Lodha Developers, which describes itself as the largest real estate developer in the country, said it has got more applications for its upcoming Prime Central Thane residential project than the number of units on sale.
Against around 2,000 1- and 2-bedroom homes, it got applications for 2,500 in the nine-day IPO style event, it said.
“With a robust waitlist of nearly 500 applicants already, this is shaping up to be one of the biggest and most unique real estate offerings for the year,” it said.
Under the IPO concept, a company tries to ensure that all its stock is sold through a bidding process by interested buyers. Unlike a traditional sale, in an IPO, it is the buyer interest that decides the final price.
The Lodha project has used a distinctive sales model where applications were invited from prospective customers stating their preference of configuration, floor band and ticket sizes.
Allocations will be made using an automated allotment process, ensuring a very objective mechanism which is fair to all. Such a model is being used for the first time in the affordable luxury segment, and is sure to change the way in which real estate is sold. The first set of allotments will roll out by second week of July.
Real estate companies are adopting all kinds of innovating ways to beat one of the worst slowdowns to grip the sector in decades.
“Surpassing conventional methods, we sought to bring a whole new generation of people who have until now not been able to take part in the market, the chance for larger participation in finding the right home at a unique price point. We are extremely glad to have brought this sort of value to our customers, which has been so well received,” said Abhinandan Lodha, Deputy Managing Director, Lodha Group.
In case of Lodha’s Thane project, the ‘issue’ was pre-launched simultaneously across the globe in New York, London, Dubai, Singapore and Hong Kong and all parts of India.
The response “indicates the growing demand for under Rs 1 Cr ticket sizes in the region for quality developments,” the company said.
“This was echoed by the feedback received from a few independent channel partners such as Tanuj Shori, CEO of Square Yards, Dubai.
“With over 1,500 applications flowing in from all over the world on the first day itself, it was important to get all my clients to apply as soon as possible, as allocation of these world-class residences would be on a first come basis. This kind of frenzy to apply for a home is unprecedented in my 20+ years of experience in this industry,” he said.
Established in 1980, privately held Lodha Developers is present in India and the United Kingdom.
The company is one of the most profitable real estate players in India and the largest by sales for three consecutive years. It achieved net sales of INR 7,790 Cr for FY 14-15 and INR 7,520 Cr for FY 13-14 with INR 8,092 Cr in FY 12-13 and INR 3,911 Cr in FY 11-12.
The group currently has total land holdings of over 6,000 acres with an estimated saleable area of ~490 million sq ft.
Of this, 27 ongoing and 21 planned projects, spread over 1,284 acres of land, comprise 100 million sqft of saleable area.
In addition it has land reserves of 4,750 acres – the largest in the Mumbai Metropolitan Region – including an estimated saleable area of 388 million sq ft. Ongoing and planned projects and land reserves of the company have been valued at USD 11.8 billion by Knight Frank as on October 2014, Lodha said.
In FY 14-15, the company delivered 5.7 million square feet and 5,500 units across projects. The group plans to deliver more than 11.8 million sqft in FY 15-16.
It is building the World One – the world’s tallest residential tower, in Lower Parel in Mumbai, and Palava City – billed as the first Greenfield smart city in the country. Lodha Developers has over 25,000 workmen at its sites.
In November 2013, the Group extended its international footprint with the acquisition of the landmark MacDonald House at 1 Grosvenor Square in Prime Central London from the Canadian Government for a consideration of over GBP 300 million (INR 3,100 Cr).
The Group acquired another site in Prime Central London, ‘New Court’ at 48 Carey Street, taking the combined investment to GBP ~400 million.
The group is on target to deliver over 1,000 homes each year from 2017 and is planning a further £3 billion worth of investment in the UK by 2018, it said.