ARTICLE

REALTY: Lodha exits HDFC Property Fund from World Towers for Rs.1500 Cr

Lodha Group recently announced one more successful investor exit of HDFC Property Fund’s equity stake in its World Towers project for Rs.1500 crore. This concludes one of the most successful and largest exits in real estate sector with three times return on investment. The offshore fund sponsored by Housing Development Finance Corporation Ltd (HDFC), had invested `500 crores in 2010. The exit was funded through internal accruals and partly through fresh fund raising.

The investment was made in Lodha Group’s landmark development, The World Towers; spread over 17 acres in the heart of South Mumbai, comprising of 3 ultra-luxury high-rises. Possessions at World Crest have already started and the Tier 1 of World One is slated for delivery in mid-2017.

Lodha Group is one of the most profitable real estate developers in India and the largest by sales for four consecutive years. In a year of difficult economic conditions and sluggish growth, the company clocked record sales and collections. In FY 2015-16, the Group achieved net sales of `6,400 crore and delivered 6,800 homes.

Abhishek Lodha, MD-Lodha Group said, “This milestone is a testimony of our ability to deliver on our promise and commitments of creating high value for our stakeholders, be it customers or investors.” KG Krishnamurthy, MD & CEO-HDFC Property Ventures Limited said, “This transaction was one of our largest investments in Mumbai and came at a time when the real estate sector was facing sluggish sales and low investor confidence. However, Lodha Group’s robust business performance and strong brand credentials continue to outperform market expectations.”