Oberoi will add 2 msf via redevelopment project

Oberoi Realty is all set to sign a redevelopment project in the western suburbs of Mumbai. Though the acquisition cost is not available, the project would add 2 million square feet (msf) to Oberoi’s portfolio.

“The acquisition would take another three months,” said Vikas Oberoi, managing director, Oberoi Realty.

The company is coming up with an initial public offering (IPO) in the second half of September and plans to file the red herring prospectus this week. Sources say it plans to raise `1,000-1,500 crore.

The company management and merchant bankers for the IPO would start deal roadshows early next month.

Also, the company is in an advanced stage of negotiations with international hotel brands for its upcoming 5-star hotel at Worli.
The company has also bought a beach hotel in Goa for about Rs65 crore which, sources said, will be managed under Indian luxury hotelier PRS Oberoi’s Trident brand.

The 2.1 msf development will include a residential project which would be more than 300 metres tall, two grade-A commercial office spaces and the hotel property near the old passport office.

Oberoi said, “We are not in a hurry to launch the project, we will launch it by the end of the year. We have floated a tender for an international contractor to come on board equipped with the right technology. Once the contractor is finalised we will start the project.”

Oberoi Realty is also eyeing developments at Bangalore, Pune, Hyderabad and Delhi including Gurgaon and Noida, where it is betting big.

Oberoi said, “The northern market is the only belt where there is availability of land, and after the Mumbai market it is the only one which has started moving up price-wise.” Oberoi Realty has developed 9.8 lakh square feet of saleable area of commercial projects including retail under the lease model. At present, it has eight ongoing and 19 planned projects with a total saleable area of 21 msf which will be developed in the next 5-6 years.