Larsen & Toubro’s real estate development division, L&T Realty Developers, has secured a significant land parcel in the Lower Parel-Elphinstone Road business district of Mumbai through a deed of assignment for Rs 448.6 crore.
Out of the total amount, Rs 300 crore will be disbursed in cash, while the remaining value will be compensated through an area-sharing agreement that includes 55,000 sq ft of RERA carpet non-residential or commercial space, along with corresponding car parking facilities.
The transaction for the land parcel, which spans 1.34 acres, was finalized on January 9 and involves the acquisition of land rights from AVA Smart City LLP, as indicated by documents obtained from Propstack, a real estate data analytics platform. L&T Realty intends to construct a tower featuring 28 office floors, with each floor plate encompassing approximately 14,000 sq ft of carpet area. The proposed development is expected to be completed within 36 months, as stated by the company .
Lower Parel and the wider Elphinstone Road area have become a significant redevelopment hotspot over the past two to three decades, fueled by the transformation of former mill lands and aging industrial estates into high-density residential, commercial, and mixed-use projects.
This micro-market has consistently attracted interest from major developers looking for scale and long-term prospects, especially given the limited availability of large, contiguous land parcels in Mumbai’s island city. For L&T Realty, this acquisition is in line with its strategy to enhance its Mumbai portfolio through strategically located redevelopment and brownfield opportunities. The company operates across residential, commercial, and mixed-use developments within the Mumbai Metropolitan Region.
Industry experts observe that structured transactions that combine upfront cash with area-sharing elements are increasingly being utilized to reconcile valuation expectations between landowners and developers, particularly in land-constrained markets like Mumbai.
The agreement further underscores the sustained confidence in central Mumbai’s real estate market, despite developers being discerning in light of decreasing residential sales volumes and increasing input costs.
