Lodha Group raises $375 mn for housing project in London

New Delhi: Realty firm Lodha Developers' UK arm has raised USD 375 million (about Rs 2,400 crore) from investment company Cain Hoy for construction of its housing project in London.

Lodha UK has "raised USD 375 million (GBP 290 million) as construction funding for its Lincoln Square development in London", the Mumbai-based developer said in a statement.

The project is being constructed by Multiplex, the construction arm of global investment major Brookfield, and is expected to be completed in the last quarter of 2018.

Lodha Developers said the company has sold over 78 units worth almost USD 170 million (GBP 130 million) since the launch of this project in May 2016.

"The facility includes GBP 80 million to replace the existing debt, provided by Cain Hoy last autumn, and the balance will be used to complete the project over the next two years," the statement said.

Lodha UK Finance Director Ab Shome said the company has completed the first development funding in the UK which showcases the confidence of the market in the Lodha UK platform.

"Having already supported Lodha UK through an initial financing to enable the start of construction on site, we are pleased to continue our relationship with the Lodha team by providing this significant loan," said Matteo Milan, Director of Cain Hoy.

Lodha UK will unveil its flagship development 'No 1 Grosvenor Square' this summer. Located in the heart of Mayfair, the project will offer premium residences at one of London?s most prestigious addresses.

Lodha Developers forayed into the London market in November 2013 with the acquisition of the landmark MacDonald House at 1 Grosvenor Square in prime Central London from the Canadian Government for over GBP 300 million (Rs 3,100 crore).

The group acquired another premium site in prime central London, 'New Court' at 48 Carey Street, taking the combined investment to about GBP 400 million.