They did not disclose financial terms. Experts put the value of the land at over 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 take possession of it.
There is a residential tower under construction on the property, developed by IREO Projects, with a few units sold. Several buyers had approached the promoter to help revive the project.
“Based on the initial feasibility undertaken by the company, they decided to go ahead and show interest in this project,” said one of the people directly involved in the process.
“As a company policy, we would not comment on market speculation,” Oberoi Realty said in response to ET’s question.
While Oberoi Realty has established itself as a developer with a good track record in the Mumbai property market, entry into the NCR would be closely watched by the industry.
Helping to get a stalled project of this size off the ground can be a good testimonial for Oberoi Realty in a market like NCR, where few other inorganic growth options are available, say industry experts.
They said that many big developers are eyeing the micromarket.
“Golf Course Road Extension is becoming a new hub for residential and commercial developments with prominent players planning a project in this micro-market. While Oberoi is in talks,
also announced a project. Several other Category A developers like M3M, Hines and Mahindra already have projects in the region. Over the past few months, rates have gone up 20-30%,” said Shalin Raina, managing director (residential services) at consulting firm Cushman & Wakefield.
Oberoi reported consolidated revenue of Rs 934.81 crore for the April to June quarter of fiscal 2023 compared to 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 property developers due to the involvement of lenders, increasing legal issues and high fees levied by some state authorities on micro markets. Experts from international property consultants said the lack of proper title also made it difficult for big developers to buy land.
Most recent land acquisitions have taken place either through bank auctions or by taking over debt from the developer.
Max Group has acquired two plots of land in Noida and is in talks to acquire another in Gurgaon.
Noida-based Gaurs Group has acquired a plot of land at Jaypee Greens in Noida for Rs 200 crore to develop a luxury group housing complex. The fully paid licensed land was with the
Recently, Gurgaon-based Elan Group acquired 40 acres of
for Rs 580 crore at Sector 106, Dwarka Expressway, Gurgaon, in one of the largest land deals in the country in recent times.