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L&T Realty to build commercial tower in Lower Parel, acquires land for Rs 300 cr
L&T Realty to build commercial tower in Lower Parel, acquires land for Rs 300 cr
Larsen & Toubro-owned real estate firm L&T Realty has announced the development of a new commercial tower in Lower Parel, aimed at expanding its Grade-A office portfolio, L&T Innovation Campus, and has acquired a 1.3 acre land parcel in the area for that purpose.
According to registration documents accessed by Propstack, L&T Realty is paying the landlord, AVA Smart City LLP, Rs 300 crore as acquisition cost, along with 54,000 square feet of ‘warm shell' premises from the ninth to 15th floor of the building once completed. In commercial property terms, a ‘warm shell' property indicates that it has basic requirements in place, such as air conditioning, some electrical fittings, completed floors and ceilings, and lighting.
L&T Realty said in a statement that the property will include a single tower, with 28 office floors, a ground floor, basement, and six podium floors. The offices are expected to have floor plates of around 14,000 square feet each.
The Lower Parel-Prabhadevi belt is one of the most sought-after markets for major corporates, large, strategic facilities, including their headquarters, especially for the banking, financial services, insurance (BFSI) sector, players in the manufacturing and pharmaceutical segments, as well as for professional services networks and major law firms.
Office rentals have significantly increased over the past two years due to a persistent shortage, with monthly rentals for Grade-A office spaces trading at more than Rs 250 per square foot.
The company, which is headed for a public listing over the next two years, said that it is aiming for the corporate and BFSI sectors in the new tower, with the location also seeing major infrastructure development to improve access.
“The L&T Realty Innovation Campus at Lower Parel has been envisioned as a future-ready workplace. Tapping into the BFSI micro-market of Lower Parel in the financial capital of the country, this development enjoys a central position with strong corporate presence, unparalleled connectivity, robust social infrastructure, and ease of access to premium residential catchments,” said Anupam Kumar, CEO and managing director, L&T Realty.
Anupam added that the property has a construction timeline of around 36 months, and has the potential to bring in significant annuity income for the company.
Source: Msn
Source: Msn
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