Oberoi Realty clarifies details regarding its Rs. 5,400 Crore bid to the Railway Land Development Authority (RLDA) for land in Bandra East. The amount represents the Net Present Value (NPV) of payments, including an upfront payment and a revenue share until 2038. The project involves development with an FSI potential of approximately 19.50 lakh sq. ft., with Oberoi bearing all development and construction costs.
RLDA Land Bid Clarification
Oberoi Realty has provided clarifications regarding its bid of Rs. 5,400 Crore to the Railway Land Development Authority (RLDA) for the grant of lease for development of land in Bandra East. This announcement aims to address queries from stakeholders regarding the financial structure of the proposed transaction.
Payment Structure
The total amount of Rs. 5,400 Crore represents the Net Present Value (NPV) of payments to be made to RLDA, structured as follows:
- Rs. 247.50 Crore: Payable within 30 days of the issue of the letter of demand by RLDA.
- Rs. 247.50 Crore: Payable within 150 days from the date of issue of the said letter of demand.
- Rs. 495.00 Crore: Sub-Total of the above two payments.
- Rs. 4,905.00 Crore: NPV of amounts payable from time to time until the year 2038.
- Rs. 5,400.00 Crore: Grand Total.
Revenue Share Details
The amounts payable from time to time until the year 2038 are in the form of a 45% share of the higher of the projected gross revenues or actual gross revenues. This revenue share is payable until the total NPV (calculated at a discount rate of 10.75%) of the amounts paid equals Rs. 4,905 Crore.
Project Development
Oberoi Realty will bear the entire cost of development and construction of the project. The land has an inherent FSI potential of approximately 19.50 lakh sq. ft. The land area is approx. 45,371 sq. mt. (approx. 11 acres).
Source: BSE
