HDFC Property Fund sells Lodha World Towers project stake for Rs. 1,500 cr

October 26, 2016 The Hindu Business Line

HDFC Property Fund sells Lodha World Towers project stake for Rs. 1,500 cr

Lodha Group announced one more successful investor exit. HDFC Property Fund has exited its stake in Lodha Group’s World Tower Project for a whopping Rs. 1,500 crore.

This transaction concludes one of the most successful and largest exits in real estate sector with 3x return on investment. The offshore fund sponsored by Housing Development Finance Corporation Ltd (HDFC), had invested Rs. 500 crore 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 3 ultra-luxury high-rises. In the development, 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 which witnessed difficult economic conditions and sluggish growth, the company clocked record sales and collections backed by homebuyer’s confidence and trust in the brand.

In FY 15-16, Lodha Group achieved net sales of Rs. 6,400 crore and delivered 6,800 homes, making it one of the most profitable companies in the sector. The Group’s tremendous success has been marked by financial investments from the finest global long-only investors, including JP Morgan, Deutsche Bank, HDFC Property Fund and ICICI Ventures.

HDFC Property Fund, sponsored by HDFC, is one of India’s largest private equity real estate funds and invests in residential, commercial, mixed-use projects. HDFC Property Fund has leading domestic and international institutional investors comprising of sovereign funds, pension funds, financial institutions, reputed family offices etc.

Abhishek Lodha, Managing Director, 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. HDFC Property Fund’s investment in World Towers has played an instrumental role in making it truly an iconic landmark in Mumbai. We would like to thank them for being a long-standing partner in our success and hope to further strengthen our relationship.”

KG Krishnamurthy, Managing Director and 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. We are glad to be part of the company’s success and look forward to our long-term engagement.”