Kolte-Patil Developers will provide an exit to K2A Residential Ltd from its subsidiary Kolte-Patil Real Estate Pvt Ltd (KPRE) for ₹57.5 crore. Through IL&FS Investment Advisors LLC, K2A Residential holds a 49 per cent stake in KPRE. The amount will be paid over six months. The fund will be serviced largely through the internal accruals of the project.
Pursuant to the exit of K2A Residential, KPRE will become a wholly owned subsidiary of Kolte-Patil Developers. KPRE is the holding entity of Kolte-Patil’s Downtown Project, which has total saleable area of 1.8 million sq ft, out of which 1.1 million sq ft has already been sold. The expected cash inflows from sold and unsold inventory is ₹650 crore, which will now be captured entirely by Kolte-Patil. Shares of Kolte-Patil Developers slumped 4.48 per cent to ₹242.10 on the NSE.