UK's Planet Holdings Invests in Kolte-Patil Developer’s Pune Project

UK-based affordable housing company Planet Holdings has invested in a 1.5-million sq ft real estate project being developed by listed company Kolte-Patil Developers in Pune’s Kondhwa locality. Planet Holdings and Kolte-Patil Developers have invested ?60 crore and ?15 crore, respectively, in compulsorily convertible preference shares (CCPS) of Snowflower Properties. The company, Snowflower Properties, is a special purpose vehicle that was formed by Kolte-Patil Developers and Ask Real Estate Special Opportunities Fund to develop Three Jewels, a residential and commercial project. The project’s total development potential is 1.48 million sq ft. Following this investment made by Planet Holdings and Kolte-Patil Developers, Snowflower Properties has ceased to be a subsidiary of the Pune-based real estate developer, the company said in a regulatory filing. About 1.18 million sq ft of this project has already been sold. The investment will be utilised to redeem optionally convertible debentures worth ?52 crore held by Ask Real Estate Special Opportunities Fund and Kolte-Patil Developers. The funds raised through the allotment of these CCPS will also be used to retire outstanding debt of ?23 crore. Planet Holdings operates businesses under the brand of Planet Smart City, a global leader in smart, affordable housing projects. It is planning to co-develop 15,000 housing units with Kolte-Patil Developers across Mumbai, Pune and Bengaluru. The UK-based company’s expansion into India will focus on a collaborative residential development platform consisting of projects and homes that promote aspirational living with digital and social innovation. Apart from Maharashtra and Karnataka, both the companies will look to identify other opportunities for co-development over the medium term, they said in a statement while announcing the creation of an exclusive development platform in July.