Sujay Kalele, CEO, Kolte Patil Developers Ltd
“In recent times, Pune market has seen a yoy increase of 14% in price per square feet. In the coming months, we expect a growth of 10-12%.”
Sujay Kalele, CEO, Kolte Patil Developers Ltd holds a post graduate degree in Management with specialization in Analytical Finance and Strategy from The Indian School of Business, Hyderabad and Bachelor of Engineering from Government College of Engineering, Pune. Before joining Kolte Patil, Sujay worked with Jones Lang LaSalle India as vice president capital markets where he was primarily responsible for servicing fund raising needs of real estate developers in the Western Indian markets of Mumbai, Pune and other Tier II markets.
Kolte Patil Developers Ltd (KPDL), headquartered in Pune, is among the top premier league of real estate developers in India. It has created a niche for its esteemed clients' over two decades in terms of delivering residential, Commercial, IT & Integrated Township projects. KPDL has been on the forefront of developments with its trademark philosophy of ‘Creation and not Construction’. With over 8 million square feet of landmark developments, KPDL has created a remarkable difference by pioneering new lifestyle concepts, leveraging cutting edge technology and creating insightful designs.
Replying to Yash Ved of IIFL, Sujay Kalele says “In recent times, Pune market has seen a yoy increase of 14% in price per square feet. In the coming months, we expect a growth of 10-12%.”
Are you witnessing any slowdown given concerns of less demand and rising costs?
Pune is the only market in the country maintaining a healthy inventory of 12-14 months. Consistent sales have ensured healthy construction activity and timely delivery of projects. Pune market has seen a YoY increase of 14% in Price per square feet and in the coming time as well, we see decent absorption levels in Pune.
We haven’t experienced any slowdown. In fact, Kolte-Patil has maintained its numero uno position for the 1st two quarters in this year. The research done by Liases Foras Real Estate Rating & Research for the year 2011 & 12 suggests that approximately, 37 million sq. ft. have been sold across Pune. Kolte-Patil sold about 2.85 million sqft during in the period with, the value of stock being Rs11bn.
What are your plans for redevelopment projects?
Mumbai being a new location for us, we have entered the market with a less capital intensive model, thus focusing efforts in redevelopment and JDAs (Joint Development Agreements). We have currently shortlisted three redevelopment projects – one in Chembur and the other two on the linking road. The procedure is being carried out and we shall soon be signing DAPAs for these.
Also, we have identified two projects in Vile Parle to be redeveloped.
What is your outlook on real estate prices?
In recent times, Pune market has seen a yoy increase of 14% in price per square feet. In the coming months, we expect a growth of 10-12%, subject to market policies. If the interest on home loans is improved, it might result in even a better take-off on the real-estate inventory.
Brief us about the Q3 financials?
We have posted a strong revenue growth as our existing portfolio is dominated by the residential asset class, which meets the market demand. Cost control measures combined with good revenue realization per sq. ft. has helped us reap in good profit margins.
For the quarter ended December 31, 2012, the company had a revenue growth of 205% for the quarter ended December 31, 2012.
The revenue increased to Rs. 2.34bn in the third quarter of fiscal 2012-13 from Rs. 768.4mn in the third quarter of previous fiscal. Pedestal on the robust sales growth, company’s Profit After Tax for the quarter has increased by 385% to Rs. 305.1mn compared to 62.9mn for the corresponding quarter ended December 31, 2011.
Earnings Per Share (EPS) for the third quarter is at Rs. 4.03 which was Rs. 0.83 in corresponding previous quarter.
Brief us about your current and future projects?
Kolte-Patil Group is present across different residential segments, commercial and integrated townships. Our ongoing projects in Pune include the 24K Glitterati at Pimple Nilakh Located next to the Mula-Muthariver and the 24K Allura at NIBM Annex which offers premium residences as a part of a 40-acre gated community development.
The other ongoing luxury projects in Eastern Pune are
Tuscan Estate: With Hotel Radisson as its neighbor and in JV with Portman Holdings, this creation comprises of exquisite 3-BHK Apartments & 4-BHK Penthouses. The project isa veritable mix of spacious and luxurious homes with fine amenities that make a lifestyle statement befitting Kharadi’s growing stature.
Ivy Estate: This is the largest gated community development in Eastern Pune. Comprises of hill-facing Villas, Twin Bungalows, Row houses and 2 & 3 BHK luxury and terrace Apartments, the project sprawls across a luxurious 80 acres of verdant surroundings.
Florence: Located near The Corinthian Club, Pune and in JV with Portman Holdings, Florence has been developed into an impressive ensemble that recreates an upper-class residential setting. With over 40 amenities for all age groups, and surrounded by renowned schools, healthcare units, entertainment, shopping landmarks and famous clubs, Florence offers both style and convenience.
Downtown: Inspired by the Downtowns of the First World, the residences here will reflect energy. Simultaneously, they will also ensure contemporary living that embraces functionality. In addition, a Downtown resident will have the added benefits of being close to commercial, retail, education and entertainment facilities.
Life Republic near Hinjewadi, redefines the concept of a township lifestyle in western Pune showcasing a unique way of living for the thinking minds.
Future projects in Bangalore
A residential project in Koramangala
Another project on Hosur Road
What is the total area under development?
Around 8 million sqft of actual area under execution in Pune and Bengaluru.
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