Real Estate company Lodha Developers has generated Rs 500 crore by selling a 10% stake in its project of constructing a 117 storey residential tower in Mumbai to HDFC Venture Funds.
Abhisheck Lodha, MD of Lodha Developers said, “The deal shows the investor’s appetite for quality real estate projects in India”.
HDFC, the home loan lender has promoted HDFC Venture Funds. Other investors in the project are GIC, Temasek and Abu Dhabi Investment Authority.
The deal is the 2nd biggest private equity investment in India’s real estate sector and values the project at Rs 5,000 crore, two-and-a-half times its projected cost.
The project has obtained bookings valued at Rs 1,200 crore during the first month, said Mr Lodha. Besides Lodha Developers has contributed Rs 500 crore as equity for the project. He also said, “With the PE fund, one may say that we will achieve the financial closure of the project”.
Source: Bank Bazaar