Oberoi Realty has agreed to acquire their JV partner’s stake in the Ritz Carlton for an asset value of Rs 10.4 bn (Rs 47 mn/key) that appears very rich though it should be seen in the context of prime city location as well as a superior and near-completed hotel property. While not enthused by the consideration paid, the quantum is small in the overall NAV of Oberoi Realty. Real estate sales have revived faster-than-anticipated, and Oberoi Realty with a larger share of completed inventory and a liquid balance sheet is well positioned to capitalise on the consolidation theme. Maintain Add with revised FV of Rs 570 (Rs 450 earlier).
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