Lodha’s Lincoln Square project raises $375 million from global investor Cain Hoy
Lodha’s Lincoln Square project is currently under construction and is expected to be completed in the last quarter of 2018
Bengaluru: Lodha UK, the London-based development arm of Lodha Developers Pvt. Ltd, has raised $375 million (£ 290 million) of construction finance from Cain Hoy for its Lincoln Square project.
Cain Hoy is a London-based investor that deploys capital across debt and equity opportunities across the globe.
The Lodha transaction includes replacing existing debt, with the balance to be used to complete the project over the next two years.
Mumbai-based Lodha Developers, which bought the Lincoln Square property in 2014 and launched the project last year, said that it has sold over 78 units worth almost $170 million (£130 million) since May 2016.
“We received competitive offers from three consortiums, and are thankful to all three providers for their interest. This is an exciting development and we are pleased to partner with Cain Hoy, whose ability to provide flexible solutions and perform within our timescale has been invaluable,” Ab Shome, finance director, Lodha UK, said in a statement.
The Lincoln Square project is currently under construction and is expected to be completed in the last quarter of 2018.
Project construction is being carried out by Brookfield Multiplex, the construction arm of Canada’s investment firm Brookfield Asset Management Inc.
“Having already supported Lodha UK through an initial financing to enable the start of construction on site, we are pleased to continue our relationship with the Lodha team by providing this significant loan. Lincoln Square is an exceptional project where sales are performing well and this financing highlights our confidence in Lodha and the London market, as well as our ability to write large bilateral loans,” said Matteo Milan, director of Cain Hoy.
Lodha UK will also unveil its flagship development number 1 Grosvenor Square, which will have premium residences, soon.
The firm had bought the iconic MacDonald House property from the Canadian government for over £300 million in 2013.
After a lull in the London property market in 2016, mainly due to uncertainty over Brexit, prices and sales seem to have stabilized now, coupled with a weak pound that has made home purchases attractive for foreign buyers as well, recent research reports said.
Mumbai-based developer Indiabulls Real Estate Ltd also launched its project Hanover Bond—a collection of 80 apartments and a five-star hotel—in March, and opened bookings for customers. The developer bought the property in London’s Mayfair in 2014 for around Rs1,550 crore at an acquisition cost of an estimated Rs1.65 lakh per sq.ft.
Lodha said that it has already done select pre-launch sales at the Grosvenor Square project at over £6,000 per sq.ft (Rs5 lakh per sq.ft), one of the highest prices that any project with an Indian connection has ever achieved, Mint reported on 7 April.