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Oberoi Realty Limited
Contract to Samsung – Worli
Launch Getting Closer
Quick Comment: Oberoi Realty has appointed
Samsung C&T Corporation – a renowned engineering
and construction company (Burj Khalifa in UAE,
Petronas in Malaysia) – as a general contractor for its
Oasis Project located at Worli (Mumbai). This is
Samsung’s first project in India, finalized after a
thorough due diligence by both sides. Oberoi has
already finalized the architectural firm, the structural
engineering consultant, and other service consultants
for this project. We expect the project to be launched in
the next couple of months, once the hospitality partner
has been finalized.
Project Specifics: Oasis is a (mixed use) slum
redevelopment project with saleable area totaling
roughly 2.1msf – wit h1.54msf of residential, 0.24msf of
commercial, 0.22msf of hospitality and 0.12msf of retail
space. The project is a joint venture between Oberoi,
Skylark Build and Shree Vrunda Enterprises. OBER is
responsible for developing the saleable component
while the JV partners are to develop the rehabilitation
component (and provide clean land). The project is
located in the premium area in South/Central Mumbai –
Worli – with a sea view. Work has already commenced
at the project site.
Project Economics: We expect Oasis to be launched
at a base selling price up of Rs35kpsf (U$1.8bn sales
value). This being a joint venture, we estimate OBER’s
share of gross profits from residential sales to be ~36%
(Rs9kpsf of PBT). This translates to ~7% (Rs23/share)
to our NAVe (Rs337/share).
Investment Conclusion: Once Oasis is launched,
OBER will be executing from three (Jogeshwari,
Goregaon, Worli) out of four key land parcels (the fourth
is Exotica at Mulund, which is awaiting environment
clearance). We remain OW on OBER in view of its
quality brand, strong balance sheet, and good visibility
to monetize its well-located land bank.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Oberoi Realty Limited
Contract to Samsung – Worli
Launch Getting Closer
Quick Comment: Oberoi Realty has appointed
Samsung C&T Corporation – a renowned engineering
and construction company (Burj Khalifa in UAE,
Petronas in Malaysia) – as a general contractor for its
Oasis Project located at Worli (Mumbai). This is
Samsung’s first project in India, finalized after a
thorough due diligence by both sides. Oberoi has
already finalized the architectural firm, the structural
engineering consultant, and other service consultants
for this project. We expect the project to be launched in
the next couple of months, once the hospitality partner
has been finalized.
Project Specifics: Oasis is a (mixed use) slum
redevelopment project with saleable area totaling
roughly 2.1msf – wit h1.54msf of residential, 0.24msf of
commercial, 0.22msf of hospitality and 0.12msf of retail
space. The project is a joint venture between Oberoi,
Skylark Build and Shree Vrunda Enterprises. OBER is
responsible for developing the saleable component
while the JV partners are to develop the rehabilitation
component (and provide clean land). The project is
located in the premium area in South/Central Mumbai –
Worli – with a sea view. Work has already commenced
at the project site.
Project Economics: We expect Oasis to be launched
at a base selling price up of Rs35kpsf (U$1.8bn sales
value). This being a joint venture, we estimate OBER’s
share of gross profits from residential sales to be ~36%
(Rs9kpsf of PBT). This translates to ~7% (Rs23/share)
to our NAVe (Rs337/share).
Investment Conclusion: Once Oasis is launched,
OBER will be executing from three (Jogeshwari,
Goregaon, Worli) out of four key land parcels (the fourth
is Exotica at Mulund, which is awaiting environment
clearance). We remain OW on OBER in view of its
quality brand, strong balance sheet, and good visibility
to monetize its well-located land bank.
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