Nov 07, 2022, 11:45 am
Larsen & Toubro Group’s, L&T Realty Ltd and Singapore-listed CapitaLand India Trust Management Pte. Ltd enters in a joint venture to develop and deliver 6 million sq ft of office space across Bengaluru, Chennai and Mumbai.
Under this platform, L&T will build and develop office projects, while CLINT will market them. Depending on the completion of these developments, CLINT expects a majority of the capital commitment for the projects to start from the second half of 2024. CLINT will acquire the ownership of these properties in a phased manner.
“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 million sq ft. We are delighted to have forged partnership with CLINT for premium office space in the three top metropolises of India," said Shrikant Joshi, CEO and managing director, L&T Realty.
Sanjeev Dasgupta, CEO of the trustee-manager said, “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. L&T’s strong track record in project development and CLINT’s extensive customer network and leasing capabilities will create synergies across the platform."
According to property advisory Colliers India, pan-India office leasing stood at 13 million sq ft during the July-September quarter of 2022, a 26% increase from the corresponding year-ago period. “…Office demand has witnessed a two-fold rise year-on-year year-to-date 2022, at 40.6 million sq feet, and is likely to cross 50 million sq ft towards the year-end. However, concerns about the upcoming global recession might trigger some short-term volatility in the market over the next 2-3 quarters," said Ramesh Nair, CEO, India and MD, Market Development, Asia, Colliers