Macrotech Developers, commonly known as Lodha, is set to acquire a 100% equity stake in Pune-based Goel Ganga Ventures India, solidifying its presence in key Indian cities. The transaction, expected by January 15, will make Goel Ganga Ventures India a wholly-owned subsidiary. Macrotech recently completed the sale of its London projects, exiting the UK market to focus on Indian opportunities. Recently, Macrotech celebrated a successful pre-sales performance with a 12% YoY growth, reaching Rs 3,410 crore. With steady demand for quality homes, the company remains on track to meet its fiscal year sales target of Rs 14,500 crore.
Mumbai's prominent real estate developer, Macrotech Developers, commonly marketed under the Lodha brand, has formalised agreements to secure a 100% equity stake in Pune-based Goel Ganga Ventures India. This transaction is anticipated to be completed by January 15, following which Goel Ganga Ventures India will transition into a wholly-owned subsidiary of Macrotech. Macrotech Developers asserted that no regulatory approvals are necessary for this acquisition.
Established in July 2020, Goel Ganga Ventures India focuses on real estate development and related activities, but it has not reported any revenue income over the past three financial years.
Notably, Macrotech Developers recently concluded the sale of its projects in London, thereby completely exiting its investments in the United Kingdom. The recent strengthening of business in key cities like Mumbai and Pune is seen in this backdrop. Lodha had announced earlier that it is planning to repatriate into India all its investments made into luxury residential projects in London and revenue generated from both these super-premium projects, after repaying the debt from these projects.
Lodha had invested 306 million pounds or Rs 3,120 crore to acquire MacDonald House, Central London in 2013 and had acquired second property New Court next to the London School of Economics and the Royal Courts of Justice on Carey Street for 90 million pounds or Rs 930 crore in 2014. The company redeveloped both MacDonald House and New Court into luxury residential properties namely 1 Grosvenor Square and Lincoln Square, respectively. Both these properties’ gross development value stood at over Rs 15,000 crore.
The developer, aligning with its sales trajectory, had predicted that these projects would be fully sold out ahead of the business plan target set for the fourth quarter of the financial year 2023-24. Now, with the sales completion, the company has realised the entire balance on its investments and has exited the UK market. Lodha said that "From here on, we are going to be solely focussed on the significant opportunities in India".
Macrotech celebrated its most successful pre-sales performance in Q3, showcasing a remarkable 12% year-on-year growth, amounting to Rs 3,410 crore compared to Rs 3,040 crore in the last fiscal. This was mostly driven by a better demand for its residential properties. MD & CEO Abhishek Lodha said that with a steady rise in income levels and ample job creation, there is a robust demand for high quality homes. Having delivered Rs 10,300 crore of sale bookings in the first three quarters, Lodha remains on track to meet the Rs 14,500 crore sale bookings target for the full fiscal.
While Macrotech Developers reported a 42% decline in net profit to Rs 210 crore for the September quarter and a marginal dip in revenues from operations to Rs 1,750 crore, collections during the same period rose by 16% compared to the previous year, reaching Rs 2,750 crore.
Q3 also witnessed ongoing debt reduction and robust business development initiatives in Macrotech. Year-to-date, their net debt reduced to Rs 6,750 crore from Rs 7,073 crore in March 2023. Lodha added three new projects with a GDV (gross development value) of Rs 6,000 crore in Q3. With this, the company achieved Rs 20,300 crore of new business addition in the first 9 months of this fiscal, surpassing the target of Rs 17,500 crore for the full fiscal.
In conclusion, Macrotech Developers has had a very good Q3 on many fronts. The company remains on track to meet its fiscal year sales target, reflecting confidence in India's thriving real estate sector. Its exit from UK investments and increasing focus on Indian opportunities, comes at a time when the Indian real estate sector is booming, driven by robust residential demand.
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