Mahindra Lifespaces and landowner K K Bangur will jointly develop a 37-acre plot in Mumbai's Bhandup. The mixed-use project encompasses residential, retail, and office spaces and the sale value is anticipated to be between Rs 8,000 crore and Rs 11,000 crore. Bangur has been attempting to sell the land for a long time but no buyer was willing to pay the quoted price of Rs 2,500 crore. Thus, he has now opted for a joint development agreement with Mahindra Lifespaces. The developer, paying a significant deposit, is set to construct approximately 40 lakh sq ft over eight to ten years. The deal allocates space for public amenities, including a park, school, playground, and cultural theatre.
A 37-acre expanse in Bhandup, one of the city's largest land parcels, is set to undergo joint development by the property owner, industrialist K K Bangur, and Mahindra Lifespaces, a prominent real estate company. The land was previously owned by the now-defunct engineering firm Guest Keen Williams (GKW).
K K Bangur had endeavoured to sell the land over the past few years, quoting a steep price of Rs 2,500 crore. Despite its strategic location near the railway station and proximity to LBS Marg, the asking price remained a deterrent for all potential buyers.
In a strategic move, the property owner has now opted for a joint development agreement with Mahindra Lifespaces, marking one of the largest land collaborations in Mumbai. The sale value of this mixed-use project, encompassing residential, retail, and office spaces, is estimated to range between Rs 8,000 crore and Rs 11,000 crore, as per informed sources.
A term sheet for joint development has been recently signed, accompanied by a significant deposit by the developer to the landowner. The developer will have the opportunity to sell approximately 40 lakh sq ft of carpet area, capitalising on the prevailing market rates in Bhandup, ranging from Rs 22,000 to Rs 24,000 per sqft.
The development timeline for this ambitious project spans eight to ten years. Under the terms of the agreement, the property owner will share in the project's profits, while the developer assumes responsibility for securing permissions, financing construction, and handling associated premiums.
Notably, public amenities are factored into the project, with designated space on the plot earmarked for a public park, a municipal school, a playground, and a cultural theatre. This aligns with the broader urban planning strategy and community development goals.
This joint venture marks a pivotal collaboration in Mumbai's real estate landscape, bringing together the strengths of the landowner and the expertise of Mahindra Lifespaces to transform a significant land parcel into a multifaceted hub over the course of the coming decade.
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