Oricon Enterprises’ wholly owned subsidiary -- Oricon Properties has entered into a Joint Development Agreement (JDA) with Tapir Realty Developers, a subsidiary of Indiabulls Real Estate, a leading real estate developer. The agreement is for development of its 7,810 sq.mtrs plot situated at Dr.E.Moses Road, Worli, Mumbai - 400018. The land is owned by Oricon Properties.
Worli forms a part of Central/South Mumbai, which is one of the fastest growing areas in the city, close to the growing business hub of Lower Parel. The property is located on the main Dr. E. Moses Road with a frontage of more than 200 meters adjacent to the premium luxury residential project under construction of Indiabulls - i.e. ‘BLU’. The project shall overlook the Mahalaxmi Race Course and the Arabian Sea located near the Four Seasons Hotel & Residences
The JDA partner will develop and construct on its premisesa premium residential project, as a part of the JDA. Oricon Properties shall be entitled to a 30% revenue sharing of the top line from the project, subject to certain terms and conditions. In addition, Oricon Enterprises shall receive approximately 67,000 sq. ft. saleable area duly constructed. The entire cost of the project shall be borne by the JDA partner.
The estimate total revenue from the project is to be in the range of Rs 650 - 700 crore to Oricon Properties and Oricon Enterprises. The project completion is expected in 5 years. The current cashflow of Rs 310.50 crore will be utilized for liabilities/debt reduction and expansion in existing businesses.