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realty developer Kalpataru entered into a revenue-sharing agreement with Indian Hume Pipe Company to develop an over 2.3 million square foot mixed-use project on an approximately 15-acre land parcel in Pune‘S Vadgaon territory.
The company plans to invest around Rs 1,000 crore in the project to be developed in two phases over the next 6-7 years.
subsidiary of the developer Kalpataru Garden had earlier signed an MoU for this development. The agreement has now been revised and the revenue share of the developer in the project has now increased from 66% to 67.50%, while Indian Hume Pipe The company will get the remaining share.
Around 90% of the project will be premium residential development and the rest will be commercial. Based on current property rates in the surrounding area, the project is expected to generate a total revenue of Rs 2,500 crore, of which around Rs 1,700 crore will be Kalpataru’s share.
Indian Hume Pipe Company said in a regulatory filing that the change in revenue share was necessitated due to abnormal increase in development cost, change in development rules and increase in project size.
The agreement between Kalpataru and Indian Hume Pipe Company was registered on May 22 and has a stamp duty of Rs 10.63 crore. Documents accessed through CRE Matrix show that the developer has paid an interest-free security deposit of Rs 11 crore to the Indian Hume Pipe Company.
As per the terms of the agreement, Kalpataru will obtain applicable approvals and permissions, construct, execute and sell, while the land owner will be responsible for all costs related to providing floor space index (FSI) and converting the land from industrial to residential use.
In one of the largest single investments in the residential sector, HDFC Capital, a subsidiary of India’s largest private sector mortgage lender HDFC, recently invested Rs 1,450 crore in Kalpataru’s portfolio of projects and land parcels. The transaction for the Indian Hume Pipe Company’s land parcel in Pune is a new deal and will not be part of the HDFC capital funding.
Transactions for land parcels have resumed in key property markets of Mumbai, Pune, Chennai, Hyderabad and Bengaluru with several deals including outright acquisitions and joint ventures either closed or expected to close soon. Is.
The increased demand for land parcels is fueled by the continued recovery in the housing market and rapid growth in the warehousing and data center space.
Over the past few years, many realty developers have reworked their business strategies to focus on asset-light models such as joint development and development management agreements.
Realty developers have acquired around 2,181 acres of land worth over Rs 26,000 crore in the last 17 months between January 2022 and May 2023, with an estimated development potential of around 209 million sq ft across 104 different land deals, JLL India’s data shows.
Of these 2,181 acres, about 578 acres or 27% of the land was to be acquired in the first five months of 2023 alone. Data indicates that branded developers have successfully concluded several land transactions in top metros as well as Tier 2 and 3 cities.
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