L&T Realty, Valor Join Hands for Rs 8,500 Crore Mumbai Project

16 Aug 2024 , 12:45 PM

According to news reports, Valor Estate, the former DB Realty, and L&T Realty, the property development division of engineering major Larsen & Toubro, have signed a legally binding contract to jointly develop an over Rs 8,500-crore project on a 7.5-acre land parcel at Bandra Reclamation in Mumbai’s Bandra west locality.

In accordance to this agreement, the firms want to create on the property approximately 1.6 million square feet of luxury residential space.

The project was developed in 2013 by Valor Estate’s subsidiary Goregaon Hotel & Realty Pvt Ltd (GHRPL) under a consortium headed by Om Metals, a hydro-mechanical engineering services provider.

The Maharashtra Housing and Area Development Authority granted Om Metals Consortium permission to proceed with this project in 2006.

According to the terms of the agreement, which was inked last month, if the project’s average sale rate is up to Rs 55,000 per sq ft of RERA carpet area, L&T Realty will keep 80% of the revenue and share 20% with Valor Estate.

The revenue share of Valor Estate could rise if the project’s realization price rises above this threshold. One of the aforementioned individuals stated that Valor’s income share would rise to 27% if the average price per square foot exceeded Rs 80,000.

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