Despite the real estate sector going through a tough time, a section of developers continues to pursue signature projects in Mumbai with undiminished exuberance.
Oberoi Realty has brought on board Samsung C&T Corporation as its general contractor for its ambitious mixed-use, high-rise luxury project in Worli, Mumbai.
The deal marks the entry of Samsung C&T, which has constructed many of the world’s tallest landmarks including Petronas Towers in Kuala Lumpur and Burj Khalifa in Dubai, in the Indian real estate space.
Vikas Oberoi, chairman and managing director, Oberoi Realty, said, “This association will enable us to strengthen and grow our vision of bringing the best international construction practices to India and contribute one more landmark to the skyline of Mumbai,” he said.
To be developed by Oasis Realty, a joint venture between Sahana and Oberoi Realty, the development will feature a luxury hotel, luxurious branded residence (managed by a hotel operator) and high-end commercial office space with a likelihood of luxury retailing area.
The hotel and branded residences, industry sources said, will likely be operated by luxury hotel company, Mandarin Oriental Hotel Group.
The Oberoi-Samsung tie-up substantiates the trend of hiring specialist international companies to create products that would appeal to not only the crème de la crème in India but also potential buyers across the globe who wish to boast of owning a residence in one of world’s most expensive real-estate markets, experts said.
Earlier, Lodha Developers had awarded the construction contract of World One, its flagship project in Worli, to a joint venture formed by Middle-East based construction firm, Arabian Construction Company, and India’s Simplex Infrastructures.
Experts said the approach of bringing renowned global partners for real estate projects is to create a wider appeal for the developments and attract global buyers.
“For instance, Lodha’s World One was being premiered across the globe, more so in New York and Tokyo in addition to key cities in India. As a result, the developer was able to pre-sell World One and close a significant percentage (around 40% of the overall inventory) of bookings during that period,” said a source.
YeonJoo Jung, president and CEO, Samsung C&T, said the deal was a remarkable milestone for the company as it would be their first such project in India.
“We apply extensive experience, expertise and knowledge in construction and project management especially for high rise buildings, therefore the successful completion of this iconic building would also be vital for our future growth in the Indian market,” said Jung.
The Oberoi project is likely to be launched this October. Sources said details of the Oberoi project have not been made public as yet because, “the developer is still in the process of getting a clear picture on the floor space index allocation for it”.