Shares of Kolte-Patil Developers touched a 6.7-year high of Rs 183.85 on Monday, up as much as 5.8 percent intraday on hopes of getting strong revenue from Mumbai realty market.
Group Chief Executive Sujay Kalele expects nearly 20-30 percent of its revenues from Mumbai operations in the next three years.
Pune-based real estate developer has already entered into agreements for three redevelopment projects in Mumbai's western suburbs that has total area of over six lakh sqft and is eyeing a few more in areas such as Dadar-Chembur belt, Worli, Mulund, Khar, Bandra and Santacruz.
"With a strong vision to expand in Mumbai, we are looking at the huge scope available in the redevelopment segment. This strategy has proved to be very effective, and we are confident that this will reap rewards across markets," he said.
According to him, there are around 52,000 buildings societies and tenancy structures that can come up for redevelopment in future. "This opens a huge opportunity for developers like us to generate good share of our revenues from the Mumbai market," he said.
Currently, nearly 90 percent of revenues are generated from projects in Pune, and rest from Bangalore and Mumbai. But, he expects the mix to change to 60-70 percent from Pune operations, 20-30 percent from Mumbai and rest from Bangalore in the next three years.
The company already has two township projects--Sanjivani Integrated and Life Republic--in Pune with a total saleable area of 12.9 million sqft.
He said the company was also planning to expand its presence in Delhi and Gurgaon.
Kolte-Patil has developed and constructed 48 projects, including 35 residential complexes, nine commercial complexes, and four information technology parks covering a saleable area of over 10 million square feet across Pune and Bengaluru.
At 11:48 hours IST, the stock was quoting at Rs 175.70, up Rs 4.80, or 2.81 percent on the Bombay Stock Exchange.
(With inputs from PTI)
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
