Oberoi Realty bags rail authority’s Bandra East land deal for Rs 5,400cr

MUMBAI: The Rail Land Development Authority (RLDA) has awarded its highest-ever commercial land development project to Oberoi Realty Ltd after the developer emerged as the top bidder for aprime railway land parcel in Bandra East with a bid of Rs 5,400 crore, officials said on Thursday.

The deal, one of the largest real estate transactions in Mumbai and the country, was finalised on Wednesday after the opening of financial bids through a competitive tender process. The winning bid marginally exceeded the reserve price of Rs 5,365 crore and included a 45% revenue share for RLDA.

The tender saw stiff competition, with Shree Naman Developers Pvt Ltd, in a joint venture with global asset management major Brookfield, submitting a close bid of Rs 5,373.09 crore with the same 45% revenue share. Officials said the narrow gap between the bids reflected the high commercial value and long-term potential of the Bandra East site.

The land parcel, spread over 45,371 sq m, comes with a permissible floor area ratio (FAR) of four and a 99-year lease. Located near Bandra railway station, Bandra Kurla Complex and the Western Express Highway, the site also benefits from proximity to upcoming metro corridors, making it a sought-after destination for large-scale commercial development.

Railway officials said the award marked a key milestone for RLDA’s revenue share model, introduced in 2025, under which the authority provides land while the developer is responsible for planning, construction and marketing, with revenues shared through an escrowbased mechanism.

The model aims to ensure long-term revenue for Railways while attracting private investment.