Lodha Group looking to buy more properties in London
Dec 01, 2013
Source : The Economic Times

 

MUMBAI: Realty developer Lodha Group is looking at buying more properties in central London after picking up MacDonald House from the Canadian Government in the city for over 300 million pounds or Rs 3,000 crore.

"We plan to focus on Mumbai and London as our two main markets...We are looking at buying more properties in central London particularly residential and commercial ones, not hotel assets," said Abhinandan Lodha, deputy MD of Lodha Group.

Lodha Group, however, may not be keen on other European cities as a market, he added. The company has already picked up an office spread over 1,000 sq ft at Eaton Square in London to house its UK business' office.

Lodha Group is the first Indian developer to acquire a ready property overseas for a realty project development, while there are few that have already executed project in foreign countries on acquired land parcels.

The company has made initial payment of Rs 300 crore or around 10% as first tranche of entire consideration and while the company is hoping to pay balance by January end.

The developer is planning to fund the transaction through internal accruals and is not looking to raise debt or induct a private equity player "at this time," Lodha said.

The company has clocked revenue of Rs 8,700 crore for 2012-13 (April-March) and Rs 14,500 crore for six months ended September 2013, he added.

The developer is also exploring options for hedging entire consideration of over 300 million pounds. The deal is currently pegged at Rs 102/pound. "We will decide on the hedge over the next couple of weeks," Lodha said.

The company is aiming to launch the London project in 6-9 months and is hopeful of fetching 20% internal rate of return over the next 4-5 years. When asked if projects approvals are easy to come by in this new market for the company, Lodha said the procedures are standardized there and it will not be a challenge.

 

 

 

 

 

 

 

 

Latest Realty News

Embrace low cost techniques for affordable housing: ASSOCHAM
Dec 01, 2013
MUMBAI: A top industry body Saturday underlined the need for developing and embracing low cost technologies to cater to the growing demand for affordable housing, especially for the lower and middle income groups in the country.
Building on the ancillaries business
Nov 29, 2013
MUMBAI: The rapid growth in the housing sector over the past two decades has catalysed the growth of allied segments such as paints, ceramics, electricals and sanitary fittings. They are expected to continue with their momentum in the years to come.
Milestone Capital plans to raise Rs 500 crore real estate fund in January
Nov 29, 2013
MUMBAI/BANGALORE: Private equity firm Milestone Capital Advisors is planning to raise a Rs 500-crore real estate fund, which will be launched in January and will have a greenshoe option of additional Rs 250 crore.
Large loans on the rise in banks’ home portfolio
Nov 29, 2013
MUMBAI: Banks have seen a rise in the proportion of home loans above Rs 30 lakh in the past two years, reflecting the sharp increase in home prices over the past few years.
Lodha group buys Canadian high commission’s building in London for over Rs 3,120 crore
Nov 29, 2013
MUMBAI: Mumbai-based realty major Lodha Group has bought the Canadian high commission's building in central London for over Rs 3,120 crore (£306 million) signalling the group's ambitious overseas plans.
Listed players on shaky foundations
Nov 28, 2013
MUMBAI: The real estate sector saw phenomenal growth in the last two decades, as the market went from primarily Government-sponsored housing to large private townships.
Still waiting for that big boom
Nov 28, 2013
MUMBAI: For all the changes that the sector has seen over the last two decades, buying or building a house still remains out of reach for a majority of the population. Not that renting one is any easier.
BMC wants evidence to register complaints about illegal buildings
Nov 28, 2013
MUMBAI: If you want to complain to the BMC about illegal constructions, you’ll now have to submit evidence too.
PCMC doubles property tax for illegal buildings
Nov 28, 2013
PUNE: Owners of unauthorized constructions in Pimpri Chinchwad will have to pay double theproperty tax. The civic body will soon start issuing tax bills for 2012-13 and for 2013-14.
Tax benefits of taking a home loan
Nov 28, 2013
MUMBAI: Interest paid on home loan is allowed as deduction u/s 24(b) of the Income Tax Act while calculating income from house property. If the house is self occupied, the maximum amount of deduction is Rs 1,50,000. However, if the property is rented out, total interest paid on the home loan is allowed as deduction without any limit. Deduction for interest component is allowed only from the financial year in which the possession of the house property has been obtained. Interest paid for the fina

Latest Realty News Of State

Realty Talk's