Valor Estate, formerly known as DB Realty, and L&T Realty, the property development arm of the engineering giant Larsen & Toubro (L&T), have agreed to jointly develop a project worth Rs.8,500 million.
It would be built on a 7.5-acre parcel of land at Bandra West in Mumbai's Bandra West neighborhood. On the plot, the businesses intend to construct a premium residential development of nearly 1.6 million square feet.
Goregaon Hotel & Realty (GHRPL), a subsidiary of Valor Estate, and a consortium led by Om Metals, a hydro-mechanical engineering services company, had agreed in 2013 to develop this project.
In the year 2006, the Maharashtra Housing and Area Development Authority granted the consortium permission to develop this project. If the project's average sale rate reaches Rs.55, 000 per sq. ft. of RERA carpet area, L&T Realty will receive 80% of the proceeds and Valor Estate will receive 20%.
The agreement was signed last month. In addition, L&T Realty is anticipated to provide Valor Estate with a developed area of 2.75 lakh square feet as part of the project. Valor Estate is anticipated to keep this space as a luxury hotel with approximately 200 keys. An international hotel brand and Valor Estate are in advanced discussions regarding a 20-year operating agreement for the luxury hotel. After the Taj Lands' End, this will be Bandra West's second luxury hotel.
It is the responsibility of Valor Estate to clear the land and obtain the necessary permits, both of which are anticipated to be completed within the next 12 to 18 months. Additionally, it calls for the rehabilitation of 1,050 tenements by 2027 and 2028. After the project begins, it is anticipated that the entire undertaking will be completed within the next five to six years.
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