Builder Kolte-Patil Developers Ltd said it had generated an internal return rate of 36% on its Margosa Heights project in Pune, which it co-developed with US-based Portman Holdings.
“This project sets a unique example of an Indian & an International developer/Investor working in partnership on various aspects of the project to deliver a good product & achieve high profitability,” it said.
Margosa Heights includes 20 mid-rise apartment towers along with support retail located at Mohammadwadi, a suburb in south Pune. The development’s total area is ~1 million square feet.
The investment was the first residential investment for the Atlanta based full service real estate company which has a significant presence in India.
Commenting on the development, Mr. Rajesh Patil Chairman & Managing Director, Kolte- Patil Developers Limited said, “This has been a very good partnership. Our expertise & Portman’s value additions have been important for the success of this project. We have a flexible, project-specific capital structuring philosophy based on cash flow and approval visibility. The company’s strong brand name, execution track record, superior partner selection and robust balance sheet has enabled it to monetize its assets faster, generating attractive returns on investment for Kolte-Patil as well as its partners.”
Indian real estate firms are facing challenges generating decent returns from their investments. Meanwhile, greater regulation in the real estate sector has also led to more interest from foreign investors, who tend to be more disciplined and process-oriented in their approach.
Rahul Anand, MD, Portman Holdings India said, “The partnership approach adopted in this project is consistent with Portman’s long term development & investment strategy in India and a key factor in achieving high project returns for our investors and us”.
Ambrish Baisiwala, Global CEO, Portman Holdings further added, “Kolte-Patil is an important partner for us and we have had a successful relationship with them and continue to look at other opportunities together. We had the opportunity to partner with them at an early stage in this project and exit with good returns. We continue to remain very bullish on India and this continues to be a very important market for us”