Lodha Developers Secures Prime 4.3-Acre Malabar Hill Plot for Super-Luxury Housing

Mumbai: Lodha Developers, a leading real estate company, has secured the development rights for a prime 4.3-acre land parcel in the upscale Malabar Hill area of South Mumbai. The plot, which currently houses six bungalows and other structures, has an estimated development potential of nearly Rs 2,800 crore. This acquisition marks another significant move by Lodha Developers in the premium and super-luxury housing market of Mumbai.

The property, owned by the Sorabji Kanga Charity Trust, also includes a residential tower and a chawl. However, the residential tower will not be part of the redevelopment project, according to sources familiar with the development.

As part of the transaction, Lodha Developers will provide a security deposit of Rs 125 crore and a bank guarantee of approximately Rs 40 crore. The agreement to sell the development rights was executed on January 7, as shown in property registration documents accessed through Propstack.

Under the terms of the agreement, the Sorabji Kanga Charity Trust will receive a separate and independent building with over 54,000 square feet of RERA carpet area and a 42.5% revenue share, amounting to over Rs 1,407 crore. This arrangement ensures that the trust receives both monetary and non-monetary compensation in the form of a constructed area.

The market value of the transaction for the development rights of the land in the Malabar & Cumballa Hill Division is around Rs 621.71 crore, with a stamp duty of approximately Rs 37.42 crore paid, as per the documents.

This acquisition underscores Lodha Developers’ ongoing focus on premium and super-luxury housing in established micro-markets. The company has been actively replenishing its pipeline through outright acquisitions and development-right arrangements across Mumbai and the wider Mumbai Metropolitan Region, capitalizing on the sustained demand for high-end residences.

According to the Charity Commissioner’s order issued in October, the monetary consideration and gross revenue received by the trust from the developer will be invested as mandated by Section 35 of the Maharashtra Public Trusts Act. The trust is required to invest the entire gross revenue in prescribed instruments and cannot withdraw the principal without prior approval. However, the trustees may use the interest earned to meet the trust’s objectives.

Malabar Hill has historically seen limited new supply due to land scarcity and stringent development norms. Most new additions in the area come from the redevelopment of old buildings, institutional plots, and trust-owned properties. Large contiguous parcels in this location are rare and typically attract established developers with the financial strength to execute premium projects. The locality is known for commanding some of the highest residential values in the country, thanks to its sea views, low density, and proximity to key business districts in South Mumbai such as Nariman Point, Churchgate, Worli, and Lower Parel.

Despite ET’s email queries, the trust’s representative did not respond, and Lodha Group declined to comment on the transaction.