L&T Realty Signs Agreement for Joint Development of 12.2-Acre Land Parcel in Thane, Potentially Worth ₹697 Crore

L&T Realty has signed a significant joint development agreement (JDA) that involves the rehabilitation of a 12.2-acre land parcel in Thane’s Panchpakhadi locality. According to the documents accessed by CRE Matrix, L&T Parel Project Pvt Ltd, a subsidiary of L&T Realty, and Jagdale Infrastructure Pvt Ltd have entered into a strategic partnership, which was formally announced on May 7, 2024. In addition to a registration fee of ₹30,000, the agreement stipulates a significant stamp duty payment of ₹34.88 crore.

The Maharashtra Slum Area (Improvement, Clearance & Development) Act, 1971 declared the land parcel, which was initially owned by the Maharashtra government, as a slum rehabilitation area in October 2016. The developers have committed to building at least a minimum of 12.7 lakh square feet for the rehabilitation of the slum dwellers. Additionally, under the sale component, a 31.25 lakh sq ft will be constructed to ensure the project’s financial viability according to the documents accessed. 

The project is located near the Mulund Toll Naka, a vital intersection that divides Thane and Mumbai. It enjoys seamless connectivity with easy access to the Eastern Express Highway and the Thane Railway Station. With well-known industry players like Oberoi, Raymond Realty, Rustomjee, and Hiranandani, the Thane real estate market is already booming and shows promise for growth The cost of residential real estate in Thane varies from ₹10,000 to ₹25,000 per square foot, depending on the neighborhood.

With developments in areas like Parel, Sewri, and Mahim, L&T Realty is a major player in the Mumbai real estate market. This new venture in Thane fits right in with what they already have, making them even more of a presence in the area. L&T Realty will be the lead developer and will receive a 69% profit share on the project, which is expected to be close to ₹698 crore. The remaining 31% will go to Jagdale Infrastructure, which equals a profit of almost ₹303 crore. Over 20 slum pockets will be redeveloped as part of the project within five years. L&T Realty will handle the design, development, construction, completion, marketing, branding, and sale of the project’s free-sale component. 

This collaborative development represents a major expansion for L&T Realty and demonstrates its dedication to creative and socially conscious real estate development. The project reflects the potential and dynamic growth of the Thane real estate market by offering high-quality residential options in addition to improving urban infrastructure.

Recent Transactions

The Mumbai real estate market is changing as a result of large-scale initiatives and joint ventures. Notable construction projects accentuate the region’s quick growth and entice builders and financiers to this prosperous suburban community.  

In a recent land deal, DMart acquired a plot of land in Chandivali for Rs. 117 crore. In another major land deal, Hindustan Construction Company (HCC) sold a 2.35 lakh sq mtr land block in Panvel near Mumbai to Oak & Stone Construction Pvt Ltd for Rs 95 crore.

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