Lodha Developers, the builder of Mumbai’s Trump Tower and the city’s 117-storeyed World One, claimed to be the world’s tallest residential building once completed, plans to pare its debt by Rs. 4,500 crore in the current fiscal year, Abhishek Lodha, MD & CEO, said.

“We are in the process of raising resources to reduce debt by Rs. 4,500 crore,” he said ahead of the company’s IPO. The firm has filed the prospectus with the SEBI.

As on March 31, the company had debt of Rs. 18,000 crore which, he said, would effectively be reduced ‘substantially’ in 3-4 years.

“Our residential development side of the business will be zero debt by 2022, while we will have a sizeable portfolio of commercial assets which will give us assured rental income. The value of these assets will match our debt level estimated to be around Rs. 13,000 crore,” he said. The firm, known as a luxury housing player, would also focus on affordable and middle-income group housing as well and commercial realty, including office and retail space for leasing, he added.

Commercial aspirations

By 2022, the firm plans to have a commercial realty portfolio of 10 million sq. ft. as against its current portfolio of 1.7 million sq ft and will increase its rental income by more than five times.

The office and retail space portfolio is aimed at supporting the firm’s large-scale affordable housing projects in the Mumbai Metropolitan Region.

Source: Read Full Article