Mumbai's BKC to Witness Rs 20,000-Crore Luxury Development by L&T Realty and Valor Estate
L&T Realty and Valor Estate have joined forces to develop a luxurious mixed-use project in Mumbai's Bandra-Kurla Complex, valued at Rs 20,000 crore.
Lt RealtyValor EstateMumbaiBandra Kurla ComplexLuxury DevelopmentJoint DevelopmentRedevelopmentReal EstateJul 28, 2024
The land parcel, located adjacent to the upcoming Bombay High Court complex, has a total development potential of over 7.5 million sq ft area. As per the agreement, L&T Realty and Valor Estate will share the developed area in an effective ratio of 58% and 42%, respectively. Valor Estate will have complete ownership of the proposed luxury hotel.
One of the key challenges of the project is the rehabilitation of around 5,500 families living in slums on the 13-acre plot. Valor Estate will be responsible for vacating the land and obtaining necessary approvals for the development, expected to be completed in the next 12-18 months. The entire project, including the rehabilitation work, is expected to be completed over the next 5-6 years.
Valor Estate is also in advanced talks with international hotel brands for a 30-year operating agreement for the luxury hotel. The proposed development will have a free-sale component of around 3.75 million sq ft, with 1.5 million sq ft dedicated to the luxury hotel property, and 2.25 million sq ft for commercial use, including retail and premium housing.
This partnership is part of Valor Estate's growth strategy, which involves monetizing its key land parcels through alliances with realty developers. The company has already partnered with developers like Prestige Estates Projects, Adani Realty, Godrej Properties, and RMZ Corp to develop projects on its prime land parcels across Mumbai.
L&T Realty has also recently entered into an agreement to jointly develop a 12.2-acre land parcel in Thane's Panchpakhadi locality, involving the rehabilitation of a large layout of slums, with a development potential of over 3.12 million sq ft.\n\nJoint development and redevelopment projects play a vital role in the functionality of most property markets. This importance is heightened in the context of rising land prices and the decreasing availability of vacant land parcels in major urban centres.
Frequently Asked Questions
What is the estimated value of the joint development project in Mumbai's BKC?
The estimated value of the project is around Rs 20,000 crore.
What is the location of the 10-acre land parcel being developed?
The land parcel is located in Mumbai's Bandra-Kurla Complex (BKC), adjacent to the upcoming Bombay High Court complex.
What is the total development potential of the project?
The project has a total development potential of over 7.5 million sq ft area.
What is the expected timeline for the completion of the project?
The entire project, including the rehabilitation work, is expected to be completed over the next 5-6 years.
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