Pune-based real estate developer Kolte-Patil Developers is planning a slew of launches over the next 12-18 months in Pune, Mumbai and Bengaluru aggregating 10 million sq ft of business development.
According to the company’s senior management, these new projects are expected to churn out a revenue of ₹6,000-7,000 crore. These projects are in various stages of approval post which the company will file for RERA formalities before launching the project formally.
In a post-earning conference call, Yashvardhan Patil, Joint Managing Director, Kolte-Patil Developers said, “We will scale up faster than we have in the past but will continue to maintain financial discipline. In the next 12-18 months we are targeting business development of approximately 10 million sq ft which includes 8 million in Pune and the rest in Mumbai and Bengaluru.”
Chunk of the projects in Pune
The projects based in Pune which are located at Baner, Tathawade and at Hinjewadi are expected to generate revenues of ₹4,000 crore while the balance of the top-line is expected to come from Mumbai and Bengaluru.
One of Pune’s largest townships, Life Republic, spread over 390 acres near the IT destination of Hinjewadi, will see two projects coming on stream. The company also has interests in Aundh and Kalyani Nagar areas of Pune where it is awaiting certain clarity on the government norms before starting the projects.
“For the Aundh project we are evaluating how we can take advantage of unified DCR (development control regulations). In Kalyani Nagar, which will be a residential project, we have started planning and it will get added to the launch pipeline within 6 months. There is a unit size restriction of 60 sq mt on 50 percent units and 90 sq mt on 50 percent units. It is close to a metro station and there is a certain FSI benefit but the locality is tuned for premium development. The government is planning to revise this restriction. Once we get the GR we can go ahead,” Rahul Talele, Group CEO, Kolte-Patil Developers said.T
Officials said that the company is evaluating more than 30 million sq ft of business development proposals which are in mid or advanced stages.
Two verticals formed
Kolte-Patil has strengthened its business development team in Mumbai with the formation of two verticals. One team is looking into redevelopment while the other is taking care of joint ventures and outright transactions. In addition, it has also identified a few micro markets in western suburbs.
“We did not have a presence in the central and Navi Mumbai markets and there we are evaluating multiple business development deals. A couple of deals are ready for launch where the previous developer was unable to perform and we are looking to take them over,” Talele added.
For the nine months ended December, Kolte-Patil sold 1.93 million sq ft which was a growth of 58 percent over 1.22 million sq ft sold in the same period previous year. Its realisation per sqft shot up by 15 percent to ₹6,403 as at the end December as against ₹5,553.
“Our per sqft realisation is going up every quarter. It will be more than 3 million sqft next financial year. But certainly, we want to focus on value rather than on volume,” Talele added.
Kolte-Patil brought down its debt significantly this year to ₹172 crore at the net debt level as against FY21 closing of ₹310 crore. It had hit a peak net debt of ₹517 crore in FY19.
“We are currently evaluating debt of ₹250 crore which will get utilised in the next round of business development,” Talele added.
March 03, 2022