Page 39 - Kolte Patil AR 2019-20
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land monetisation of ~5.42 acres   unaddressed, creating robust   Big numbers of Life Republic
            of Sector R10 of Life Republic for   multi-year property development
            C91 Crore. This land parcel in   and revenue visibility. Life Republic   5.82
            Sector R10 enjoys a residential   was home to 11,000 residents by
            development potential of 7.6 Lakh   the year under review and another   Msf, Sales until FY20
            sq ft of saleable area and will   10,000 residents could be added in
            be developed by the Company   next three years.
            and Planet Smart City through                                 4.33
            a profit-sharing model. This is   Outlook
            a unique deal likely to generate   The 390-acre Life Republic is   Msf, Under approval and ongoing
            land monetisation benefits and   expected to catalyse the Company’s
            profit sharing cash flows from the   revenue, profits and cash flows
                                          across 12-15 years. Within a year
            incremental planned development,   of the buyout of economic interest,  10.35
            strengthening returns.
                                          the project achieved multi-year
            The deal significantly re-rates the   sustainability. The Company   Msf, under land bank
            project’s valuation and provides   generated more than 1 msf in sales
            a dependable benchmark for    in successive years, validating
            prospective monetisation.                                     1.7
                                          its long-term momentum. The
            FY20 review                   Company will focus on the       Total FSI potential in Life Republic
            KPDL marketed 1.05 msf in Life   progressive liquidation of its
                                          inventory to the extent the market
            Republic during the last financial   can bear without compromising
            year. The Company delivered 270   realisations. The total saleable   1.0
            completed apartments during the   area of ~20 million square feet is
            year. Based on the sales made in   based on an FSI of 1.0; however, the   FSI on which current potential has
            the last financial, year, a large   total FSI potential of the project is   been based
            quantum of the development    1.7 based on integrated township
            potential of the property remained
                                          norms.                          Strengthening value from Life Republic
                                                                           Parameter  FY17   FY18   FY19   FY20
             KPDL’s growing economic interest                              Sales value  165  156  435  508
                                                                           (C Crore)
            45                            60                              Growing throughput from Life Republic

            % KPDL’s economic interest  % KPDL’s economic interest         Parameter  FY17   FY18   FY19   FY20
            in Life Republic, FY19        across all projects, FY19        Sales area   0.32  0.34  0.90  1.05
            95                            90                              Growing weightage of Life Republic
                                                                           Life    13.5   13.0  30.4   38.7
            % KPDL’s economic interest  % KPDL’s economic interest         Republic
                                                                           sales value
            in Life Republic, FY20        across all projects, FY20        as % of the
                                                                           sales value
            Generating value from Life Republic
                                   Positioned as     Designed,              “Life Republic is a landmark destination
               Acquired 390-acre
             1.7                   a township        marketed,              in western Pune with best-in-class
               Life Property in
                                   with multi-year
                                                     constructed and
                                                                            physical and social infrastructure, enjoys
             Total FSI potential in Life Republic    delivered the first    strong launch visibility and is attracting
                                                                            growing buyer interest. Besides, Pune is
                                                                            growing in importance as a commercial
                                                                            centre with widening real estate
              Enhanced the recall                                           demand from end-users employed in IT,
              of Life Republic as the   Bought out   KPDL now               automobiles, manufacturing, biotech
              future of integrated,   economic interests   positioned to    and other sectors. In view of this, we
              balanced and         of external       capitalise most        foresee Life Republic contributing
              community-centric    stakeholders in the   comprehensively
              gated living         property          on Life Republic       significantly to our multi-year financial
                                                     upsides                performance.” – Gopal Sarda, Group
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