Having established a significant presence in Mumbai, Oberoi Realty has entered the residential market in north India. The realtor, which recently acquired Tata Steel's 25-acre Borivali land parcel for Rs 1,150, has signed a memorandum of understanding (MoU) for a township project in National Capital Region (NCR).
Speaking exclusively to dna, Vikas Oberoi, chairman and managing director, Oberoi Realty, said, "Yes, I have an MoU in place. It's an interesting project, but we will take it to market when ready for launch. It's a township with development potential of approximately five million square feet."
The realtor however did not share further details on the township and related timelines for its launch into the market. With this MoU in place, Oberoi Realty now joins other city-based realtors such as Tata Housing and Godrej Properties that have launched premium residential projects in the Delhi-NCR market.
In another development, the realtor has got on board The Ritz-Carlton as its international hospitality partner for India's first hotel-cum-serviced residences project in Worli, Mumbai. Developed by Oasis Realty (a joint venture between Sahana and Oberoi Realty), the 238-rooms luxury hotel will get operational in 2016-17 and will be branded and operated by The Ritz-Carlton (a wholly-owned subsidiary of global hotel major Marriott International Inc).
On cost of developing and funding the project, Oberoi said it (hotel) will get built from the premium the company will get from the residential component. "The hotel project will involve an investment of Rs 750 crore that will be funded through sales of residential apartments.
"The hotel component will end up being 15-20% of the cost of the residential tower. And if we are able to get 20% premium as a result of all the facilities and services, then the hotel has done its job as far as finances go," said Oberoi, adding that the hotel will also give the company regular annuity income.
The Ritz-Carlton will also manage the serviced-residences wherein the apartments will be sold to potential buyers in the market while all the services component will be taken care of by the international hotel operator. In all the residential tower will have 140 apartments ranging from 8,500 sq. ft. to 9,000 sq. ft. area and above.
The largest apartment (two units) is spread across 20,000 sq. ft. and is likely to fetch the developer over Rs 100 crore each (taking the current rate of Rs 50,000 per sq. ft. into consideration).
"Nineteen apartments were sold in its Worli project (on GSK land) and we have moved them all to this serviced residences project at the same cost. Some new sales have happened at a price of Rs 50,000 per square feet excluding floor rise," said Oberoi.
Constructed by Samsung C&T Corporatifon, the residential component has reached about 45 floors and the hotel tower is currently at eight floors. While the original design plan did have commercial (office) space, the realty company has converted that area to residential.