Kal­pataru to de­velop 15 acre Pune land

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

MUM­BAI: Mum­bai- based real es­tate firm Kal­pataru Ltd has en­tered into a joint de­vel­op­ment agree­ment with pipe man­u­fac­turer In­dian Hume Pipe Co. Ltd, to de­velop a 15-acre land par­cel for a res­i­den­tial project in sub­ur­ban Pune.

In a BSE fil­ing, In­dian Hume Pipe said it has signed a Me­moran­du­mofUn­der­stand­ing(MoU) with Kal­pataru Gar­dens, a sub­sidiary of Kal­pataru, with re­spect to de­vel­op­ing the com­pany’s land at Vadgaon, Pune.

“TheCom­pany(In­dian Hume) has given power of at­tor­ney to the developer for ob­tain­ing ap­provals, sanc­tions, per­mis­sions, NOC’s re­lat­ing to the de­vel­op­ment of the above project,” In­dian Hume said.

Kal­pataru will have66% of the rev­enue from the project while the rest will go to In­dian Hume Pipe, which will bear the con­ver­sion charges from in­dus­trial to res­i­den­tial use. Kal­pataru will bear and pay all con­struc­tion, de­vel­op­ment, mar­ket­ing and sell­ing costs and other project re­lated costs.

“There used to be an old fac­tory of In­dian Hume Pipe on the plot. The trans­ac­tion is part of the com­pany’s land mon­e­tiz­ing plan,” a per­son saware of the de­vel­op­ment said.

The land par­cel has a po­ten­tial to de­velop around 1.2 mil­lion sq ft of res­i­den­tial space, the per­son said.

Prop­erty con­sul­tant JLL In­dia is the trans­ac­tion ad­vi­sor to the deal.

“Kal­pataru group has a track record for de­liv­ery. I be­lieve how the mar­ket is evolv­ing, large sized joint de­vel­op­ment trans­ac­tions will con­sol­i­date with top in­sti­tu­tion­alised de­vel­op­ers in mostc­i­ties,” said Nishant Kabra, di­rec­tor and head - land and de­vel­op­ment ser­vices (West In­dia), JLL In­dia.

As the real es­tate sec­tor gets into a con­sol­i­da­tion phase, sev­eral de­vel­op­ers are opt­ing for joint de­vel­op­ments with land­lords rather than shelling out large sums of money for out­right pur­chase.

In the re­cent past sev­eral large de­vel­op­ers like Go­drej Prop­er­ties and Shapoorji Pal­lonji Real es­tate have signed joint de­vel­op­ment agree­ments ei­ther with land­lords or with smaller builders who own large land parcels.

Shares of In­dian Hume Pipe closed at Rs 291.20, up 3.23% from the pre­vi­ous close, while the Sen­sex was down 1.22% at 37,922.17 points.

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