Oberoi Constructions plans Rs 12500cr Investment

June 11, 2008	(Be the first to rate this story!)  Loading ...
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Property developer Oberoi Constructions is exploring possibilities of SPV-level joint venture partnerships with financial institutions besides an initial public offer next year to finance its Rs 12,500-crore expansion, a top company official said today.

“We have divested 10 per cent equity and we will further dilute equity to raise capital through an IPO next year,” company’s Managing Director Vikas Oberoi told reporters here.

“We are also exploring possibilities of entering into special purpose vehicle-level joint venture partnerships with financial institutions,” he added.

Last year, Morgan Stanley’s Special Situation Real Estate Fund had invested USD 152 million in the company.

“We are talking to top financial institutions and we will only choose whichever gives us a good deal,” he said.

Oberoi Constructions plans to issue fresh shares under the IPO but the exact dilution of the stake was not yet known.

The realty firm plans to use the IPO proceeds for land acquisition and fund upcoming projects, including the Oberoi Garden City in Pune, Hyderabad, Bangalore, Chennai and Kolkata over the next five years.

Each Garden City would be spread over 80-100 acres. Based on land prices in different cities, these projects will cost around Rs 2,500 crore each, Oberoi said, adding “we are expecting gross revenues of Rs 10,000-12,000 crore in the next three years.

The company is building Oberoi Garden City, an 80 acre composite realty project including office complexes, malls, schools and residential townships, at Goregaon in Mumbai.

News Published Under:   Real Estate India, Real Estate Developers |

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