UK housebuilders could face aggressive competition in London from the Indian developer Lodha Group, which is planning a £3bn push into property in the capital, according to the Financial Times.
India’s biggest housing developer, which last year bought the former Canadian high commission building in Mayfair for £306m, wants to develop properties ranging from mid-market to super-prime. “We want to be among the top two developers in London in the next five years,” Abhishek Lodha, managing director, told the FT.
“Our idea is to make significant investments, which will come out of the cash flows we are generating here in Mumbai,” Lodha said, outlining plans to spend £1.8bn on assets and a further £1.2bn on construction.
The group is building the world’s tallest residential tower in its home city of Mumbai and recently launched a project there to build a 75-storey tower in partnership with Donald Trump. Founded in 1980 by Lodha’s father, the family-controlled business earned revenues of 85bn rupees ($1.4bn) over the past financial year, mostly from sales in India’s financial capital. As well as interest from property groups, wealthy Indian buyers in London have spent more than £1bn on luxury property since the beginning of last year, according to findings of local estate agents.