Peninsula Land Limited (PLL) has disclosed that its joint venture company, Hemil Developers Private Limited (HDPL), is facing a corporate insolvency resolution process (CIRP) initiated by the National Company Law Tribunal (NCLT) due to a loan default of ₹266.00 crore. This development comes as a significant challenge for the real estate company's joint venture operations.

Key Points

• NCLT Action: The NCLT Mumbai Bench Court V has passed an order initiating the CIRP against HDPL, a joint venture entity of Peninsula Land.
• Loan Default: The insolvency process was triggered by a petition filed by JM Financial Credit Solutions Ltd, a financial creditor, against HDPL for invoking a corporate guarantee given in respect of loans amounting to approximately ₹266.00 crores.
• Primary Borrower: The loans were originally advanced to Hem-Bhattad AOP, identified as the primary borrower.
• Parallel Proceedings: JM Financial Credit Solutions Ltd has already initiated parallel proceedings against the primary borrower and secured orders to attach property under the SARFAESI Act, 2002.

Company's Response

Peninsula Land has stated that it had already written off its investment in HDPL in previous financial statements. The company emphasized that this development is not expected to have any material impact on its financial position. However, PLL is currently assessing the situation to determine if there will be any financial impact on the realizable value of its investments.

Legal Recourse and Negotiations

• HDPL retains the right to appeal against the NCLT order.
• Simultaneously, the financial creditor is reportedly in discussions with the borrower for a structured negotiated settlement of the dues.

Disclosure and Compliance

Peninsula Land Limited, in compliance with SEBI regulations, has made this disclosure to the stock exchanges. The company has assured stakeholders that it will provide further updates on any financial impact once determined.

This situation highlights the ongoing challenges in the real estate sector, particularly concerning joint ventures and loan guarantees. Investors and stakeholders of Peninsula Land will be closely watching how this insolvency process unfolds and its potential implications on the company's future operations and financial health.

Peninsula Land , a prominent player in the real estate sector, has made significant strides in expanding its land bank and securing substantial funding for future projects. The company has recently undertaken strategic land acquisitions and established a robust real estate development platform, signaling its commitment to growth and development in key areas.

Land Acquisitions in Alibaug and Karjat

Peninsula Land has successfully purchased land parcels in two prime locations:

1. Alibaug: Known for its scenic beaches and growing popularity as a weekend getaway destination near Mumbai.
2. Karjat: A developing region in the Mumbai Metropolitan Area, recognized for its potential in residential and township projects.

These acquisitions demonstrate the company's strategic approach to expanding its presence in areas with high development potential.

Partner Commitments and Financial Backing

In a show of confidence in Peninsula Land's vision and execution capabilities, the company's partners have made a substantial financial commitment. They have pledged 2.16 billion rupees towards projects under the real estate platform, providing a solid foundation for future developments.

Establishment of 7.65 Billion Rupees Real Estate Development Platform

In a major boost to its operational capabilities, Peninsula Land has recently established a significant real estate development platform valued at 7.65 billion rupees. This platform is expected to play a crucial role in:

• Facilitating the development of newly acquired land parcels
• Enabling the company to undertake larger, more ambitious projects
• Potentially attracting additional investments and partnerships in the future

The establishment of this platform underscores Peninsula Land's ambitious growth plans and its ability to mobilize substantial resources for real estate development.

Implications for Future Growth

These recent developments paint a picture of a company on an aggressive growth trajectory. By acquiring strategically located land parcels and securing significant financial backing, Peninsula Land is positioning itself to capitalize on the evolving real estate market dynamics in the Mumbai Metropolitan Region and beyond.

The combination of land acquisitions and the establishment of a well-funded development platform suggests that Peninsula Land is gearing up for a phase of expanded project launches and increased market presence in the coming years.

As the real estate sector continues to evolve, Peninsula Land's recent moves indicate its readiness to meet changing market demands and capitalize on emerging opportunities in prime locations.