Macrotech Developers to refinance debt up to Rs 2,500 cr by March
Real Estate

Macrotech Developers to refinance debt up to Rs 2,500 cr by March

According to Abhishek Lodha, MD & CEO of Macrotech Developers, the Lodha Group, which is listed as Macrotech Developers, plans to refinance up to Rs 2,500 crore of debt in the next two months to reduce its finance cost before the financial year ends.

In the last few months, the company has refinanced a similar amount of debt, lowering its average cost of debt to 11.1% as of December 31st, down from 12.3% in March 2021.

The company hopes to end the fiscal year with an average cost of debt of around 10%, down from 11.1% now.

The company's India business net debt was reduced to Rs 9,896 crores in the December quarter, allowing it to meet its full-year guidance for the fiscal year 2021-22.

After repaying the projects' debt, the company plans to repatriate all of its investments in luxury residential projects in London, as well as the revenue generated from both of these super-premium projects, in the next five quarters.

Lodha bought MacDonald House in Central London for 306 million pounds or Rs 3,120 crore in 2013 and a second property, New Court, on Carey Street, next to the London School of Economics and the Royal Courts of Justice, for 90 million pounds or Rs 930 crore in 2014.

Both MacDonald House and New Court have been redeveloped into luxury residential properties, namely 1 Grosvenor Square and Lincoln Square, respectively. Both of these properties are worth over Rs 15,000 crore in terms of gross development value.

Lodha expects to repay all of its offshore bonds worth $225 million, or Rs 1,678 crore, issued in connection with UK projects in the next four months, well ahead of their March 2023 maturity date.

The developer expects the strong sales performance of its two super-premium residential projects in London to help with debt repayment and investment repatriation.

In the quarter ended December, sales at the developer's projects 1 Grosvenor Square and Lincoln Square totalled 191 million pounds, or around Rs 1,900 crore. Following the relaxation of international travel restrictions in the previous quarter ended September, pre-sales for the 1 Grosvenor Square development totalled 110 million pounds, or Rs 1,100 crores.

Lincoln Square, the company's second premium residential project, has also maintained its strong performance, with pre-sales of 14 million pounds or roughly Rs 140 crores in the December quarter.

Macrotech Developers' Initial Public Offering (IPO) of equity shares in April raised Rs 2,500 crore. Following that, in November, the developer raised Rs 4,000 crore from foreign and domestic institutional investors in India's largest-ever Qualified Institutional Placement (QIP) by a real estate developer.

Image Source

According to Abhishek Lodha, MD & CEO of Macrotech Developers, the Lodha Group, which is listed as Macrotech Developers, plans to refinance up to Rs 2,500 crore of debt in the next two months to reduce its finance cost before the financial year ends. In the last few months, the company has refinanced a similar amount of debt, lowering its average cost of debt to 11.1% as of December 31st, down from 12.3% in March 2021. The company hopes to end the fiscal year with an average cost of debt of around 10%, down from 11.1% now. The company's India business net debt was reduced to Rs 9,896 crores in the December quarter, allowing it to meet its full-year guidance for the fiscal year 2021-22. After repaying the projects' debt, the company plans to repatriate all of its investments in luxury residential projects in London, as well as the revenue generated from both of these super-premium projects, in the next five quarters. Lodha bought MacDonald House in Central London for 306 million pounds or Rs 3,120 crore in 2013 and a second property, New Court, on Carey Street, next to the London School of Economics and the Royal Courts of Justice, for 90 million pounds or Rs 930 crore in 2014. Both MacDonald House and New Court have been redeveloped into luxury residential properties, namely 1 Grosvenor Square and Lincoln Square, respectively. Both of these properties are worth over Rs 15,000 crore in terms of gross development value. Lodha expects to repay all of its offshore bonds worth $225 million, or Rs 1,678 crore, issued in connection with UK projects in the next four months, well ahead of their March 2023 maturity date. The developer expects the strong sales performance of its two super-premium residential projects in London to help with debt repayment and investment repatriation. In the quarter ended December, sales at the developer's projects 1 Grosvenor Square and Lincoln Square totalled 191 million pounds, or around Rs 1,900 crore. Following the relaxation of international travel restrictions in the previous quarter ended September, pre-sales for the 1 Grosvenor Square development totalled 110 million pounds, or Rs 1,100 crores. Lincoln Square, the company's second premium residential project, has also maintained its strong performance, with pre-sales of 14 million pounds or roughly Rs 140 crores in the December quarter. Macrotech Developers' Initial Public Offering (IPO) of equity shares in April raised Rs 2,500 crore. Following that, in November, the developer raised Rs 4,000 crore from foreign and domestic institutional investors in India's largest-ever Qualified Institutional Placement (QIP) by a real estate developer. Image Source

Next Story
Resources

Skyview by Empyrean is Making Benchmarks in the Indian Ropeway Industry

FIL Industries Private Limited, the parent company of Empyrean Skyview Projects that pioneered ropeway mobility solutions in India with Jammu’s Skyview Gondola, is currently developing the Dehradun-Mussoorie ropeway and is on track to complete Phase I by September 2026. The ropeway is set to be India’s longest passenger aerial monocable covering 5.8 km between the foothills of Dehradun in Purkulgam and MDDA taxi stand in the hills of Mussoorie in just under 20 minutes. The firm pioneered green mobility solutions in India with the development of the flagship Skyview Gondola in Jam..

Next Story
Technology

Creativity is for Humans, Productivity is for Robots!

On most construction sites, the rhythm of progress is measured by the clang of steel, the hum of machinery and the sweat of thousands. But increasingly, new sounds are entering the mix: the quiet efficiency of algorithms, the hum of drones overhead, and the precision of robotic arms at work. Behind the concrete and cables, an invisible force is taking hold: data. It is turning blueprints into living simulations, managing fleets of machines, and helping engineers make decisions before a single brick is laid. This is not the construction of tomorrow; it is the architecture of today – built on ..

Next Story
Infrastructure Urban

Bhartiya Urban Unveils ‘Bhartiya Converge’ GCC Enablement Platform

Bhartiya Urban has launched Bhartiya Converge, its latest business venture designed to become India’s premier platform for enabling Global Capability Centres (GCCs). The initiative offers an integrated ecosystem aimed at helping global clients gain a competitive edge in today’s rapidly evolving business environment. Focused on enhancing turnaround time and operational efficiencies, the company seeks to deliver better business outcomes powered by top-tier talent. Bhartiya Converge presents a customised and integrated suite of microservices that addresses the nuanced and evolving operational..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?