The Mumbai-based real estate developer Lodha group said on Thursday it has received Rs. 250 crore investment from the HDFC sponsored real estate fund in one of its special purpose vehicle (SPV) in Hyderabad.
Under the transaction, the HDFC funds will buy 45% in Lodha’s SPV for development of the group’s luxury residential and commercial project in Hyderabad. This will be the fourth investment in the group by PE funds who have so far invested in excess of Rs 2,400 crore. Trustcap, a Mumbai based investment banking firm acted as the sole advisor to this transaction.
Mr. Abhinandan Lodha, director, Lodha group said, “We have been on an aggressive growth path and this partnership combines HDFC’s vision with our expertise. This significant partnership will further strengthen our relationship with HDFC who are India’s financial institution in real estate.”
The Lodha group late last year won an auction of 12.9 acres of prime land located at Eden Square, Hyderabad by the Andhra Pradesh Housing Board for Rs. 256 crore.
The group has plans to develop a luxury township offering over 2.5 million square feet of plush residential and commercial real estate.
In September 2007, Deutsche Bank Singapore invested US$ 410 million in three FDI compliant projects of the group making it the single largest FDI in the real estate sector in India.
The Lodha Group has previously attracted investments for its various projects from leading global financial institutions such as JP Morgan, Deutsche Bank and ICICI Venture.
JP Morgan had earlier invested Rs. 274 crore in Lodha Bellissimo – an exclusive residential development coming up at Apollo Mills, located at south central Mumbai. The group is now developing in excess of 25 mn sq ft of prime real estate over 27 projects in and around Mumbai.
Lodha Group has emerged as one of the largest developers in the country with a land bank of over 6000 acres. The group focuses on development of residences, office spaces, IT campuses, weekend retreats, townships and SEZs.