L&T Consolidates Real Estate Business into L&T Realty Properties
Infrastructure major Larsen & Toubro (L&T) has announced the transfer of its real estate business to its wholly-owned subsidiary, L&T Realty Properties Ltd. This move is part of a phased consolidation of all real estate assets and undertakings of L&T.
The approval for the transfer was given by the board through a slump sale via a scheme of arrangement. However, the transfer is subject to the necessary regulatory approvals.
In a statement, L&T said, 'The Board of Directors of L&T has approved the transfer of its Realty Business Undertaking (Realty BU) to L&T Realty Properties Ltd (L&T Realty), a wholly-owned subsidiary of the company.'
S N Subrahmanyan, Chairman and Managing Director of L&T, emphasized the importance of this move. 'L&T Realty needs to perform independently and continuously expand its project pipeline through proactive land bank growth and joint developments. This requires periodic capital infusion, and therefore, it is essential to bring all our real estate operations under a singular corporate structure and bolster L&T Realty's position as a unified brand for real estate.'
L&T established its Realty BU in 2007 with the goal of converting owned land parcels into residential and commercial developments. In 2011, the company founded L&T Realty as a wholly-owned subsidiary to develop both L&T land holdings and joint-venture opportunities with leading partners.
This strategic move is expected to streamline operations and enhance the company's focus on its core competencies while ensuring that its real estate ventures continue to grow and thrive. The consolidation is seen as a positive step towards optimizing resources and maximizing value for stakeholders.
