L&T Realty, the Larsen & Toubro Group's real estate development wing, and Singapore-listed CapitaLand India Trust Management Pte. Ltd., trustee-manager of CapitaLand India Trust (CLINT), has inked a non-binding term sheet for a commercial platform to build close to 6 million square feet (msf) of office space across Bengaluru, Chennai, and Mumbai.
Shrikant Joshi, chief executive officer (CEO) & managing director (MD), L&T Realty said, “Indian Office leasing market continues to grow with demand for quality office space from international and domestic clients. The net absorption space for the January-September 2022 period stood at a three-year high of 30.3 million square feet (2.8 million square metres).”
Under this platform, L&T will build and develop office spaces while CLINT will market the office spaces. "Depending on the completion of these developments, CLINT expects the majority of the capital commitment for the projects to start in the second half of 2024. CLINT will acquire the ownership of these properties in a phased manner," the statement said.
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." Furthermore, L&T’s strong track record in project development and CLINT’s extensive customer network and leasing capabilities will create synergies across the platform, Dasgupta added.
According to JLL’s Office Market Update-Q3, 2022, India's net office space absorption for January through September reached a three-year high of 30.3 msf due to robust supply completions and excellent pre-commitments.
On a Quarter-on-quarter (Q-o-Q) basis as well, the net absorption for the July-September quarter was up by 11 percent Q-o-Q and recorded at 9.86 million square ft, the report mentioned.
In terms of nine-month net absorption levels, Bengaluru is in the lead, followed by Hyderabad and Mumbai. The nine-month net absorption for 2022 is significantly higher than it was for the same period in 2021 in all seven of the top cities, the report added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
