Kolte Patil to set up realty plat­form

HT Estates - - FRONT PAGE - Bidya Sa­pam bidya.s@livemint.com

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 fund its 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 aplat­form trans­ac­tion where we would like to set upa­line of credit of aroundRs500 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 name­soft­hep­ri­vate 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 hous­ing project at Hin­je­w­adi, Pune.

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