L&T Realty and Valor Estate Partner to Develop Luxury Mumbai Project Worth INR 8500 Crore
The 7.5-acre land parcel in Bandra Reclamation has a history dating back to 2006, with a consortium led by Om Metals receiving approval from the Maharashtra Housing and Area Development Authority (MHADA) for development.
Lt RealtyValor EstateMumbai Real EstateLuxury HousingJoint DevelopmentReal Estate MaharashtraAug 20, 2024
The land has a rich history, dating back to 2006 when a consortium led by Om Metals received approval from the Maharashtra Housing and Area Development Authority (MHADA) for development. However, due to various delays and changes in ownership, the project had been stalled until now.
Under the terms of the agreement, L&T Realty will retain 80% of the revenue generated from the project, paying Valor a share of 20% if the average sale price remains below INR 55,000 per square foot based on RERA carpet area. If sales exceed INR 80,000 per square foot, Valor's share could rise to 27%. This structure incentivizes both parties to enhance the project's marketability.
A notable feature of this development is a planned luxury hotel, with around 200 keys. Valor Estate intends to keep a developed space of 2.75 lakh square feet for this hotel and is reportedly negotiating with an international hotel brand for a long-term operational agreement. If finalized, this hotel will be the second luxury establishment in Bandra West, following the well-known Taj Lands End.
Valor's immediate responsibilities include clearing the land and securing necessary approvals, all of which are expected to be completed within the next 12 to 18 months. Additionally, the company has committed to rehabilitating approximately 1,050 tenements by 2027-28. Upon commencement of work, the entire project is anticipated to be completed within five to six years.
This venture marks the second collaboration between L&T Realty and Valor Estate, having previously partnered on a INR 20,000-crore project in the Bandra-Kurla Complex (BKC). L&T Realty has been strategically leveraging such partnerships to unlock the potential of its land holdings in Mumbai, working with various developers like Prestige Estates Projects, Adani Realty, and Godrej Properties.
The trend of joint development in real estate is increasingly becoming essential, especially in urban centers like Mumbai, where land prices are soaring and available land is scarce. This approach not only facilitates better project execution but also addresses community needs, like rehabilitating low-income housing. As property markets continue to evolve, such collaborations are likely to play a vital role in shaping the skyline of Mumbai and meeting the growing demand for housing.
Larsen & Toubro (L&T) is a major Indian conglomerate with a presence in various sectors, including construction, engineering, and real estate. L&T Realty is its real estate development arm, which has been actively involved in developing residential and commercial projects across India.
Valor Estate, formerly known as DB Realty, is a Mumbai-based real estate developer with a focus on luxury residential projects. The company has been involved in several high-profile projects in Mumbai and has a reputation for delivering quality developments.
The Maharashtra Housing and Area Development Authority (MHADA) is a state government agency responsible for regulating and developing housing and infrastructure projects in Maharashtra.
L&T Realty is a part of the Larsen & Toubro group, a major Indian conglomerate with a presence in various sectors, including construction, engineering, and real estate. Valor Estate is a Mumbai-based real estate developer with a focus on luxury residential projects.
Frequently Asked Questions
What is the estimated worth of the luxury real estate project in Mumbai?
The project is estimated to be worth over INR 8,500 crores.
Who are the partners involved in the project?
L&T Realty and Valor Estate are the partners involved in the project.
What is the location of the project?
The project is located on a 7.5-acre land parcel in Bandra Reclamation, Mumbai.
What is the expected completion timeline for the project?
The project is expected to be completed within five to six years.
What is the significance of the joint development approach in real estate?
The joint development approach facilitates better project execution, addresses community needs, and plays a vital role in shaping the skyline of urban centers like Mumbai.
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