Mumbai-headquartered Oberoi Realty is set to enter the market in the National Capital Region, and is in the final stages of acquiring a 50-acre land parcel at Gurgaon’s Golf Course Road Extension, three people aware of the deal said.
They didn’t disclose the financial terms. Experts put the value of the land at more than Rs 1,000 crore.
The land is currently in the possession of a financial institution and Oberoi will have to take over the debt to get its possession.
There is an under-construction residential tower on the property, developed by IREO Projects, with some sold units. Several homebuyers had approached the developer to help revive the project.
“Based on the initial feasibility undertaken by the company, it decided to go ahead and express an interest in this project,” said one of the people who is directly involved in the process.
“As a corporate policy, we would not comment on market speculations,” Oberoi Realty said in response to ET’s query.
While Oberoi Realty has established itself as a developer with a good track record in the Mumbai property market, the entry into the NCR would be closely watched by the industry.
According to industry experts, helping kickstart a stalled project of this size can be a good testimonial in favour of Oberoi Realty in a market like NCR, where a few more of such inorganic growth options are available.
They said many big developers were eyeing the micro market.
“Golf Course Road Extension is becoming a new hub for residential and commercial developments with leading players planning a project in this micro market. While Oberoi is in talks, DLF has also announced a project. Multiple other Category-A developers like M3M, Hines and Mahindra already have projects in the area. In the last few months, the rates have gone up by 20-30%,” said Shalin Raina, managing director (residential services) at consultancy firm Cushman & Wakefield.
Oberoi has reported consolidated revenue of Rs 934.81 crore for the April-June quarter of fiscal 2023 against Rs 294.77 crore a year earlier and Rs 842.94 crore in the previous quarter.
Acquiring land in the NCR is becoming increasingly difficult for real estate developers with the involvement of lenders, growing legal issues, and high fee levied by some state authorities in the micro markets. Experts at international property consultants said absence of clean title was also making it hard for big developers to buy land.
Most of the recent land acquisitions have happened either through bank auctions or by taking over the debt of the developer.
The Max Group has acquired two land parcels in Noida and is in talks to acquire another in Gurgaon.
Noida-based Gaurs Group has acquired a land parcel at Jaypee Greens in Noida for Rs 200 crore to develop a luxury group housing complex. The fully paid licensed land was with the IndusInd Bank.
Recently, Gurgaon-based Elan Group acquired 40 acres from Indiabulls Real Estate for Rs 580 crore in Sector 106, Dwarka Expressway Gurgaon, in one of the biggest land deals in the country in recent times.
Source : ET