 "L&T Realty, Valor Estate to co-develop Rs 20k cr project in Mumbai's BKC")
L&T Realty, the property development division of Larsen & Toubro, has signed a binding agreement with Valor Estate (formerly DB Realty) to co-develop a major project worth over Rs 20,000 crore on a 10-acre land parcel in Mumbai's Bandra-Kurla Complex (BKC).
L&T confirmed the news in a BSE filing, stating, "L&T Parel Project Pvt Ltd... in the ordinary course of its business has signed a Memorandum of Agreement with Valor Estate Limited to develop real estate project in Mumbai."
L&T confirmed the news in a BSE filing, stating, "L&T Parel Project Pvt Ltd... in the ordinary course of its business has signed a Memorandum of Agreement with Valor Estate Limited to develop real estate project in Mumbai."
The project will feature a mix of premium housing, commercial spaces, and five-star luxury hotel which boasts 1,000 rooms. This mixed-use development, situated next to the upcoming Bombay High Court complex, has a total development potential of over 7.5 million square feet, accoridng to a report by The Economic Times.
L&T Realty and Valor Estate will share the developed area in a 58:42 ratio, respectively, with Valor Estate fully owning the luxury hotel.
Rehabilitation plan
The 10-acre plot is part of a larger 13-acre area, currently home to approximately 5,500 families living in slums. These families will be rehabilitated as part of the development.
Valor Estate is tasked with vacating the land and obtaining necessary development approvals, expected to take 12-18 months. The entire project, including rehabilitation, is projected to be completed within 5-6 years.
Land allocation
About 3.2 million square feet of land will be under rehabilitation, as part of the development project.
Approximately 3.75 million square feet of land will be designated as the free-sale component, a portion of the development project that can be sold or leased at market rates by the developer. Out of this, 1.5 million square feet will be used to develop a luxury hotel, and 2.25 million square feet will be allocated for commercial, retail, and premium housing projects.
More From This Section
Valor Estate is reportedly already in advanced negotiations with international hotel brands for a 30-year operating agreement for the luxury hotel within the project.
The firm has also recently signed a similar agreement with Macrotech Developers for a residential project on a 5.4-acre parcel in Mumbai’s Malad West suburb.
Over the past few years, Valor Estate has pursued strategic alliances to monetise key land parcels, partnering with realty developers like Prestige Estates Projects, Adani Realty, Godrej Properties, and RMZ Corp.
Meanwhile, L&T Realty has inked an agreement to develop a 12.2-acre land parcel in Thane’s Panchpakhadi locality, with a development potential of over 3.12 million square feet. This project also involves significant slum rehabilitation.