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Oberoi Realty Ltd
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Good day, ladies and gentlemen, and a very warm welcome to the Oberoi Realty Q1 FY '22 Earnings Conference Call. We have with us today on the call Mr. Oberoi, the Chairman and Managing Director of the company; and Mr. Saumil Daru, Director of Finance of the company. [Operator Instructions] This conference is being recorded, and the transcript for the same may be put up on the website of the company. [Operator Instructions] Before I hand the conference over to the management, I would like to remind you that certain statements made during the course of this call may not be based on historical information or facts and may be forward-looking statements, including those related to general business statements, plans, strategy of the company, the future financial condition and growth prospect. The forward-looking statements are based on expectations and projections and may involve a number of risks and uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by such statements. I'm now glad to hand the conference over to Mr. Oberoi, the Chairman and Managing Director of the company. Thank you. And over to you, sir.
Thank you. Good morning, good afternoon and good evening to all of you as per the time zones from which you have logged in, and welcome to the conference call of first quarter financial year 2022 results and business updates. Firstly, let me thank you all for taking time to attend this call. I hope your family and you are doing well and keeping yourself safe. We all know how the financial year 2021 started. And we were all fortunate that financially, at least for most of us, it ended really well. FY -- first quarter of 2022 started with a bit of a challenge. We saw the second wave coming in and disrupting a little bit of our business. However, keeping -- and given all the constraints, we were still able to operate our offices. And we now see that the second wave with the way the government has controlled, with the way our city has responded, seems to be in control, and we now see that even shopping malls and restaurants are going to open up. So we are very hopeful that the second quarter comes back to normalcy, and we all can hope that there is a full -- the entire operations are back. I will obviously be answering most of your questions as we go along.I will now hand over the call to Mr. Saumil Daru, our group CFO, for him to take you through the details of the number. And like I said that I'll be very happy to address or answer any individual questions during the Q&A. Thank you.
Thank you, Mr. Oberoi. I guess most of you would have gone through the presentation which is available on our website along with the results, which have been filed with the exchanges.Moving to the numbers. In terms of consolidated financials, the total consolidated revenue for Q1 FY '22 was INR 294 crores as against INR 126 crores for Q1 FY '21 and of INR 800 crores for Q4 FY '21. Consolidated PBT for this quarter stood at INR 109 crores as against INR 39 crores for the same quarter last year. And the consolidated PAT for this quarter stood at about INR 80 crores as against INR 29 crores for the same quarter last year.Moving to the asset level performances, beginning with the investment properties. As far as the Oberoi Mall was concerned, as you would have noted from the notes and the presentation, that there was only a limited recognition. We have not recognized any revenues for the nonoperational stores. As far as Commerz, which is the office space asset is concerned, this contributed about INR 7 crores to the operating revenue for this quarter as against INR 4 crores for Q1 FY '21 and INR 6 crores for Q4 FY '21. As far as Commerz II is concerned, this contributed about INR 32 crores for this quarter as against INR 29 crores for the same quarter last year and about INR 32 crores for Q4 FY '21. The EBITDA margins in this vertical are in excess of over 90%. The Westin Mumbai Garden City, this contributed about INR 7 crores to the operating revenue for this quarter as against INR 2 crores for Q1 FY '21 and about INR 12 crores for Q4 FY '21.Moving onwards to the development properties. Exquisite, the total booking value for this quarter is INR 26 crores as against INR 35 crores in Q4 FY '21. The total revenue recognized in this quarter was INR 26 crores on account of 100% project completion. Similar number for Esquire. The total booking value this quarter was INR 22 crores as against INR 148 crores in Q4 FY '21 and INR 16 crores in Q1 FY '21, and the total revenue recognized in this quarter is at about INR 11 crores.For Elysian, of the total project of about 11.8 lakh square feet, we booked another 10,000 square feet in this quarter. And till date, we have booked about 4 -- 5.42 lakh square feet. Total booking value in this quarter was INR 18 crores as against INR 991 crores in the quarter of launch. Cumulative booking value till date is close to about INR 1,009 crores. The total revenue recognized for this project in this quarter is at about INR 4 crores, and cumulative revenue recognition till date is about INR 56 crores.For Prisma, the booking value during this quarter was INR 6 crores, and the total revenue recognized again stood at the same number of INR 6 crores on account of 100% project completion. For Maxima, this quarter, the total booking value stood at INR 11 crores as against INR 7 crores for the same quarter last year and about INR 66 crores for Q4 FY '21. The cumulative booking value till date stands at about INR 175 crores. Revenue recognition for this project in this quarter stands at INR 5 crores. Cumulative rev rec till date is about INR 90 crores.Moving on to Mulund, Eternia. Total booking value in this quarter was INR 11 crores as against INR 69 crores in Q4 FY '22 and no bookings in FY -- Q1 FY '21. Cumulative booking value till date is at about INR 1,133 crores, and the revenue recognized in this project in this quarter was INR 18 crores. Cumulative recognition till date is about INR 738 crores.Same location, Enigma. For this quarter, the total booking came in at about INR 19 crores as against INR 153 crores in Q4 FY '21 and INR 5 crores for Q1 FY '21. Cumulative booking value till date is about INR 1,056 crores. Revenue recognition in this project in this quarter stood at about INR 37 crores, and the cumulative revenue recognition till date stands at about INR 662 crores.Moving on to Borivali. In Sky City, till date, the total -- rather in this quarter, the booking value for that project was INR 54 crores as against INR 2 crores in the same quarter last year and at about INR 443 crores for Q4 FY '21, which, as you would all recollect, included the launch of one more tower. The total revenue recognized for this project this quarter stood at about INR 101 crores, and the cumulative revenue recognition till date is at about INR 2,751 crores.For Oasis, Three Sixty West, till date, we have booked about 6.6 lakh square feet, and the booking value till date is at about INR 2,770 crores. For the overall residential vertical to summarize during the quarter, the total booking value across all the residential apartments came to INR 170 crores, and the collections during the quarter was at about INR 639 crores.Coming back to some key financial parameters. Our adjusted EBITDA margins for this quarter was at about 45%. PAT margins was at about 27%. As we have always -- or said earlier, EBITDA margins for Mall and Commerz are much higher than the average, as mentioned, excluding the margins for our pure residential businesses, 37% in this quarter. Thank you so much. And with that, I would like to hand the floor over to all of you for any questions that you all may have. Thank you so much.
[Operator Instructions] The first question is from the line of Kunal Lakhan from CLSA.
Quickly on [indiscernible], what is the traction we are seeing post easing of restrictions, say, it's in July? And how have the sales been considering like last quarter was a little disappointing in terms of sales and economics and primarily on account of lockdown for the large part of the last quarter? But July onwards, how are you seeing that restriction? And also, like I wanted to understand, are you seeing some impact of the rollback of stamp duty also in the numbers now?
So frankly, we are not seeing any impact of the rollback as such, number one. Number two, let me save the good news for the next quarter call. I don't want to reveal much about this. Again, it will look like as if I'm giving more information about the next quarter than what I should. So let's leave it at that. But I can only tell you that, obviously, life is pretty much back. And all I can say is we all are back in business.
Okay. Sure. And last quarter, right, I think you had highlighted that you're ramping up the redevelopment project team and that part of your business. Any update on that side? Any new projects that you have signed? Or any update would be helpful.
So absolutely, we have taken this up big time. We've increased our team of people. All these guys have 2 months' and 3 months' notice for their old companies. But we've already set a team, put this together, and we’re seriously looking at -- and we've done -- I mean this is a slow process. Unlike a buyer and a seller, you have anywhere between 150 to 500 people who make a decision about redevelopment. So we have put the right kind of people in place and are simultaneously negotiating with multiple societies.
Sure. And lastly, just -- can you just update on the HBS, the Shivshahi project? There was a news article some time back about an HBS speaking about INR 1,600 crores from the society for the deal getting called off. Any update there?
So nothing -- so firstly, the society has appointed us. And now we are collectively resolving their old issues. Obviously, we will sign the development agreement once the issue is resolved. And like I said, right now, all I can say is that the society has appointed us as developers, and we are collectively looking at getting this sorted out.
The next question is from the line of Abhinav Sinha from Jefferies.
Just a few questions. One, on the cash flow front, we had a strong operating [ surplus ]. But has there been some CapEx-heavy item this quarter? So the CWIP has gone up by about INR 400 crores.
Abhinav, Saumil here. Yes. So one was obviously -- so there will always be 2 components to anything in CWIP. One will be land-related or FSI-related, if I can say that. And the other would be construction-related. So there was some amount of FSI purchase that happened in Comm III. So a large component of the increase that you're seeing is coming from there. And the balance is coming in from both the construction costs incurred over here as well as in Borivali for the Sky City mall.
Saumil, which project you mentioned for FSI?
For Commerz III is where we made the FSI payments, and the construction cost is for both Commerz III as well as the Sky City mall.
And just to add, Commerz III is the building where we have Morgan Stanley taking the office space. It's their building.
Right. Right. And secondly, on the retail bit itself, so we -- I think last year, we were able to negotiate some settlements. [ And the ] subsequent quarter revenues were better. How are those negotiations sort of trending this time around?
Frankly, we haven't even started negotiations because most people want to start the operations. Now I mean, like from whatever we read in the papers, I think very soon, maybe in a day or 2, malls will be now made operational. So the state government has taken a call. They will now ask individual municipal corporations, based on their comfort, to allow people to operate. Once that gets done, we'll all sit down. I mean [ like ] this is a partnership between both retailers and us. And we've always taken a very fair ground. And we'll have this sorted out once we know what is the extent, when will it start and so on and so forth.
Sure. And one more if I may ask, and this is on the [ project progress base ]. So for example, for Eternia, Enigma, we are at about 64%, 67% completion. And I believe the deliveries are expected in the next 3 to 4 quarters, right? So isn't it lagging a bit in terms of percentage spend? And would you expect this to significantly pick up in the months ahead?
Not really. I mean so what we have actually done is that most of the finishing is done. We were just waiting for certain approvals to come, which have already come as we speak. And now you will see the pace increase, and we are within our time lines, within the extended time lines that RERA has given. With God's grace, we will finish it within the time lines. There will be no extension to that. And even velocity of sales and all you saw in the last year, really, it was very good. So finally, I would say that Mulund is broken up in a big way. In fact, if you see FY '21, it pretty much matched the sales of Borivali. So it's very heartening to see that.
The next question is from the line of Parikshit Kandpal from HDFC Securities.
So my first question is on the business development side. So you said that you are building up the team. So in terms of a little more granularity on this, so what kind of presales potential additions you are looking for your single project to be potentially of what size in terms of scale, presales potentials, if you can give some granularity on?
Parikshit, so basically, we are looking at any redevelopment project where one could generate a revenue of anywhere between INR 500 crores and INR 700 crores. And as a company, if you could make INR 200 crores, INR 300 crores out of it, it's something that probably falls within our project size. And so this is like -- this is a sweet spot we wouldn't want to go below this, anything bigger is obviously always welcome.
So these will be like short-cycle projects like single phase and go and launch it and exit in like a few years and take your money out.
Correct. Correct. And what we are doing is, so even internally, we have created multiple project directors. So as a group, what we've done is like we will now have a project director who will look after the redevelopment bid. And he will have probably anywhere between 10 and 15 such projects. And he will be responsible for execution of those. So we do not let go of our high quality. The focus is as much as it would be in a large project. But at the same time, we'll get the scale part of it also.
Okay. So second question was on the Shivshahi Society. So this has gone into litigation, do you think that this is resolvable? Or is there some point of time you'll have to give up this and then move on?
Obviously, we've got in, we are sure that it can be resolved. Otherwise, we wouldn't be wasting our time. But yes, I mean, that's where we are. We are fully supporting the society to help them get out of this and then get into the development phase. It is, unfortunately, a complicated project, the one we've got in. I mean not that, I mean, others are not. Any brownfield project comes with its set of challenges. Like the earlier question was that the developer has made a claim of INR 1,600 crores. But so has the society made a counterclaim of, I don't know how much, another INR 2,000 crores or whatever. But all this gets contested. The society has the property back in their possession. And our lawyers are talking to see how we can entirely mitigate that because we don't want to -- we want to start investing our money once this litigation is cleared. We are fully supporting them. We are legally with them. We are trying to structure everything, guide them also, help them as well. But we want to like -- we want to see it settle. Then we'll do that development agreement.
Okay. So from this launch perspective, like this will be like a couple of years away from launching, this project?
No. If things get sorted out, we are looking at maybe even a 6- to 9-month launch.
Just lastly on Three Sixty West results, just your views. Last 2 quarters, [ you have drawn a 0 there. And the OC ] -- the first point is on OC, so when it is expected? And so even in terms of pipeline inquiries and footfall, so how do you see the traction building up on this project, if you just kind of touch up on? And whether in this year, we can see some profit recognition happening?
So we are -- literally, I would say, we are knocking on the doors for as far as occupation is concerned. We should get it any moment. It's probably days or some weeks away. And we took a conscious call that we will sell only now once the OC is in hand so that there is no surprise or suspense to this. So another 4 weeks, we have a lot of sales that are lined up. And you will see bulking up of the sale, if everything goes well, going forward.
And in terms of profit recognition this year, is it possibly hitting the P&L this year?
Sorry. Sorry, come again?
So in terms of profit recognition, whether this project will...
Well, yes, once I have occupation certificate, instantly we will recognize that entire profit. And we'll do that. So if -- I mean like the way things are, it's nobody's guess that once OC comes in, then we will obviously be recognizing that. We've already applied for occupation certificate. We've already said to the government, "Come, please have a look, check and all that."
The next question is from the line of Sameer Baisiwala from Morgan Stanley.
So a quick thought, Vikas, on the pricing environment that you're seeing?
Good question, Sameer. One, I want to tell everybody that input costs have gone up big time. So I clearly see that even at current prices, most developers are sweating. I don't know how they will be able to sustain the pricing. So I feel that in the, let's say, not in immediate future, but in the future, I see prices going up. The other aspect is the supply also has come down big time. Due to pandemic, a lot of work was scaled. So whatever was in the ready condition has actually got sold. I mean you clearly see even our own Esquire, I don't think we'll have much left in some time to come. So I see prices moving upward at some point in time. Today, obviously, whatever is ready, it's still priced in the old regime. People are wanting their money. They are selling and moving on, but this probably won't last for too long. So frankly, if you're a buyer, please quickly buy it because prices are likely to go up.
Okay. And just, Vikas, in this context, Elysian is that 18,000, Esquire and Exquisite are 22,000, 23,000. So how does the gap gets filled up over the next few quarters?
So -- see, Elysian, we have 3 schemes. One is bank subvention. We have developer subvention, and we have construction-linked plan. And as Saumil told you, 50% of the sales are done. Frankly, with the amount of money I get out of Elysian, I can almost finish superstructure of all the 5 towers without even going to anybody. That's the kind of cash we've been able to generate out of this. They're sitting with money in the bank as far as that goes. So was this your question? I mean I'm sorry, if I've digressed.
Well, I mean, not exactly in the sense that will you take price increases, 5%, 7%, as you get more and more volumes? Because at some point in time, Elysian will have to converge with the pricing of the other 2.
Absolutely. So see the delta that you see between Elysian and Esquire, it's clearly the time Elysian will take to completion. As that time reduces, obviously, we will keep increasing the price, that's one. Two, there will -- like I said, that there is a very strong likelihood of pricing -- prices going up. It's actually unaffordable for most people. We are very lucky that we have margins wherein we can play. If I want to play the volume game, I can play the volume game, not really pushing the prices up. But you're right that at some point in time it will catch up. And the other natural catch up will also be that I'll run out of Esquire stock in the next maybe 2, 3 quarters at best, maybe even earlier. So once I'm done with that, I have no choice but only this product left. And I have no control over Esquire pricing. Now the resellers will start driving the Esquire pricing, and I've seen over time that resellers push the prices up by 10%, 20%, 30%. And once there is nonavailability, then the prices even go up. And please, like the next apartment that we had readied and delivered is Elysian, and there is no new supply in our entire Goregaon project. So that also will play in the minds of the buyer when you will look at Esquire. And obviously, if they push that up, that gives me that much room for pushing the Elysian out as well.
Okay. Great. And just another [indiscernible]. So can you update us on the Borivali adjacent commercial project? And the last one from my side is, any updated thoughts on the equity raise? And I ask that, Vikas, you made it very clear last call, but I ask that because the equity markets are doing very well. It's quite a buoyant market. And at the same time, you are seeing opportunities on the acquisition side. So your thoughts on that?
So Borivali, again, the adjacent -- so there are 2 commercials in Borivali. One is the mall itself that we are doing. If your question is on the mall, then the mall -- the super structure should get ready anytime within the next 4 months. We are fully topping up. It's more than 1 million square feet of retail. We have a hotel on top, and we are literally like holding up and to sign the contract with one of the leading hotel management companies. Just ready. I was actually looking at -- Saumil, have we signed leases? No, but we are ready to. So it could be in the next 2 weeks, probably we will sign the hotel contract. And so that part gets done. Then we have acquired a slum redevelopment, which is next to our property. That's where the commercial component is. And again -- yes, exactly. So we already have the LOI. It's equal into an approval. And I believe the site will start getting vacated in the next 3 to 6 months. And we will immediately start work there. Even there, the plans are done. So that's where we are.And on the fund raise, I can only tell you that there is -- you're absolutely right. There is tremendous interest in the market. And we are very lucky investors like us. And so obviously, we haven't really thought about it. When we look at our own cash flows that will come out of projects, somebody said Mulund is 60% complete, Mulund is, as far as we are concerned, a lot more than that, we only build for 60%, but a lot more complete. There's so much inventory in Borivali and Mulund, which is like fully paid for. So I see a huge cash flow coming from these projects. And you guys know when we bought Thane, we bought it out of the cash flows of Esquire. And let's say, in the next 3 quarters, Thane will be fully paid for with 0 debt. So -- and then we haven't gone and raised any money. So again, like I'm saying that we keep contemplating within ourselves that should we play this game or should we play that. But like I said, we are very lucky we have the convenience of playing any game out. And we haven't ruled anything out. Again, I'm saying that one doesn't -- we keep all these channels open tomorrow if I get a project which requires me to throw in $200 million, $300 million, $400 million upfront. Anything is possible. And we have the gunpowder ready in multiple ways to really go out there and do it.
The next question is from the line of Saurabh from JPMorgan.
Saumil, just one question. So per your annual report, so will it be fair that about INR 700 crores of cash was repatriated from the Worli project into Oberoi?
Yes. This was when we did the hotel transaction.
Okay. So the money came in from this -- from the Three Sixty entity?
Correct. Correct.
Okay. So the cash distribution, which is now left is basically, you will get the INR 1,100 crores-odd, which in balance left as preferential and then the profit share starts?
Yes, absolutely.
Okay. Understood. And one question, Vikas, your last year presales was about INR 3,200 crores. 1Q trend obviously impacted by COVID. But do you think full year basis your launch pipeline you should be at least around that number?
Again, I would love to answer your question, but it just look like we're speculating. And I can only say that we aspire to do a lot more, but I'll leave it at that.
The next question is from the line of Pulkit Patni from Goldman Sachs.
My first question is on Thane. Any update on launch time lines there? Anything you can share in terms of what is going to be the configuration of launch, commercial, residential? That would be my first question.
So Thane, we will be obviously launching residential. What we are looking at is probably close to Diwali launch. We are fully ready. I mean our show apartment, as committed by my team, should be ready by September. So we will be ready with our experience center and the plans are ready. I would love to disclose it, but I want to keep it tight because there's a lot of time from now till the launch. We've learned from these car companies how they don't let you see the model till the car is launched. So we want to build the suspense around what we are doing. Trust me, the market has not seen anything like what we have planned for. Very, very, very confident, very happy and very proud of what we are doing. And it will be a game changer. So I'll only request you to wait, and you’ll be very happy and...
Sure, Vikas. But since the time lines have been moving, should we assume that Diwali is confirmed in terms of all our approvals in place, plans in place, et cetera?
Plan approvals are already in place. I already have an approval. We are -- we were just waiting for the right time for us to launch it. I think Diwali looks like a good time, and we will do it around then.
Sure. My second question is expansion beyond Bombay. Any thoughts there? Anything that you could share on that front?
So we are very, very bullish about moving out of Mumbai. We have a fantastic franchise. It will be a pity if we can't take this franchise and all our learnings to other parts of India. So that's very, very clear. And so we continue to look for it. We are -- I would say that we are like one person away from starting any office anywhere outside Mumbai. And we will literally run it like a separate division. So it will be in Mumbai and something parallel for outside, and we will build it from there. So I'm actually in talks with people. If things materialize, then the right kind of guy takes over as whatever, CEO rest of India, and grows that business. We obviously use our brand name franchise, everything, and get him to do this. So this is really our strategy there. And I'm happy you asked us because it's only more and more serious. When you see the good players depleting due to whatever, COVID and all that, it gives us that much more reason for us to venture out as well. And it will not be at the cost of Mumbai. I will continue to run Mumbai as an MD. And I want to give fresh legs to the -- other than Mumbai, give a CEO this opportunity and get them to run it.
The next question is from the line of Adhidev Chattopadhyay from ICICI Securities.
First question, when you see the Ritz-Carlton now starting up and soft launch date, please?
So we internally have set a target for next year-end. Now we've already started the interior work, and it will pick up pace because we have a new design guy. We are doing all the mockups and things like that. So anywhere between 12 and 14 months is what we think we will take to finish it. So safely, next year-end, December 2022.
Okay. December '22. And just...
Go ahead.
No. No, please finish what you were saying.
No. So the Ritz-Carlton team for Three Sixty West is already in place because Three Sixty West is also going to be served by Ritz-Carlton. So that team already is in place. They are building that team up because we're getting ready. Once OC comes in, people will start moving in. And so we will be providing them with all the services. And simultaneously, this interior work will go on.
Okay. Sure. So second question, this is for Saumil. For this Commerz III, the FSI payment we have done, would it -- have we gotten some savings because of the FSI payment scheme, which has been extended for 31st December this year over there?
Yes. Yes, absolutely. So that was in line with that 50% and whatever the government has extended. So that has worked in this particular case.
Okay. And just a follow-up on that. So for our Worli, the Glaxo land parcel, with, I think, the DPR also being finalized, some clauses of it, so do we have some clarity on the FSI now? And would you be like going ahead with the FSI payments over there? Or if you could give some clarity on the sort of saleable area we could see in that project.
So as far as the Worli area is concerned, we've always maintained it's about 1.6 million-odd square feet kind of a development. Obviously, as we keep looking at the plans and as we keep fine-tuning the plans, we will work it out. And we will let you know at the right point of time as to what's the actual time line and what's the size and what the anticipated payments and all of that. Ideally, yes, for everything, even on Worli, for all our projects, wherever this concessional FSI regime is available, we would like to take advantage of it as much as possible. Like -- and you already seen us do that for Comm III. So that's something that's playing on our mind. So let's just see how things go ahead.
Okay. And just one final question, I think I missed that earlier in the call. This Borivali mall, when we see it becoming operational, if you could just...
So Borivali, our superstructure will be ready by December. And then we give it for fit-outs. I think probably anywhere around mid-next year or early third quarter next year.
So we would ideally like to see the mall trading before Diwali next year so that the retailers are able to get advantage of that season.
And just to add to what Saumil said, the mall is right -- adjacent to the metro. And the metro work has also gone very, very well. And the government is actually telling us that they'll probably have the metro up and running by this year-end -- October end. Now even if that gets extended by 6 months, we'll have the station ready and we'll be doing the fit-outs. So that also will give us a very good boost.
Okay. And any chance of getting additional FSI to provide -- providing some connectivity to the metro station or something? Just I know...
Not really. We have enough and more FSI. We won't do an FSI anymore.
The next question is from the line of Parvez Qazi from Edelweiss Securities.
Two questions from my side. When can we see further launches in Goregaon? And the second, I mean, Saumil did mention about the Glaxo project. But any kind of idea about time lines or what exactly are we planning?
So Goregaon, Borivali and Thane, we will probably launching one tower each this Diwali.
The next question is from the line of Girish Choudhary from Spark Capital Advisors Private Limited.
A couple of questions. The first one, just the -- on the pending cost to complete the rental project, so what are the pending costs? And then where are we in terms of pre-leasing across both these properties?
Sorry, you're talking about the mall or you're talking about the commercial building?
Both the mall and the commercial -- or Commerz III.
I think you can take this off-line with Saumil. He'll be able to tell you. These are very...
Yes. In terms of costs, we have always guided the market in terms of what the likely construction cost is per square feet. So over a period of time, you will see us spending that money. I think some bit of idea you would have already got from the March end financials. As far as -- what was your second question on?
Pre-leasing.
Yes. Yes. So as far as the pre-leasing is concerned, as far as Comm III is concerned, the one deal that we did, which we discussed with you all last year that was a transaction with Morgan Stanley for their requirement for office space here. Obviously, in addition to that, we continue to talk to people. But as you all are aware, the building is still at a construction stage. So obviously, in many of these cases, and especially if you look in commercial offices, the pre-leasing interest only picks up for -- as you keep getting closer to end of construction. So let's see how that will -- goes. As far as the pre-leasing in the Borivali mall is concerned, as it is right now, if you would have heard earlier in terms of our response to one of our earlier -- one of the earlier questions on the Goregaon mall, right now, we would firstly want to talk to the retailers and ensure that the Goregaon mall gets operational. And again, in terms of time lines and in terms of where we stand in Borivali, we know that we have a little bit of time to complete the construction. And in all fairness, once we actually start closing our transactions in Borivali, it's not going to take long. In all fairness, most of your retailers in the Goregaon mall itself are likely to follow there. And then in addition to that, whatever else little bit is required can also be done quite fast. So in all fairness, if we are looking at finishing the superstructure by December or January, we know that if you are able to crank up a little bit of the pre-leasing by then, then that will ensure that the mall opens with a fantastically high level of occupancy at the time of opening. I hope that answers your question.
Yes. That's helpful. My second and last question, on the Mulund project, just wanted your views in terms of the momentum last year was pretty good, the second half, third and the fourth quarter, where you were clocking almost 65 units per quarter. But this quarter, the slowdown is understandable. But for the rest of the year, how would you expect the momentum coming back? So what kind of expectation you are sort of building in from this project?
Frankly, we don't want to speculate too much. But all I can say is that life and business both are back. And we clearly hope that this year will be better than the last year because last year, we only got the last 6 months. And let's say, to the second wave, we've lost out on probably only the first quarter. And there's always a catch-up that's happening.
The next question is from the line of Amandeep Singh from AMBIT Capital.
Firstly, when we look at the MMR market, so March saw a registration of anywhere around 17,000, 18,000 units, then lockdown impacted mid-April to May. June and July also, when we see the numbers, the monthly run rate is at around 8,000 to 9,000 conveyance of restoration each. So in that context, Vikas, can you help us understand what's happening on ground, whether it is more of previous agreements executed during the stamp duty cuts and now getting registered or the resale has also increased? Or are you still seeing the momentum of healthy demand being sustained since your area booking was at sub-10% of previous quarter and 30%, 40% for other developers with the MMR exposure also?
So frankly speaking, it's a bit of everything. You're absolutely right that some of these registrations are happening which were done in the earlier regime. Some of them are new sale. And once the lockdown kind of eased out or it eases out, you continue to see that demand because the underlying theory or the fact is that people have realized that they want a good house. It's not like money in the bank is doing anything for them. And that drive -- I mean -- and we don't see this only in Mumbai. We see this across India and not only across India but globally. Wherever people have been saving money, there’s a huge mindset shift into spending and spending something on something which is more tangible, which is a house. And most people clearly see house as an investment that they can consume or use and not like an expense. So that also plays a very big role. So if you really put all this together, you will then be able to decipher the fact that this is how the customer mind thinks. And whatever you just said is an outcome of that. And I feel this is going to continue to grow only. It's not going to just continue to be. It will grow, and that's where I see that the market itself will increase.
Sure. That's helpful. And in terms of your commercial portfolio, we also note that Commerz witnessed some fresh lease-ups during the quarter. So in that context, can you specify what sectors are driving higher occupancies? And what’s the outlook for further lease-ups given vaccination drive is now in place?
So here, again, I mean, if you see that the entire fad of work from home has died much faster than what people actually anticipated it to be. People are very quickly bored of being -- sitting at home, and they want to come back to office. You see this happen globally. It's happening in India, for sure. And there is a huge -- again, 2 years, there was hardly any supply. So in the short run, you will see that because of the pandemic, maybe there were some people who downsized and there will be some supply available, which probably might either check the price from growing or probably even one might see even like softening of the pricing but to a very small extent. But very quickly, you will also start seeing the rentals go up. Again, here, the logic is that there's hardly any supply and people are going back. And I see this in micro markets. It's already started to happen. So there is no new supply. People who will want offices will want -- and you clearly see some of the sectors have been beneficiaries of COVID. So COVID in all has not been a super killer for every -- this thing. Look at the stock market, an all-time high. There are so many other businesses that are doing really well. There are people who are hiring and are being hired. So all this is a huge positive I feel, and I'm very bullish on the office market also that it will bounce back much faster than what we all anticipated it to be.
And lastly, if I can squeeze in one more. So on new launches, you mentioned about Thane, Goregaon and Borivali around Diwali. However, can you indicate any update with respect to your I-Ven project at Worli, which you were planning to convert into residential?
So again, like I said, that we could -- we have enough inventory in Three Sixty. We want to first see that that part is taken care of. We continue to plan. We might even start work, but we'll not launch very immediately. So you don't see I-Ven launch happening instantly or any time immediate.
That was the last question. I now hand the conference over to Mr. Vikas Oberoi for closing comments.
Thank you all for taking time for this call. We take your feedback with a lot of -- and your interaction very seriously, and we deliberate about all your questions and ideas. This only helps us perform better. You all know that our team is always available for you to interact, and we look forward to doing that with you. Thank you for all your feedback once again and look forward to speaking with you all again. Thank you.
Thank you very much. Ladies and gentlemen, on behalf of Oberoi Realty, that concludes this conference call for today. Thank you for joining us, and you may now disconnect your lines.