Kolte-Patil Developers spurted 7.36% to Rs 126.15 after the company announced strategic land monetization in Pune for Rs 91 crore.
On 8 April 2020, Kolte-Patil Developers (KPDL), through its subsidiary Kolte-Patil I-Ven Townships (Pune) (KPIT), entered into an agreement with Planet Smart City, a UK-based real estate developer, for strategic land monetization of a portion of Sector R10 in KPDL's township project Life Republic in Pune for Rs 91 crore. This portion of land measuring ~5.42 acres in Sector R10 has a residential development potential of 7.6 lakh square feet in terms of saleable area. Further, under the agreement, this land parcel in Sector R10 will be jointly developed by KPIT and Planet Smart City in the profit sharing model.Life Republic, being the company's flagship project spread across ~400 acres, is expected to continue to drive Kolte-Patil's revenue, profits, cash flows and return ratios in a significant manner over next decade. At present, about 4.2 million square feet has already been delivered in the project, making Life Republic an established destination for Pune home buyers and currently home to 10,000 residents. The project has 4 million square feet of pre-approved development space by MAHARERA, and is expected to add another 10,000 residents within three years. In 9MFY20, sales of almost 0.8 million square feet were achieved at Life Republic and recent promotional activities continue to drive strong demand visibility among buyers. The total saleable area at Life republic is about 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, the company said in a statement.
On a consolidated basis, Kolte-Patil Developers reported a net loss of Rs 13.05 crore in Q3 December 2019 as compared to net loss of Rs 12.87 crore in Q3 December 2018. Net sales soared 80.19% to Rs 130.19 crore in Q3 December 2019 over Q3 December 2018.
Kolte-Patil Developers is primarily engaged in business of construction of residential, commercial; information technology (IT) Parks along with renting of immovable properties and providing project management services for managing and developing real estate projects.
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