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L&T Realty has entered into a deal with real estate developer Nirmal Lifestyle Developers to jointly develop a 160-acre plot for residential use.
Under the agreement, L&T Finance Ltd will fund ₹570 crore for the project.
The land parcel has a development potential of three million sq feet.
When contacted, Dharmesh Jain, CMD, Nirmal Lifestyle Developers, confirmed the development. He said the premium housing project will commence operations in four to six months.
“We expect a project realisation of ₹5,500 crore,” he said. The upcoming project will be funded by L&T Finance.
Jain said of the ₹570-crore, the company will be using ₹400 crore to settle existing debt to Kotak Investment Advisors and INQ Holdings (acting through Debenture Trustee IDBI Trusteeship Services Ltd). While Jain will be the co-owner, L&T will be executing the project. Jain had acquired the land parcel in 2005.
Recently, the Debt Recovery Tribunal had directed the developer not to sell any of its properties.
The developer was also asked to disclose all movable and immovable assets in response a petition filed by the IDBI Trusteeship Services.
According to industry reports, real estate developers are opting for joint ventures with land owners to ease the financial burden, and also to mitigate risks of unsold inventory.
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