Page 39 - Kolte Patil AR 2019-20

land monetisation of ~5.42 acres of Sector R10 of Life Republic for C91 Crore. This land parcel in Sector R10 enjoys a residential development potential of 7.6 Lakh sq ft of saleable area and will
be developed by the Company
and Planet Smart City through
a profit-sharing model. This is
a unique deal likely to generate land monetisation benefits and profit sharing cash flows from the incremental planned development, strengthening returns.
The deal significantly re-rates the project’s valuation and provides
a dependable benchmark for prospective monetisation.
FY20 review
KPDL marketed 1.05 msf in Life Republic during the last financial year. The Company delivered 270 completed apartments during the year. Based on the sales made in the last financial, year, a large quantum of the development potential of the property remained
unaddressed, creating robust multi-year property development and revenue visibility. Life Republic was home to 11,000 residents by the year under review and another 10,000 residents could be added in next three years.
Outlook
Big numbers of Life Republic
5.82
Msf, Sales until FY20
4.33
Msf, Under approval and ongoing
10.35
Msf, under land bank
1.7
Total FSI potential in Life Republic
1.0
FSI on which current potential has been based
Strengthening value from Life Republic
Sales value 508 (C Crore)
Growing throughput from Life Republic
Sales area 1.05 (Msf)
Growing weightage of Life Republic
Life 38.7 Republic
sales value
as % of the
Company ’s sales value
The 390-acre Life Republic is expected to catalyse the Company’s revenue, profits and cash flows across 12-15 years. Within a year
of the buyout of economic interest, the project achieved multi-year sustainability. The Company generated more than 1 msf in sales in successive years, validating
its long-term momentum. The Company will focus on the progressive liquidation of its inventory to the extent the market can bear without compromising realisations. The total saleable
area of ~20 million square feet is based on an FSI of 1.0; however, the total FSI potential of the project is 1.7 based on integrated township norms.
KPDL’s growing economic interest
45
% KPDL’s economic interest in Life Republic, FY19
95
% KPDL’s economic interest in Life Republic, FY20
60
% KPDL’s economic interest across all projects, FY19
90
% KPDL’s economic interest across all projects, FY20
165
156
435
Parameter
FY17
FY18
FY19
FY20
0.32
0.34
0.90
Parameter
FY17
FY18
FY19
FY20
13.5
13.0
30.4
Generating value from Life Republic
Positioned as
a township
with multi-year
Bought out economic interests of external stakeholders in the property
Designed, marketed, constructed and delivered the first phase
KPDL now positioned to capitalise most comprehensively on Life Republic upsides
Perspective
“Life Republic is a landmark destination in western Pune with best-in-class physical and social infrastructure, enjoys strong launch visibility and is attracting growing buyer interest. Besides, Pune is growing in importance as a commercial centre with widening real estate demand from end-users employed in IT, automobiles, manufacturing, biotech and other sectors. In view of this, we foresee Life Republic contributing significantly to our multi-year financial performance.” – Gopal Sarda, Group CEO
1.7
Acquired 390-acre Life Property in
FY07
development
Total FSI potential in Life Republic
potential
Parameter
FY17
FY18
FY19
FY20
Enhanced the recall of Life Republic as the future of integrated, balanced and community-centric gated living
Annual Report 2019-20 | 37