Mumbai: The Lodha Group, a privately held realty firm, is developing a series of premium residential towers, retail stores and seven acres of park on 17.5 acres of land in central Mumbai.

“We are investing 5,000 crore to develop the area and 35-40% of it will be in the form of loans from public sector banks." said Abhisheck Lodha, managing director, Lodha Group.

In August 2012, DLF Ltd sold the land, which was primarily owned by the National Textile Corp. Ltd, to Lodha Group for 2,727 crore.

In January, the Lodha group launched two residential towers in the same plot and according to Lodha, sales proceeds so far from the units, which are selling at an average price of 28,000 per square feet, is 3,500 crore.

“We will be launching a series residential projects under the master plan. To begin with, we will launch one project in a couple of months and the price will be 25% higher than that of Blue Moon." said Lodha.

According to experts, about 15-16 million square feet of property is in pre-launch and underdevelopment stage in central Mumbai and the sales are down 30-40% compared with last year.

“There is huge supply of luxury residences coming in at the central Mumbai side but the demand is very low." said Pankaj Kapoor, managing director, Liases Foras Real Estate Rating and Research Pvt. Ltd.