After signing over Rs 3,000 crore deal to buy MacDonald House in Central London on Thursday, Mumbai-based realty developer Lodha group said it is looking to buy more properties in the UK capital.
“We would look at buying other assets in London. We could look at either residential assets or commercial whichever makes economic sense,” said Abhinandan Lodha, deputy managing director at Lodha Group on the sidelines of a press meet today.
Lodha said the developer looked at various cities such as Dubai, Hong Kong before zeroing in on London to make its overseas foray. “We chose London because it was a global city and has mature and resilient markets,” he said.
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Lodha has already opened a 1000 square feet office in Chester Square in London and hired former JP Morgan Global Assets Management managing director Tyler Goodwin as chief executive of UK business.
Lodha is looking to pay the entire deal amount from its internal accruals and will not borrow debt or private equity, Lodha said, adding that the developer has already paid 10% of the deal money (around Rs 300 crore).
The company needs to pay the entire money by March next year, Lodha is looking to pay before that, he said. “We have had sales of Rs 14,500 crore in the lasy 18 months. We can fund this with our own funds,” Lodha said.
Lodha, which has tied up with US-based Trump Organisation for its Mumbai project, is looking to building high end apartments on MacDonald House plot. The property has 150,000 sq ft saleable area and property prices hover around 5000 pounds in the Grosvenor Square area.
The developer is looking at IRR (internal rate of return) of 20-25% over the four years. The company is planning to start the project in 12-15 months, he said.
Lodha was advised by London office of UK-based consultant Knight Frank.
Pranay Vakil, former chairman of Knight Frank India said, it was strategic decision for most realty companies to diversify into overseas when they attain certain scale and growth rate.
“If you want to go abroad, then middle east and London are the main markets where Indians buy properties. Hence, they must have chosen London,” Vakil said.
