NEW DELHI: Oberoi Realty has won the highest bid for a long-term lease of approximately 45,371 square meters (about 11 acres) of railway land in Bandra East, Mumbai. This was confirmed after the financial bids were opened by the Railway Land Development Authority (RLDA), a statutory body under the Ministry of Railways.
The company submitted a bid of ₹5,400 crores, quoted as net present value (NPV), for a 99-year lease on the land, which is strategically located along the Western Express Highway and has potential for around 19.5 lakh sq ft of floor space index (FSI).
As outlined in the bid structure, Oberoi Realty will initiate an upfront payment of ₹495 crore. This includes ₹247.5 crore due within 30 days after the RLDA issues the letter of demand, followed by another ₹247.5 crore within 150 days. The remaining ₹4,905 crore (NPV) will be disbursed over time through a revenue-sharing mechanism that extends until 2038.
Under the lease terms, the developer will share 45% of the greater amount between projected or actual gross revenues with RLDA. This revenue sharing will continue until the total discounted value of payments, calculated at a 10.75% discount rate, matches the NPV of ₹4,905 crore. Additionally, Oberoi Realty will be responsible for all development and construction costs of the project.
The land represents one of the largest redevelopment opportunities owned by the railway in Mumbai’s eastern suburbs. It is expected to be developed under RLDA’s asset monetization framework, which aims to maximize value from surplus railway land through long-term leases rather than outright sales.
