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L&T Realty, Larsen and Toubro’s real estate development arm, and Singapore-listed CapitaLand and India Trust Management, trustee-manager of CapitaLand India Trust (CLINT). have signed a non-binding term sheet for a commercial platform that will develop nearly six million square feet of office space in Bengaluru, Chennai, and Mumbai.
L&T will build and develop office spaces through this platform, while CLINT will market the office spaces. CLINT expects the majority of the capital commitment for the projects to begin in H2 2024, depending on the completion of these developments. CLINT will gradually acquire ownership of these properties.
Its portfolio in India includes the development of eight IT business parks, one logistics park, one industrial facility, and one data centre, with a total completed floor area of 15.5 million square feet spread across Bengaluru, Chennai, Hyderabad, Pune, and Mumbai.
“The Indian office leasing market continues to grow with demand for quality office space from international and domestic clients,” said Shrikant Joshi, CEO and managing director of L&T Realty. The net absorption space for the period January-September 2022 reached a three-year high of 30.3 million square feet. We are thrilled to have formed a partnership with CLINT for premium office space in three of India’s top metropolises.”
CLINT had pledged Rs 7,300 crore in six investments for 2021. CLINT’s assets under management in India totalled 2.5 billion Singapore dollars as of June 30, 2022. It intends to grow to 7-8 billion Singapore dollars over the next 4-5 years.
Furthermore, the fund is betting big on data centres, with a Rs 1,200 crore commitment and more on the way as it scouts for land, and it expects its warehouse portfolio to reach 1 billion Singapore dollars in total assets by 2025-2026.
L&T Realty has residential, commercial, and retail developments in Mumbai, Navi Mumbai, Bengaluru, Chennai, and the National Capital Region (NCR). The company is constructing over 100 million square feet of office space across the country.