Macrotech cuts debt to 10,000 crore
BENGALURU : Mumbai-based Macrotech Developers Ltd, which markets its properties under the Lodha brand, seeks to reduce its debt to ??10,000 crore by March 2022, through the sale of housing units, land and a rental office asset, said Abhishek Lodha, Managing Director and CEO of the Lodha Group, in an interview. Macrotech’s net debt for its operations in India is approximately ??12,508 crores.
The developer has timed ??3,450 crore in sales for the September quarter, including ??2,003 crore of its activities in India, and ??1,450 crore from two projects in London: Grosvenor Square and Lincoln Square.
Collections for the quarter amount to ??1,912 crores.
The company, which went public in April, is considering pre-sales of ??9,000 crores for 2021-22.
“The September quarter is seasonally weak for real estate. In this context, we have been very successful. But like last year, 2021 is also a unique year. Collections follow sales, so after a disruption (like the second wave of covid), collections are impacted. We’ve been on a debt reduction mode, and that will be done primarily through regular sales and the rest will be through the sale of (non-core) assets like warehousing assets and commercial rental assets. “
Lodha said about ??8,000 crore will come from home sales and another ??1,000 crore in asset monetization, which is expected to increase in the second half of fiscal 22.
The company’s debt, which amounted to ??16,076 crore as of March 31, 2021, has been reduced by 23% to ??12,435 crore at the end of the April-June quarter.
During the July-September period, Macrotech also entered into a new joint development agreement in Mulund, a suburb of Mumbai. Since April, it has signed five joint development agreements, in the Mumbai metropolitan area and in Pune, in which the gross development value of projects amounts to ??4,500 crore for an estimated salable area of 4 million square feet.
“Sales have been good at all price points and the good news is that even our projects under construction are selling well. We have a strong launch pipeline and plan to launch 4.5-5 million square feet in the coming months. The projects will allow us to enter new micro-markets in the MMR, ”Lodha said.
MMR home sales in the January-August period tripled to reach ??1.33 trillion, according to a recent joint report by CREDAI-MCHI and CRE Matrix. Between January and August 2020, MMR recorded sales of ??41,353 crore due to the negative impact of covid.
“With the upcoming holiday season, we are confident that we will see a huge increase in sales as consumers want to move into a bigger and better home,” he added.
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