HDFC Prop­erty Fund In­vests .₹ 500 cr in Lodha

RE­VIVED IN­TER­EST IN REALTY Lodha may use funds for its 88-acre res­i­den­tial project be­ing de­vel­oped in Mum­bai sub­urb

The Economic Times - - Finance & Commodities -

Saikat Das & Kailash Babar

Mum­bai: Pri­vate eq­uity player HDFC Prop­erty Fund has in­vested about .₹ 500 crore in realty firm Lodha De­vel­op­ers, in what some say could be an early sign of re­vival in the real es­tate sec­tor, where re­form mea­sures like Real Es­tate Reg­u­la­tion and De­vel­op­ment Act and GST are help­ing im­prove trans­parency. Mum­bai-based Lodha De­vel­op­ers has availed a new credit line for “72 months” at a com­pet­i­tive rate, which could well be in dou­ble dig­its, a per­son with the di­rect knowl­edge of the mat­ter told ET, ad­ding that it plans to use the funds for its res­i­den­tial project be­ing de­vel­oped on an 88-acre land par­cel in Thane. HDFC Prop­erty Fund, backed by Hous­ing De­vel­op­ment Fi­nan­cial Cor­po­ra­tion, is one of the largest pri­vate eq­uity real es­tate funds in the coun­try which in­vests in res­i­den­tial, com­mer­cial and mixe­duse projects. An email query sent to HDFC re­mained unan­swered till the time of go­ing to press on Wed­nes­day. A spokesper­son for Lodha group de­clined to com­ment. Lodha De­vel­op­ers had bought the Thane land par­cel from Cal­ri­ant Chem­i­cals (In­dia) in 2014 for .₹ 1,154.25 crore. Last year, the realty firm sold over 2,000 homes in this project prior to its pro­posed launch. The value of the booked apart­ments was over .₹ 1,600 crore.

The project will be de­vel­oped in mul­ti­ple phases, with the cur­rent

one com­pris­ing 3,500 apart­ments with one- and two-bed­room units housed in 27-30 storeyed tow­ers around a master-planned de­vel­op­ment. “Such trans­ac­tions de- mon­strate con­fi­dence on the growth of the in­dus­try,” said Ajai Kapoor, founder of 360 De­grees Real Es­tate Ser­vices. “With re­forms like RERA and GST, the fu­ture looks bright for the (real es­tate) in­dus­try. There will be higher de­mand due to th­ese re­forms, yield­ing good re­turns against any in­vest­ment be­ing made now.”

Large de­vel­op­ers have been turn­ing to pri­vate eq­uity funds af­ter banks be­gan cur­tail­ing credit to builders a few years ago ow­ing to higher risk.

In May, Lodha opted for a loan of about .₹ 1,800 crore from Pi­ra­mal Fund Man­age­ment, the fi­nan­cial ser­vices arm of Ajay Pi­ra­mal-led Pi­ra­mal Group.

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