Lodha to repay $225 million bonds in next four months ahead of March-2023 maturity

May 17, 2022

Lodha had raised these $225 million bonds in March 2020 against the UK projects. In its India operations, the company has provided a guidance of reducing its debt to below Rs 6,000 crore by March 2023.

Realty major Lodha Group, listed as Macrotech Developers, expects to repay its offshore bonds worth $225 million or Rs 1,678 crore completely in the next four months ahead of its scheduled maturity in March 2023.

The company also expects to significantly repatriate its investment in the UK back to India in the financial year 2022-23. The developer is planning to support this debt repayment and repatriation of investment with robust sales per performance of its both super-premium residential projects in London.

Lodha had raised these $225 million bonds in March 2020 against the UK projects. In its India operations, the company has provided a guidance of reducing its debt to below Rs 6,000 crore by March 2023.

The developer’s projects, 1 Grosvenor Square and Lincoln Square, have clocked sales worth 191 million pounds or around Rs 1,900 crore in the quarter ended December. Based on this, the company expects to “significantly” repatriate its investment in the UK back to India in the financial year 2022-23.

In the previous quarter ended September, 1 Grosvenor Square development had witnessed 110 million pounds or Rs 1,100 crores of pre-sales following the relaxation of restrictions on international travel.

“The momentum continued in the quarter and we had our strongest ever quarterly sales performance at 1 Grosvenor Square with pre-sales of 177 million pounds or around Rs 1,770 crores. Thus, in just 2 quarters, the project has achieved almost 300 million pounds of pre-sales,” the company said in a regulatory filing 

With these two quarters of strong performance, the $225 million bond is likely be repaid fully in the next 4 months from the sales proceeds, well in advance to its scheduled maturity of March 2023, the developer added.

Based on the current trajectory, Lodha expects the project to be fully sold out  well ahead of the business plan target of the fourth quarter of the financial year 2023-24.

The company’s second premium residential project Lincoln Square has also continued its steady performance and achieved pre-sales of 14 million pounds or around Rs 140 crores during the December quarter. The project remains on track for sell out over the next 1-2 quarters, Lodha said.

For the quarter ended September, the company had reported consolidated net profit of Rs 221.85 crore as against net loss of Rs 359.25 crore a year ago. Revenue from operations rose 136% to Rs 2,124 crore.

The developer had raised Rs 2,500 crore through its initial public offering (IPO) of equity shares in April. Following this, the developer raised Rs 4,000 crore from foreign and domestic institutional investors in November through the largest ever Qualified Institutional Placement (QIP) by a real estate developer.

Lodha Group had invested 306 million pounds or Rs 3,120 crore to acquire MacDonald House, Central London in 2013 and this property is now 1 Grosvenor Square. The company had acquired second property New Court next to the London School of Economics and the Royal Courts of Justice on Carey Street for 90 million pounds or Rs 930 crore in 2014. This property has now been redeveloped as Lincoln Square.