Kathmandu: The ambitious real estate venture led by prominent businessman Deepak Kumar Malhotra in Tokha has hit a significant roadblock as it awaits essential regulatory approvals. Developed under the IMS Group, the residential phase of the project remains at a standstill because the necessary permits from governing authorities have yet to be secured, preventing the construction crew from breaking ground.
The project is being executed by Hotel Shahansha International, a company established in 1996 that has recently expanded its footprint into the real estate sector. The original plan for the Tokha site featured a dual-purpose development consisting of a commercial building and a residential complex comprising 90 luxury apartment units. While the construction of the commercial building has already been completed, the apartment wing has seen no such progress.
According to the company, the architectural and structural designs for the apartments are entirely finished; however, the lack of an official green light from regulators has kept the project in limbo. The developer had initially planned to manage the project in two distinct phases, with the now-completed commercial building intended to generate steady monthly rental income. In contrast, the residential portion continues to face persistent delays, affecting the overall timeline of the development.
The total financial outlay for the apartment complex is estimated at approximately 2.026 billion rupees. To fund this, the company has structured a financing plan based on a 60:40 debt-to-equity ratio, intending to utilize 1.216 billion rupees in bank loans alongside 811 million rupees in internal equity. While the company has already finalized its credit arrangements, recent industry ratings highlight that the inability to move forward with construction has heightened the project’s implementation risks.
Despite the current hurdles, the management remains optimistic about a near-term breakthrough, expecting to receive all pending regulatory clearances by the end of the current Nepali month of Ashar. Should the approvals arrive as anticipated, the company plans to commence construction in Shrawan, with a target to complete the entire complex within the next three years. To support this massive undertaking, the firm, chaired by Malhotra, recently sought a credit rating for long-term loan facilities totalling 2.269 billion rupees.
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