Lodha UK raises $375 million construction finance
Lodha UK, the London based development arm of realty developer, Lodha Developers, has raised $375 million as construction funding for its Lincoln Square development in London.
The facility, which is one of the largest ever loans from a single provider for a UK residential project, has been provided by Cain Hoy, the private investment company, the developer said in a release.
The project is located adjacent to the London School of Economics (LSE) and close to Covent Garden. The development is currently under construction and is expected to be completed in the last quarter of 2018, Lodha said.
The construction funding facility includes 80 million pounds to replace the existing debt, provided by Cain Hoy last autumn, and the balance will be used to complete the project over the next two years.
“We are extremely pleased to have completed our first development funding in the UK which showcases the confidence of the market in the Lodha UK platform. We received competitive offers from three consortiums, and are thankful to all three providers for their interest,” said Ab Shome, Finance Director, Lodha UK.
So far, the project has sold over 78 units worth nearly $170 million since its launch in May 2016. Construction is being carried out by Multiplex, the construction arm of global investment major, Brookfield.
“Having already supported Lodha UK through an initial financing to enable the start of construction on site, we are pleased to continue our relationship with the Lodha team by providing this significant loan. Lincoln Square is an exceptional project where sales are performing well and this financing highlights our confidence in Lodha and the London market, as well as our ability to write large bilateral loans,” said Matteo Milan, Director of Cain Hoy.
Lodha UK will launch another project in London at Grosvenor Square this summer. This project is located in the heart of Mayfair, and will offer premium residences. Lodha had acquired both Grosvenor Square and Lincoln Square properties in 2013 and 2014, respectively.
According to Alex Carr, Residential Development Partner at Knight Frank, the Lincoln Square development has been selling well, continuing to perform despite slightly tougher market dynamics.