Mumbai-based Oberoi Realty is set to open a second mall in Mumbai's Borivali area named Sky City Mall by January 2025. The company's first project outside Mumbai Metropolitan Region (MMR) in Gurugram is also currently under approval and is expected to be launched by the first or second quarter of FY25-26, said Vikas Oberoi, MD and chairman of Oberoi Realty.
This will be Oberoi Realty’s second mall in Mumbai after Oberoi Mall in Goregaon East. The construction of the mall in Borivali is currently on and is part of its Oberoi Sky City project in Borivali.
"Leasing is going on very, very well. We are hoping that we can launch our mall probably, maybe mid-December ideally, and want to catch the season, mid-December. And if not, for sure within January is when we will be completely ready. My team tells me that we should be fully operational by -- or rather we should be ready by 15 November, but let's say, for any reason, if there is a delay, then maybe by like another 30 days and then we will be ready," Vikas Oberoi Chairman and MD of Oberoi Realty said during an investors’ call for Q2FY25.
"So easing far beyond that (50%-60%) would be done, but everybody will be in that fit-out mode and so on and so forth by, let's say, within two to three quarters of our operations, we will reach a very high level of occupancy. It could go up to 80%, 90% also," Oberoi added.
{{/usCountry}}"So easing far beyond that (50%-60%) would be done, but everybody will be in that fit-out mode and so on and so forth by, let's say, within two to three quarters of our operations, we will reach a very high level of occupancy. It could go up to 80%, 90% also," Oberoi added.
{{/usCountry}}Also Read: Oberoi Realty plans to come up with a 1.8 mn sq ft mall, a hotel and an office space in Mumbai
Foray into Gurugram’s real estate market
In November 2023, Oberoi Realty had announced the acquisition of 14.81 acres of land in Sector 58 in Gurugram, Haryana for ₹597 crore. The land potential is estimated to be around 2.6 million sq ft of floor area. The company plans to develop a luxury residential group housing project on this land.
The company said that they will be able to launch the Gurugram project by the first or second quarter of the upcoming financial year. "As far as Gurgaon, we are in the design phase. Actually, we are almost ready with our design. We are in the approval stage now. And hopefully, maybe the first quarter, next financial year or second quarter next financial year when we would likely launch that project. We are looking at a long term and a strong play in NCR," Oberoi added.
Plans for ₹6,000 crore fundraise
Oberoi Realty’s board of directors had recently approved raising up to ₹6,000 crore in one or more tranches, by way of issuance of equity shares, eligible securities, other securities or instruments, or any combination of securities.
Vikas Oberoi said the fundraise will be used by the company for growth.
"The fund raise is basically literally to expand, buy new property and really expedite the pace of growth of the company. There is opportunity, the entire India story playing out so well. And we know that we have a lot of cash coming in from our own sales. But we want a chunky amount where we want to go and buy some large lands. We would want to use it for that. So basically, this is all for growth," Oberoi added.
Also Read: Mumbai real estate news: Oberoi Realty to redevelop land on Carter Road in Bandra West
Financial performance in Q2FY25
Oberoi Realty on October 18, had announced its results for the second quarter of ongoing fiscal 2024-25. Its booking value increased by 74% to touch ₹2,509 crore from ₹1,441 crore. The company reported a 49% increase in booking value of 1,442.46 crore for Q2FY25 as against ₹965.01 crore for Q2FY24.
Further, the Profit After Tax (PAT) for the first half of FY25 saw a 33% increase from ₹1,173.71 crores as against Rs. 777.45 crores for H1FY24. The PAT remained flat in Q2, from ₹ ₹584 crore in Q2FY24 to ₹589 crore in Q2FY25.