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TRANSACTION BACKGROUND

  • KSH Group is a leading Multi Modal Logistics and Industrial park developer with diversified business Portfolio in Pune.
  • KSH has a existing Industrial / logistics park Built up portfolio of appx 0.8 million sft at Chakan in addition to an Inland container depot (ICD) operations with 0.5 million sft in Talegaon – Pune.
  • The group further through private equity Infusion and tie ups with Reputed PE Funds was exploring possibilities to set up a Industrial park on a 50 acre land parcel in chakan – Pune.
  • The primary aim was to consolidate their leading position in Pune Industrial Rental market and take the business to next level of growth with Cumulative 2 million sft of development by year 2022.
  • With Stellarium RE Ventures existing relation ship with KSH, we received an opportunity to provide a solution to this said requirement and we promptly delivered a workable Site to conclude.
  • Our Role essentially was also to structure a profitable deal for the developer and the PE fund who were venturing into a private Industrial land transaction for the first time in Pune rather than a MIDC land transaction.
  • Providing inputs and prevalent Real estate market reports from a strategy stand point on the viability of leasing the premises.

5. Stellarium RE Ventures strategized the additional land acquisition based on discussions with the landlord / developer and further provided valuable inputs from a leasing perspective to both sides with our past experience in Industrial Transactions.

6. Legal Due diligence from the developer side was undertaken by leading solicitor firms with a task cut out to complete the exercise within a stipulated time period. Stellarium RE Ventures ensured that the due diligence documents were provided by the landlord at reasonable time frame for the completion of exercise by constant follow ups.

7. On the aggregation of final 50 acres, the same was put forth for Industrial plan sanctions / Approvals from PMRDA and subsequently transferred to a SPV on obtaining the NA (Non Agriculture) Permissions  which further Entered into a JV with the Developer and PE Fund

KEY CHALLENGES RESOLVED

1.Identifying a suitable land site with clear title to the tune of land area admeasuring 50 Acres on a Joint Development Model in Chakan Phase 2 was a challenge.

2.Stellarium RE Ventures scanned the entire micro market enlisting multiple site options from which through a qualitative and quantitative (Q&Q) analysis arrived at zeroing down on a 42 acre site for further exploration for the client.

3.The 42 Acre land parcel was to be expanded further by additional acquisition of 8 acres around the existing site to improve the land shape To 50 Acres for efficient park plan layout.

4.The additional acquisition would take another 6 months by the landlord which would include swapping some portion of land with existing land owners to ensure an efficient layout suiting the 1.2 million Sft development. 

OUTCOME & DELIVERY

1.Executed the Deed of conveyance for 27 acres of land area in favour of the Developer as per the Ratio of JD decided upon.

2.Executed the Building Construction contract for the landlord’s stock portion by the Developer.

3.Negotiating the landlords Delivery of Built up Stock area in 15 month time from date of commencement than earlier timeline of 18 months from the developer.

4.Imposing Condition Precedents / Mandatory Deliverables on the landlord as following

a.Sanctioned Plans for Industrial / Logistics park from PMRDA 

b.18 Mtr wide Road Connectivity up to park.

c.Clear Marketable Title from Reputed Solicitors to satisfaction of JV Partner. 

d.Timelines – The Entire Transaction was completed in a span of 15 months and was concluded in April 2019

APARTMENTS PLANS

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Stellarium aspires to be a corporates first port of call when it comes to establishing their manufacturing / Logistics unit by way of leasing a facility OR through acquisition of land or a ready asset

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