HDFC Property Fund exits Lodha project for $224 mn

City-based realty player Lodha Group today said private equity player HDFC Property Fund has exited its stake in the developer's World Towers in south Mumbai project for Rs 1,500 crore.

The offshore fund, sponsored by Housing Development Finance Corporation (HDFC), had invested Rs 500 crore in the project in 2010, which realised a return of 3x or Rs 1,500 crore after 6 years, Lodha Group said in a statement issued here.

The exit was funded through internal accruals and partly through fresh fund raising, the company said.

"HDFC Property Fund's investment in World Towers has played an instrumental role in making it truly an iconic landmark in Mumbai," company's Managing Director Abhishek Lodha said.

The World Towers, spread over 17 acres in south Mumbai comprises of three ultra-luxury highrises.

Possessions at World Crest have already started and the Tier 1 of World One is slated for delivery in mid-2017.

HDFC Property Ventures Managing Director and CEO KG Krishnamurthy said, "This transaction was one of our largest investments in Mumbai and came at a time when the real estate sector was facing sluggish sales and low investor confidence.

However, Lodha business performance continues to outperform market expectations. We look forward to our long-term engagement." 

In fiscal 2015-16, Lodha Group achieved net sales of Rs 6,400 crore and delivered 6,800 homes.

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