Deutsche Bank gains Rs 900 crore

Mumbai: In one of the largest and most profitable investment for any FDI in Indian real estate, Deutsche Bank gained over Rs 900 crore from its investment made in 2007-2008 in the city-based real estate player Lodha Developers.

Lodha Developers through its subsidiary Cowtown Land Development has provided complete exit to Deutsche Bank. The Bank has been paid a total of Rs 2,542 crore, following its investment of Rs 1,640 crore made in late 2007. The gain of over Rs 900 crore is one of the largest and most profitable investment for any FDI in Indian real estate, Lodha Group managing director Abhishek Lodha told PTI here.

The exit was financed by Rs 1,720 crore from internal accruals and Rs 825 crore raised through fresh borrowing, Lodha said adding that the company has raised Rs 800 crore through NCD issue recently. With this exit, Lodha has significantly reduced its debt levels. "Our ability to generate positive cash flows of around Rs 1,500 crore every year from our business by focussing on execution and end user sales has enabled us to make such a large payment at a time when the general economic environment is quite tough, Lodha said.

Prior to the repayment of this investment, Lodha has also provided exits to JP Morgan and HDFC Venture Fund from their investments in its other projects. Currently, the company has other investments from HDFC Venture Fund, ICICI Ventures and Old Lane in its other projects.

Established in 1980, the Lodha Group is India`s premier real estate developer headquartered in Mumbai. The group has 4,500 acres of land bank and is currently developing in excess of 30 million sq. ft. of prime real estate over 38 projects in and around Mumbai, from Napean Sea Road to Palava. With Lodha Bellezza, an unparalleled super-luxury residential project in Hyderabad, the Group has begun its geographic expansion, and is soon expected to launch its first project in Pune.

The Lodha Group is also developing World One – the world`s tallest residential tower in Mumbai. Commenting on the real estate market scenario, Lodha said, 2011 was tough year for real estate market. However, we see strong market growth in 2012 following moderate interest rates.