L&T Realty, Larsen & Toubro's property development division, 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), according to The Economic Times.
The project will include a combination of premium homes, commercial areas, and a five-star luxury hotel with 1,000 rooms. This mixed-use property, located adjacent to the planned Bombay High Court building, has a total development potential of more than 7.5 million square feet. L&T Realty and Valor Estate will divide the developed area in a 58:42 ratio, with Valor Estate wholly owning the luxury hotel.
Rehabilitation Plan
The 10-acre tract is part of a bigger 13-acre region where around 5,500 households live in slums. These households will be restored as part of the project. Valor Estate is responsible for emptying the land and securing the requisite development permissions, which are projected to take 12-18 months. The full project, including rehabilitation, is expected to be finished in 5–6 years.
Land Allocation
Approximately 3.2 million square feet of land will be rehabilitated as part of the development project. The free-sale component, which is a piece of the development project that the developer can sell or lease at market prices, will cover about 3.75 million square feet of land. A luxury hotel will be built on 1.5 million square feet, while business, retail, and premium housing complexes will take up 2.25 million square feet.
Valor Estate is apparently in advanced discussions with worldwide hotel brands for a 30-year operating partnership for the project's premium hotel. The company has also just struck a similar arrangement with Macrotech Developers for a residential project on a 5.4-acre plot in Mumbai's Malad West district.
Valor Estate has formed strategic agreements to monetize major land parcels in recent years, collaborating with real estate developers such as Prestige Estates Projects, Adani Realty, Godrej Properties, and RMZ Corp. Meanwhile, L&T Realty has signed a deal to build a 12.2-acre plot of land in Thane's Panchpakhadi neighborhood, with a development potential of more than 3.12 million square feet. This project also includes extensive slum redevelopment.
