Kolte-Patil rises after signing two new projects in Pune

Kolte-Patil Developers rose 2.31% to Rs 230.45 after the real estate developer announced the signing of two new projects in Pune under the development management 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 land owners 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.

The First project located at Hinjewadi has a plot area of 8.4 acres and a saleable area of 0.75 million square feet. The project 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.

The company said that 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.

Commenting on the development, Gopal Sarda, group CEO of Kolte-Patil Developers 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 forward to build 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 dominant presence in the Pune residential market. On a consolidated basis, the company reported a net profit of Rs 25.05 crore in Q3 FY21 as compared to a net loss of Rs 14.32 crore in Q3 FY20. Net sales surged 46.1% to Rs 190.27 crore in Q3 FY21 over Q3 FY20.

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