The real estate developer Lodha Groups’ UK arm Lodha UK, has raised $375 million (around INR 2,400 crore) from investment company Cain Hoy for the construction of its housing project, Lincoln Square, in London. Currently, the project is in progress and is expected to be completed before completion of 2018.
Construction is being carried out by Multiplex, the construction arm of global investment major, Brookfield. The company claims to have sold over 78 units which are worth of almost $170 million (GBP 130 million) since the launch of this project which was in May 2016.
On the investment, Matteo Milan, Director of Cain Hoy, said:
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
Further adding to that, he said:
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
Adding to the above statement, Alex Carr, Residential Development Partner at Knight Frank, said:
The success at Lincoln Square is demonstrative of the work Lodha UK has done in bringing together a world class team, and creating a scheme that will redefine this special niche of London. The collaborative effort of the interior designers, architects and development managers has created an enviable scheme, with a superb luxury finish and world class amenities.
Established in 1980, Lodha Group is India’s largest real estate developer by sales, with several landmark developments including World One, Mumbai, the world’s tallest residential tower and Palava City, the first Greenfield smart city in the country.
Lodha UK is the UK development subsidiary of Lodha Group. The company is based at 3 St James’s Square and comprises an in-house team of 30 development professionals with capabilities in planning, design, development, construction, procurement and sales & marketing.
On the development of the project, Ab Shome, Finance Director, Lodha UK said:
We are extremely pleased to have completed our first development funding in the UK. This is an exciting development and we are pleased to partner with Cain Hoy, whose ability to provide flexible solutions and perform within our timescale has been invaluable. We look forward to building Central London’s most prestigious residential project at Lincoln Square
The company is currently developing around 43 million sq. ft. of prime residential real estate globally with the largest land reserves in the Mumbai Metropolitan Region and has 28 ongoing projects across London, Mumbai, Pune and Hyderabad and Bangalore.
Lodha Developers forayed into the London market in November 2013 with the acquisition of the landmark MacDonald House at 1 Grosvenor Square in prime Central London from the Canadian Government for over GBP 300 million (Rs 3,100 crore).
The company is planning to unveil its flagship development ‘No 1 Grosvenor Square’ this summer. Located in the heart of Mayfair, the project will offer premium residences at one of London’s most prestigious addresses.
The funding raised includes 80 million pounds which were provided by Cain Hoy in last autumn to replace the existing debt. The funds will also be used to complete the project over the next two years.