Oberoi Realty Limited has submitted a bid of ₹5,400 Crore to the Railway Land Development Authority (RLDA) for a 99-year lease of approximately 45,371 sq. mt. (11 acres) of railway land in Bandra East, Mumbai. The land offers an FSI potential of approximately 19.50 lakh sq. ft. The total bid amount of ₹5,400 Crore represents the Net Present Value (NPV) of payments to RLDA. An initial payment of ₹495 Crore is due within 30 and 150 days of RLDA issuing a letter of demand. The remaining ₹4,905 Crore is the NPV of future payments, calculated at a discount rate of 10.75%. These future payments will be 45% of the higher of the projected or actual gross revenues, payable until the total NPV of these payments reaches ₹4,905 Crore. The company will also bear all development and construction costs for the project.
