FCC

L&T to redevelop 31.25 lakh sq ft at Pachpakhadi in Thane

2024-05-24

In what is considered one of the major real estate deals in the Mumbai Metropolitan Region, L&T Parel Projects agreed to develop a plot measuring 31.25 lakh sq ft (49,386 sq m) at Pachpakhadi in Thane. L&T entered into an agreement with Jagdale Infrastructure to develop the plot. The total RERA area to be developed is 31.25 lakh sq ft, and the total rehab area to be developed is 12.7 lakh sq ft.

According to a notification dated October 26, 2017, the land was declared a slum rehabilitation area under the provisions of Section 3C(1) of the Maharashtra Slum Area (Improvement, Clearance and Development) Act, 1971.

The developers would jointly develop the project land, which has a minimum developmental potential of a RERA carpet area of 31.25 lakh sq ft. The total agreement value is Rs 6.97 billion, and the stamp duty paid is Rs 340.88 million, according to documents accessed by CRE Matrix, a real estate data analytics firm.

The Slum Rehabilitation Authority (SRA), through a letter of intent dated December 7, 2022, approved the appointment of L&T Parel Projects as the developer of the land under the Slum Act and the relevant regulations of the UDCPR.

As per the agreement and mutual responsibilities, besides project obligations of the parties, it was agreed that the developer would be entitled to receive 31% of the net revenues. Similarly, the agreement specified that L&T would be entitled to receive 69% of the net revenue from the aggregate premises for its absolute and beneficial use as deemed fit.