Macrotech in talks with investors for an industrial park financing platform


Realty major Macrotech Developers is in advanced stages of talks with two global investors to set up a platform that will invest more than $1 billion to develop warehouses and industrial parks across India, a senior has said. company manager.

In an interview with PTI, Managing Director (MD) and CEO of Macrotech Developers, Abhishek Lodha, said: “Discussions are at an advanced stage for the establishment of a warehousing platform and industrial parks. We hope to announce the deal within the next 3-4 weeks.”

“The platform will invest over $1 billion. There will be three partners in the platform, including us and two other global investors,” he said, but did not disclose the names of the partners. potential partners.

Lodha said the company would largely provide assets, including ready-to-use land and warehouse space, in the platform, while the two partners would provide equity investments to develop warehouses and light industrial parks.

The three partners are likely to have an equal stake in the proposed platform, he added.

Lodha said the company remained bullish on residential real estate as well as the warehousing and industrial segments given the growing demand and would continue to expand and grow.

Macrotech Developers, one of the country’s leading property developers, went public last year raising Rs 2,500 crore through its initial public offering (IPO). It also raised Rs 4,000 crore in November via the Qualified Institutional Placement (QIP) route by selling shares to institutional investors.

Operationally, Lodha said the company is targeting a 27% growth in sales bookings in the current financial year to Rs 11,500 crore on better demand prospects and a strong pipeline of new launches.

“We had given the pre-sale forecast of Rs 9,000 crore for the last financial year and we achieved sales bookings of Rs 9,024 crore despite the disruptions due to the second wave of COVID in April-May last year, as well as the impact of Omicron in January 2022,” Lodha said.

The company’s sales bookings increased by 57% to Rs 9,024 crore in the last fiscal year from Rs 5,968 crore in 2020-21.

Client collections increased by 70% to Rs 8,597 crore in 2021-22 from Rs 5,052 crore in the previous financial year. Project delivery nearly doubled, from 2.7 million square feet to 5.3 million square feet.

Of the total target of Rs 11,500 crore in sales bookings in FY23, the company expects bookings of Rs 10,500 crore from the residential segment and the rest from retail asset sales.

The JDA (Joint Development Agreement) strategy will allow the company to achieve targeted growth with a very small capitalization.

The company signed 11 JDAs for almost Rs 15,000 crore GDV (gross development value) in FY22, he said, adding that the company will actively pursue this path to deepen its presence in the region. Metropolitan Mumbai (MMR) and Pune.

“We are planning to enter the Bengaluru market. But no final decision has been made so far,” he said.

Lodha said housing demand is expected to remain strong, driven by low interest rates on home loans and the growing concept of home ownership.

“With each passing quarter, demand is only getting stronger thanks to growing consumer confidence in strong real estate brands thanks to the growing economy and per capita income,” he said.

India’s housing market’s growth journey through rising incomes and favorable demographics has just begun, he noted.

Lodha mentioned that after several years, the industry entered a positive price-demand cycle, allowing latent demand to be converted into actual sales in a shorter time frame.

The market share of brand developers with good execution records would improve further, he noted.

Last week, Macrotech Developers reported a multiple increase in consolidated net profit to Rs 1,202.37 crore for the last financial year on higher revenue and presales. Its net profit stood at Rs 40.16 crore in 2020-21.

Total revenue rose to Rs 9,579.17 crore in the 2021-22 financial year from Rs 5,771.65 crore in the previous financial year.

Macrotech Developers is one of the largest real estate developers in the country and the company markets its properties under the Lodha brand.

The company’s core business is residential real estate development with a focus on affordable and middle income housing. It also has a growing industrial and logistics park activity.

Macrotech Developers, formerly Lodha Developers, has delivered over 85 million square feet of real estate and is currently developing approximately 95 million square feet under its ongoing and planned portfolio. The group has approximately 4,400 acres of land reserve for future development.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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