Oberoi Realty has positioned itself as the top bidder for a long-term lease covering approximately 45,371 square meters (about 11 acres) of railway land located in Bandra East, Mumbai, following the opening of financial bids by the Railway Land Development Authority (RLDA), which operates under the Ministry of Railways.
The company’s bid, amounting to ₹5,400 crore and presented as net present value (NPV), pertains to a 99-year lease of the land parcel situated along the Western Express Highway, which has a development potential of approximately 19.5 lakh square feet of floor space index (FSI).
As per the bid structure, the company is required to make an upfront payment of ₹495 crore, which includes ₹247.5 crore due within 30 days of receiving the letter of demand from RLDA, and another ₹247.5 crore payable within 150 days. The remaining ₹4,905 crore (NPV) will be disbursed over time through a revenue-sharing arrangement that will last until 2038.
According to the lease terms, the developer is obligated to share 45% of either the projected or actual gross revenues with RLDA. This revenue sharing will persist until the total discounted value of payments, calculated using a 10.75% discount rate, matches the NPV of ₹4,905 crore. Furthermore, in addition to the lease payments, Oberoi Realty will be responsible for all costs associated with the development and construction of the project.
This land parcel represents one of the largest redevelopment opportunities owned by the railway in Mumbai’s eastern suburbs and is anticipated to be developed in accordance with RLDA’s asset monetisation strategy, which aims to unlock value from surplus railway land through long-term leases instead of outright sales.
