Kolte-Patil To Provide Exit To K2A Residential
Kolte-Patil Developers Limited, a leading Pune based real estate developer, has announced that it will provide an exit to K2A Residential Limited, acting through its investment manager IL&FS Investment Advisors LLC (IL&FS) who is holding 49% equity stake in its subsidiary, Kolte-Patil Real Estate Private Limited (KPRE). The exit will be provided for a total consideration of Rs. 57.5 crore which shall be paid over the next six months, which will be serviced largely through the internal accruals of the project. Pursuant to the exit of K2A Residential Limited, KPRE will become a wholly owned subsidiary of Kolte-Patil Developers Limited.
KPRE is the holding entity for Kolte-Patil's Downtown project, a 42-acre mixed-use development located at Kharadi in Pune that consists of residential, commercial and retail spaces. The total saleable area of the project is 1.8 million square feet of which 1.1 million square feet has been sold and delivered till date. The expected cash inflows from sold and unsold inventory is to the tune of Rs 650 crore, which will, pursuant to the exit of K2A Residential Limited, be captured entirely by Kolte-Patil Developers Limited, based on its 1000/0 ownership.
Commenting on the development, Mr. Gopal Sarda, Group CEO, Kolte-Patil Developers Limited said, "We are delighted to close this transaction and be eligible to receive 100% of the revenues and profits from the project, Downtown is one of our established projects and its Phase II is currently under execution, providing strong cash flow visibility, as a result, we plan to provide an exit to K2A Residential Limited through internal accruals of the project without any fresh infusion or capital raising requirement."