Oberoi Realty, known for building premium residences and the uber-luxury Three Sixty West highrise in Worli, Mumbai, is looking to expand its commercial portfolio, currently at around 5 million sq ft, Pankaj Gupta, CEO - Commercial Real Estate, told businessline.
The Mumbai-based developer has 80 acres under development at Oberoi Garden City and within that is the International Business Park, housing the office complexes.
Commerz, Commerz II and III are the office buildings; of these, Commerz III is the largest, spread across 4 million sq ft. In August, a unit of Morgan Stanley had leased around 1 million sq ft at this building with a starting monthly rent of ₹15.96 crore, according to registration details made available by data analytics firm Propstack.
Around 80-85 per cent of the space is leased out at the three buildings and at Commerz III the monthly rents are ₹270-280 per sq ft of carpet area. Commerz and Commerz II completed earlier reported combined revenue of ₹151 crore in FY24, while Commerz III which recently obtained occupancy certificate, reported revenue of ₹65.8 crore in Q1 of FY25.
Expansion plans
Talking about the expansion plans in the office segment, Gupta said, “The commercial portfolio has suddenly gone significantly higher versus what it was till three-four years ago … and that has given us kind of a leeway to look at how we can capitalise that, now that we have become a significant player in the commercial space.”
Commerz III and the signing up of a large anchor tenant such as Morgan Stanley has given the company the impetus to build its office portfolio.
“And we have a couple of land parcels where there is potential to do commercial and there is demand,” Gupta said. He pointed out that Mumbai was seeing “crazy amount of demand” for Grade-A assets. Companies who had occupied strata-owned office buildings for years, that were not compliant with current safety and sustainable standards were looking to upgrade their locations.
“A lot of these clients are moving in with us because they see that we follow due compliances, certain density ratios, and the buildings are done in a way that offer best-in-class amenities and have the right infrastructure.”
Gupta said that one of the land parcels where it was looking to build was in Worli and construction would be starting soon. He added that while integrated development — where residences would occupy space with offices — was the strategy pursued by the company, it was also open to land acquisition to set up standalone offices.
After Commerz III, the company was receiving enquiries to set up Global Capability Centres as well, Gupta said.
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