Patel Engg hires DTZ to value its land bank

MUMBAI: Patel Engineering (PEL), a Mumbai-based construction major, has roped in global real estate advisor DTZ to value its land bank across the country ahead of a proposed sale of part equity to private equity players in its recently floated wholly-owned subsidiary — Patel Realities India (PRIL).

The company has a land bank of around 1,000 acres in Mumbai, Bangalore and Hyderabad. DTZ is one of the ‘big four’ global real estate advisors operating across Europe, Middle East and Africa (EMEA), Asia Pacific and the Americas.

PEL managing director Rupen Patel said the board of director’s has taken a strategic decision to increase shareholders’ wealth by monetising the land bank. “We are looking at the option of funding some of these projects through private equity at project execution level,” he said. “Unlike other real estate companies, the entire land bank is owned by us with clear title and historic value in our books,” he added.

Recently, PEL had announced its plans to develop the first phase of its real estate business. It intends to develop around 12% of its total land bank in Mumbai, Bangalore and Hyderabad. According to analysts, the revenue from this phase of development is estimated at Rs 4,800-5,000 crore. Once the complete land bank is developed, its revenues could exceed Rs 22,000 crore.