Mumbai: Shares of realty firm Kolte-Patil Developers Limited have gained notable ground in positive territory this afternoon, after the company said that it has completed a strategic divestment of its land parcel in Wakad, Pune.
The consideration for the same is worth Rs 161 crore, according to a filing by the company.
The realtor has stated that it went for the strategic sale after evaluating the overall feasibility and that the move is in line with its strategy of maintaining a lean balance sheet.
The company hopes to continue exploring partnerships under asset light models in order to enhance overall portfolio and be in position to attain sustained growth.
The land parcel at Wakad suburb has been sold to Island Star Mall Developers Pvt. Ltd, an investment platform of Phoenix Mills Ltd (it owns Phoenix Market City in Bengaluru) and Canada Pension Plan Investment Board (CPPIB), for Rs160 crore, according to the filings made by the concerned companies to the stock exchanges.
Earlier, in April this year, a joint announcement was made saying Canada’s largest pension fund CPPIB will invest a total of $250 million in multiple tranches, to eventually own up to 49% in Island Star Mall Developers, a unit of Phoenix Mills.
Phoenix Mills has stated that the site is the the first acquisition of Phoenix - CPPIB platforrm, and that the acquired land has a potential developable area of approximately 1.6 million square feet, which will allow for a planned premium retail development of approximately 1 million square feet.
Kolte-Patil Developers recorded a net profit of Rs 25.17 crore in the quarter ended June 2017, up nealy 80%, over a net profit of Rs 14.60 crore it had posted in the corresponding quarter last year. However, sequentially, net profit was significanly lower. In the March 2017 quarter, the company had posted a net profit of Rs 33.90 crore.
At Rs 166.55 (on BSE), off the day's high of Rs 169.90, the stock is up 2.7% from its previous closing price now. On the National Stock Exchange, the stock is up 2.6% at Rs 166.10.
The stock has been gaining some ground since last Thursday, adding more than 15% in three sessions. Although the stock has done well in the last one year, adding nearly 30%, in the past one month and in the three month period to July, the stock failed to improve on its gains.
Meanwhile, shares of Phoenix Mills Limited are up 3.5% at Rs 528, after having touched a high of Rs 536 earlier in the session.
