Kalpataru & Indian Hume Pipe Company Sign JV for Pune Project

Real estate developer Kalpataru has signed a revenue-sharing agreement with Indian Hume Pipe Company to develop a mixed-use project on roughly 15 acres of land in Pune's Vadgaon neighbourhood.

The plan is to develop over 2.3 million square feet of mixed-use space.

This project will be developed in two phases over the next 6-7 years with a planned investment of approximately Rs 1000 Crore.

The subsidiary of the developer, Kalpataru Gardens, had previously inked a memorandum of understanding for this development. The developer's revenue share in the project has been increased to 67.50% from 66%, while Indian Hume Pipe Company will receive the remaining share.

The project will consist of approximately ninety percent luxury residential development and ten percent commercial development. On the basis of current property values in the area, it is estimated that the project will generate total revenue of Rs 2,500 crore, of which Kalpataru's share will be approximately Rs 1,700 crore.

The Indian Hume Pipe Company stated in a regulatory filing that the change in revenue share was necessitated by an anomalous increase in development costs, a change in development regulations, and an increase in the scale of the project since the signing of the original agreement.

The agreement between Kalpataru and Indian Hume Pipe Company was registered on May 22 and a stamp duty of Rs 10.63 crore was incurred. The developer has paid the Indian Hume Pipe Company an interest-free security deposit of Rs 11 crore, according to documents obtained through CRE Matrix.

The landowner is responsible for all costs associated with providing floor space index (FSI) and converting industrial land to residential land use, per the terms of the agreement.