBC Insolvency and Bankruptcy Code 2016
IM Information Memorandum
INR Indian Rupees
Mn Million
NCLT National Company Law Tribunal
NOC No Objection Certificate
OC Occupational Certificate
RA Resolution Applicant
RP Resolution Professional
RWA Resident Welfare Association
Sq. Square
USD United States Dollar
May 2021
Glossary
SARE Gurugram is one of the largest residential and commercial projects (1 of 2)
Company and project overview Current status
• SARE Gurugram Private Limited [in CIRP] (‘Company’ or
‘Corporate Debtor’) is a real estate company currently engaged
in construction of a residential and commercial real estate
project in Sector 92, Gurugram.
• It is currently constructing ‘The Crescent Parc’ and ‘Sports
Parc’ in Sector 92, Gurugram with total land area of 48.82
acres and 17.212 acres respectively (‘Project’).
• The Project initially consisted of 7 phases, 2 of which were
successfully delivered by the Corporate Debtor. There are
currently 5 phases (Phase 3-7) under construction, containing
both residential and commercial (institutional) area.
Phase Details No. of floors Current status
1 & 2 45 towers
1 basement + stilt +
4 floors (one tower
has stilt + 14 floors)
OC received and governed by
RWA
3 13 Towers
1 basement + stilt +
14 floors to 19 floors
(varying) + Terrace
Advanced stage of finishing.
OC received for Tower 1-5.
Fitout letters issued for Tower
6-12 & 14
4
9 Towers,
EWS and
Clubhouse
1 basement + stilt +
19 floors + terrace
Construction in progress;
HRERA registered; OC
applied; Fire NOC received
5 3 Towers2 basement + stilt +
23 floors + terrace
Construction in progress;
HRERA registered
6 1 Tower1 basement + stilt +
19 floors + terrace
Construction yet to
commence; HRERA registered
7Shopping
complexCommercial (1 floor)
Under construction; HRERA
registered
Sports
Parc
4 phases
(17 acre)
FAR: 1,244,518 sq.
ft. Construction yet to commence
PhaseNo. of
Units sold
No. of Units
unsold
Area of unsold flats
(in sq. ft)1
3 823 2 4,180
4 582 16 30,937
5 238 38 85,074
6 23 91 1,25,591
7 36 - -
Sub-Total 1,702 147 2,45,782
Sports Parc2 923 838 FAR: 1,244,518
Particulars Details
Specifications 3 and 4 BHK
Size (3 BHK) 1,180 sq. ft. to 1,665 sq. ft.
Size (4 BHK) 1,712 sq. ft. to 1,900 sq. ft.
• The Project is expected to provide a 7 acres park with gardens,
jogging tracks, amphitheatre etc.
• It also has a planned 35,000 sq. ft. clubhouse with a cycling
track and skating rink.
1Based on the 2019 Chartered Accountants’ due
diligence report 4
May 2021SARE Gurugram Private Limited2Airport Approval, Forest Approval, EC and CTE have been obtained for Sports Parc
3Per the 2019 Chartered Accountants’ due diligence report, the Corporate Debtor had
received 92 bookings for flats on this land. These 92 buyers were given alternative flats in
Phase 3-6. Numbers are subject to change as the RP undertakes further analysis
2006Company
Incorporated as
Ramprastha Sare
Realty Pvt. Ltd
2007Development Rights
Agreement executed between
Ramprastha Sare Realty Pvt.
Ltd. the & various entities for
land measuring 48.818 Acres.
Land and Development
Rights are owned by the
SARE Group
2009-11DTCP granted license
No. 44 of 2009 dated
14.8.2009 for
development of group
housing & granted
license No. 68 of 2011
2010Construction work initiated under
the License No. 44 of 2009 dated
14.8.2009 & under the approved
building plan
2014-18Received OCs for flats and
EWS quarters in Phase 1, 2,
3 and 4.
Fire NOC received for various
flats in Phase 3 and 4
2017Company name has
been changed to SARE
Gurugram Pvt Ltd from
Ramprastha Sare
Realty Pvt Ltd.
SARE Gurugram is one of the largest residential and commercial projects (2 of 2)
Company timeline
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May 2021SARE Gurugram Private Limited
Key Investment Highlights of the Project
Locational advantage
Site layout Key investment highlights
✓ 4 km away from nearest hospital
✓ 1.8 km away from SH 15A
✓ 4.4 km away from IMT Manesar
✓ 8 km away from National Highway 8
✓ 11.5 km away from NH8-Dwarka Expressway Intersection
✓ 15 Km from Sohna Road
✓ 31 km from Indira Gandhi International Airport
✓ Upcoming rapid metro, ISBT (Kherki Daula) nearby
✓ Surrounded by reputed schools and universities
Sufficient unsold inventory and cash flow accrual
• Crescent Parc has an unsold inventory of 245,782 sq. ft (this
does not include the 17 acres Sports Parc).
• As per the 2019 Chartered Accountants’ due diligence
report, the Project has existing receivables from sold
inventory of INR 293 Cr.
• Unsold institutional area of ~2.3 acres
• Sports Parc is spread across 17 acres and is licensed for
construction of flats
Located near major hospitals and prime properties
• The Project is located near multiple hospitals & schools.
• Reputed builders such as Ansal, DLF and Signature
Global have projects around Crescent Parc.
• Additionally, the Project is LEED certified (gold rated)
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May 2021SARE Gurugram Private Limited
The Project has the potential to generate substantial returns for potential investors
PhaseReceivables from sold
inventory (INR cr)3 Unsold area
3 24.0 4,180 sq. ft.
4 142.4 30,937 sq. ft.
5 89.0 85,074 sq. ft.
6 18.1 1,25,591 sq. ft.
Sub Total 273.5 245,782
Institutional Area 19.9 2.25 acres
Phase4 Balance Cost as per Certification
(INR Cr)5
3 & 4 70.1
EWS & F2 3.0
5 62.0
6 28.6
License renewal and
approvals estimated cost2.4
Total 166.1
Outflow (Crescent Parc)
Inflow (Crescent Parc)
1As per www.housing.com2Per the 2019 Chartered Accountants’ due diligence report, the unsold institutional area has been valued at INR 27.8 cr3Per the 2019 Chartered Accountants’ due diligence report. Numbers are subject to change as the RP undertakes further analysis
4The amount of balance cost for Phase 3 and 4 is inclusive of GST while the balance cost for EWS, Phase 5 and Phase 6 is exclusive of GST.5Per the Project Monitoring Report of September 2019. Numbers are subject to change as the RP undertakes further analysis
Particulars Amount
Total unsold area (excl. institutional area) (sq. ft.) [A] 2,45,782
Assumed selling price (INR/sq. ft.)1 [B] 4,500
Receivables from unsold inventory (INR Cr) [C = A * B] 110.6
Receivables from unsold institutional area2 (INR Cr) [D] 27.8
Total receivables from sold inventory (INR Cr) [E] 293.5
Cash inflow from Crescent Parc (INR Cr) [C+D+ E] 431.9
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May 2021SARE Gurugram Private Limited
The Project has the potential to generate substantial
returns for potential investors:
• Estimated surplus of ~INR 266 Cr from Crescent Parc
(as detailed in this slide)
• Additional land of 17 acres in Sports Parc where
limited units have been sold and no construction
has taken place
May 2021SARE Gurugram Private Limited
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Phase & Tower Name HRERA Registration OC Status Fire NOC Status
Phase 1 & 2
OC received and possession handed over. Being managed by RWA
Phase-3 (T1-T5) & Phase-4 (F2)
Phase -3
(T6-T14)- Applied Received
Phase -4
(P1-P6)
270 of 2017. Registration expired.
Renewal required. Applied -
Phase -4
(T15 &16)
270 of 2017. Registration expired.
Renewal required. Applied Received
Phase -5
(G1-G3)
262 of 2017. Registration expired.
Renewal required. - -
Phase -6 (T17)364 of 2017. Registration expired.
Renewal required. - -
Apart from the aforementioned licenses, the Corporate Debtor had applied for additional licenses such as CTE, Zoning Plan Approval, NOC for
height clearance, Environment clearance etc. The applicability and validity of the same still needs to be assessed by the Resolution
Professional.
Current status of licenses
Admitted claims information#
ACRE Limited28.9%
Alchemist ARC16.9%
Bank of India0.3%
Homebuyers53.9%
FC claims - Admitted
Particulars Date
CIRP Start Date 09 Mar 2021
CIRP End Date* 05 Sep 2021
• Mr. Ajit Jain has been appointed as the Resolution Professional and is inviting Expression of Interest from parties who
are interested in CIRP as Resolution Applicants.
• Interested parties can participate in the CIRP by submitting the EoI as per the format and supporting documents
outlined in the Process Document
CIRP timelines
Category Claim Admitted (INR Cr)
Financial Creditors: 907
• ACRE Limited 568
• Alchemist ARC 333
• Bank of India 6
Allotees
(Homebuyers)1,060^
Operational
Creditors11
Employee &
Workmen6
Other Creditors 10
Total 1,994
^Including interest of INR 357 Cr * 180 days from CIRP start date (Form A)
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May 2021SARE Gurugram Private Limited
Claim Details under the Corporate Insolvency Resolution Process
# As on May 8, 2021
19 April 2021 24 May 2021 23 June 2021 23 July 2021 22 Aug 2021
Publication of
Expression of Interest
Submission of Resolution Plan
First Meeting of the Committee
of Creditors held
Issue of RFRP & Evaluation
Matrix
Submission of approved
Resolution Plan to NCLT
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May 2021SARE Gurugram Private Limited
The above timelines are indicative and subject to change
Indicative timelines of the Corporate Insolvency Resolution Process
SARE Gurugram Private Limited is currently undergoing Corporate Insolvency Resolution Process
Mr. Ajit Jain has been appointed the Resolution Professional and is inviting Expression of Interest from parties who
are interested in CIRP as Resolution Applicants
Interested parties can participate in the CIRP by submitting the EoI as per the format and supporting documents
outlined in the Process Document
The details of the Resolution Professional are as follows:
Mr. Ajit Jain
Resolution Professional
IBBI Registration no.
IBBI/IPA-001/IP-P00368/2017-18/10625
204, Wallstreet-1, Near Gujarat College, Ellis bridge, Ahmedabad, Gujarat, 380006
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May 2021SARE Gurugram Private Limited
Transaction Opportunity
pwc.com
Thank youContact details
Rohit Govil Arjun Mittal
(+91) 98916 11818 (+91) 97119 00888
[email protected] [email protected]
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