Mumbai-based, listed real estate developer Oberoi Realty has paid ₹247 crore as the first tranche for leasing 11 acres of prime land parcel in Mumbai’s Bandra for 99 years from the Rail Land Authority of India (RLDA). The company also formed a special purpose vehicle (SPV) to undertake the project, the company informed in a regulatory filing.
According to the company, it won the bid for the land leasing in February 2026, after which it paid ₹247.50 crore to RLDA.
“Centerstage Realty Private Limited (“Centerstage”) was incorporated on June 2, 2026 as a wholly owned subsidiary of the Company with an initial paid-up share capital of Rs. 1 Lakh, and is the identified SPV to undertake the project. The Company has on June 9, 2026 subscribed to further shares of Rs. 268.50 Crore of Centerstage on rights basis,” the company announced in the regulatory filing.
The company said last month that most of its land parcels do not require upfront cash payment. For the RLDA land, the company has until 2038 to pay for the land, a small component is upfront, and the balance is linked to revenue generation.
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Plans for the Bandra land parcel
According to the company, it plans to launch a commercial project on the 11-acre parcel of land acquired from the Rail Land Development Authority (RLDA). In February 2026, Oberoi Realty announced that it emerged as the highest bidder for the lease rights of the Bandra East plot, with a bid of ₹5,400 crore.
“We realize that there are very few Grade A developers willing to sell commercial. So, we feel that if we strategise and do strata sale, we will end up doing really well and it will be great for the cash flows also. So, we will focus on RLDA being a sale model rather than a lease model,” Vikas Oberoi, CMD, Oberoi Realty said during the Q4FY26 earnings call last month.
“The percentage is not decided. It could be 50-50, it could be 60% sale and 40% held back or whatever. But by and large, we want to do a sale model. We see, in fact, big houses approaching us and wanting to do a stand-alone building for us. “So, there is a big market for people like that also,” Oberoi said.
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West Asia conflict impact on real estate
Against the backdrop of the ongoing West Asia conflict, Mumbai-based developer Vikas Oberoi, CMD of Oberoi Realty, said rising construction and energy costs, expensive labour and challenges in material availability are putting pressure on the real estate sector. “These are stressing us out, but it is a problem for the entire industry,” Oberoi said during the company’s Q4 FY26 earnings call last month.
now expects construction costs to rise and is factoring the increase into the projects it is undertaking.
Responding to a question on the impact of the West Asia conflict on customer sentiment, construction activity, raw material availability and project costs, Oberoi said, “Yes, costs are going up. And luckily, we literally, we really make sure we have a lot of contingency built in when we do our budgeting. But yes, costs have gone up. Energy cost has gone up, aluminium has gone up, glass has gone up, labour’s become expensive,” Oberoi said.
“So, all these are, and then again, I mean, availability of materials become a bit of a challenge. So, these are stressing us out. But like I said, it’s a problem for the entire industry and we all are grappling with it. But yes, now it’s like slowly starting to hurt you in a way,” Oberoi said.