Lodha Developers on fund-raising spree

Normal 0 MicrosoftInternetExplorer4 st1:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";}   Former Old Lane Fund Partners Buy 26% Stake in Dombivli ProjectFor $25 Million   <a href= “http://www.zameen-zaidad.com/”> Mumbai-based Lodha Developers </a> is tying up funds from private equities (PE) at the project levelahead 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 officecomplex in suburban Dombivli in Mumbai.    The investment values the project, which fallsunder its CASA brand for mid-income housing, at Rs 460 crore (Rs 4 crore peracre).    “In terms of this , <a href= “http://www.zameen-zaidad.com/”> the residential rates for ourDombivalli project </a> will range between Rs 2500-Rs 3000 per sqfoot. We are also in continuous talks with various funds who are interested ininvestments 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 andinfrastructure, were available for comment.    With the latest private equity deal, Lodha <a href= “http://www.zameen-zaidad.com/”> Developers now has private </a> equity investments to the tune of $600 million in various specialpurpose vehicles from the likes of Duetsche Bank, HDFC Realty’s internationalfund and ICICI Ventures. “The IPO may improve the valuations of the Lodha’s Hyderabad project in which the fund has invested resultingin higher prices for the sale of residential units in the complex,” says seniorfund manager at HDFC Realty.    An official in the Lodha group, who did not wish tobe named, said the company is expecting a valuation of up to Rs 20,000 crore atthe time of tapping the capital markets.    But analysts say a lot will depend on whether theappetite for <ahref= “http://www.zameen-zaidad.com/”> real estate returns amonginvestors </a>. Now the IPO which is expected to hit the market bylate October-November, could provide an exit route particularly for DuetscheBank since the deal was structured around convertible debentures. Servicingthese investments was looking difficult, as a slump in the property market hadreceded the hopes of meeting the pre-decided returns on them. The company hasappointed Enam Securities and JP Morgan as its merchant bankers.   Courtesy:- ET dt:- 20-08-09  

Was this helpful? 0 0 Comments

You're reading Lodha Developers on fund-raising spree.