MUMBAI: Pune-based Kolte-Patil DevelopersBSE 2.64 % and realty fund ASK Property Investment Advisors have jointly acquired a 30-acre land parcel at Kondhwa in Pune for around Rs 160 crore, top executives of the two firms said.
The real estate private equity arm of financial services company ASK Group will hold equal stake along with the developer in the project through the pure-equity investment. The land parcel has total development potential of around 1.5 million square feet. The seller has procured necessary approvals for a residential project here.
"We will be able to launch the project in the next couple of months since all approvals, including environment clearance are in. We are planning a middle-income housing project and targeting revenues worth Rs 700 crore," said Sujay Kalele, CEO at Kolte-Patil Developers.
ASK Property has invested in the project through its Special Opportunity Fund II, which had raised. 1,000 crore from the domestic market in 2012. This is ASK Property Investment Advisor's fourth investment in Pune's real estate market.
"As part of our strategy, we invest only in five cities, including Mumbai , Delhi NCR, Pune, Chennai and Bangalore. It is a ready to go for the project with all approvals in place, so it has a well-defined timeline that will push returns upward," said Sunil Rohokale , MD & CEO at ASK Group. This is the sixth investment through the Special Opportunity Fund II.
With this, 60% of its total Rs 1,000 crore corpus has been deployed. This is also the group's second investment in a project of listed developer after Godrej Properties. According to Rohokale, it is an investment with a four-year horizon and the annual returns are expected to be in the range of 25-30 %.
Current residential property prices in and around Kondhwa are in the range of Rs 4,500-5 ,500 per sq ft. This is Kolte-Patil Developers' second land transaction in the last three months. In February, the developer had paid Rs 350 crore for acquisition of 34-acre land parcel at Wakad in Pune. Shares of Kolte-Patil Developers lost 4.5% on Tuesday to close at Rs 98.55 on BSE.