Lodha boosts its London biz with 900cr deal
Feb 19, 2014
Source : The Times of India


MUMBAI: Signalling its focus on London as one of its business hubs, realty firm Lodha Group has bought another high-end property in the UK capital for Rs 900 crore, reports Rajshri Mehta. New Court, spread over 1.15 acres, is located next to London School of Economics and Kings College. The commercial building will now be converted into luxury homes. Last year, Lodha had purchased McDonald House for over Rs 3,120 crore.

Around two months after it bought the Canadian High Commission building in London, realty firm Lodha Group has now snapped up another posh property there at £90 million or nearly Rs 900 crore.

Spread over 1.15 acres of land, New Court is located next to London School of Economics on Carey Street. The ground-plus-six-storey commercial building will be turned into luxury residences.

Lodha has already paid the initial amount of 10% of the cost, or roughly Rs 90 crore, to the earlier owner, West End of London Property Unit Trust. The rest will be paid within three months. The property has a total saleable area of about 2 lakh sq feet.

Confirming the deal, a Lodha Group spokesperson said, "Lodha plans to focus on London as one of our two main markets and we will continue to look for opportunities that come up in this market."

Signalling the group's overseas plans, the realty major on November 28, 2013, bought McDonald House, the Canadian High Commission's building in central London, for over Rs 3,120 crore (£306 million). The 0.67-acre or 1.6 lakh sq-ft property, located at a stone's throw from Buckingham Palace, will also be converted into super-luxury homes.

Like in the McDonald House deal, Lodha plans to pay the entire sum for New Court from its own fund and will not raise any debt to finance it.

Till now known for its World One project—the proposed tallest residential tower in India in central Mumbai's Lower Parel—the Lodha Group hopes to receive about £1,200 million from the sale of flats from the two properties in London. The group has also set up a separate arm to undertake and execute the proposed super-luxury project and pursue its other future plans in the UK.

Roman","serif"'Last year, circle rates were increased by the department despite opposition by city residents and homebuyers. At the same time the authorities had hiked property rates by up to 30%. Greater Noida Industrial Development Authority has last week in its board meeting announced a 10.21% hike in the allotment price across all categories of land in the city.

Developers said circle rates in Noida are unrealistic. "We have raised this issue on various platforms through CREDAI. In some cases market rates are below prevailing circle rates in Noida, but the buyer has to pay a higher registration tax," said Manoj Gaur, president CREDAI (west UP) and MD of Gaursons. "This decision should have been taken earlier as it will reduce the burden on buyers," said Amit Gupta, MD, Orris Infrastructure and Assocham member.

Latest Realty News

Nashik Municipal Corporation panel rejects tax hike proposal
Feb 19, 2014
NASHIK: The standing committee of the Nashik Municipal Corporation (NMC) on Tuesday rejected the municipal commissioner's proposal to increase water and property taxes, which have not been touched since 1992.
Realtors welcome incentives for affordable housing
Feb 19, 2014
MUMBAI: Despite the real estate industry’s low expectations from the interim budget, there were no surprises in it for the sector. The industry, however, welcomed government support to the affordable housing sector and fund allocations to the rural as well as urban housing funds.
Pune: A sustainable luxury market
Feb 19, 2014
PUNE: It was only a few years back when a couple of high-end luxury projects were launched in Pune; analysts were busy with the cost-benefit analysis of the surge in the market. The rising interest of NRIs, HNIs and even global realty barons, soon made everyone realise that Pune had already made its mark on the luxury landscape of India. While a large section of market watchers earlier maintained that the smaller ticket size, compared to Mumbai’s luxury property, has been the prime driver of lux
Redevelopment is the future of Mumbai’s realty skyline
Feb 19, 2014
MUMBAI: Five years ago, the redevelopment of Mumbai was on the priority list of government policies. After all, cities remain vibrant if people inhabiting them are enthusiastic about living in those cities. You cannot expect people to exude zest when most buildings in the city are crumbling. The other problem the city faces is that there is no fresh land for development. Hence, the state government is now focused on redeveloping the existing old buildings. However, for one reason or the other, t
Kolte-Patil Developers signs two redevelopment projects in Mumbai suburbs
Feb 19, 2014
MUMBAI: Pune-based realty developerKolte-Patil DevelopersBSE 0.68 % has entered into agreements for tworedevelopment projects in Mumbai's western suburbs. Both Mumbai suburban redevelopment projects has total area of around 600,000 sq ft, the company said in a release.
Mumbai builder Lodha Group buys second building on Carey Street in London for Rs 1,000 cr
Feb 19, 2014
MUMBAI: Mumbai builder Lodha Group has bought a second building in London for over 90 million pounds, or around Rs 1,000 crore, in the space of three months. In November, the group had acquired MacDonald House in central London which housed the Canadian consulate in UK, for over 306 million pounds or Rs 3,120 crore.
BMC plan to streamline building proposals dept delayed
Feb 18, 2014
MUMBAI: The civic administration’s best efforts notwithstanding, the construction industry may not get relief from delays and corruption, the two biggest banes of the BMC’s building proposals department, too soon.
Unfriendly budget, say developers
Feb 18, 2014
PUNE: Finance minister may have responded to the auto sector issues but has let down the real estate sector, said players from the construction industry reacting to the budget on February 17.
Is metro a panacea to Pune’s commuting woes?
Feb 18, 2014
PUNE: The in-principle approval of the Pune metro rail project heralds the possibility of an infusion of new life into the city’s challenged infrastructure. The metro has the potential to overcome the limitations of Pune’s road network.
Jones Lang LaSalle India's investment arm looks to raise its second real estate fund
Feb 18, 2014
MUMBAI/BANGALORE: Property consultancy firm Jones Lang LaSalle India's investment arm is looking to raise its second real estate fund with a total target size of around Rs 600 crore. The fund, to be raised in domestic market, will focus on investing in leased commercial assets across major office property markets in India, said two persons close to the development.

Latest Realty News Of State

Realty Talk's