RBI’s huge offer for new office space

Reserve Bank of India offers Rs 2,650 crore for office space at Nariman Point in Mumbai
As part of its plan to expand its headquarters in South Mumbai, the Reserve Bank of India (RBI) has made a huge offer to take a long-term lease on a 4.12-acre plot at Nariman Point. The RBI has offered Rs 2,650 crores to the Mumbai Metro Rail Corporation Limited (MMRCL) for this plot.

This plot has a development potential of 1.6 million square feet, and 1,13,500 square feet of space must be allocated to the state for rehabilitation purposes. MMRCL had leased the plot to international property consultant Knight Frank for 90 years in October last year.

In this context, the RBI decided to take the plot on lease and began negotiations accordingly. An official commented that the amount the RBI offered was 25% higher than what MMRCL had expected. The official also mentioned that the Rs 5,173 crores offered by the central bank included the total project cost, including construction. In fact, MMRCL had estimated revenue below Rs 2,000 crores, and the RBI’s Rs 2,650 crore offer is considered 25% higher than that. Negotiations are ongoing between the two parties.