Lodha Developers on fund-raising spree
The Economic Times, August 20, 2009, Page 12
Former Old Lane Fund Partners Buy 26% Stake In Dombivli Project For $25 Million
Shivani Muthanna ET NOW
MUMBAI-based Lodha Developers is tying up funds from private equities (PE) at the project level ahead of its Rs 2,500-Rs 3,000 crore planned initial public offer (IPO).
Few former Old Lane Fund partners have made a $25-million investment for 26% stake in the group’s 115-acre housing and office complex in suburban Dombivli in Mumbai.
The investment values the project, which falls under its CASA brand for mid-income housing, at Rs 460 crore (Rs 4 crore per acre).
“In terms of this , the residential rates for our Dombivalli project will range between Rs 2500-Rs 3000 per sq foot. We are also in continuous talks with various funds who are interested in investments at the project level,” said Abhisheck Lodha, director, Lodha Group.
None of the PE investors from Old Lane, who have formed a new $400 million for realty and infrastructure, were available for comment.
With the latest private equity deal, Lodha Developers now has private equity investments to the tune of $600 million in various special purpose vehicles from the likes of Duetsche Bank, HDFC Realty’s international fund and ICICI Ventures. “The IPO may improve the valuations of the Lodha’s Hyderabad project in which the fund has invested resulting in higher prices for the sale of residential units in the complex,” says senior fund manager at HDFC Realty.
An official in the Lodha group, who did not wish to be named, said the company is expecting a valuation of up to Rs 20,000 crore at the time of tapping the capital markets.
But analysts say a lot will depend on whether the appetite for real estate returns among investors. Now the IPO which is expected to hit the market by late October-November, could provide an exit route particularly for Duetsche Bank since the deal was structured around convertible debentures. Servicing these investments was looking difficult, as a slump in the property market had receded the hopes of meeting the pre-decided returns on them. The company has appointed Enam Securities and JP Morgan as its merchant bankers.
The Economic Times, August 20, 2009, Page 12
Former Old Lane Fund Partners Buy 26% Stake In Dombivli Project For $25 Million
Shivani Muthanna ET NOW
MUMBAI-based Lodha Developers is tying up funds from private equities (PE) at the project level ahead of its Rs 2,500-Rs 3,000 crore planned initial public offer (IPO).
Few former Old Lane Fund partners have made a $25-million investment for 26% stake in the group’s 115-acre housing and office complex in suburban Dombivli in Mumbai.
The investment values the project, which falls under its CASA brand for mid-income housing, at Rs 460 crore (Rs 4 crore per acre).
“In terms of this , the residential rates for our Dombivalli project will range between Rs 2500-Rs 3000 per sq foot. We are also in continuous talks with various funds who are interested in investments at the project level,” said Abhisheck Lodha, director, Lodha Group.
None of the PE investors from Old Lane, who have formed a new $400 million for realty and infrastructure, were available for comment.
With the latest private equity deal, Lodha Developers now has private equity investments to the tune of $600 million in various special purpose vehicles from the likes of Duetsche Bank, HDFC Realty’s international fund and ICICI Ventures. “The IPO may improve the valuations of the Lodha’s Hyderabad project in which the fund has invested resulting in higher prices for the sale of residential units in the complex,” says senior fund manager at HDFC Realty.
An official in the Lodha group, who did not wish to be named, said the company is expecting a valuation of up to Rs 20,000 crore at the time of tapping the capital markets.
But analysts say a lot will depend on whether the appetite for real estate returns among investors. Now the IPO which is expected to hit the market by late October-November, could provide an exit route particularly for Duetsche Bank since the deal was structured around convertible debentures. Servicing these investments was looking difficult, as a slump in the property market had receded the hopes of meeting the pre-decided returns on them. The company has appointed Enam Securities and JP Morgan as its merchant bankers.
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