Oberoi to take Crompton Greaves Mumbai HQ for Rs.200 crore

Q: Yes, property developer Oberoi Realty is in advanced stage to take the corporate office of Crompton Greaves Ltd at Worli in Mumbai for some Rs.200 crore.

sadhana,

20th August 2015

Real estate News in Worli, Mumbai

oberoi realty ltd.

crompton greaves ltd

worli in mumbai

luxury residential project

oasis realty

sahana group

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Replies (3)

Right Abhi,
In case Oberoi Realty gets the property, they may demolish and rebuild it into another luxury property, which can create higher value to them. It could be another logic for a developer to get a ready-to-move in property is that they might get extra floor space index, which can be utilized.

Vikash V, Ahmedabad

20th August 2015

Comment

On the other hand, Crompton Greaves has been looking to sell few of its assets to refund debt. Last year, the company had sold its 34-acre Kanjurmarg land to the Runwal Group for Rs.1015 crore.

Supratim,

20th August 2015

@Abhi.........
According to real estate consultants, the acquisition would make business sense to Oberoi Realty as it has been looking to expand its current projects around the nearby locality.

But they already have ongoing projects in the vicinity, it looks like they may look at redeveloping the property.

Supratim,

20th August 2015

Comment

This year in June, Oberoi Realty had raised Rs.325 crore through a preferential allotment of shares to Aranda Investments (Mauritius) Pte Ltd, a subsidiary of Temasek Holdings Pvt. Ltd, an investment firm owned by the government of Singapore.

Hamsika Iyer, Pune

20th August 2015

And for that the company had issued around 11 million shares on a preferential basis at Rs.295/equity share, amounting to Rs.325 crore, bringing down its promoter shareholding from 75% to 72.5%.

Before, the company's board has also passed an enabling resolution to raise up to Rs.2250 crore by issuing debentures and equity shares through public offer and private placement.

Abhinandsavalla, Mumbai

20th August 2015

It's true and at the same time the company is planning to develop a luxury residential project and a hotel through Oasis Realty. It will be a joint venture with the Sahana Group, another real estate firm. As per the latest news, the company had signed up with Ritz Carlton as hospitality partner to manage the hotel.

Supratim,

20th August 2015

Comment

It is also came to know that the area and the Crompton property are confine with Oberoi Realty's ongoing projects. The acquisition will be funded through a mix of cash, debt and internal accruals. The transaction is not all cash. It is a mixed structured deal where stocks may also be issued.

Abhinandsavalla, Mumbai

20th August 2015