Lodha Developers sells 28% in London arm for £112 million

Realty major Lodha Developers has inked an agreement to sell 28% equity stake in its London development arm Lodha Developers UK for £112 million or Rs 1,023 crore, said three persons with direct knowledge of the development. The company has sold the stake to a London-based private equity fund valuing this subsidiary with two central London projects pegged at £400 million or Rs 3,655 crore. Following this, Lodha Developers’ stake in the London properties would be reduced to 47%. Currently, promoters hold direct 25% stake in two properties being developed by this subsidiary in London, while 75% stake is with Lodha Developers. “After careful consideration and due diligence, we have firmed up the deal with a London-based private equity fund. The funds will be used in retiring the current debt and deleveraging the company,” said one of the persons mentioned above. Lodha Developers is likely to continue looking at several monetisation options and will continue to explore other opportunities to monetise its stake in the UK business over the next 12 months, he said.