L&T Realty, the real estate division of Larsen & Toubro, has purchased a 34-acre land parcel in Panvel, near Mumbai, from three separate landowners for a transaction exceeding Rs 102 crore, according to sources familiar with the matter. This acquisition represents the company’s inaugural outright land purchase since its establishment, indicating a strategic shift in its growth strategy.
Previously, L&T Realty has exclusively engaged in joint development agreements (JDAs) and joint venture (JV) partnerships to expand its portfolio, steering clear of direct land acquisitions. The land, situated near the riverfront, is currently classified as an industrial zone. However, it remains uncertain whether the company plans to pursue a change in land use for a residential project or intends to utilize the site for establishing a precast manufacturing facility to bolster its construction operations.
‘Although the deal’s value may not seem significant compared to L&T Realty’s ongoing large-scale projects, it clearly indicates the company’s strategic direction and the likely shape of its future growth roadmap,’ stated one of the aforementioned sources. The company has primarily focused on partnerships and joint development agreements.
Last year, L&T Realty and Valor Estate entered into a binding agreement to collaboratively develop a project valued at over Rs 8,500 crore on a 7.5-acre land parcel at Bandra Reclamation in Mumbai’s Bandra West area. Prior to this, the company also entered into an agreement to jointly develop a 12.2-acre land parcel in Thane’s Panchpakhadi area, which involves the rehabilitation of a significant slum layout with a total development potential exceeding 3.12 million square feet.
Founded in 2011, L&T Realty boasts a diverse portfolio of 70 million square feet encompassing residential, commercial, and retail projects, with operations in Mumbai, Navi Mumbai, NCR, Bengaluru, Hyderabad, and Chennai. Panvel is rapidly becoming a significant real estate hub within the Mumbai Metropolitan Region, propelled by substantial infrastructure initiatives.
The forthcoming Navi Mumbai International Airport, CIDCO’s NAINA development, and the recently opened Mumbai Trans Harbour Link have greatly enhanced the area’s connectivity. Activity in land transactions is on the rise, with numerous deals, including outright purchases and joint ventures, in major property markets such as Mumbai, Pune, Chennai, Hyderabad, and Bangalore either finalized or anticipated to be completed shortly. The heightened interest in land parcels is driven by ongoing growth in the housing sector, alongside a thriving demand for warehousing and data center facilities.