NEW DELHI: In a move to consolidate its realty business, the Board of Directors of L&T has approved the transfer of its Realty Business Undertaking (Realty BU) to L&T Realty Properties Ltd (L&T Realty), a wholly-owned subsidiary of the company, through a slump-sale.
The company said in a statement that the move marks the beginning of a phased consolidation of all real estate assets and undertakings of L&T, which will be vested in L&T Realty, thus creating a unified, future-ready entity capable of capitalising on India’s real estate growth.
“L&T Realty needs to perform independently. It has to continuously expand its project pipeline through proactive land bank growth and joint developments. This requires periodic capital infusion, and therefore, it is essential to bring all our real estate operations under a singular corporate structure and bolster L&T Realty’s position as a unified brand for real estate,” said SN Subrahmanyan, chairman & managing director, L&T.
He added that the proposed transfer is the first step in creating a consolidated powerhouse that can redefine the future of urban development in India.
According to Subrahmanyan, the strategy is anchored in deepening presence across major metros, sustaining premium and luxury brand positioning, pursuing disciplined land acquisitions, strengthening partnerships for joint developments and navigating market cycles with institutional rigour.
L&T Realty was founded in 2011 with a mandate to develop both L&T land holdings and joint-venture opportunities with leading partners. The company constructed some premium residential, commercial and mixed-use properties across India’s top urban centres — Mumbai, Navi Mumbai, Bengaluru, NCR, Chennai and Hyderabad. According to the company, it has a substantial development potential of 65 million sqft, spanning across upscale residential communities, Grade-A commercial spaces and high-street retail developments.