Kolte-Patil Developers acquires 2.5-million-sq-ft residential project in Pune

Listed realty developer Kolte-Patil Developers has acquired a residential project with development potential of 2.5 million sq ft in Pune’s Kiwale locality through buyout of a company Sampada Realities.
The transaction entails the acquisition of around 85% equity shares in Sampada Realities on an immediate basis, while the balance 15% stake will be acquired in due course.

With this transaction, Kolte-Patil Developers has committed an aggregate total investment of over Rs 120 crores to be paid over a period of time. The company is planning to launch the first phase of the project in the current quarter.

Sampada Realities has one residential real estate project on around 25 acres of land parcel at Kiwale in Pune to be developed in a phased manner. The project has already secured all the required regulatory approvals.

The development represents a revenue opportunity of over Rs 1,400 crores for Kolte-Patil. This acquisition is expected to help further strengthen Kolte-Patil’s market position in the Pune property market, with substantial visibility in Kiwale, a high-potential micro market in the city.

“This new project in our portfolio will be 100% owned by the company. This acquisition, other than being situated at the strong micro market of west Pune, is a plug and play deal, and is in line with our business development target of Rs 7,000 crores for this year. We continue to evaluate more such opportunities to meet our growth objectives across Pune, Mumbai and Bangalore,” said Rahul Talele, Group CEO, Kolte Patil Developers.

According to Talele, the company is focussing on developing a diversified portfolio that benefits from the demand and locational drivers across multiple projects in its focus markets to create a diverse growth framework and drive value for all stakeholders.

Kiwale is strategically located at the junction of old NH4 Highway, Katraj-Dehu Road, and Mumbai-Pune Expressway, and provides seamless access to Hinjewadi IT Hub, Pune city and the industrial belt of north-western Pune. The real estate sector is witnessing robust growth in this region in line with the general trend across the markets and is expected to continue the momentum hereon.

The ongoing consolidation in the real estate sector has accelerated due to the outbreak of the Covid-19 pandemic. Large established and listed realty developers have gained more market share in terms of sales and liquidity, as homebuyers are preferring to book properties of developers with sound execution track record and financial position.