HindustanTimes Thu,31 Jul 2014

Real Estate

Rs 2,700 cr: Lodha buys DLF’s Mumbai plot
HT Correspondent, Hindustan Times
Mumbai, August 13, 2012
First Published: 22:16 IST(13/8/2012)
Last Updated: 22:17 IST(13/8/2012)

Mumbai-based Lodha Developers acquired the 17-acre land parcel of DLF in central Mumbai for Rs. 2,700 crore.

Lodha Developers said in a statement on Monday that Rs. 1,200 crores have been paid towards equity and debentures while the remaining Rs. 1,500 crores go towards liabilities of a special purpose vehicle (SPV) of DLF that owned the land. The deal, the largest in the current year as per the total valuation, comes at a time when the sector is reeling under pressure.

DLF had bought the land parcel — a defunct mill — in an auction in 2005 from National Textile Corporation (NTC) for Rs. 702 crore. DLF is trying to sell non-core assets to retire debt.

The Lodha group now plans to develop a mixed-use development at the mill land. 

“The acquisition is 3-4 times cheaper than deals recently done by other real estate players. At a cost of Rs. 5000 per sq ft, this land acquisition gives Lodha a significant competitive advantage to build a mixed-use development over 5 million sq ft,” the group said in the statement.

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