L&T sells three floors in Powai tech centre for ₹80.95 cr

Mumbai: In yet another big-ticket office deal, Larsen and Toubro Ltd has sold 37,527 sq ft of carpet area on three floors in its Technology Centre IV on Saki Vihar Road to National Realty Pvt Ltd for a sum of ₹80.95 crore.

The transaction was registered on March 10, and the purchaser paid a stamp duty of ₹4.85 crore on the agreement value. As part of the deal, National Realty Pvt Ltd will get 12,509 sq ft of carpet area each on the 9th, 10th, and 11th floor of the Technological Centre IV along with 54 stack car parking, according to documents accessed by CRE Matrix, a real estate data analytics firm.

The two parties agreed to pay the agreement value of ₹80.95 crore in a staggered manner. According to the terms of the agreement, ₹8.09 crore was paid in January 2023, ₹7.85 crore was paid in February, and the balance consideration of ₹65 crore was to be paid in March, as per the documents.

National Realty Private Ltd is a family-owned company promoted by Kamal Kishore Jain and his son Sorabh Jain functions as its managing director. It began operations in 1983, and its business strategy is to acquire commercial properties with growth potential and lease them to national and multinational companies. It owns more than 65 commercial properties, primarily focused on Mumbai, Pune, Kolkata, and Nashik. It has more than 200 tenants with 75% of its tenants being multinational corporate tenants.

L&T had in December leased these three floors to Citiustech Healthcare Technology Pvt Ltd, a leading provider of consulting and digital technology to healthcare and life sciences companies, under a leave and licence agreement for 120 months.

The commencement date for the licence was December 26, 2022 and the first four months from the date will be the licence fee-free period. L&T had charged a rent of ₹61.65 lakh per month at the rate of ₹164 per sq ft for the first year, and the rent will see an escalation of 5% in the second year, and an escalation of 4.2% every year till the 10th year. In the 10th year, the rent would touch ₹89.96 lakh per month, as per the agreement between the two parties. This leave and License agreement was registered on February 3.

The agreement between L&T and National Realty Pvt Ltd states that the latter will take over the licence executed with Citiustech Healthcare along with the security deposit of ₹3.69 crore and the licence fees.

The agreement also mentions that the Common Area Maintenance charges for a café, gymnasium, crèche, common training room, recreational room on the ground floor, food court on the first floor, and EV charging stations in the premises will be borne by L&T and proportionately shared by National Realty.

When contacted, L&T officials did not offer a comment