Kolte-Patil, Portman Holdings' JV project makes an IRR of 36%

Developers complete Margosa Heights project in Pune

Pune-based real estate developer Kolte-Patil Developers has completed its Margosa Heights project in Pune, generating an IRR of 36 per cent and a money multiple of 3.1 times for itself and its JV partner, Portman Holdings, USA. The project is part of an SPV called Bellflower Properties, which is a 50 per cent JV with Portman. This investment was the first residential investment for the Atlanta-based full service real estate company, which has a significant presence in India.

Located at Mohammadwadi, a suburb in south Pune, Margosa Heights includes 20 mid-rise apartment towers along with retail support and the total development area is one million square feet.

"We have a flexible, project-specific capital structuring philosophy based on cash flow and approval visibility. The company's strong brand name, execution track record, superior partner selection and robust balance sheet has enabled it to monetise its assets faster, generating attractive returns on investment for Kolte-Patil as well as its partners," said Rajesh Patil chairman & managing director, Kolte- Patil Developers.

Rahul Anand, managing director, Portman Holdings India said, "The partnership approach adopted in this project is consistent with Portman's long term development & investment strategy in India and a key factor in achieving high project returns for our investors and us".