Olympeo eyes distressed realty assets with ARCs for growth

City-based real estate developer Olympeo Infrastructure is looking at buying out distressed realty assets held by asset restructuring companies (ARCs) to expand its presence, a top company official has said.
"According to RBI data, there are around Rs 1.75 trillion worth of distressed assets held by ARCs. These assets include buildings or land parcels which were kept as collaterals with banks. We plan to buy such assets for expansion," Olympeo chairman and managing director Prabhat Ranjan told PTI.
Ranjan, also the co-founder of private equity firm Brick Eagle, said if a company has larger funds and able to deal with issues of distressed assets and can make them clean, then it's an opportunity.

"ARCs are currently waiting for people who can make these assets generate revenue so that they can exit. We will mainly look at opportunities where these assets, especially land banks, can be monetised for creating affordable housing projects. Besides this, we will look at developing mid-income residential and commercial projects," he said.
When asked how is he planning to fund this expansion drive, he said, "We will be able to make payments through sales from our existing project and internal accruals. Olympeo is also eyeing to have more than 200 acres under development comprising of more than 5 million sq ft area under development in the next three years.

The company is currently developing a township spread across 25 acres in Karjat near here, which will be developed in phases.
"In this township project, we intend to create 1,500 homes of 1 & 2 BHK flats with prices starting from Rs 13 lakh. We expect to generate nearly Rs 300 crore from this project," Ranjan said.
For this fiscal, the company expects to clock revenue of Rs 100 crore from pre-sales from this project.