Ahead Of IPO Launch, Lodha Puts London Property On Sale
India’s richest real estate group Lodha Developers may sell its residential projects in London to a foreign real estate fund, say media reports. The Mumbai-based company plans to sell Lincoln Square on Carey Street and 1 Grosvenor Square in Mayfair to cut debt, estimated to be around three times the company's net worth. The sale is expected to fetch approximately Rs 4,200 crore to the company.
Recently, the group also issued dollar bonds on the Singapore Stock Exchange to raise $125 million. In 2015, Lodha Developers International had raised $200 million via dollar bonds maturing in 2020 at a coupon rate of 12 per cent.
The company had deferred its initial public offer (IPO) launch due to market conditions. It was in July when the builder received a go-ahead from the market regulator and was expecting to raise up to Rs 4,000-5,000 crore. The offering would be the country’s second-biggest property IPO.
Lodha's revenue for financial year 2017-18 stood at Rs 8,130 crore with an inventory book of Rs 23,500 crore. Currently, the company is developing an estimated 31.8 million square foot (sqft) of prime real estate with large land reserves in the Mumbai Metropolitan Region (MMR). The company has as many as 39 ongoing projects across Mumbai, Pune and London. Lodha Group also has land reserves of over 4,500 acre, with an estimated saleable area of 385 million sqft as of December 2017.