Oberoi Group in talks to buy 50% in south Mumbai project held by ICICI Venture

MUMBAI: The Oberoi Realty Group is in talks to buy the 50% stake held by ICICI Venture in a residential project in south Mumbai. Oberoi Realty, the group's publicly held company, is expected to pay 300 crore for the stake, giving ICICI Venture a return of almost six times in seven years.

Oberoi, in 2004, teamed up with ICICI Venture to float a joint venture to buy a prime four-acre plot belonging to GlaxoSmithKline to develop a residential high-rise. The JV planned build around 44 duplex apartments in two 65-stroreyed towers overlooking the sea.

But it could not immediately go ahead as the Brihanmumbai Municipal Corporation (BMC) demanded a fee from Glaxo worth up to 50% of the value of the land sale, which was 108 crore. But the Supreme Court set aside the BMC's decision, paving the way for the project to go ahead.

"The investment was made through a close-ended fund and therefore an exit with strong returns is good for investors," a person close to the transaction said.

Vishakha Mulye, MD & CEO of ICICI Venture, declined comment. Vikas Oberoi, chairman and MD of Oberoi Realty, also declined comment. The proposed deal values the property at almost 150 crore per acre, which is lower than the last notable deal in the same locality.