Saturday, 30 November 2013

Lodha Group looking to buy more properties in London after picking up MacDonald House from Canadian Government in Central London

Lodha Group looking to buy more properties in London after picking up MacDonald House from Canadian Government in Central London

Realty developer Lodha Group is looking at buying more properties in central London after picking up MacDonald House from the Canadian Government in the city for over 300 million pounds or Rs 3,000 crore.

It plans to focus on Mumbai and London as our their main markets and are looking at buying more properties in central London particularly residential and commercial ones, not hotel assets.

The company has already picked up an office spread over 1,000 sq ft at Eaton Square in London to house its UK business' office.

Lodha Group is the first Indian developer to acquire a ready property overseas for a realty project development, while there are few that have already executed project in foreign countries on acquired land parcels.

The company has made initial payment of Rs 300 crore and while the company is hoping to pay balance by January end.

The developer is planning to fund the transaction through internal accruals and is not looking to raise debt or induct a private equity player at this time.

The company is aiming to launch the London project in 6-9 months and is hopeful of fetching 20% internal rate of return over the next 4-5 years. 

Related:

Lodha buys prime property at New Court on Carey Street in London