L&T Realty, Nirmal Ink Pact to Develop Mulund Land Parcel
L&T Finance to fund project, which has a saleable development potential of 3m sq ft
Mumbai: L&T Realty, the real estate development arm of Larsen & Toubro, has entered into an agreement with Nirmal Lifestyle Developers to jointly develop a nearly 20-acre land parcel on LBS Marg in Mumbai’s north central suburb of Mulund.
The proposed development will be funded by L&T Finance to the tune of .₹ 570 crore. About .₹ 400 crore of this funding will be used to redeem NCDs of Green Maiden A 2013 Trust, Kotak Investment Advisors and INQ Holding — acting through Debenture Trustee IDBI Trusteeship Services. The balance is expected to be used for the project, which has a saleable development potential of around 3 million sq ft, and is expected to generate an estimated revenue of .₹ 5,500 crore over the next 7-8 years.
According to Dharmesh Jain, chairman, Nirmal Lifestyle Developers, the company has more than 1 crore sq ft of balance development potential in Mulund and is planning to line up more such partnerships. “We are in talks to execute more such part- nerships going forward,” Jain told ET. L&T Realty confirmed the agreement with Nirmal Lifestyle. On March 23, ET had reported that the developer was looking to monetise its land parcels. It is keen on a joint development pact as that would help it get future revenues apart from an upfront payment.
Recently, the Debt Recovery Tribunal had, in response to a petition filed by IDBI Trusteeship Services, directed the developer not to sell any of its properties. The company was as-
ked to disclose all movable and immovable asset.
The objective behind the proposed transaction is to support part repayment of the company’s debt currently at more than .₹ 1,800 crore with an annual cost of debt of about 20%. The developer had acquired the said land parcel in Mulund (west) from another Mumbaibased realty developer in 2005.