These days, realty deals are booming. In a major property transaction in Mumbai upmarket, the iconic business building in Worli was sold by Crompton Greaves to Oberoi Realty for a little more than Rs.200 crore, their sole sources confirmed the news. Oberoi Realty will soon demolish the Crompton Greaves' building in Mumbai so that they could add a land mass to the present Worli project.
Next to this realty, the Mumbai-based company is building a hotel and a luxury residential project with the help of Oasis Realty, in collaboration with Sahana Group, another real estate developer. The company had signed an agreement with Ritz-Carlton as a hospitality collaboration to operate the hotel.
Crompton Greaves is a part of the Avantha Group of companies dealing with the power sector. One of the reliable sources from the company said, "The talks are in advanced stage. The size of the deal could be around Rs.200 crore. The area and the Crompton property are contiguous with Oberoi Realty's ongoing projects." Although the source did not disclose the time line for the final deal.
The purchase will be financed by an integration of debt, internal accruals and cash, based on the report of livemint. "The transaction is not all cash. It is a complex structured deal where stocks may also be issued," another resource person from Crompton Greaves said.
Economic Times reported that Oberoi Realty will move one acre of property to the Worli project in which 35% share is at stake as a major investor. Sahana Group is building a hotel, and Oasis Realty is the JV between the two firms. The hotel that will be managed by Ritz-Carlton will need more area and is near the Crompton Greaves corporate office. Oberoi Realty confirmed saying they "do not want to comment on rumours or speculations."
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