L&T Realty Buys Elphinstone Road Land for ₹448.6 Crore

• 1.34 acres acquired through assignment deal worth ₹448.6 crore

• Landmark Grade-A office tower planned near Lower Parel

• Deal combines ₹300 crore cash with area-sharing arrangement

Mumbai: L&T Realty Developers Limited has acquired development rights over a 1.34-acre land parcel in Mumbai’s Elphinstone Road area for a total consideration of ₹448.6 crore, strengthening its commercial real estate footprint in the city.

According to property registration documents accessed by Propstack, the land—measuring about 5,414 sq metres and currently known as Khatri Estate—was acquired from AVA Smart City LLP through a deed of assignment registered on January 9, 2025.

Located close to Lower Parel, one of Mumbai’s most active office markets, the site offers strategic access to established commercial districts, transport links, and premium residential catchments.

Deal structure and financials

The transaction includes a cash component of ₹300 crore, while the remaining value will be settled through an area-sharing arrangement. Under this agreement, L&T Realty will allot 55,000 sq ft of non-residential RERA carpet area—in warm-shell condition—across selected floors of the upcoming commercial building, along with proportionate car parking spaces.

Documents show that stamp duty of about ₹26 crore was paid on the total consideration, along with a registration fee of ₹30,000.

What L&T Realty plans to build

Confirming the acquisition, L&T Realty said the project will be developed as a premium Grade-A commercial office campus. The proposed landmark tower will include three basement levels, a ground floor, six podium floors, and 28 office floors, with efficient floor plates of roughly 14,000 sq ft of carpet area.

The development will also feature modern workplace amenities such as a creche, business lounge, and food & beverage outlets, designed to meet the needs of corporate tenants in the Lower Parel–Elphinstone Road micro-market.

Anupam Kumar, CEO and Managing Director of L&T Realty, said the project has been envisioned as a future-ready workplace, targeting the BFSI-led commercial ecosystem of central Mumbai. He added that the company plans to complete construction in about 36 months and lease the building to top-tier corporates, creating a long-term rental annuity.

Understanding a “warm shell” unit

In commercial real estate, a warm shell unit refers to a partially finished office space that includes core infrastructure such as HVAC systems, basic flooring, lighting, plumbing, and restrooms—allowing tenants to move in quickly with minimal fit-out work.

Mumbai land deals gaining momentum

The acquisition comes amid heightened land-buying activity in the Mumbai Metropolitan Region. According to real estate consultancy Anarock, MMR recorded the highest number of land deals in the first half of 2025, with 24 transactions covering over 433 acres.

High-value transactions in recent months have included land sales by veteran actor Jeetendra Kapoor to NTT Global Data Centres, as well as large acquisitions by public institutions such as the Reserve Bank of India and the Rail Land Development Authority.

Industry experts say L&T Realty’s Elphinstone Road purchase reflects growing confidence in Mumbai’s commercial office market, particularly in centrally located micro-markets with strong corporate demand and limited land availability.