HOME > BUSINESS > Lodha Developers closes ‘IPO’ of Thane real estate project

Lodha Developers closes ‘IPO’ of Thane real estate project

lodha

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.

Follow ULTRA.news
Dalmia Group, Nisus invest in Greater NOIDA real estate project Fund manager Nisus Finance Services Co Pvt said it, along with a Dalmia Group's Landmark Holdings, has invested Rs 50 Cr in Casa Royale & Sanskriti, a project by Noida based Earthcon Infracon projects at Sector-1, Greater Noida, Uttar Pradesh.Landmark Holdings is the real es...
Indian Real Estate unsold inventory to fall this year – Fitch Fitch Ratings said it expects a slight improvement in the finances of real estate companies in India and forecast increasing consolidation and a reduction in the massive unsold inventories on their books."We expect the cash flow from operations of the rated Indian developers...
Hiranandani offers guaranteed rental for Bangalore project for 2 years As some consumers stay away from making big ticket investments into real estate, developer House of Hiranandani has come up with a 'guaranteed rental' scheme for those buying property at two of its towers at the Devanahalli township in Bengaluru.The company said that, depend...
RERA sales freeze drags down DLF Q2 profit by 94%, sales restarted Real estate major DLF reported a sharp decline in its revenue and profit for the July-September quarter after it stopped taking new bookings due to the implementation of RERA in May.The company's net profit fell by 94% to Rs 12.57 cr in July-September quarter from Rs 204.60 ...
Godrej Properties Q2 sales and profit double quarter on quarter Godrej Properties, one of the few big real estate giants that weathered the slow down in the market over the last three years well, has reported strong numbers for its second quarter.Revenue from operations jumped 49% to 492 cr, while net profit rose by 91% to 44 cr.Both...
Nila Infrastructures to construct 3,152 flats for Rajasthan government Nila Infrastructures Limited said it got a contract worth Rs 107.3 cr from Jodhpur Development Authority to create 3,152 flats in Barli.The Company will also get 7.5 acres free of cost that can be sold or developed.The township, to be completed in four years, comprise 2...
Indiabulls Real Estate on the mend post demonetization hit – Fitch Fitch Ratings affirmed property developer Indiabulls Real Estate Limited's Long-Term Foreign-Currency Issuer Default Rating at 'B+' with a 'stable' outlook, noting that conditions for the real estate developer are improving."The Stable Outlook reflects the recovery in IBREL'...
Piramal Enterprises invests Rs 280 cr in Thane real estate project by Puranik Piramal Enterprises Limited said it will invest Rs 280 crore in Puranik Builders' “Puranik City Reserva” project in Thane. The investment, routed through Piramel Finance, will be modeled on the ‘financial partnership’ model, it said.Puranik City Reserva is a theme-based ...
Godrej Properties starts 4.5 mln square foot project in Pune Godrej Properties Ltd, one of the few real estate players still actively launching new projects, announced the beginning of a new project in Pune.It said it will develop a residential project on approximately 59 acres in Mamurdi, West Pune, within the municipal corporation l...
India sees record-breaking Private Equity inflows in 2017 – Study The amount of money invested or committed by private equity firms in India reached an all time high in the first nine months of this year, said Venture Intelligence, a research firm tracking unlisted company financials, transactions and valuations.PE firms invested about $17...
Godrej Properties ties up with Manyata for Bangalore real estate project Mumbai-based Godrej Properties Limited said it will co-develop a residential project in Sarjapur in Bangalore in association with Manyata, a local developer.It signed a Development Management Agreement with Manyata Developers Private Limited to develop a group housing projec...
Piramal Enterprises enters the retail housing finance business Piramal Finance Limited (PFL) has entered the retail housing finance business.It is part of $1.3 bln Piramal Enterprises, one of India’s large diversified companies, with presence in pharmaceuticals, and financial services.The housing finance venture has been floated thro...
Motilal Oswal raises Rs 1,030 cr for investing in real estate Motilal Oswal Real Estate (MORE), the real estate arm of Motilal Oswal Private Equity said it raised Rs 1,030 cr under its India Realty Excellence Fund III.The strong inflow suggests continued investor appetite for investments into companies dealing in this sector despite a ...
Worth Rs 70,000 cr, Patanjali’s Acharya Balkrishna named to India’s richest Acharya Balkrishna of Patanjali | WikipediaAcharya Balkrishna of Patanjali has emerged as the latest addition to the list of the top ten richest people in India, which is still headed by Mukesh Ambani, chairman of Reliance Industries.Haridwar-based Acharya Balkrishna, ag...
K Raheja Corp, GIC buys Siemens building in Worli for Rs 610 cr Capital equipment maker Siemens today said it has transferred its lease for its Worli building to a joint venture K. Raheja Corp Group and GIC, Singapore for a consideration of Rs 610 cr.The deal was originally announced in December and is one of the biggest land deals in In...
Govt to give subsidy of Rs 2.5 lakh per flat; free land to builders Central Government will give up to Rs 2.5 lakh as interest subsidy for people who take home loans to purchase their house under the Pradhan Manthri Awas Yojana, said Minister of Housing & Urban Affairs Hardeep Singh Puri.He also revealed plans to hand over government land t...
Godrej Properties, Nirmal to co-develop huge project in Thane West Mumbai-based real estate company Godrej Properties said it has signed a joint venture agreement with Nirmal Ventures, also based in Mumbai, for developing a residential project in Thane.The project, located on the Lal Bahadur Shastri (LBS) Marg, Thane West, will be developed...
Bajaj Finance offers 8.1% interest on FD to seniors, 7.85% to others Bajaj Finance said it will offer 8.10% on fixed deposits to senior citizens, making it among the highest interest rates offered on fixed deposits in the country. For others, it will be 7.85% per year.The non-banking finance company claims to have the highest credit ranking ...
Infosys included in Dow Jones Sustainability Index Infosys said it has been inducted into the Dow Jones Sustainability Indices (DJSI) and is now part of two of the indices -- DJSI World and DJSI Emerging Markets.The indices measure the economic, environmental and social performance of companies and are based on the companie...
Mumbai-based developer Capacite to raise Rs 400 cr in IPO Mumbai-based real estate developer Capacit'e Infraprojects has priced its initial public offer at Rs 245-250 per share.The company said it will open its Rs 400 cr IPO on Wednesday, Sep 13 and close it on Sep 15.Up to 50% of the issue will be allocated to institutional inv...