Leela Palace Operator Bags Commercial Plot Lease For Rs 1,302 Crore In Mumbai's BKC

Schloss Bangalore Ltd. announced on Tuesday that it secured an 80-year lease for a commercial plot in Mumbai's Bandra Kurla Complex, a day after the Leela Hotels operator listed on stock exchanges.

The company plans to develop a 250-key luxury hotel, along with other mixed-use projects, according to the exchange filing.

This allotment follows the Mumbai Metropolitan Region Development Authority naming Schloss the highest bidder on April 4. The official confirmation came via an exchange filing on Tuesday.

Plot No. 80 in G Block spans 8,411.88 square metres with a permissible built-up area of 33,647.5 square metres. The project will be undertaken by a consortium led by Schloss Bangalore, including its subsidiary Schloss Chanakya Pvt. and Arliga Ecospace Business Parks Pvt., an affiliate of Brookfield.

The total lease premium stands at Rs 1,302 crore, payable in instalments — 25% within two months of allotment and the rest over the next 10 months. Possession will follow full payment of the lease premium.

The filing came a day after Schloss Bangalore's stock debuted, listing on the National Stock Exchange at Rs 406 per share, down 6.67% from its Rs 435 issue price, and on the BSE at Rs 406.50, 6.55% below the issue price of Rs 435. The company’s initial public offering, which closed on May 29, was subscribed 4.5 times, driven mainly by institutional investors, while the retail segment saw lower-than-expected demand.

The IPO consisted of fresh equity shares worth Rs 2,500 crore and an offer-for-sale component of Rs 1,000 crore. Schloss Bangalore plans to use the net proceeds to repay outstanding borrowings and for general corporate purposes.

Schloss Bangalore operates as a pure-play luxury hospitality company under ‘The Leela’ brand. As of March 31, it holds 13 operational hotels with 3,553 keys, making it the largest luxury hotel operator in India by room count. Its portfolio includes five owned hotels, seven managed properties, and one franchised hotel.

Looking ahead, the company plans aggressive expansion, targeting seven new properties by 2028 across India and internationally, adding more than 678 keys to its portfolio.