L&T Realty, CapitaLand tie up to develop 6 mn sq ft of prime office space

L&T will build and develop the spaces, CLINT will market them; most of the projects are to be started from the second half of 2024

L&T Realty, the real estate development arm of L&T and Singapore-listed CapitaLand India Trust Management Pte. Ltd, trustee-manager of CapitaLand India Trust (CLINT), have entered into a non-binding term sheet to set up a commercial platform for developing six million square feet of prime office space in Bengaluru, Chennai and Mumbai.

Through this platform, L&T will build and develop the office spaces, while CLINT will market them.

According to CLINT, most of the projects are to be started from the second half of 2024. CLINT has planned to acquire the ownership of these properties in a phased manner, said the release.

“The Indian office leasing market continues to grow with demand for quality office space from international and domestic clients. The net absorption space for January-September 2022 period stood at a three-year high of 30.3 mn sq ft,” said Shrikant Joshi, CEO & MD, L&T Realty.

The proposed commercial platform with L&T provides CLINT an opportunity to scale up its presence across three major cities in well-established micro-markets, said Sanjeev Dasgupta, Chief Executive Officer of the trustee-manager.

“L&T’s strong track record in project development and CLINT’s extensive customer network and leasing capabilities will create synergies across the platform,”he added.

He said both parties will make an announcement at a later date when definitive agreements are signed.