L&T Realty, the property development arm of Larsen & Toubro, has entered a significant agreement with Valor Estate to develop a project exceeding Rs 20,000 crore on a 10-acre land parcel in Mumbai’s Bandra-Kurla Complex (BKC). This ambitious venture is set to feature premium housing, commercial spaces, and a 1,000-key five-star luxury hotel.
The mixed-use project, located adjacent to the forthcoming Bombay High Court complex, will be developed on a revenue and area-share basis. According to sources familiar with the deal, L&T Realty and Valor Estate will share the developed area in a 58% to 42% ratio, respectively. Valor Estate will retain complete ownership of the proposed luxury hotel. The 10-acre land parcel is part of a larger 13-acre plot, currently home to approximately 5,500 families living in slums. These families will be rehabilitated as part of the project. Valor Estate will oversee the land clearance and secure the necessary approvals, with development expected to commence in the next 12-18 months. The entire project, including rehabilitation efforts, is projected to be completed within the next 5-6 years.
Discussions are reportedly in advanced stages with international hotel brands for a 30-year operating agreement for the luxury hotel, which will occupy about 1.5 million square feet of the development. The remaining 2.25 million square feet will be designated for commercial use, including retail and premium housing. Of the total 7.5 million square feet development potential, approximately 3.75 million square feet will be available for free sale, while 3.2 million square feet will be allocated for rehabilitation. This strategic partnership is part of Valor Estate’s broader growth strategy, which involves forming alliances to monetise key land parcels. L&T Realty has also been active in forming strategic partnerships. Recently, it entered into a joint development agreement for a 12.2-acre land parcel in Thane’s Panchpakhadi locality, a project with a development potential of more than 3.12 million square feet, also involving significant rehabilitation efforts.
Joint development and redevelopment projects are increasingly vital in India’s property markets, particularly in urban centres where land prices are escalating, and available land parcels are becoming scarce. These projects not only enhance urban infrastructure but also contribute to addressing the housing needs of displaced communities. The partnership between L&T Realty and Valor Estate exemplifies this trend, aiming to create a landmark development in Mumbai’s prime business district while addressing critical housing and commercial space requirements.
