L&T Realty and Jagdale Infrastructure Partner to Transform Thane's Panchpakhadi with Major Redevelopment Project

Strategic Joint Development in Thane

L&T Realty, the real estate arm of engineering giant Larsen & Toubro, has signed an agreement for the joint development of a 12.2-acre land parcel in Thane’s Panchpakhadi area. This ambitious project, which focuses on the rehabilitation of a large slum layout, boasts a total development potential of over 3.12 million square feet.

Rehabilitation and Development Plans

Jagdale Infrastructure, the current developer, secured a letter of intent from the Slum Rehabilitation Authority in 2022 and has now partnered with L&T Realty for this project. Under the agreement, L&T Realty will act as the lead developer, receiving a 69% share of the profits, while Jagdale Infrastructure will retain 31%. The project, expected to be completed within five years, involves over 20 slum pockets. According to documents accessed through CRE Matrix, L&T Realty’s share of the profit is projected to be nearly Rs 698 crore, with Jagdale Infrastructure’s share estimated at Rs 303 crore.

Substantial Investment and Legal Framework

L&T Realty has formalized the joint development agreement through its subsidiary, L&T Parel Project, paying over Rs 34.88 crore in stamp duty for the transaction registered on May 7. The land, originally owned by the government of Maharashtra, was designated as a slum rehabilitation area in October 2016 under the Maharashtra Slum Area (Improvement, Clearance & Development) Act, 1971. Encroached and occupied by slum dwellers organized into over 20 societies, the project will include a rehabilitation component of over 1.2 million square feet.

Comprehensive Development and Oversight

L&T Realty will be responsible for the design, development, construction, completion, marketing, branding, and sale of the free-sale component of the project. The necessary floor space index for the free-sale component will be generated through a proportionate rehabilitation component. Additionally, L&T Realty will oversee the partner’s responsibilities, including obtaining approvals and constructing the rehabilitation segment.

Optimizing Land Use and Revitalizing Urban Spaces

Joint development and redevelopment projects are crucial in addressing the challenges posed by rising land prices and the decreasing availability of vacant land in major urban centers. These initiatives provide innovative solutions to optimize land use, revitalize existing properties, and efficiently utilize limited space, thereby sustaining the growth and vibrancy of urban property markets.