BackFormer Kolte-Patil CEO Sujay Kalele sets up realty firm TRU Realty Technology
TRU Realty is also looking to develop land parcels owned by ultra-rich individuals, helping the latter monetize assets and generate quicker returns
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Bengaluru: Sujay Kalele, former chief executive of realty firm Kolte-Patil Developers Ltd, has formed TRU Realty Technology Pvt. Ltd, a real estate development aggregator platform that will collaborate with landowners and developers for projects and also provide end-to-end services for homebuyers.
The new real estate firm is scheduled to be launched in April.
Kalele, who resigned from Kolte-Patil last November, has co-founded the start-up with Vikram Kotnis, who is also co-founder and chief executive of Amura Marketing Technologies Pvt. Ltd.
The new firm will be launched during a time when the real estate sector is undergoing a prolonged slowdown and many developers are saddled with incomplete projects or land parcels that they are not in a position to develop.
“We are launching a technology-enabled, real estate development aggregator platform, where we will effectively be a developer of developers. We will be working with other stakeholders (such as landowners and developer partners) to share the benefits of aggregation and at the same time increase the price premium by providing transparent and accountable development process to the end customer," Kalele said.
Apart from entering into development management agreements with other developers, where TRU Realty will take over and develop the projects, it is also looking to develop land parcels owned by ultra-rich individuals, helping the latter monetise assets and generate quicker returns.
Kalele said, “There will be multiple sources of revenue of which development management fees will constitute a substantial portion. Other sources will include sign-on fees, transaction fees, etc."
So far, TRU Realty has signed on for four projects in Pune and Mumbai, of which one is an integrated township.
Start-ups in the real estate industry in India, which has traditionally functioned as a family-run business, are rare. However, in the last two years, given the slowdown in the sector, a few firms led by entrepreneurs and professionals have set up their own ventures.
The new firms are focusing on strengthening customer experience, increasing accountability by developers and offering services and products that are personalised and customised for homebuyers.
Sanjay Chhabria, former managing director of Mumbai-based Wadhwa Group, set up Radius Developers in 2014 and has acquired multiple projects over the last two years by tying up with other developers through the development management and joint venture routes.
“Execution is going to be key going forward since we now have a decent-sized portfolio of project developments. We will now also look at doing a few projects on our own now, and have signed up for 3-4 land parcels in Mumbai," said Chhabria.
Another Bengaluru-based firm, Citrus Ventures Pvt. Ltd, initially focused on special situation projects in the latter half of 2012, but has now moved on to develop its own projects. “The major advantage for new companies like ours is that there is not too much baggage and that helps us in moving faster. Of course, we invested heavily in building the brand to create that customer connect but the fundamental idea is to run the firm professionally and with transparency," said Vinod Menon, director and chief executive, Citrus Ventures.
With the Real Estate (Regulation and Development) Bill, 2013 now a reality, it is going to be tough for many real estate firms going forward. The sector, known for its non-transparent ways, will have to cough up financial closures of projects in advance and run the business in an organised manner.
“New firms have to bring in the development and execution capabilities that will be critical with the new real estate bill coming in. What is good though is that the new companies are being run by professionals and that adds a lot of value," said Shishir Baijal, chairman and managing director at property advisory Knight Frank India.
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