Pune-based Kolte-Patil Developers Ltd said on Friday it has entered into a Rs 120 crore ($18 million) co-development agreement with an affiliate of JP Morgan Asset Management.
The investment from Metropolitan Lifespace Real Estate Developers is for a redevelopment project named Jay-Vijay Society in Ville Parle (east), located off Western Express Highway, in Mumbai.
The project is spread over an area of 2.25 acres. Kolte-Patil's economic interest in the project is about 1.65 lakh sq ft.
The announcement comes a day after VCCircle reported that the developer had received funding from JP Morgan through an inventory buying structure.
The company said on Friday that it has received all approvals for the project and that it expects to deliver the project in 30-36 months.
JP Morgan will get a specified area of the project after completion as a part of the agreement.
A company executive, who did not wish to be named, said that the project has a total of 258 units, of which 112 belong to the current tenants. From the remaining 146 units, 57 measuring roughly 63,000 sq ft saleable area will belong to JP Morgan and the rest to Kolte-Patil. He also said that half of the capital will come once documentation is completed and the rest as construction progresses.
Kolte-Patil has so far developed more than 50 projects across residential, commercial and IT Parks covering a saleable area of over 12 million sq ft in Bengaluru and Pune.