Oberoi Realty Clinches RLDA's Largest-Ever Commercial Land Development Project in Mumbai
The Rail Land Development Authority (RLDA) has awarded its highest-value commercial land development project to date to Oberoi Realty Ltd. This landmark decision came after the developer emerged as the top bidder for a prime railway land parcel located in Bandra East, Mumbai, with a staggering bid of Rs 5,400 crore. Officials confirmed the details on Thursday, marking a significant milestone in India's real estate sector.
Record-Breaking Real Estate Transaction Finalized
The deal, finalized on Wednesday following the opening of financial bids through a competitive tender process, stands as one of the largest real estate transactions not only in Mumbai but across the entire country. The winning bid from Oberoi Realty marginally exceeded the reserve price of Rs 5,365 crore set by RLDA. As part of the agreement, the developer will provide a 45% revenue share to RLDA, ensuring substantial long-term returns for the Railways.
Intense Competition Highlights Site's High Value
The tender process witnessed fierce competition, underscoring the commercial appeal of the Bandra East location. Shree Naman Developers Pvt Ltd, in a joint venture with global asset management giant Brookfield, submitted a closely contested bid of Rs 5,373.09 crore, also offering a 45% revenue share. Officials noted that the narrow gap between the two top bids reflects the immense commercial value and long-term development potential of this strategically positioned site.
Prime Location and Development Specifications
The awarded land parcel spans an impressive 45,371 square meters and comes with a permissible floor area ratio (FAR) of four, along with a 99-year lease. Its location is exceptionally advantageous, situated near Bandra railway station, the Bandra Kurla Complex (BKC), and the Western Express Highway. Additionally, the site benefits from proximity to upcoming metro corridors, making it a highly sought-after destination for large-scale commercial development projects in Mumbai.
RLDA's Revenue Share Model Achieves Key Milestone
Railway officials emphasized that this award represents a crucial milestone for RLDA's revenue share model, which was introduced in 2025. Under this innovative model, RLDA provides the land, while the selected developer takes responsibility for planning, construction, and marketing. Revenues are shared through an escrow-based mechanism, designed to ensure long-term revenue streams for the Railways while simultaneously attracting robust private investment into railway land development projects.
This transaction not only sets a new benchmark for commercial land deals in India but also demonstrates the growing confidence of major developers in high-value urban infrastructure projects. The development of this prime Bandra East parcel is expected to significantly boost Mumbai's commercial real estate landscape, contributing to economic growth and urban renewal in the region.
