PE funds for world's tallest residential tower

Lodha Developers is negotiating with several private equity funds to sell stake in a Mumbai project to build the world's tallest residential tower.

Last week, the developer announced its plans to invest $426-million to build a 117-storey residential tower in central Mumbai and that the company could consider selling a 10-25 percent stake.

Unconfirmed reports of linkages of Singapore funds GIC and Temasek with the project, are going rounds.

The Mumbai-based developer would hold back its planned $600-million initial public offer until stock markets stabilise and is banking on stronger-than-expected sales to tide over immediate cash flow needs.

Lodha, which focuses on high-end residential apartments in and around India's financial capital, sold about 7 million square feet last fiscal, but expects sales to be 50 percent higher in the current fiscal year to March.

The company, which has about 30 million square feet under development across 38 projects, is estimated to hold a market share of 15 percent in Mumbai, rated among the most expensive property locations in the world.