L&T Realty is going to develop a residential project together with DB Realty in Malad, Mumbai.

The real estate development arm Larson & Toubro’s (L&T Realty) is in planning to do a partnership with DB Realty for developing a residential project in the Malad area of Mumbai’s Western suburb. The said project is estimated to be over 1.4 million sq ft, said three persons with direct knowledge of the development.

The project will be carried out on almost 8 acres of DB Realty land in the area of Dindoshi, Malad.

L&T Realty and DB Realty wish to share 60:40 ratio, in accordance with the terms of the agreement. As landlord DB Realty shall be responsible for land-related approvals and shall bear the cost of the fungible Floor Space Index (FSI) and transferable development rights (TDR), and L&T Realty shall build, operate, brand and market the project.

“Talks are ongoing and the deal should be concluded in the near future. The entire plot is about 20 acres, but the partnership is being created to build part of it,” said one of the persons mentioned above.

Recently, DB Realty has formed many partnerships with developers in localities such as Prabhadevi and Bandra in Mumbai to develop their primary land parcels jointly.  

In one such instance, The Prestige Group, based in Bengaluru, took up a 26% stake in DB Realty’s commercial development in Bandra, Mumbai. This project has over 7 lakh sq ft of development potential and is worth about Rs 2,100 crore. A mixed-use project with a minimum of 200 hotel rooms is expected for the joint project, whereas the rest will be the office space. The deal represented the entry to the commercial market of Mumbai for the Bangalore-based Prestige Estates Projects.

The government policies, including the implementation of the 2016 Real Estate (Regulation & Development) Act, the Goods & Services Tax India and demonetization, have led to consolidated property sector operations. Several market developers are seeking partners through joint development, joint ventures, and even exiting a few projects completely.