For a reality project in Mumbai, L&T Realty, the sister company of Larsen and Toubro inked a deal with Valor Estate. Both companies finalized a joint venture to develop a project valuing over Rs. 20,000 crores. It will come up on a 10-acre land area in Mumbai’s well-known Bandra-Kurla-Complex. In the joint venture, the realty players aim to develop a mixed-used property that will have residential and commercial spaces. A 1,000-key five-star luxury hotel is also in the plan on a revenue and area-sharing basis. The chosen land neighbours the upcoming Bombay High Court complex.
“The project has a total development potential of over 7.5 million sq ft area, and as per the terms of the agreement, L&T Realty and Valor Estate will share developed area in the effective ratio of 58% and 42% respectively,” one of the officials said.
Furthermore, it is informed that “Valor Estate will completely own the proposed luxury hotel.”
The land for the project is a part of the 13-acre plot that has 5,500 families living in slums, and they will be rehabilitated as a procedure for the project.
Valor Estate will look into vacating the land and will complete the necessary documentation. The completion time for this entire process is estimated to be 12-18 months. According to the timelines, the entire project including rehabilitation work and is likely to compete in the next five to six years.
An official related to the development said, “Valor Estate is also in advanced talks with international hotel brands for a 30-year operating agreement for the luxury hotel expected to be developed as part of the larger layout on this parcel.”
In this joint venture, nearly 3.75 million sq ft will be free-sale components and 3.2 million sq ft will be under rehabilitation. Amongst the free component, the proposed luxury hotel will cover approximately 1.5 million sq. ft. While the remaining land will have residential, commercial, and premium housing space.
