Kolte Patil Developers completes buyout of ICICI Venture's 50% stake in Life Republic Township Project
Kolte-Patil Developers (KPDL) rose 1.37% to Rs 215 after the company completed its third and final tranche payment of Rs 70 crore to ICICI Venture for the buyout of their 50% stake in KPDL's flagship township project - Life Republic.
KPDL has announced that the company has completed the third and final tranche payment of Rs 70 crore to India Advantage Fund-III (IAF-III) and India Advantage Fund-IV (IAF-IV) managed by ICICI Venture Funds Management Company (ICICI Venture) for the buyout of their 50% stake in KPDL's flagship township project - Life Republic. As intimated earlier, the payment has been largely funded through internal accruals. The current disbursement follows the second instalment of Rs 70 crore paid out in November 2019.
In May 2019, Kolte-Patil Developers had announced the buy-out of ICICI Venture's stake for a cash consideration of Rs 210 crore to be paid in three instalments. The realty firm has now completed all three installments. In addition, 12 acres of land in Life Republic with FSI required to achieve saleable area equivalent to 1.4 million square feet, will be allocated to IAF III and IAF IV upon the project obtaining FSI of 1.0 from the present 0.5.
Following the buy-out, KPDL's economic interest in Life Republic increased to 95% and the company's overall economic interest in its entire portfolio of projects grew from 60% to 90%. The Life Republic project resides in an SPV called Kolte-Patil I-Ven Townships (Pune). Life Republic, being the company's flagship project spread across 390 acres and is expected to contribute to the company's revenues, profits, cash flows and return ratios in a significant manner over next 10-12 years, KPDL said.
The announcement was made after market hours on Friday, 27 November 2020. The Indian markets were closed yesterday (Monday), 30 November 2020 on account of Gurunanak Jayanti.
Kolte-Patil Developers is a real estate company with dominant presence in the Pune residential market. The company has developed and constructed over 50 projects including residential complexes, commercial complexes and IT Parks covering a saleable area of 20 million square feet across Pune, Mumbai and Bengaluru.
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