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.