Lodha's Increased Bid for Finlay Mill Signals Recovering Real Estate Market
Lodha Developers has presented a significantly improved offer of Rs 710 crore for a 10.3-acre plot in Central Mumbai, owned by the National Textile Corporation (NTC). This transaction, potentially the largest real estate deal of the year, suggests a revitalization of the real estate sector, which had previously experienced a downturn.
Abhishek Lodha, the company's director, confirmed the bid for the Finlay Mill property. This substantial investment underscores the renewed confidence in the market. The developer plans to finance the acquisition through an initial public offering (IPO) projected to raise Rs 3,000 crore by the end of August.
Previous Bid and NTC's Response
Lodha's initial bid for the mill land was Rs 657.9 crore, falling short of the Rs 708 crore reserve price. This earlier bid was rejected by NTC's asset review committee on Thursday, citing the discrepancy between the offer and the reserve price. Consequently, Lodha communicated an increased bid to the NTC for the Finlay property.
Competing Bid and Payment Structure
Another contender for the property, Indiabulls Real Estate, submitted a bid of Rs 520 crore. Significantly outbidding its competitor, Lodha appears poised to secure the deal. The payment for the Finlay Mill acquisition will be structured in three installments over a three-month period. The final agreement between Lodha and NTC is expected to be signed within the next ten days.