Bengaluru: On Tuesday, real estate startups – Flow Realty and Unitern Advisors Pvt Ltd mentioned about their partnership and intentions of working together. They said that they are joining hands to offer solutions to property developers stuck with stressed projects.
Both, Unitern Advisors Pvt Ltd and Flow Realty aim to address the issues faced by developers and help them in reviving stuck projects, fund-raising, sales and collections, land acquisition, balance sheet management, operations, as well as marketing strategies.
The aim is to establish a model for mid-tier developers who lack large management teams and hence can outsource some or all of these services.
Increasing distress in India’s residential property market has helped surge opportunities for real estate executives and given them a chance to launch new ventures catering to stress resolution to both developers as well as investors.
The stress in the residential segment remains deep-rooted, with delayed and stalled projects, cash flow issues, and on top of all – an ongoing liquidity crunch, despite the apparent revival in recent months.
“The partnership with Flow Realty strengthens our promise to provide specialized and focused product design, marketing strategies, sales, CRM and above all bring in professionalism among developers in the sales and marketing field and manage their cash flows,” said Navin Dhanuka, CEO, Unitern.
Dhanuka, formerly with Piramal Fund Management, along with Srinivasan Gopalan, former CEO at Bengaluru-based realty firm Ozone Group co-founded Unitern advised to help the stressed developers in operational efficiency, financial management, sales, and bird-eye view strategic management.
The government too has announced a few initiatives, particularly catering to stalled projects, such as the SWAMIH – special window for affordable and mid-income housing scheme which will enable the completion of 71,559 stagnant units all over the country. However, this is a small number compared to what has to be done.
“In a development management model, a larger brand takes over a stressed asset and turns it around from a funding and sales perspective for a management fee, but the Unitern-Flow partnership aims at helping developers retain their brand and project while streamlining the cash flow, sales, and operations cycles. Unitern will work with Flow Realty to manage marketing and sales of its projects and Flow Realty will have Unitern as its operational arm for asset monetization as well as running the operations of the developers,” said Unitern’s Gopalan.