Mumbai-based Oberoi Realty is making its debut in the NCR market by acquiring 14.8 acres in Gurugram for Rs 597 crore. The land, purchased from Ireo Residences, will be used for a luxury group housing project, marking Oberoi's foray outside Mumbai Metropolitan Region. The deal, involving event/ time-linked payments up to Rs. 597 crore, allows existing owners to retain a portion of the project area. Oberoi's entitlement from the project is estimated at 2.6 million sq ft. The move aligns with Oberoi's expansion plans, which include entering Thane, Bengaluru, and Pune, while focusing on premium luxury residences.
Oberoi Realty is venturing beyond Mumbai, acquiring a 14.8-acre land parcel in Gurugram for Rs 597 crore, marking its entry into the National Capital Region (NCR). The transaction, executed with Ireo Residences Company and others, involves event and time-linked payments, with a portion of the project area retained for existing owners. The area will be used for a luxury group housing project and the company's entitlement from the project is estimated at 2.6 million sq ft of Floor Area Ratio (FAR). Oberoi, known for its Mumbai-centric luxury developments, is concurrently developing over 10 million sq ft in the Mumbai Metropolitan Region, expanding into the eastern suburbs and planning launches in Thane. This Gurugram acquisition aligns with Oberoi's strategic expansion plans. Oberoi is also contemplating expansion into Bengaluru and Pune, maintaining its focus on premium luxury residences with prices starting at Rs 40,000 per sq ft. Oberoi's ultra-luxury highrise in Worli, Three Sixty West, commands prices exceeding Rs 1 lakh per sq ft. As of September 30, 2023, Oberoi Realty reports a net worth of Rs 12,842.11 crore, a debt-equity ratio of 0.26, a current liability ratio of 0.45, total debts to total assets at 0.18, and robust operating and net profit margins of 52.42% and 36.72%, respectively. This strategic foray into Gurugram signifies Oberoi's ambition to diversify its geographical presence and capitalize on the burgeoning real estate opportunities in the NCR. With a focus on luxury residential projects, the company aims to leverage its expertise in crafting high-end developments. The transaction showcases Oberoi's agility in identifying growth markets and underscores its commitment to delivering premium real estate offerings beyond its traditional stronghold in Mumbai. Real estate developers, who have historically tended to be regional players, are now making their presence felt pan-India. Bengaluru-based Prestige Estates, a big player in the southern market, entered Mumbai in 2021 and has already captured a significant share of the sales. Similarly, Casagrand, a Chennai-based realtor, also plans to launch in Pune and Mumbai within a year. This reflects the evolving real estate dynamics across the country.
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