Oberoi Realty is planning to plough back the moneyfrom the sale of its units at luxury highrise ThreeSixtyWest, in buying more land for its projects.
Talking to analysts to discuss the company’s third-quarter earnings, Chief Executive Officer Vikas Oberoi said that the purchase of most of the inventory in the super-premium project had freed up management bandwidth and allowed it more control over the inventory.
He said that the pipeline (for buyers) for the remaining inventory in the project was strong and expected it to be fully sold out in the near future, though the timeline has been set for three years. Last week, the company completed the purchase, of 63 units in the project for about ₹3,400 crore, from a joint venture of its subsidiary.
“We will get a lot of cashflows through the deal,” Oberoi said, adding that cash generated would go back into building the business. He said that irrespective of the cashflows generated from the Worli project, the company was focused on expanding by buying good quality land in attractive locations.
“We are in investment mode,” he said. The company had recently announced the purchase of a parcel of land from Blue Star in Pokhran road in Thane for ₹192.3 crore.
A joint development project in Thane, signed last year, for a 40-lakh square feet residential project will be launched by March while the project in Pokhran will be launched later in the year, Oberoi said.
Oberoi said that the intention was to replicate the success the company has made in the suburb of Goregaon, where it has four completed projects and one ongoing. He said that the company was looking at 160 lakh square feet of development in Thane.
“Thane is Goregaon in the making. We will do more than we have done in Goregaon,” he said.
The company has also signed a memorandum of understanding for a joint development project in Gurugram in the north, the company’s first foray outside Mumbai. A firm agreement will soon be signed, Oberoi said.
On Thursday, shares of Oberoi Realty ended 0.7 per cent higher at ₹847 on the NSE.