MUMBAI: L&T Realty Developers, the realty arm of engineering and construction giant Larsen & Toubro, has acquired a prime land parcel in Lower Parel-Elphinstone Road, a key business district, for ₹448.6 crore through a deed of assignment.
Of the total amount, ₹300 crore will be paid in cash, while the remainder will be settled through an area-sharing agreement that includes 55,000 sq ft of RERA carpet non-residential space and corresponding car parking.
The land acquisition, spanning 1.34 acres, was executed on January 9, and involves obtaining land rights from AVA Smart City LLP, according to documents obtained from Propstack, a real estate data analytics platform.
L&T Realty plans to build a tower with 28 office floors, each with approximately 14,000 sq ft of carpet area. The expected completion timeline for this project is 36 months, based on the company’s response to RealtyDailyNews’s inquiry.
Lower Parel and the surrounding Elphinstone Road area have transformed into major redevelopment hubs over the past two to three decades, as aging industrial estates and old mill lands have been redeveloped into high-density residential, commercial, and mixed-use properties.
This micro-market has seen sustained interest from large developers who are looking for scalable and long-term opportunities, especially given the limited availability of extensive land parcels in Mumbai’s island city.
This acquisition aligns with L&T Realty’s strategy to expand its portfolio in Mumbai through strategically located redevelopment and brownfield projects. The company has a diverse footprint across residential, commercial, and mixed-use developments throughout the Mumbai Metropolitan Region.
Industry experts note that increasingly, structured deals combining immediate cash payments with area-sharing components help reconcile valuation expectations between landowners and developers, particularly in land-scarce regions like Mumbai.
This deal underscores the ongoing confidence in central Mumbai’s real estate market, even as developers approach projects with caution amid declining residential sales and rising construction costs.
