Pune-based public listed realtor Kolte-Patil Developers Ltd has bought out its partners in its special purpose vehicle company Corolla Realty Ltd by shelling out about Rs 164 crore (approximately $25 million), according to a stock market disclosure.
Kolte-Patil has bought out remaining 63 per cent equity from its two joint venture partners—ICICI Venture Funds Management Company Ltd and an unnamed individual investor.
ICICI Venture held 37 per cent while an unnamed individual investor held 26 per cent in the project.
Corolla Realty is the holding entity of Ivy Estate, an 80-acre real estate development located at Wagholi in Pune. The total saleable area of the project stands at 5.3 million sq ft of which around 2.5 million sq ft had been sold as of the end of the first quarter of the current financial year.
The acquisition is part of the company’s core strategy of remaining relevant to home buyers by maintaining a significant part of inventory in the under Rs 1 crore ticket size, deploying capital where there is strong cash flow visibility, it said in the statement.
“Ivy Estate is one of our established projects targeted at the mid-income group segment and a strong volume driver for the company,” said Sujay Kalele, chief executive officer of Kolte-Patil Developers.
Last week, the realty firm raised Rs 110 crore through an issue of redeemable non-convertible debentures.
The company has launched three projects in Pune in FY16 so far and is planning to launch half a dozen more in its home city besides one project each in Mumbai and Goa in the second half of this fiscal.
According to the company, revenue and profit are expected to improve in FY16 and FY17 as a greater proportion of 100 per cent owned projects and higher margin projects will come up for revenue recognition.
Shares of Kolte-Patil Developers last traded at Rs 180.55 each, up 0.22 per cent on BSE in a weak Mumbai market on Monday.