Indian realty major Lodha Group has bought the Canadian high commission's building in central London for over INR3,120 crore (GBP306 million).
Lodha's latest real estate investment signals its ambitious overseas plans, Economic Times said in a report.
According to the report, the 0.67-acre property is located a short distance from the royal residence Buckingham Palace. Known as the MacDonald House, it will be converted into super-luxury residences for the ultra-rich.
Economic Times said that Lodha has already paid the initial amount to the government of Canada. The rest of the money is expected to be paid in two or three tranches.
Lodha hopes to receive about GBP750 million from the sale of the proposed flats. The London property is believed to have a total saleable area of 1.6 lakh square feet, the report said.
Sources told the Economic Times that Lodha has time till the end of March to pay The entire consideration, but the group is reportedly keen on paying the full amount by end-January. Lodha is also planning to use its own funds and does not intend to raise any debt to finance the deal, they added.
Lodha is setting up a separate arm to undertake and execute the proposed super-luxury project and pursue its other future plans in the United Kingdom, the report stated.
The Mumbai-based developer has appointed former JP Morgan managing director Tyler Goodwin as chief executive officer of its UK business, Economic Times said.
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