L&T Realty, the property arm of Larsen & Toubro, has partnered with Valor Estate (formerly known as DB Realty) for a major ₹8,500-crore real estate project in Mumbai’s Bandra West. The project will be developed on a 7.5-acre land parcel at Bandra Reclamation, focusing on creating a premium residential space of about 1.6 million square feet.
The land was originally linked to Valor Estate’s subsidiary, Goregaon Hotel & Realty Pvt Ltd (GHRPL), which had an agreement with a consortium led by Om Metals to develop this area. However, L&T Realty has now stepped in to jointly develop the property.
Under the agreement, L&T Realty will receive 80% of the revenue from sales, with Valor Estate getting 20% if the selling price is up to ₹55,000 per square foot. If the selling price exceeds ₹80,000 per square foot, Valor Estate’s share will increase to 27%.
As part of the deal, Valor Estate will also get 2.75 lakh square feet of developed space to operate a luxury hotel with around 200 rooms. They are currently in discussions with an international hotel brand for a 20-year partnership. This would be Bandra West’s second luxury hotel, following the Taj Lands End.
Valor Estate has the responsibility to clear the land and obtain all necessary approvals, which are expected to take 12-18 months. They will also need to provide housing for 1,050 families by 2027-28. The entire project is estimated to take 5-6 years to complete once it begins.
This is the second major deal between L&T Realty and Valor Estate. They are also working together on a ₹20,000-crore project in Mumbai’s Bandra-Kurla Complex (BKC), next to the upcoming Bombay High Court complex.
L&T Realty has been forming alliances with other developers to grow its business by developing key land parcels in Mumbai. The company has also partnered with Prestige Estates Projects, Adani Realty, Godrej Properties, and others for similar projects.
Recently, L&T Realty signed an agreement to develop a 12.2-acre land parcel in Thane’s Panchpakhadi area, which has a development potential of over 3.12 million square feet. This project involves the rehabilitation of a large slum area.
Joint development and redevelopment projects are becoming increasingly important in major cities due to rising land prices and the decreasing availability of vacant land.
