Real estate developer Lodha’s UK arm has raised $375 million as construction funding from the private investment company Cain Hoy for its residential project in London. The project is currently under construction and is expected to be completed in the last quarter of 2018. The company said that it has sold over 78 units worth almost $170 million since its launch in May 2016. It further added that the construction is being carried out by Multiplex, the construction arm of global investment major, Brookfield. In a press release, the company said, “Lodha UK has “raised USD 375 million (GBP 290 million) as construction funding for its Lincoln Square development in London.”
The facility includes GBP 80 million to replace the existing debt, provided by Cain Hoy last autumn, and the balance will be used to complete the project over the next two years.
Ab Shome, Finance Director, Lodha UK said: “We are extremely pleased to have completed our first development funding in the UK. This is an exciting development and we are pleased to partner with Cain Hoy, whose ability to provide flexible solutions and perform within our timescale has been invaluable. We look forward to building Central London’s most prestigious residential project at Lincoln Square.”
Lodha UK will unveil its flagship development No.1 Grosvenor Square this summer. Located in the heart of Mayfair, No. 1 Grosvenor Square will offer premium residences on one of London’s most prestigious addresses.
Matteo Milan, Director of Cain Hoy, said: “Having already supported Lodha UK through an initial financing to enable the start of construction on site, we are pleased to continue our relationship with the Lodha team by providing this significant loan. Lincoln Square is an exceptional project where sales are performing well and this financing highlights our confidence in Lodha and the London market, as well as our ability to write large bilateral loans.”
Alex Carr, Residential Development Partner at Knight Frank, said: “The success at Lincoln Square is demonstrative of the work Lodha UK has done in bringing together a world class team, and creating a scheme that will redefine this special niche of London. The collaborative effort of the interior designers, architects and development managers has created an enviable scheme, with a superb luxury finish and world class amenities.
“As a result, the development has been selling very well, continuing to perform despite today’s slightly tougher market dynamics. Buyers have become increasingly discerning and product led, yet are keen to buy into developments such as Lincoln Square, as they are seen as best in class and present real value.”
Lodha UK is the UK development subsidiary of Lodha Group. The company is based at 3 St James’s Square in Central London and comprises an in-house team of 30 development professionals with capabilities in planning, design, development, construction, procurement and sales & marketing.