Engineering major Larsen & Toubro (L&T) is planning to monetise its 67-acre land parcel in one of the plush areas of Bengaluru by developing a residential township there, said three persons with direct knowledge of the development. The plot that used to house L&T and Komatsu joint venture’s manufacturing unit for heavy machines has now been vacated by shifting the factory.
“The joint venture between L&T and Komatsu is now limited only to marketing after the buyout. Komatsu has already moved its factory to the outskirts of Bengaluru,” said one of the persons mentioned above. The entire land parcel will be developed in several phases in the next few years.
“At this stage, we decline to comment on the matter,” L&T said in an email response to ET’s query . Japanese mining equipment maker Komatsu exited its equal joint venture for hydraulic equipment manufacturing with L&T by selling its 50% stake in L&T Komatsu to the Indian partner two years ago. “L&T is looking at real estate engagement in a significant way . The land on which the factory was set up belonged to L&T and it has decided to take up real estate development,” said the earlier person.
Under the proposed plan, which has been submitted to the city’s civic body, L&T’s real estate development arm L&T Realty will be undertaking the project. “L&T has already received approval from the Bangalore Development Authority for the development of the land in Hebbal,” said another person in the know of the matter.
In the first phase, the company will develop 3,200 highend apartments. The proposed project on the land parcel is expected to be priced around Rs 7,000 per sq ft. Hebbal, once the end points of Bengaluru in the north of the city, has emerged as a top residential destination, dotted with high-end, premium addresses with apartments priced above Rs 1 crore.
L&T owns about 1,200 acres of land parcels across the country. L&T Realty began its operations in 2012 and is now undertaking projects in cities such as Mumbai, Bengaluru and Chennai where the group has owned land parcels. L&T owns around 1,200 acres of land parcels across the country , and is currently developing a 5-million sq ft mixed-use project at Seawoods in Navi Mumbai.
L&T Realty, along with its joint venture partner Omkar Realtors & Developers, is developing a premium residential project spread over 17 acres at Parel in central Mumbai. In Powai, the company is also developing a 3.6million sq ft premium residential complex. It has developed a commercial complex in Powai and has leased space to JPMorgan and sold an entire tower to Sanofi. The developer is executing a total 25 million sq ft of residential and commercial properties in Mumbai, Navi Mumbai, Chennai and Chandigarh.