A major joint development agreement (JDA) involving the rehabilitation of a 12.2-acre land piece in Thane’s Panchpakhadi neighborhood has been inked by L&T Realty. As per the documents accessed by CRE Matrix, a strategic alliance between Jagdale Infrastructure Pvt Ltd and L&T Parel Project Pvt Ltd, a subsidiary of L&T Realty, was publicly announced on May 7, 2024. The deal mandates a hefty stamp duty payment of ₹34.88 crore in addition to a registration charge of ₹30,000.
Slum Rehabilitation Model
The Maharashtra government initially owned the property parcel and designated it as a slum rehabilitation area in October 2016 under the Maharashtra Slum Area (Improvement, Clearance & Development) Act, 1971. A key component of urban growth in highly populated places like Thane is the adoption of a slum rehabilitation strategy, which the project would implement. The developers have committed to constructing a minimum of 12.7 lakh square feet to assist with the slum inhabitants’ rehabilitation. According to the documents accessed, the developers will build 31.25 lakh sq ft as part of the sale component to guarantee the project’s financial viability.
Market Potential
The price per square foot of residential real estate in Thane ranges from ₹10,000 to ₹25,000, contingent upon the neighborhood. The property is close to the Mulund Toll Naka, a significant crossroads that separates Mumbai and Thane. It has smooth communication and quick access to the Thane Railway Station and the Eastern Express Highway. A prominent player in the Mumbai real estate market, L&T Realty has developments in localities including Parel, Sewri, and Mahim. Their new venture in Thane complements their current endeavors, increasing their visibility in the region.
Profit Sharing and Project Timeline
L&T Realty, the project’s primary developer, will receive a 69% profit share under the JDA Agreement. The project’s estimated cost is close to ₹698 crore. The remaining 31%, or roughly ₹303 crore in profit, will go to Jagdale Infrastructure. Within five years, the project will rebuild around twenty slum pockets. L&T Realty will handle the design, development, construction, completion, marketing, branding, and sale of the project’s free-sale component.
This joint venture is a significant step forward for L&T Realty. It exemplifies the company’s commitment to innovative and socially responsible real estate development. Collaborative redevelopment initiatives provide creative ways to maximize land usage, revive existing assets, and make effective use of limited space. In today’s real estate scene, these initiatives maintain the growth and vibrancy of urban property markets.
The recent land deals highlight the dynamism in the real estate market. DMart recently paid Rs. 117 crore to purchase a block of land in Chandivali. Another significant land transaction saw Hindustan Construction Company (HCC) sell a 2.35 lakh sq mtr land block in Panvel to Oak & Stone Construction Pvt Ltd for Rs 95 crore.
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