MUMBAI: Lodha Developers, a leading real estate firm, has acquired development rights for a valuable 4.3-acre land site in the affluent Malabar Hill area of South Mumbai, where six bungalows and other buildings currently stand. The projected development value is approximately ₹2,800 crore.
The agreement entails an initial payment along with a combination of monetary and non-monetary compensations to the land-owning trust once redevelopment is complete.
The property, owned by the Sorabji Kanga Charity Trust, includes a residential tower and a chawl, though the tower will not be part of the redevelopment plan, according to informed sources.
As part of the deal, the developer will provide a Rs 125 crore security deposit and a Rs 40 crore bank guarantee. Property registration documents obtained via Propstack indicate that the development rights agreement was finalized on January 7.
Under the terms of the agreement, the trust will receive an independent building exceeding 54,000 sq. ft. of RERA carpet area, along with a 42.5% share of the revenue—estimated at over ₹1,407 crore. This ensures the trust will benefit from both monetary and non-monetary gains in the form of developed area.
The market value of this property transaction in the Malabar and Cumballa Hill Division is about ₹621.71 crore, with a stamp duty of approximately ₹37.42 crore having been paid, as per the documents.
This acquisition highlights Lodha Developers’ persistent commitment to premium and super-luxury housing in well-established micro-markets. The company has been actively enhancing its portfolio through direct acquisitions and development-right deals across Mumbai and its metropolitan region, driven by sustained demand for high-end homes.
According to an order from the Charity Commissioner in October, the monetary compensation and gross revenue received by the trust from the developer will be invested in accordance with section 35 of the Maharashtra Public Trusts Act.
The trust is mandated to invest the entire gross revenue in designated instruments and cannot withdraw principal amounts without prior approval from the Authority. However, the trustees may utilize the interest earned to further the trust’s goals.
RealtyDailyNews’s inquiry to the trust’s representative went unanswered, while Lodha Group declined to comment.
Malabar Hill has historically seen limited new supply due to land scarcity and strict development regulations, with most growth stemming from the redevelopment of older buildings, institutional plots, and trust-owned properties.
Large contiguous plots in this area are rare and typically attract established developers capable of executing luxury projects. The locality boasts some of the highest residential values in the country, owing to its sea views, low density, and proximity to key business hubs in South Mumbai, including Nariman Point, Churchgate, Worli, and Lower Parel.
