Mumbai-based developer Oberoi Realty is set to start a second mall in Mumbai at Borivali, a western suburb. The company plans to start open the around 1.5 million sq ft mall in mid-2024, according to Vikas Oberoi, chairman and managing director of the listed company.
Oberoi announced this at its recent Q4FY23 earnings conference call on May 17.
This will be Oberoi Realty’s second mall in Mumbai after its success with Oberoi Mall in Goregaon East. The construction of the mall in Borivali is ongoing and it is part of its Oberoi Sky City project where the construction is ongoing at a plot that has direct access to the Western Express Highway (WEH) and Mumbai Metro.
"The Borivali mall also, we are looking at starting in 2024—early to mid-2024 is when we intend to launch," Oberoi said during the call with analysts.
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According to a recent research Motilal Oswal report, the mall is likely to stabilise by FY25 and it has the potential to generate annual rents of Rs 250 crore.
In its research report in March 2023, it said, "The company’s Borivali mall is on track. The phase 1 of residential development at Sky City with five towers occupied by 1,800 families will be delivered by September 2023. A total of 3,200 families are likely to reside in the vicinity with easy access to the mall. The mall will also be connected with both the exit points of the Metro line, which will drive more catchments."
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It added, "(Theatre chain) INOX has already come on board as one of the anchor tenants with a 10- screen multiplex and the leasing for the balance area will commence soon. During the recent earnings call, management highlighted that it is witnessing significant demand traction and is confident of achieving full leasing within six months. The mall is likely to stabilize by FY25 and it has the potential to generate annual rentals of INR2.5b. Overall, the company’s annuity rentals are projected to surge to Rs 12 billion by FY26 from Rs 3 billion in FY23."
According to market sources in the Borivali micro-market, the per square foot rentals for the mall may easily be above Rs 200-225.
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Oberoi Realty's first mall in Mumbai's Goregaon opened in 2008. According to the company’s website, it is a one-stop destination for fun, food, fashion and films, "Featuring around 117+ stores, Oberoi Mall is a well-known and highly loved mall in the suburbs of Mumbai. Oberoi Mall came into operation during 2008, and has since then occupied a significant position in the minds of customers and retailers," according to the website.