Oberoi may collect up to Rs 7,000 cr from Borivali land parcel
As per the source the 25 acre Tata Steel land parcel that Mumbai-based Oberoi Realty bagged is anticipated to have sales potential of Rs 6,500-Rs 7,000 crore.
Tata Steel announced Oberoi Realty as the highest bidder for the Borivali land located to the north of Mumbai on the basis of its final bid of Rs 1,155 crore. This land is estimated to have development potential of 2.5 million sq ft and 4 million sq ft after getting approval for car parking.
A source says that the rate of Borivali land is nearly Rs 15,000 per square feet and the project is estimated to fetch Rs 6,500 and Rs 7,000 crore.
The process of land sale was organized by Knight Frank through an e-auction. The developers like Kalpataru, Tata Housing, Piramal Realty and tech major TCS were also in the race for this land.
The complete information of how Oberoi plans to fund the land purchase still remained a mystery because company shared no information regarding this. A source concluded that arrangement is not a big deal for Oberoi because they have around Rs 1,000 crore cash and some of this cash is utilized for this deal as well and if needed the company will arrange remaining fund from external sources.
Oberoi Realty’s share price increased as much as 17.64% to Rs 234.50 in intra-day trade on the land deal announcement before closing up 9.69% at Rs217.95 on BSE.
The conditions of payment of plot will require depositing 10 percent of bid value within 2 days at the time of signing. The remaining money is to be paid by 28 April.
The transaction terms are that the developer obtains the collector’s permission for the sale of land. As per the bid document, if the bidders are not able to obtain the approval within 3 months the MOU will canceled automatically.
Source: The Financial Express
Auction, Bombay Stock Exchange, BSE, Collector, Kalpataru, Land, Mumbai, Oberoi Realty, Piramal realty, Tata Housing, Tata Steel, TCS
