RMZ offers ~8.15 bn to buy L&T land in Bengaluru

Bengaluru-based property developer RMZ is in final round of negotiations to acquire 14-acre land of engineering and construction major Larsen & Toubro (L&T) in Bengaluru. If the deal goes through, it will become the largest land deal in south India this year.

RMZ has quoted around ~8.15 billion (~0.58 billion per acre) for the land parcel in Hebbal area of Bengaluru, said sources in the know.

“They are in final leg of the talks. L&T board should now approve it,” said a person who did not want to be quoted. L&T spokesperson did not comment on the development. RMZ executives, too, declined to speak on the deal.

RMZ is expected to develop a commercial property on the plot, which is close to Bengaluru airport and has a development potential of 4 million square feet. Though another Bengaluru developer, Salarpuria Sattva, has shown an interest in the plot, it did not bid for the property, said Bijay Agarwal, firm’s managing director.

L&T sold a part of the factory land in Hebbal area to Phoenix Mills-CPPIB in April for ~6.5 billion, and the combine is building a mall on 1 million sq ft of the plot. The rest of the land parcel is up for sale. Property consultant JLL is running the mandate.

The sale of the land parcel is part of L&T’s plans to sell non-core assets and generate cash for its core businesses, sources said.

L&T was looking to develop the land and build a commercial project, but dropped the plan later. However, it could not be independently verified.