L&T Realty acquires land parcel in Mumbai’s Lower Parel for Rs 448.6 crore

MUMBAI: Engineering and construction major Larsen & Toubro’s realty development arm L&T Realty Developers has acquired a prime land parcel in Mumbai’s business district Lower Parel-Elphinstone Road micro-market through a deed of assignment for Rs 448.6 crore.

Of the total consideration, Rs 300 crore will be paid as cash, while the remaining value will be settled through an area-sharing arrangement comprising 55,000 sq ft of RERA carpet non-residential or commercial space, along with proportionate car parking spaces.

The transaction for the land parcel spread over 1.34 acres was executed on January 9 and involves the acquisition of land rights from AVA Smart City LLP, showed documents accessed through Propstack, a realty data analytics platform.


L&T Realty is planning to develop a tower with 28 office floors with floor plates of around 14.000 sq ft of carpet area. The proposed development will be constructed in 36 months, the company said in response to ET’s query.

Lower Parel and the broader Elphinstone Road belt have emerged as a major redevelopment hotspot over the last two-three decades, driven by the conversion of erstwhile mill lands and ageing industrial estates into high-density residential, commercial and mixed-use developments.

The micro-market has attracted sustained interest from large developers seeking scale and long-term visibility amid limited availability of large, contiguous land parcels in Mumbai’s island city.

For L&T Realty, the acquisition aligns with its strategy of expanding its Mumbai portfolio through well-located redevelopment and brownfield opportunities. The company has a presence across residential, commercial and mixed-use developments in the Mumbai Metropolitan Region.

Industry observers note that structured transactions involving a mix of upfront cash and area-sharing components are increasingly being used to bridge valuation expectations between landowners and developers, particularly in land-constrained markets such as Mumbai.

The deal also highlights continued confidence in central Mumbai real estate, even as developers remain selective amid moderating residential sales volumes and rising input costs.