Mumbai-based real estate developer Lodha Group, on October 26, 2016, announced that private equity player HDFC Property Fund, has exited its stake in the developer’s World Towers project in south Mumbai, for Rs 1,500 crores.
The offshore fund, sponsored by Housing Development Finance Corporation (HDFC), had invested Rs 500 crores in the project in 2010, which realised a return of three times (at Rs 1,500 crores) after six years, Lodha Group said in a statement. The exit was funded through internal accruals and partly through fresh fund raising, the company said.
“HDFC Property Fund’s investment in World Towers has played an instrumental role, in making it truly an iconic landmark in Mumbai,” the company’s managing director, Abhishek Lodha said. The World Towers, spread over 17 acres in south Mumbai, comprises of three ultra-luxury high-rises. Possessions at World Crest have already started and the Tier 1 of World One is slated for delivery in mid-2017.
Expressing satisfaction over the investment, HDFC Property Ventures’ managing director and CEO KG Krishnamurthy 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, the Lodha Group’s business performance continues to outperform market expectations. We are glad to be a part of the company’s success and look forward to our long-term engagement.” In fiscal 2015-16, Lodha Group achieved net sales of Rs 6,400 crores and delivered 6,800 homes.