Mumbai-based realty firm Lodha Group is in talks with three private equity players to raise $180 million (around Rs 850 crore) for its three projects, a senior company executive said. We are in active negotiations with private equity funds for three projects and are looking at an average deal size of $60 million for each project, Lodha Group director Abhisheck Lodha said, adding any of these potential deals may take more than a month to be closed.
The Rs 2,200-crore privately-held group, which already has Deutsche Bank, JP Morgan and ICICI Venture as investors, is scouting for PE investments in an affordable residential project, a high-end office project and a back-office building project. Mr Lodha said all three projects are located in Mumbai or its suburbs, but didn’t name the projects. The Lodha Group had received PE investments worth $200 million in 2008 and $450 million in 2007, including $410 million from Deutsche Bank alone.
Mr Lodha said private equity funds have become selective in investing in the property market and are looking at small-ticket deals now, but “money is available”. As real estate went into a slump last year, with sales diminishing and credit becoming tight, private equity funds, too, vanished from the market. With property prices now falling and developers willing to offer higher returns, interest among PE players seem to be returning. Recently, private equity fund Red Fort Capital invested Rs 90 crore in Parsvnath Developer’s premium housing project in Delhi.
More : economictimes.indiatimes.com
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