Oberoi Constructions Expands Garden City

Oberoi Constructions Private Ltd is well-known as leading developer. Now Oberoi group is on the way of expansion. They have decided to set up three ‘Oberoi Garden city’ township in Bangalore, Pune and Hyderabad. Initially they started ‘Oberoi Garden city’ project for Gurgaon east and Mumbai. New three townships will start with an area size of 80 acres each. Mr. Vikas Oberoi, managing director, Oberoi Constructions Private Ltd told FE, “For acquiring land for each planned township project, we will be investing Rs 1,000 crore which will be followed with further investments as well for development of townships”. The company has also decided to get the funds from internal accruals.

Mr. Oberoi said “Our first Oberoi Garden City’ in Mumbai will be ready in the next four years. In a tie-up with Starwood, the hospitality chain, we are planning to develop a hotel at Gurgaon. For developing hospitals, we are talking to developers and planning to partner with them. We hope to garner gross revenues to the tune of Rs 10,000 crore from one project in four years. We should do revenue of Rs 3,000 crore in the year 2009.”

Besides this, Oberoi Constructions is also planning to rise with an initial public offering (IPO) in September 2008. Mr. Oberoi acknowledged “We still have to evaluate the exact valuation for the IPO. Through the IPO, we are looking at developing close to 15 mn sq ft of real estate, which can accommodate homes, hotels and shops”.

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