Closed DLF transaction at an attractive valuation: Lodha

Shelling out almost four times higher than the price at which the 17-acre plot was bought in 2005, Lodha Developers is extremely satisfied. In an interview to CNBC-TV18, Abhisheck Lodha, Promoter & MD of the company said it has closed the DLF transaction at an attractive valuation. Lodha Developers bought prime land in Mumbai for about Rs 2,727 crore from realty major DLF.

Here are the details of the deal.
DLF had bought the land from National Textile Corporation for Rs 703 crore. The company decided to sell this piece of land as part of the strategy to exit from non-core business.
Explaining the contours of the deal, Lodha said, "We have bought the property at a very valuable and attractive price at just over Rs 5500 per square feet of scalable area. It is one of the most attractively priced transactions in Mumbai atleast in the last five years. If you look at any of the peer transactions which have happened in the last three four years they have all been at three to four times this number. So, we believe we have gotten a fairly interesting and attractive price."
The transaction includes Rs 1,200 cr equity pay, while Rs 1,500 cr is debt liabilities. Lodha added that the payments will be completed over a period of three months.
He is expecting to price the apartments at between Rs 3-5 crore. The project is likely to be launched in the next six months.