Lodha Developers Ltd. has acquired a prime 17-acre plot from DLF Ltd. in Mumbai for ₹2,700 crore. This acquisition includes the purchase of land and the assumption of ₹1,500 crore in liabilities from DLF unit Jwala Real Estate Pvt. Ltd., incurred during the development process since its acquisition from National Textile Corp. Ltd. in 2005.
The Mumbai Textile Mill land, now under Lodha’s ownership, will be transformed into a sprawling mixed-use project spanning approximately 5 million sq. ft. Approvals for the ambitious project are secured, with significant construction already underway. This acquisition, culminating after nine months of negotiations, stands as one of the largest in Indian real estate history, underscoring Lodha’s strategic expansion amidst challenging market conditions.
Commenting on the acquisition, a deputy managing director from Lodha Developers highlighted the strategic significance of the transaction, emphasizing the strong demand in Mumbai for high-quality developments that Lodha specializes in. He noted, “This acquisition not only provides competitively priced land in the island city, at just over ₹5,000 per sq. ft., but also includes an ongoing project with all necessary approvals, streamlining our entry into Mumbai’s lucrative real estate market. ”Analysts view this acquisition as a prudent move for Lodha, leveraging DLF’s existing infrastructure and approvals to accelerate project timelines and mitigate operational risks. For DLF, which has substantial debt obligations exceeding ₹22,000 crore, the proceeds from this sale are earmarked to bolster its debt repayment strategy, aligning with its financial restructuring efforts. The Mumbai real estate landscape, known for its scarcity of land and robust demand dynamics, positions Lodha’s acquisition strategically. With construction already in progress and approvals in place, the project is poised to contribute significantly to Lodha’s growth trajectory in the competitive Mumbai market.
