Lodha Group, announced a successful investor exit of HDFC Property Fund’s equity stake in its World Towers project for Rs 1,500 crore. This transaction concludes one of the most successful and largest exits in real estate sector with 3x return on investment. The offshore fund sponsored by Housing Development Finance Corporation (HDFC), had invested Rs 500 crore in 2010. The exit was funded through internal accruals and partly through fresh fund raising.
The investment was made in Lodha Group’s World Towers; spread over 17 acre in the heart of South Mumbai comprising three ultra-luxury high-rises. In the development, possessions at World Crest have already started and the Tier 1 of World One is slated for delivery in mid-2017.
Abhishek Lodha, Managing Director, Lodha Group, said, “This milestone is a testimony of our ability to deliver on our promise and commitments of creating high value for our stakeholders, be it customers or investors. HDFC Property Fund’s investment in World Towers has played an instrumental role in making it truly an iconic landmark in Mumbai. We would like to thank them for being a long-standing partner in our success and hope to further strengthen our relationship.”
KG Krishnamurthy, Managing Director and CEO, HDFC Property Ventures Ltd, 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, Lodha Group’s robust business performance and strong brand credentials continue to outperform market expectations. We are glad to be part of the company’s success and look forward to our long-term engagement.”