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Oberoi Realty inks 18-acre Thane land deal

Oberoi Realty has developed over 42 projects at strategic locations across the Mumbai skyline aggregating about 11.89 million sq. ft of spaces. (File Photo)Premium
Oberoi Realty has developed over 42 projects at strategic locations across the Mumbai skyline aggregating about 11.89 million sq. ft of spaces. (File Photo)

  • Oberoi Realty has full development rights to build residential buildings on the property. It will launch and sell the project under its own brand. The land owner will get 23% of the net realisation generated out of the project. Oberoi gets the remaining 77% share

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BENGALURU: Oberoi Realty Ltd. has signed a joint development agreement for an 18.28 acre land parcel in Kolshet, Thane, near Mumbai, with a local developer. The transaction values the land at 404 crore, slightly above the current ready reckoner rate, and translates to around 22 crore per acre.

The deal was signed between Vikas Oberoi, chairman and managing director of real estate firm Oberoi Realty, and the developer Ashoka Nagari. The agreement was registered on 14 March, according to documents accessed by CRE Matrix, a real estate data analytics firm.

The developer has paid a little over 20 crore stamp duty for the land.

As per the document, Oberoi Realty gets full development rights to build residential buildings on the property. It will launch and sell the project under its own brand.

As per the agreement, the land owner gets 23% of the net realisation generated out of the project. Oberoi gets the remaining 77% share.

Nagari had bought the land from Nicholas Piramal India Ltd. back in 2002, as per the registration documents.

An Oberoi Realty spokesperson didn’t respond to queries.

Last year, the Mumbai-based developer acquired a 4.2-acre land parcel in Mumbai’s central suburb Bhandup for 115 crore, after emerging as the highest bidder for the plot at an e-auction held by the Debt Recovery Tribunal.

In 2019, Oberoi Realty bought around 60 acres in Thane from GlaxoSmithkline Pharmaceuticals for nearly 890 crore.

Thane, one of the most sought-after residential locations in the far suburbs, too has seen a number of prominent land deals in recent times.

This year, real estate firm Runwal Group bought a 20.96-acre land parcel at Thane, for 471 crore from PB Global Ltd. In 2020, Sunteck Realty Ltd acquired 50 acres in Vasind, Thane for affordable housing.

In 2019, Raymond Ltd sold 20 acres in the area to Virtuous Retail South Asia for 700 crore.

“After Lodha Group, Rustomjee Group, Raymond, Sheth Developers and others, Oberoi Realty has taken up yet another plot in Thane for housing development. This reiterates our strong belief that Thane has emerged as the preferred choice for developers and home buyers. Thane provides large land parcels where mini townships can be built. We foresee a structural shift in home buyers’ preference towards large community living projects loaded with amenities. It also offers the much-needed affordability that Mumbai cannot," said Abhishek Kiran Gupta, co-founder and CEO, CRE Matrix.

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