Oberoi Realty Ropes in Samsung C&T Corporation for its Luxury Project in Mumbai

Real estate firm Oberoi Realty has brought on board Samsung C&T Corporation as its general contractor for its ambitious mixed-use, high-rise luxury project in Worli, Mumbai. The deal marks the entry of Samsung C&T, which has constructed many of the world’s tallest landmarks including Petronas Towers in Kuala Lumpur and Burj Khalifa in Dubai, in the Indian real estate space. 

“This association will enable us to strengthen and grow our vision of bringing the best international construction practices to India and contribute one more landmark to the skyline of Mumbai,” Vikas Oberoi, chairman and managing director, Oberoi Realty, told DNA. To be developed by Oasis Realty, a joint venture between Sahana and Oberoi Realty, the development will feature a luxury hotel, luxurious branded residence (managed by a hotel operator) and high-end commercial office space with a likelihood of luxury retailing area.

The hotel and branded residences, industry sources were quoted as saying, will likely be operated by luxury hotel company, Mandarin Oriental Hotel Group. YeonJoo Jung, president and CEO, Samsung C&T, said the deal was a remarkable milestone for the company as it would be their first such project in India. “We apply extensive experience, expertise and knowledge in construction and project management especially for high rise buildings, therefore the successful completion of this iconic building would also be vital for our future growth in the Indian market,” said Jung.

The Oberoi project is likely to be launched this October. Sources said details of the Oberoi project have not been made public as yet because, “the developer is still in the process of getting a clear picture on the floor space index allocation for it”.

Oberoi Realty’s Centaur Hotel Deal Terminated

Oberoi Realty, through a wholly owned arm, had a 50:50 JV with co-promoters of DB Realty to acquire the Mumbai hotel.

Oberoi Realty Ltd has said that an agreement signed by Siddhivinayak Realties Pvt Ltd (SRPL) with V Hotels Ltd to purchase the Centaur Hotel property in Mumbai has been terminated by the order of an arbitrator.

SRPL is a 50:50 joint venture between Oberoi Constructions (an Oberoi Realty arm) and Vinod Goenka & Shahid Balwa (co-promoters of DB Realty), who are currently in jail for alleged involvement in the 2G telecom scam.

Following the termination of the contract, V Hotels is liable to repay Rs 73 crore within 90 days. It was the initial amount paid by SRPL for the deal.

SRPL had entered into an agreement with the firm controlled by Ajit Kerkar (former Tata Group executive who had an acrimonious exit from Indian Hotels more than a decade ago) in March, 2005, to purchase the Centaur Hotel property for around Rs 300 crore.

The case has been pending for a long time between the two parties. While the arbitrator has terminated the deal, SRPL has also filed an application at the Bombay High Court, seeking an injunction against V Hotels.

Although unrelated, this comes soon after another project related to DB Realty was scrapped last week.