Before Booking a Flat,
Find Out How Big is Your Builder's "Debt Mountain"!:
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| Vascon is Back in Business! |
Vascon Engineers (www.vascon.com) participated in the last East Pune Property Exhibition organized by CREDAI Pune Metro Property. Vascon Ela opposite corporate office of Sulzon at Survey No 169 (part) Sade Satara Nali Hadapsar near Amanora & Windermere at Koregaon Park were on display.
"Glad to see you!," I said to the person in the stall.
"Yes, we are back. We are going to complete these two projects!," the person in Vascon stall gave me a smile and said.
Recently, in an effort to conquer the debt mountain of more than 350 crores, Vascon has sold its stake in Hyatt Regency. And it was announcing it's come back by participating in an exhibition organized in the same hotel. Isn't it ironic?
Are these people aware about Vascon's struggle to survive? Looking at the couple in Vascon stall - I asked myself.
What about the debt mountains of the other big & small builders in Pune real estate market? How can property buyers find out how big is the debt mountain of the builder?
Vascon is a listed company. Its financials are reported & discussed in public. For example - To reduce its debt burden Vascon has sold its stake in - Hyaat Regency, Holiday Inn near Hinjewadi, Galaxy Hotel in Goa, IT Park & plots in Nashik etc. is news. To bring down debt below 200 crores, Vascon had come out with rights issue. To fulfil the requirement of working capital, the promoters of Vascon have increased their stake in the company - is out in the public domain.
But, what about the builders who are not listed public limited companies? How can a property buyer know about these builders' financial status?
Isn't it a big risk to book a flat without knowing whether the builder will remain in the business or go bankrupt?
Or should we all play safe - and follow the advice - "It is worth waiting to buy homes till April 2016"
When you do not know anything about your builder's Debt Mountain - What else can you do but wait?
Please, give time to your builder to refinance his debt before the D Day - 31st March 2016.
Make sure that he remains in the business. Can complete the project.
What say you?
Can you find out your builder's mountain of debt? Can your builder manage his debt & remain in the business? Do you think that you can get possession of the flat you have booked - because the offer was too attractive?
Please, share your views in the comments.
Related Stories:
1) It is Risky to Buy Homes in Under Construction Projects
2) Builders turn to PEs, NBFCs to refinance debt
3) Builders face double whammy as loans slow amid sales slump
4) Mumbai realty developers' debt rises
5) Mr. Builder, Show Me Your Money!
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