MUMBAI: Oberoi Realty is hoping to tie up with a hotel operator for its mixed-use project at Worli in central Mumbai by the end of ongoing quarter in September, Vikas Oberoi, chairman and managing director said.
Sources in the company had earlier said that it was close to sign up Mandarin Oriental for the project, but the company today said it is in talks with three operators for the project that will include its second luxury hotel and branded residences.
Apart from the management contract for the luxury hotel, the operator may also be engaged for managing over 200 branded residences that will be part of the 3.1 million sq ft mixed-use development.
Oberoi Realty’s first property at Goregaon, a north Mumbai suburb, has 269 keys and is being operated by Starwood through its brand The Westin. Oberoi Realty entered into a 20-year management contract for this property with Starwood in 2008.
The Mumbai-based developer has shifted 15 of its existing customers that had booked apartments at its other premium residential project on a 4-acre land parcel acquired from GalxoSmithKline to this new project near old passport office on Dr. Annie Besant Road.
“We have started the sales by shifting 15 customers from Glaxo Worli project. These customers have been shifted around Rs 35,000 per sq ft, erstwhile rate at which they had booked in Glaxo project, but new sales will start at a higher price,” said Vikas Oberoi.
Last year, Oberoi Realty had bought out ICICI Venture Funds’ 50% stake in their joint venture I-Ven Realty for about Rs 300 crore.
The joint venture had proposed development of 44 duplex apartments in two 65-stroey towers on Glaxo plot. The company could not immediately go ahead as the Brihanmumbai Municipal Corporation (BMC) had demanded a fee from Glaxo worth up to 50% of the value of the land sale, which was 108 crore. But the Supreme Court later set aside the BMC’s decision, paving the way for the project to go ahead.
Currently, the company’s cash reserve stands around Rs 1,200 crore and the company hopes to deploy the same to buy land “very soon,” Oberoi said.
On Friday, shares of Oberoi Realty closed at Rs 234.90 on the Bombay Stock Exchange, up 0.4% from Friday’s close.