Kolte-Patil signs two new projects in Pune under DM model; Rises after the announcement

Kolte-Patil Developers Limited on Monday, May 17, 2021, announced the signing of two new projects in Pune under the Development Management (DM) model. The two projects have a combined saleable area of about 1.3 million square feet (msf). The company expects development management (DM) fees of approximately Rs 80 crore.

As the development manager, Kolte-Patil will lend its brand to these projects and jointly collaborate with the landowners to oversee product design, sales and marketing, project quality and cash flow management leading to time-bound handover to buyers. The project costs would continue to be borne by the respective projects. Both locations of the new projects are established micro-markets within Pune and are strategically located with multiple schools, hospitals, retail and residential spaces in close proximity.

The first project is located at Hinjewadi and has a plot area of 8.4 acres and a saleable area of 0.75 million square feet and is for residential use. The second project is located at Tathawade. It has a plot area of 5.4 acres and a saleable area of 0.55 million square feet. The project is for mixed purpose.

In February 2021, Kolte-Patil had signed three new projects with a combined saleable area of ~2.2 msf in Pune under capital-light models. These new DM projects will further strengthen the Company's market position in Pune.

Commenting on this key development, Mr. Gopal Sarda, Group CEO, Kolte-Patil Developers Ltd. said, "We are delighted to add these projects in Pune to our portfolio under the DM model. An increasing number of landowners/developers are looking to partner with us given our brand equity, balance sheet strength, faster execution and cash flow generation record. These two new project additions along with three announced in Feb earlier are in line with our Business Development strategy of expanding our market share in our core markets of Pune, Mumbai and Bengaluru. We look for building on our Business Development intensity with structured transactions and scale the profitable, operating cash flow generating business that we have built and deliver stronger ROCEs and IRRs."

Kolte-Patil Developers is a real estate company with a dominant presence in the Pune residential market. KPDL has seamlessly navigated varied economic cycles enabled by one of the lowest debt levels in the sector. The Company's long-term bank debt and non-convertible debentures have been rated 'A+ / Stable' by CRISIL, the highest rating accorded by CRISIL to any publicly listed residential real estate player in India.

Kolte-Patil Developers rose 1.42 per cent to trade at 228.70 at NSE at 1.49 pm after the real estate developer announced the signing of two new projects in Pune under the development management model.