Mumbai: L&T Realty, the property development arm of Larsen & Toubro, has entered into a binding agreement with Valor Estate, earlier known as DB Realty, to jointly develop a more than 20,000-crore project on a 10-acre land parcel in Mumbai’s Bandra-Kurla Complex (BKC), said people aware of the development.
Both companies are planning to build a mixed-use project with premium housing, commercial spaces, and a 1,000-key five-star luxury hotel, on a combination of revenue and area- share basis. The land parcel is located next to the upcoming Bombay High Court complex.
“The project has a total development potential of over 7.5 million sqft area, and as per the terms of the agreement, L&T Realty and Valor Estate will share developed area in effective ratio of 58% and 42%, respectively” said one of the persons cited earlier. “Valor Estate will completely own the proposed luxury hotel”
The land parcel is a part of a 13-acre plot that has some 5,500 families living in slums, who will be rehabilita- ted as part of the project.
“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 land parcel,” said another pers son mentioned earlier:
Valor Estate will be responsible for getting the land vacated and obtaining necessary approvals for the development, which is expected to be completed in the next 12-18 months. As per the timelines, the entire project, including the rehabilitation work, is expected to be completed over the next 5-6 years.
In the proposed development, about $.75 million sq ft will be free-sale com- ponent and 8.2 million sq ft will be un- der rehabilitation as part of the project.
Out of the free sale component, ut 1.5 million sqft will be abo- as luxury hotel property, while remaining 2.25 million sq ft will be commercial, including retail and premium housing.
Source- Economic Times
