L&T Realty and Valor Estate, jointly will develop a 10 acre land parcel of more than INR 20,000 crore.The land parcel will be located next to the upcoming Bombay High Court complex in Bandra-Kurla complex and is expected to be completed in over 5-6 years. Rehabilitation of 5,500 families living in slums will also be part of the project. The land parcel built will include premium housing, commercial spaces, and a 1000 key five star luxury hotel. L&T Realty did not comment and Valor Estate did not answer the media query.
L&T Realty partnered with Valor Estate, formerly known as DB Realty, to develop a 10 acre land parcel that is worth more than INR 20,000 crore project, a media reported on July 29. This land parcel is placed next to the upcoming Bombay High Court complex in Bandra-Kurla Complex. Additionally, the land parcel is part of a 13 acres plot, which is a residence to 5,500 families living in slums and will be rehabilitated as part of the project. The project is expected to be completed over the next five-six years including the rehabilitation process.
According to the media report, both companies are planning to build a land parcel that can be used for multiple purposes including premium housing, commercial spaces, a 1000 key five star luxury hotel on the combination of revenue and area sharing basis.
A person with knowledge about this project told the media that the project has total development potential of over 7.5 million sq ft and according to the agreement, L&T Realty will own 58% of the developed area while Valor Estate will own 42% along with sole ownership of the proposed luxury hotel. Furthermore, Valor Estate will be taking over the charge of vacating the land and acquiring necessary permissions for the development. This process is said to be completed in 12-18 months.
Another person aware of this project noted that Valor Estate is also communicating with international hotel brands to work under a 30 year operating agreement for the luxury hotel that will have a larger layout on this land parcel. In addition, about 3.75 million sq ft of the project will be a sale free component with 1.5 million sq ft allotted to develop luxury property and 2.25 million sq ft assigned to commercial use; and 3.2 million sq ft will be used for rehabilitation purposes.
Meanwhile, Valor Estate has signed a similar agreement with Macrotech Developers for a project in Malad west suburb for over 5.4 acreland area and L&T has also entered an agreement to develop a 12.2 acre land parcel in Panchpakhadi in Thane.
The partnership will see L&T Realty holding a majority stake in the developed area, while Valor Estate retains full ownership of the luxury hotel and takes the lead on land acquisition and permissions. Both companies are actively exploring opportunities to collaborate with international hotel brands for the management of the luxury hotel.
This project marks a significant expansion of both L&T Realty and Valor Estate's portfolios, with the latter also having inked a similar deal with Macrotech Developers. The development is expected to reshape the BKC skyline and contribute substantially to Mumbai's real estate landscape.
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