Indian developer Lodha Group aims to raise as much as $2 billion over the next two years from
private equity investors and an initial sale of shares to fund its growth, Director Abhinandan
Lodha said in Mumbai.
The developer, which has received investments by JPMorgan Chase & Co. and Deutsche Bank
AG in the past two years, said today funds sponsored by mortgage lender Housing
Development Finance Corp. agreed to invest $54 million in the projects being developed by the
Property developers in the world`s fastest growing major economy after China are seeking
more investments to meet rising demand in an economy that`s grown an average 8.7 percent
since 2003, lifting the incomes of individuals and companies. Salaries in India may rise an
average 15 percent this year, the sixth successive annual increase of more than 10 percent,
Hewitt Associates Inc. said in February.
The real estate company plans to expand in Mumbai, Pune and Hyderabad. Three-fourths of
the projects are for houses and the remaining for shops and offices. The company plans to
deliver 27 million square feet of space over the next three years.
The company is also developing some premium properties in Mumbai, among them Lodha
Solitaire, where a 7,200-square-foot apartment is priced at 510 million rupees ($12.8 million).
Funds sponsored by HDFC, and registered in Mauritius, will buy a 45 percent stake in Mumbaibased
Lodha`s special purpose vehicles for its projects in the southern city of Hyderabad, the
company said. Special purpose vehicles are companies set up for investment purposes.
Deutsche Bank led a group of private equity firms to invest $425 million in Lodha projects in
September and JPMorgan Chase & Co. invested $60 million in the group`s projects in December