Newly listed Schloss Bangalore secures ₹1,302 crore BKC commercial lease for mixed-use luxury project

Newly listed Schloss Bangalore has taken a significant stride in expanding its footprint in India’s premium commercial real estate market. The company, a part of The Leela group, has secured a prestigious 80-year lease for a commercial plot in Mumbai’s Bandra Kurla Complex (BKC) valued at ₹1,302 crore. Awarded by the Mumbai Metropolitan Region Development Authority (MMRDA), this deal marks a milestone for the company as it plans to develop a landmark mixed-use project in one of India’s most sought-after business districts.

Lease deal awarded by MMRDA to Newly Listed Schloss Bangalore 

Schloss Bangalore Limited, formerly Schloss Bangalore Private Limited and part of The Leela group, has been awarded a long-term commercial lease for a prime plot in Mumbai’s Bandra Kurla Complex (BKC). The Mumbai Metropolitan Region Development Authority (MMRDA) allotted Plot No. C-80 in G-Block of BKC to a consortium led by Schloss Bangalore.

Read More: Leela Hotels vs Peers: How Schloss Bangalore Compares to ITC and Other Hotel Stocks! 

80-year lease worth ₹1,302 crore

The commercial lease has been awarded for a period of 80 years with a total lease premium of ₹1,302.15 crore. The plot spans 8,411.88 square metres with a permissible built-up area of 33,647.52 square metres. The payment terms include 25% of the premium due within two months from the allotment offer, and the remaining 75% within the next ten months.

Development plans: luxury hotel and commercial tower

The consortium plans to develop a mixed-use project that includes:

• A 250-key luxury palace hotel with high-end amenities and an exclusive Arq Club
   
• A commercial tower with a chargeable area of approximately 700,000 square feet

The development is subject to detailed design and planning, and actual areas may vary. The consortium also intends to secure an equivalent additional built-up area from MMRDA under a scheme valid until July 2026.

Consortium structure and stakeholders

The awarded plot will be developed by a consortium in which Schloss Bangalore (along with its wholly owned subsidiary, Schloss Chanakya Private Limited) will hold a 50% stake. The remaining 50% will be held by Arliga Ecospace Business Park Private Limited, an affiliate of Brookfield Asset Management Ltd.

Share price performance in focus

Share price of Schloss Bangalore is up flat at ₹434.60 as of 10:55 AM on June 4, following the announcement of this high-value lease deal.

Conclusion

This strategic lease acquisition positions Schloss Bangalore to play a more prominent role in India’s hospitality and commercial real estate landscape. With a prime location, credible consortium partners, and a mixed-use development vision, the company’s move could have long-term implications for its business visibility and operational scale. Investors and industry watchers will now be keenly tracking the progress of this marquee project in BKC.

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