Kolte-Patil Developers has partnered with Planet Smart City, a UK based proptech company, for the second and final leg of strategic land monetization at Sector R10 in KPDL’s Pune-based township project Life Republic for Rs81.29cr.
At around 1.30 pm, Kolte-Patil was trading at Rs220.10 per piece up 7.16%. The stock has gained to an intraday high of Rs224.85 per piece on Sensex.
The Pune-based land measures 4.92 acres which is a portion in Sector R10 and have a residential development potential of 6.8 lakh sq. ft. in terms of saleable area.
Gopal Sarda, Group CEO, Kolte-Patil Developers Ltd. said, “We are happy to announce the second and final leg of our transaction with Planet Smart City, a renowned global proptech company. Over the last eight months, our partnership with Planet Smart City has progressed well. Besides the execution of the second agreement, the first phase of the project named ‘Universe’ is being launched in the coming weeks. This highlights the Company’s focus on execution as well as the comfort and confidence the real estate ecosystem has in partnering with us. We look forward to a mutually beneficial partnership with Planet and further strengthen our governance, operational excellence and product innovation."
Sarda added, "These uniquely structured deals earn us land monetization benefits as well as profit sharing cash flows from the incremental planned development, resulting in strong returns. They also showcase the intrinsic value creation prospects at this township. Within a year of the buyout of economic interest, the township achieved multi-year sustainability, generating ~ 1 msf in sales in successive years. Further, the Company is enhancing the lives of its township residents by introducing global-first smart solutions across planning, architecture, technological systems, social innovation, and environment."
The latest agreement follows the initial transaction of Rs91cr between the two companies announced in April this year, for monetization of ~5.42 acres in Sector R10 with residential development potential of 7.6 lakh sq. ft. based on saleable area. The aggregate value of both these transactions over two phases is Rs172cr.
Sarda also said that Life Republic is a popular, well-established township project in Pune and the joint development of Universe at Sector R10 will allow us to accelerate growth there in a capital-light manner. Further, the monetization over two legs creates resource liquidity to drive Company growth by expanding our presence into several new projects while maintaining a strong balance sheet.
Just like the previous agreement, this land parcel in Sector R10 will be jointly developed by KPIT and Planet Smart City in the profit-sharing model.