Oberoi Realty Consortium Wins ₹919 Crore Bid for Hotel Horizon
Oberoi Realty, along with Shree Naman Developers and JM Financial Properties, has won the bid for Hotel Horizon through the IBC process, marking a significant milestone in the real estate sector.
Oberoi RealtyHotel HorizonCorporate Insolvency Resolution ProcessIbcReal EstateReal Estate NewsJul 15, 2025
The committee of creditors (CoC) has issued a letter of intent (LoI) confirming the approval of the consortium’s resolution plan. This marks a significant achievement in the real estate and hospitality sectors, highlighting the potential for redevelopment and economic revival in prime locations.
As per the terms of the plan, the consortium will make a payment of ₹919 crore to the creditors of HHPL as full and final settlement of all dues, inclusive of the cost of the Corporate Insolvency Resolution Process (CIRP). This financial commitment underscores the consortium's confidence in the project's future potential and its commitment to resolving the insolvency issues faced by HHPL.
HHPL, incorporated in 2004, owns a sea-facing land parcel measuring 7,502.49 sq meters on Juhu Tara Road in Mumbai. The property is proposed to be developed into a retail-cum-hotel project, which is expected to attract significant investment and enhance the local economy. This strategic location, known for its prime real estate value, is a key factor in the consortium's decision to pursue this acquisition.
Following the approval of the resolution plan, the consortium—or a special purpose vehicle (SPV) formed by it—will acquire 100% equity stake in HHPL. This move is expected to bring in new management and development strategies, potentially revitalizing the property and creating new opportunities for growth.
HHPL reported a turnover of ₹0.46 crore and a net worth of ₹78.51 crore in FY2014–15. Despite facing financial challenges, the company's assets and strategic location make it an attractive prospect for redevelopment. The successful resolution of HHPL's insolvency is a testament to the effectiveness of the IBC process and the potential for distressed assets to be transformed into valuable real estate projects.
This acquisition by Oberoi Realty and its partners is a significant step in the real estate sector, demonstrating the company's commitment to strategic investments and the development of high-value properties. It also highlights the ongoing opportunities in the Indian real estate market, particularly in prime locations like Mumbai, where projects with strong potential can attract substantial investments.
The consortium's success in this bid is expected to set a precedent for future insolvency resolutions, encouraging other investors to explore similar opportunities. As the real estate market continues to evolve, such acquisitions and developments play a crucial role in shaping the landscape and driving economic growth.
For Oberoi Realty, this acquisition aligns with its long-term strategy of expanding its portfolio in premium locations and leveraging its expertise in real estate development. The company's experience in managing large-scale projects and its strong financial position make it well-suited to undertake this ambitious endeavor.
In conclusion, the successful bid by the Oberoi Realty-led consortium for Hotel Horizon represents a significant milestone in the real estate and hospitality sectors. It not only resolves the financial issues faced by HHPL but also opens up new possibilities for development and growth in a prime location. As the project moves forward, it is likely to attract attention from investors and stakeholders, further boosting confidence in the Indian real estate market.
Frequently Asked Questions
What is the Insolvency and Bankruptcy Code (IBC)?
The Insolvency and Bankruptcy Code (IBC) is a law in India that provides a time-bound process for resolving insolvency and bankruptcy. It aims to protect the interests of small investors and make doing business easier by ensuring a fair and transparent resolution process.
Who are the members of the winning consortium?
The winning consortium for Hotel Horizon includes Oberoi Realty, Shree Naman Developers, and JM Financial Properties and Holdings.
What is the proposed development for the Hotel Horizon property?
The property is proposed to be developed into a retail-cum-hotel project, leveraging its prime sea-facing location on Juhu Tara Road in Mumbai.
How much will the consortium pay to settle all dues?
The consortium will make a payment of ₹919 crore to the creditors of Hotel Horizon (HHPL) as full and final settlement of all dues, inclusive of the cost of the Corporate Insolvency Resolution Process (CIRP).
What is the significance of this acquisition for the real estate sector?
This acquisition is significant as it sets a precedent for future insolvency resolutions, encourages investment in distressed assets, and demonstrates the potential for transforming prime real estate into valuable projects, thereby driving economic growth.
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