Real estate player Kolte Patil Developers Limited (KPDL) has been in touch with a US-based real estate fund to secure foreign direct investment for three of its forthcoming projects. | |
| Confirming the development, KPDL's chief finance officer Girish Lakhe told Business Standard that the company is in talks with the New Jersey, US, based fund and that a formal annnouncement is expected soon. |
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| "The three projects are FDI-compliant with an estimated project cost of Rs 125 crore each," he said, without disclosing the name of the fund or the capital it proposes to invest. |
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| The investment will be as per the norms for FDI in the real estate sector, he said. KDPL has planned residential projects at Mohammed Wadi, Bawdhan and Kharadi respectively, he added. He indicated that the US fund will invest in both forms - equity and loan. |
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| Unlike other FDI proposals which envisage a special purpose vehicle (SPV) company for each separate project, the proposed FDI will be in one company which will build the three projects, Lakhe said. He said that the promoters will not close the company after the projects are complete. "We may in fact list it at a suitable juncture," he added. |
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| KPDL recently received a commitment for institutional venture capital investment of Rs 300 crore from ICICI Ventures. |
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| This will be utilised for a township near Hinjawdi near the IT Park, a 12.5 lakh sq software park at Kharadi at Pune's north-end and a 80-acre residential-cum-special economic zone at Wagholi on the Pune-Ahmednagar Road. |
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| Lakhe said that the three projects will together be worth Rs 4,250 crore. |
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| KDPL has so far constructed 4.3 million sq ft of real estate "" mostly in the residential category - and expects to add 30 million sq ft in the next five to seven years, Lakhe said. The company's revenues for the '06-07 are expected to be around Rs 250 crore, he informed. |
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| KDPL recently undertook the valuation of its business by Knight Frank who have valued it at Rs 1,800 crore. |
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| "That gives us an opportunity to approach the markets with an initial public offering of about Rs 450 crore, if we want to dilute 25 per cent of the promoter's stake," he said. |
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| The company has filed a draft red herring prospectus with Securities and Exchanges Board of India and is waiting for clearances, he added. |
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