L&T Consolidates Real Estate Business with L&T Realty Properties
New Delhi, Dec 8 (PTI) 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 marks the beginning of a phased consolidation of all real estate assets and undertakings of L&T.
The Board of Directors of L&T has approved the transfer of its Realty Business Undertaking (Realty BU) to L&T Realty Properties Ltd through a slump sale via a scheme of arrangement. However, the transfer is subject to the necessary regulatory approvals.
S N Subrahmanyan, Chairman and Managing Director of L&T, stated, “L&T Realty needs to perform independently. It has to 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 to convert 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 consolidation is expected to streamline operations and enhance the efficiency and competitiveness of L&T's real estate division. By bringing all real estate operations under one roof, L&T aims to create a more robust and integrated business model that can better respond to market demands and opportunities.
The move is also seen as a strategic step to position L&T Realty as a leading player in the Indian real estate market. With a strong focus on land acquisition and project development, L&T Realty is poised to expand its portfolio and deliver high-quality residential and commercial projects.
L&T, one of India's largest and most diversified infrastructure companies, has a long history of innovation and excellence. The company's decision to consolidate its real estate business is a testament to its commitment to optimizing its resources and delivering value to its stakeholders.
