Tag Archives: mumbai property news

Lodha snaps Canadian embassy building in London for $530M

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Mumbai real estate news, Mumbai property news, World One Lower ParelTrack2Realty-Agencies: Lodha Group has acquired the Canadian embassy building in London’s Mayfair district for $530 million (Rs 3,300 crore) in its biggest move overseas. Lodha Group, which claims to be India’s largest real estate developer, has exchanged contracts to acquire the landmark MacDonald House in central London from.

Located on Grosvenor Square, this prominent building bears the address of 1 Grosvenor Square and is touted as one of the most prestigious addresses in the world, located close to Buckingham Palace.

In February this year, the Canadian government first announced the sale of the building to reposition Canada House on Trafalgar Square in the heart of London to consolidate the Canadian High Commission’s diplomatic activity in the UK in one central London location.

The property is believed to have a total saleable area of 1.6 lakh square feet and with this project, Lodha will be able to connect with global investors.

Abhinandan Lodha, Deputy Managing Director of Lodha Group said, “London and the United Kingdom offer significant opportunities for a high quality developer focused on creating a large-scale housing development business there. We plan to focus on Mumbai and London as our two main markets.”

“The acquisition of this marquee asset overlooking London’s most renowned garden square, in the heart of Mayfair and in close proximity to Bond Street and Mount Street is a great opportunity for our company,” Abhishek Lodha, Managing Director of Lodha Group, said.

Located on the corner of Grosvenor Square, the property is in the heart of London’s West End and is one of Mayfair’s most prominent buildings. The building first served as the High Commission for the US and subsequently, as the High Commission for Canada.

Lodha was advised by the London office of Knight Frank on this acquisition.

Lodha has been active in buying land assets over the past few years and as highlighted by VCCircle has been the biggest real estate buyer in the country.

Last year, it bought the US Consulate’s Washington House in South Mumbai for Rs 341.82 crore. The group is currently developing over 35 million sq ft in prime areas such as Napean Sea Road, Prabhadevi and Walkeshwar.

India’s tallest tower gets booking worth Rs.100 crore in festive season

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Mumbai real estate news, Mumbai property news, World One Lower ParelThe real estate market may be in a slump with developers innovating ways and means to increase sell, but the festive season seems to be bringing in good cheer for the country’s tallest tower — Lodha World One. The project backed by the HDFC, Temasek and Government of Singapore Investment Corporation have got booking worth Rs.100 crore during the Navratra.

“We have seen bookings worth Rs.100 crore during this Dussehra season at the World One project. There has been a strong pick-up in sales after a lull and with this almost 45-47 per cent of the project has been sold so far,” Abhisheck Lodha, MD, Lodha Group told a financial daily.

Interestingly the developer has got approval only for the first 90 floors and is awaiting approval for the balance 27 floors proposed for the project. “The height limitations generally placed on buildings in Mumbai would impede construction of an iconic tower such as this. We are awaiting the results of a study being conducted by the International Civil Aviation Organisation for the proposed height and are hopeful of a positive outcome,” said Lodha.

The company claims that the project construction is on track and international property management firms have been sounded out to manage the facility once it’s constructed. According to him since the ACC Simplex consortium — the contractor for the project will take 2.5 years before it reaches the 90th storey, there is enough time for the approvals to come through.

Lodha claims that the firm is charging 20 per cent of the apartment sale price as the booking amount and has managed to net customers who have seen that they poured 14,000 cubic metres of concrete at one go at the project site.

“Our target clientele may not be having confidence in the stock market with the wild gyrations. Similarly gold and silver have become very dicey at these levels so customers are looking at real estate as the only asset class that will deliver steady returns over a long period of time,” said Lodha.

However, analysts are keeping their fingers crossed and a senior official from Knight Frank India said that earlier sales had dropped significantly for high-end apartments but with the festive season around the sales may have increased.

“Booking of Rs.100 crore is a healthy number in this market condition. But since this is a high-end project one has to see how the apartments are priced,” said Joygopal Sanyal, National Director at Jones Lang LaSalle.

Lodha Developers to raise Rs.825 crore

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, mumbai real estate news, mumbai news, mumbai property newsLodha Developers Ltd is raising Rs.825 crore to buy back debentures issued to Deutsche Bank. Analysts believe Lodha risks losing prime land in Mumbai if it doesn’t purchase the debentures.

Deutsche Bank invested Rs.1,640 crore in Lodha in 2007 by subscribing to fully convertible debentures, or FCDs, issued by the realty firm’s subsidiary Cowtown Land Development Pvt. Ltd. The FCDs are convertible into 99% of the share capital of Cowtown.

Lodha will raise the money through a non-convertible debenture issue (NCD) this year and use the proceeds to purchase the FCDs, credit rating agency Brickworks Ratings India Pvt. Ltd said in a recent note.

According to reports the structure is such that Lodha Developers will raise the money and give the money to its subsidiary, which will buy back the FCDs.

Lodha Developers have so far declined to comment on the NCD issue.

Brickwork said its BBB+ rating on Lodha’s proposed NCD issue is constrained by project execution risk, risk in timely launch and sale of new projects, high leverage, some delays in servicing debt and the slowing in the real estate sector.

Lodha’s Rs.825 crore NCD issue will have a tenure of 2 years, with payments starting in December, said Brickworks.

If Lodha does not buy back the FCDs from Deutsche Bank, it risks losing “control of several valuable land parcels” in Thane, Lower Parel and Malabar Hill, Nomura Financial Advisory and Securities (India) Pvt. Ltd said in an April report.

Several land parcels and upcoming projects of Lodha are mortgaged with Cowtown, according to Nomura.

Lodha Developers, run by brothers Abhisheck and Abhinandan and backed by their politician father Mangal Prabhat Lodha, owns more than 4,000 acres, mostly in and around Mumbai, and is developing 51.88 million sq. ft of space.

Lodha has raised Rs.90 crore and Rs.65 crore this year through NCD issues.

At least 10 developers have raised or are raising nearly Rs.3,000 crore since 2009 through NCDs, a debt instrument that cannot be converted into corporate stock and which offers healthy yields of 14-18%.

There were hardly any NCD issues by real estate firms in 2009.

Analysts say unlisted, mid-size developers that haven’t been able to raise money by selling their shares to the public but need quick capital to complete projects, repay debt or pay for land are resorting to NCDs.

Lodha has regulatory approval for a Rs.2,800 crore initial public offering but hasn’t issued shares yet because of the volatility in the market.

Unholy nexus between CM & Traffic CP in Adarsh Scam

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Track2Realty, Track2Media, Adarsh Society Scam, Mumbai, India Real Estate, Indian Army, indian real estate news, india realty news, realty news, property news india, mumbai property news, mumbai real estate newsBy: Ashok Wankhade

Track2Realty Exclusive

Investigating the Adarsh scame in Mumbai the CBI and Income Tax department unearthed the unholy nexus between the then Chief Minister Ashok Chavan and his Mumbai Commissioner of Police (Traffic) termed as Traffic CP Sanjay Burve.

What initially surprised the investigating agencies actually proved to be the chain of sequence to establish how the trail of black money was routed by a police officer to the then Chief Minister. Not only this, the unholy alliance goes far and wide and accommodates another 2G Spectrum Scam tainted real estate company DB Realty.

The investigating agencies came across the transaction of Rs.65 lakh as loan from Burve to Ashok Chavan. The sources claimed that the said amount was used by Ashok Chavan’s mother-in-law to buy a flat in Aadarsh Housing Society.

The sources in the agencies claimed that this transaction is just a tip of iceberg of the deals between Ashok Chavhan and Sanjay Burve. The agencies claimed that it was these two who planned 28 Mega Transport Hubs to be built in Mumbai and out of that the contract for construction of first five hubs was given the D. B. Realty and group.

Thai developer to foray into Indian realty

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Pruksa Real Estate, Thongma Vijitpongpun, Pruksa Silvana, Delhi NCR real estate, bangalore real estate, mumbai real estate, real estate news india, realty news india, property news india, Delhi property news, mumbai property news, track2media, track2realty, ravi sinhaIndian arm of a leading Bangkok based developer is looking to invest some $300 million in the country’s real estate market, particularly in the major cities of Delhi, Mumbai and Bangalore. In a major boost to the Asian property market Thailand’s Pruksa Real Estate, has revealed ambitious plans for India over the next five years.

Pruksa’s chief executive officer Thongma Vijitpongpun said the real estate company has a land bank of 26 acres in Bangalore and 25 acres in Mumbai. “We are also studying Delhi as a prospective market. We have already invested $10 million for our first project,’’ he said.

‘‘Demand for housing in India is strong and we think it’s a good investment for us. We want to bring in luxury living at affordable prices in India. Pruksa’s entry into India is a major milestone for us, as it has always been our dream to be a part of this country,’’ he added.

Pruksa has Asia’s biggest precast factory in Bangkok that can construct 260 houses in a month and it will be the first developer to use this technology.

Pruksa India Housing’s first project in Bangalore, Pruksa Silvana, offers terraced houses and villas. It comprises 438 units, including 321 villas and prices vary from Rs 39 lakh to Rs 58 lakh per square feet.

Puriwaj Puricharoenborrirak, Vice President, India business, said Pruksa India Housing chose Bangalore because it is the most talked about city in India. ‘‘Bangalore has a forward looking attitude, a population of various demographics and, most importantly, more than half the world trusts Bangalore for its software and the presence of some widely travelled people who will recognise quality when they see one,’’ he said.

‘’The encouragement and enthusiasm we witnessed here has given us the confidence to plan a couple of more projects not only here, but also in other locations in India,’’ he added.

The real estate company has a 50:50 joint venture in Mumbai and Chennai with Soham Developers and Mohan Mutha Infrastructures, respectively. Pruksa’s investment in Mumbai and Chennai will involve a total of $20 million and each project will have 500 residential units.

Puricharoenborrirak said India is a huge market for residential projects. ‘‘The growing economy and size of the population stimulates an exclusive need for quality homes at affordable prices. Having completed more than 80,000 homes and 200 projects in Thailand, destination India is the right move,’’ he explained.

‘’We are the first real estate developer in India with 100% FDI. In addition, we have already earmarked the next project in Bangalore east. We are also looking at sizeable developments in the southeast and north sectors of Bangalore,’’ he added.

In the future it is also considering projects in Chennai, Hyderabad, Nagpur and Haryana. ‘‘Our mission is to be the leading property developer in Asia and across the globe and at the same time, deliver superbly designed and perfectly executed living spaces at amazingly affordable prices. We intend to be intensely aware of the pulse of our customers and exceed their expectations every time,’’ said Vijitpongpun.

The Thai real estate developer focuses on developing townhouses, single-detached houses and condominiums, and is listed on the Thailand stock exchange since 2005. Besides India, Pruksa now has a presence in the Maldives and many SAARC countries. The real estate company will also explore China in the near future.