Lodha to exit UK property market
Mumbai-based real estate firm Lodha Developers plans to sell two of its residential projects located in central London for about Rs 4,200 crore but will continue to be the development manager of these projects, a company spokesperson said on Wednesday.
The company’s board is focused on ensuring a significant upgrade in its ratings in the next 12 months with a goal of being in the AA category. Selling its stake for about Rs 4200 crore will bring significant cash into Lodha Developers Limited and strengthen its balance sheet, he said.
“Lodha Developers Limited (LDL) owns substantial equity stake in two real estate developments in London – 1 Grosvenor Square and Lincoln Square. The board of LDL is focussed on ensuring a significant upgrade in its ratings in the next 12 months with a goal of being in the AA category. As a part of this process, LDL is bringing in a private equity investor in the two UK assets and selling its stake for about Rs 4200 crore – this will bring significant cash into LDL and strengthen its balance sheet,” he said.
In addition to this transaction, Lodha has also entered into other private equity transactions for projects in India, which will lead to a raise of just under Rs 5000 crore and help expedite the process of a significant upgrade of its ratings, he said.