Exit from Lodha to net over Rs. 900 crores for Deutsche Bank

February 9, 2012 By Lodha Web

9th February 2012

Lodha Developers Ltd., through its subsidiary Cowtown Land Development Ltd., has provided complete exit to Deutsche Bank for its investment made in 2007-2008.

Deutsche Bank has been paid a total of Rs. 2542 crores, following its investment of Rs. 1640 crores made in late 2007. The gain of over Rs. 900 crores is one of the largest and most profitable investment for any FDI in Indian real estate.

Commenting on the transaction, Abhinandan Lodha, Deputy Managing Director of the company said “The completion of the milestone is a significant achievement for our organization. Our ability to generate positive cash flows from our business by focussing on execution and end user sales has enabled us to make such a large payment at a time when the general economic environment is quite tough. The capital from Deutsche Bank in 2007 has played an important role in our company’s growth and we appreciate our relationship with Deutsche Bank”.

With this exit, Lodha has significantly reduced its debt levels. Prior to the repayment of this investment, Lodha has also provided exits to JP Morgan and HDFC Venture Fund from their investments in its other projects. Currently, the company has other investments from HDFC Venture Fund, ICICI Ventures and Old Lane in its other projects.

The exit was financed by Rs. 1720 crores from internal accruals and Rs. 825 crores raised through fresh borrowing.

Trustcap, the Mumbai based Investment Bank, acted as the sole advisor to this transaction.

Lodha Group Press Release The Lodha Group:

Established in 1980, the Lodha Group is India’s premier real estate developer headquartered in Mumbai.With over 2,300 of India’s best and brightest professionals, the group is currently developing in excess of 30 million sq. ft. of prime real estate over 38 projects in and around Mumbai, from Napean Sea Road to Palava. With Lodha Bellezza, an unparalleled super-luxury residential project in Hyderabad, the Group has begun its geographic expansion, and is soon expected to launch its first project in Pune.

The Lodha Group has several landmark developments to its credit, including World One – the world’s tallest residential tower; Lodha Bellissimo – the only Indian residential development to feature amongst the top 1000 landscapes in the world#; and Palava – 21st century India’s largest planned city, spread over 3,600 acres. The Group has also made history by recording the biggest land deal in India till date, buying a 23-acre plot upwards of Rs. 4,000 crores, from the Mumbai Metropolitan Region Development Authority (MMRDA).

Pioneering new trends in the market, the Group introduced CASA by Lodha, offering the mid-income consumer luxury homes within easy reach. The Group also introduced the concept of branded office spaces, with offerings at every level, from world-class corporate offices to large scale office campuses to signature boutique offices for growing businesses.

And going beyond its role as a premier real estate developer, the Lodha Group has been a socially responsible corporate, focusing on education as the best medium to enrich society.

Other accomplishments include:

Winner, International Property Awards 2011 in the Asia Pacific region for the following projects:

  •  Lodha Fiorenza for best high-rise development
  • Lodha Bellezza for best high-rise architecture
  • Lodha Golflinks for best residential golf development
  • Best Developer     involved     in     High-end      Residential     Properties     across     India,     by constructionsourceindia.com.
  • Good Practice UN Habitat Business Award for Integrated Planning, for Casa Bella, an integrated township at Palava.
  • Leaders of Indian Infrastructure & Construction Award by Economic Times ACETECH.

#2009 edition, 1000x Landscape Architecture, Germany