Real Estate company
Kolte-Patil Developers Limited (KPDL) announced today that the company has completed the third and final tranche payment of Rs70cr to India Advantage Fund-III (IAF-III) and India Advantage Fund-IV (IAF-IV) managed by ICICI Venture Funds Management Company Limited (ICICI Venture) for the buyout of their 50% stake in KPDL’s flagship township project - Life Republic.
The company in a regulatory filing on Friday said that as indicated earlier, the payment has been largely funded through internal accruals. The current disbursement follows the second instalment of Rs70cr paid out in November 2019. In May, 2019, Kolte-Patil had announced the buy-out of ICICI Venture’s stake for a cash consideration of Rs210cr to be paid in three instalments. The company has now completed all three instalments.
In addition, 12 acres of land in Life Republic with FSI required to achieve saleable area equivalent to 1.4 million square feet, will be allocated to IAF III and IAF IV upon the project obtaining FSI of 1.0 from the present 0.5.
Following the buy-out, KPDL’s economic interest in Life Republic increased to 95% and the company’s overall economic interest in its entire portfolio of projects grew from ~60% to ~90%. The Life Republic project resides in an SPV called Kolte-Patil I-Ven Townships (Pune) Ltd. The company has good visibility of cash flow from operations and maintains a healthy balance sheet position - as on September 30 2020, it had a net debt to equity ratio of 0.38 times.
Life Republic, being the company’s flagship project spread across ~390 acres, is expected to meaningfully contribute to company’s revenues, profits, cash flows and return ratios in a significant manner over next 10-12 years. Life Republic is already a landmark destination for Pune home buyers, currently home to 11,000 residents and another 10,000 residents could be added in next three years.
Since inception till H1FY21, ~6 million square feet of area has been sold at Life Republic. In FY20, sales of 1.05 million square feet were achieved at Life Republic, making it the second consecutive year of ~1msf of sales. In value terms, the combined FY19 and FY20 sales amount to ~Rs1,000cr.
The total saleable area at Life republic is ~20 million square feet, based on FSI of 1.0, which is currently incorporated in the project design plans. However, the total FSI potential of the project is 1.7 based on the integrated township norms.
Kolte Patil Developers Ltd trade ended at Rs214.10 per piece up by Rs2 or 0.94% from its previous closing of Rs212.10 per piece on the BSE.