L&T Realty, the real-estate development arm of Larsen & Toubro, has entered into a binding agreement to jointly develop projects in South Mumbai, western suburbs of Mumbai and Thane worth Rs 8,000 crore.
These projects have a total development potential of 4.4 million sq ft and will help the company expand its portfolio to drive growth. This is a part of the company's larger plan to strengthen its footprint in major metros by adding around 5 million sq ft every year over the next five years.
“We are committed to expanding our reach and continue looking into new markets,” said Shrikant Joshi, MD & CEO, L&T Realty. Of these projects, the south Mumbai project will be developed over a land parcel of five acres that offers clear harbour view along with good connectivity to all parts of Mumbai. This residential complex will have 50 storey twin towers with luxury amenities and retail.
The project in western suburb of Mumbai is set in a prime location of Andheri. This would be L&T Realty’s first project in western suburb and the company will develop a modern gated residential complex comprising 20 towers with a shopping complex. The proposed project in Thane will be developed over a 6-acre land parcel in the heart of the city.
L&T Realty has an extensive portfolio spanning 70 million sq ft across Residential, commercial and retail developments and is currently present in Mumbai, Navi Mumbai, Bangalore, Chennai, and to some extent in the National Capital Region and Hyderabad.
Larsen & Toubro is an Indian multinational engaged in EPC projects, hi-tech manufacturing and services with its operations in over 50 countries worldwide. Singapore-based property trust Ascendas India Trust is in advanced talks with L&T Realty to enter into a forward purchase agreement to acquire the Larsen & Toubro real estate development arm’s portfolio of proposed commercial properties.
The portfolio includes total commercial real estate development potential of over 5 million sq ft across Bangalore, Chennai and Mumbai. As the projects are still in the planning stage, the deal is estimated to be worth over Rs 2,500 crore based on the current property prices.
Under the forward purchase agreement, Ascendas is looking to acquire the ownership of these properties in advance and L&T will execute the projects and transfer it to the trust based on a schedule inked between both the entities.
