Yatra Capital Limited, the first Euronext quoted Indian real estate company, has announced its first investment in Indian real estate. Yatra has committed up to €21.6 million in equity for a 49% stake in a joint venture which will initially develop three residential sites in Pune, Maharashtra.
All three localities are within the key corridors of growth in Pune and located next to the commercial and technology related developments. This investment in Pune underlines Yatra's stated strategy of investing in fast growing Indian cities where the board believes there is the greatest opportunity to deliver growth and subsequent shareholder value.
Yatra's joint venture partner is a leading and well established real estate development company, Kolte Patil Developers Limited. Kolte Patil was incorporated in 1991 and since then has focused on Pune and Bangalore. At December 31st 2006 Kolte Patil had developed and constructed 25 projects, of which 22 have been in Pune and three have been in Bangalore. The sectorial composition of these 25 projects is as follows:
- 16 Residential Complexes
- 4 Commercial Complexes
- Mixed Use Complexes, residential and commercial.
- 2 Information Technology Parks
Kolte Patil has a strong management team which is led by Mr. Rajesh Patil. Kolte Patil is an ISO 9001 certified development company and received the Government of Maharashtra's First Prize for "Best IT Infrastructure in the State of Maharashtra" for their landmark GigaSpace IT Park project in Viman Nagar, Pune.
Saffron Capital Advisors Limited, sourced, evaluated and advised on this joint venture. Saffron has a highly experienced and talented team specializing in Indian real estate investments. Yatra through its subsidiary K2 entered into an Investment Advisory Agreement with Saffron Capital Advisors in August 2006.
Following this investment, Yatra Capital Limited will have invested €21.6 million of the €100 million that it raised in December 2006.
Commenting on this investment, Sir Nigel Broomfield, Chairman, Yatra Capital Limited, said, "We are very pleased to announce our first investment in India which is a joint venture with a leading, experienced and internationally accredited real estate partner, Kolte Patil Developers. This opens our investment account in India and is in alignment with our strategy of partnering experienced developers to create shareholder value for Yatra."
Commenting on this investment, Mr. Rajesh Patil, Chairman & Managing Director, Kolte Patil Developers Limited, said, "This is a key milestone in the growth of Kolte Patil Developers Limited. Yatra Capital Limited through its advisor Saffron Capital Advisors is a very well informed and networked partner that creates value not only through equity investments but also through its extensive knowledge on quality real estate development. We are looking forward to working closely with Yatra Capital Limited to develop several projects within Pune and other cities."
Commenting on this investment, Mr. Ajoy Veer Kapoor, Managing Director, Saffron Asset Advisors, said, "Pune fits perfectly with our stated investment strategy and is exactly the type of Indian city we will continue to focus on. It has a rapidly growing economy which is creating demand across all segments of real estate to satisfy an increasingly affluent and expanding population which demands a higher quality of living than is currently available. Pune has the added advantage that its growth is also underpinned by its long standing status as the automobile hub of western India."