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Oberoi Realty purchased a 14.8-acre plot of land in Gurugram for ₹597 crores, marking the company’s first venture outside of the Mumbai Metropolitan Area(MMR).
It purchased the site from Ireo Residences and other parties, and milestones will be used as payment for events. In accordance with the terms of the agreement, the consideration also includes a specific region within the project for the current owners and other parties.
The company’s entitlement in the project is projected to have a floor area ratio of 2.6 million square feet at full potential. A project for opulent group homes will be built on the property.
The luxury real estate developer based in Mumbai is now working on projects totaling just over 10 million square feet in the MMR region. Of the 10 million square feet that it has previously constructed, 10 million are situated in the western suburbs of the financial capital.
The Expansion Plan Of Oberoi Realty Beyond Mumbai
The firm just moved into the eastern suburbs, first into Mulund, and it will soon go into Thane, where it has two launches planned. The business has also discussed entering the marketplaces of Pune and Bengaluru.
The builder has stuck to its specialty market of high-end, luxurious homes, where prices begin at around ₹40,000 per square foot and go higher. Its ultra-luxury high rise in Mumbai’s Worli neighborhood of Three Sixty West is selling for more than ₹1 lakh per square foot.
Traditionally a localized player, real estate developers are gradually becoming noticeable throughout India. Prestige Estates, a major player in the southern market and located in Bengaluru, entered Mumbai in 2021 and has since taken a big chunk of the sales.
Within a year, Casagrand, an agent located in Chennai that is headed for an IPO, intends to open offices in Pune and Mumbai.
Oberoi Realty’s Financial Snapshot: Net Worth And Future Projections
For a few months now, the real estate industry has been speculating about Oberoi Realty’s entry into Gurugram; nevertheless, this official statement verifies that the business, supported by Vikas Oberoi, would be venturing outside of its primary market of Mumbai for the first time.
With the opening of Forestville in Kolshet in Thane west this month, Oberoi Realty will make its debut in Thane after releasing many projects in the western suburbs, Mulund in the eastern suburbs, and the exclusive Three Sixty West in Worli.
With reservations set to open on November 24, the launch has generated excitement in the Thane micro-market and will signal the arrival of yet another major Mumbai-based developer with a well-known brand. The much awaited project on Glaxo Pharma property in Vasant Vihar, Thane, would come after the Kolshet project.
The Profit Projections Of Oberoi Realty
As of September 30, 2023, Oberoi Realty had a net worth of Rs 12,842.11 crore, an operating margin of 52.42%, a net profit margin of 36.72%, a debt-equity ratio of 0.26, a current liability ratio of 0.45, and a total debt to total assets of 0.18.
In FY24, it anticipates that the business would have bookings of Rs 5,600 crore. Saumil Daru, the chief financial officer of Oberoi Realty, told Motilal Oswal that new developments will contribute a portion of this amount, or Rs 2,600 crore.
In the current fiscal year, Oberoi Realty intends to begin construction on the first phase of its flagship project in Thane. The project is valued at Rs 6,200 crore in terms of gross development value (GDV). According to a study published on June 14 by Motilal Oswal, GDV is the estimated worth of a property once construction is finished.
Oberoi Realty expects to turn a profit in 20 years and has plans to build a school, hotel, group housing, and retail locations.
Recent Land Acquisitions And Sales Target Of Oberoi Realty
In Gurugram, Oberoi Realty is anticipated to close a deal involving over 50 acres. It is also in negotiations to buy land in Andheri, Mumbai; however, because the property is located within a redevelopment zone managed by the Maharashtra Housing and Area Development Association, the transaction could take some time.
The firm decided to postpone the opening of “Commerz III,” a mall located in Borivali, Mumbai, from FY24 to HY25. The mall might bring in Rs 2,500 crore in rent a year after it opens for business in FY25.
Oberoi Realty’s net profit for the March quarter of Financial Year 2023 was Rs 1,904 crore, an 81 percent rise over the same period the previous year.
Source-ET
