Jun 26: Kolte-Patil Developers Ltd, a leading Pune based real estate developer, on Tuesday said that it has announced that it will provide an exit to K2A Residential Ltd, acting through its investment manager IL&FS Investment Advisors LLC (IL&FS) who is holding 49% equity stake in its subsidiary, Kolte-Patil Real Estate Pvt Ltd (KPRE).
The exit will be provided for a total consideration of Rs 57.5 crore which would be paid over the next six months, which will be serviced largely through the internal accruals of the project. Pursuant to the exit of K2A Residential Ltd, KPRE will become a wholly owned subsidiary of Kolte-Patil Developers Ltd.
KPRE is the holding entity for Kolte-Patil’s Downtown project, a 42-acre mixed-use development located at Kharadi in Pune that consists of residential, commercial and retail spaces. The total saleable area of the project is 1.8 million square feet of which -1.1 million square feet has been sold and delivered till date. The expected cash inflows from sold and unsold inventory is to the tune of -Rs 650 crore, which will, pursuant to the exit of K2A Residential Ltd, be captured entirely by Kolte-Patil Developers Ltd, based on its 100% ownership.
Commenting on the development, Gopal Sarda, Group CEO, Kolte-Patil Developers Ltd, said, “we are delighted to close this transaction and be eligible to receive 100% of the revenues and profits from the project. Downtown is one of our established projects and its Phase II is currently under execution, providing strong cash flow visibility, as a result we plan to provide an exit to K2A Residential Ltd through internal accruals of the project without any fresh infusion or capital raising requirement.”