Lodha group's UK arm to raise USD 225 mn through bonds issue

Realty firm Lodha group's UK subsidiary plans to raise USD 225 million through issue of bonds to refinance part of its outstanding debt security.

Lodha Developers International Ltd, a subsidiary of Mumbai-based Lodha group, proposes to offer USD 225 million aggregate principal of senior secured notes due 2023.

The company would use the proceeds of the issue to refinance a part of its outstanding USD324 million senior notes due 2020.

Lodha Developers has been renamed as Macrotech Developers Ltd.

"Earlier this week, we raised 86 million pound (Rs 800 crore) in the UK. With these proceeds and additional cash flows from our UK and India businesses, we look forward to fully repaying our 2020 USD bonds in March 2020," said Abhishek Lodha, MD & CEO, Macrotech Developers.

In November 2019, Lodha had said it has arranged USD325 millionto repay bonds maturing in March 2020 through infusion of funds from promoters, sale of commercial properties and refinancing against unsold inventories in London projects.

"Our USD325 million bond pertaining to London business is maturing in March next year. So we have arranged funds in advance to meet our obligations when bonds mature. About USD155 million has been arranged through financing against unsold inventories in a London project, while another USD110 million will be infused by promoters through family offices," Lodha had said.

Lodha group had made a foray into the London market in 2013 with the acquisition of the landmark MacDonald House at 1 Grosvenor Square in prime Central London for over 300 million pounds (Rs 3,100 crore).

The group acquired another site in prime Central London, New Court at 48 Carey Street for 90 million pounds in 2014.

The first project Lincoln Square was launched in 2016 while the second project 'No. 1 Grosvenor Square' started in 2017. One project has already been delivered while the other is on the verge of completion.

Lodha Group is India's largest residential real estate developer by sales and construction area.

The company has clocked net new sales of over Rs 7,000 crore in 2018-19 with collections of over Rs 9,000 crore. It delivered over 10,000 offices and homes in FY 18-19.

In the first nine months of 2019-20, sales have reached around Rs 5,000 crore, up 15 per cent from the corresponding period of the previous year.