L&T Realty to be part of slum redevelopment project in Thane

23 May 2024 , 11:20 AM

L&T Realty, the real estate development arm of engineering company Larsen & Toubro, has agreed to collaborate on the development of a 12.2-acre plot of land in Thane’s Panchpakhadi area. The project involves the rehabilitation of a vast slum layout and has a total development potential of more than 3.12 million square feet.

The current developer, Jagdale Infrastructure, received a letter of intent from the Slum Rehabilitation Authority in 2022 and is now partnering with L&T Realty on the project.

According to the deal, the lead developer, L&T Realty, will receive 69% of the project’s earnings, with Jagdale Infrastructure receiving the remaining 31%. The project, which includes around 20 slum pockets, is projected to be completed in five years.

L&T Realty’s profit share in the projects is predicted to be almost ₹698 Crore, while the other partner is likely to earn approximately ₹303 Crore, according to details.

L&T Realty executed the joint development agreement through one of its subsidiaries, L&T Parel Project. It paid approximately ₹34.88 Crore in stamp duty to register the transaction on May 7.

The land tract was formerly owned by the Maharashtra government. According to a notification issued in October 2016, the land has been classified as a slum rehabilitation area under the Maharashtra Slum Area (Improvement, Clearance, and Development) Act, 1971.

As part of the agreement, L&T Realty will design, develop, build, complete, market, brand, and sell the project’s free-sale component.

The floor space index necessary for the free-sale component will be calculated using the proportionate rehabilitation component. In addition to its responsibilities for free-sale buildings, L&T Realty is expected to supervise the partner’s responsibilities for obtaining approvals and construction of rehabilitation.

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