Lodha in talks with HDFC to Develop Office Project in Mumbai

Realty major Lodha Group, also known as Macrotech Developers, is in advanced talks with India’s largest mortgage lender HDFC to enter into an agreement to develop a 1.4-million sq ft commercial project in Mumbai’s Andheri suburb. HDFC is a financial investor in the development that is currently being undertaken by Omkar Realtors & Developers as a slum rehabilitation project. Other large developers including Runwal Group and Rustomjee Group also held discussions earlier for this project. As part of this proposed tripartite agreement, Lodha will be responsible for development of the 15-storey office tower with five basements, while Omkar is expected to secure approvals in addition to completing the rehabilitation part. The talks have moved forward and terms are being finalised now. The pact is expected to be concluded in the next few weeks. The proposed alliance is expected to help Lodha build its commercial development portfolio further while pushing HDFC’s returns. The project, Kenspeckle on the Western Express Highway, has already completed 90% of the rehabilitation part, while the free-sale commercial component has reached the plinth level. Lodha, is expected to provide a certain part of commercial space, once completed, to HDFC as part of the consideration. The proposed transaction is the latest instance of the ongoing consolidation in the real estate sector in the backdrop of the Covid-19 pandemic.