Oberoi Realty Pays ₹247 Crore for Bandra Land, Forms SPV for Project
Mumbai, June 10, 2026: Oberoi Realty has taken a significant step forward in its Bandra development plans by paying the first tranche of ₹247 crore for leasing an 11-acre land parcel from the Rail Land Development Authority (RLDA). The company has also incorporated a special purpose vehicle (SPV) to undertake the project.
The Mumbai-based developer informed stock exchanges that it has paid ₹247.50 crore following its successful bid for the strategically located Bandra East land parcel earlier this year.
SPV Formed for Project Execution
To facilitate development of the project, Oberoi Realty has incorporated a wholly owned subsidiary named Centerstage Realty Private Limited. The company was established earlier this month with an initial paid-up capital of ₹1 lakh.
Subsequently, Oberoi Realty subscribed to additional shares worth ₹268.50 crore in the SPV, strengthening its financial base for the upcoming development.
One of Mumbai's Most Valuable Land Deals
The Bandra East parcel emerged as one of the most closely watched land transactions in Mumbai after Oberoi Realty secured lease rights through the RLDA bidding process in February 2026.
The developer had emerged as the highest bidder with an offer of approximately ₹5,400 crore for lease rights over the land for a period of 99 years.
The project is expected to become one of the company's key commercial developments in Mumbai over the coming years.
Commercial Development Planned
Oberoi Realty has indicated that the land will primarily be developed as a commercial project.
The company is exploring a sale-led strategy for a significant portion of the development rather than retaining the entire project as a leased commercial asset. Management believes demand for premium office space and standalone corporate buildings remains strong in Mumbai.
According to company executives, several large business groups have already shown interest in premium commercial developments within the city.
Flexible Payment Structure
Unlike conventional land acquisitions that require substantial upfront payments, the RLDA transaction offers a staggered payment structure.
The company has indicated that a portion of the lease consideration is being paid upfront, while the remaining payments are linked to project revenues over a longer period extending up to 2038.
This structure is expected to support cash flow management while allowing the developer to proceed with project execution.
Industry Faces Cost Pressures
While discussing future projects, the company also acknowledged rising construction and input costs across the real estate sector.
Management noted that higher energy prices, increasing labour costs and volatility in raw material prices are creating challenges for developers, although such pressures are being experienced across the industry.
Despite these concerns, the company continues to maintain an active development pipeline across Mumbai and other major markets.
Final Word
The payment of the first tranche and formation of a dedicated SPV mark important milestones in Oberoi Realty's plans for the Bandra East land parcel. With one of Mumbai's most valuable development sites now moving toward execution, the project is expected to play a significant role in the company's long-term commercial real estate strategy.