Kolte Patil to set up realty platform
MUMBAI: Pune-based realty firm Kolte-Patil Developers Ltd is in discussion with global private equity investors to set up a real estate investment platform worth around Rs500 crore to fun dits future projects, said atop company executive.
The company is also in separate talks with private equity firms to raise another Rs150-200 crore to fund few of its existing projects, said Gopal Sarda, group president and chief executive officer, Kolte-Patil Developers, in an interview with Mint.
“We are discussing with a few global funds for a plat form transaction where we would like to set up a line of credit of a round Rs 500 crore. While we will put in 20%, the rest would be contributed by the fund,” he said.
The deal is expected to close in the next three-four months and the company is working on creating astrong pipeline of projects for the purpose, he said. He, however, declined to reveal the names of the private equity firms the company is in touch with. This is the first time the company is looking for such a transaction.
“We evaluated this platform model because we felt rather than creating multiple partnerships we want to have one strong partnership with an international player... It would enhance the power to get bigger land parcels and take the business development at a faster pace,” Sarda said. In 2015, the BSE-listed firm raised around Rs120 crore from Metropolitan Lifespace Real Estate Developers Pvt. Ltd, an entity managed by JP Morgan Asset Management, to jointly redevelop a housing project in Mumbai’s suburbs.
The company is looking to bring in around 4-5 million sq.ft of residential projects in the next one year, including its first affordable housing project which it is gearing to launch at Wagholi in Pune this month. It is also planning its second affordable housingproject at Hinjewadi, Pune.