Lokhandwala ropes in Shapoorji Pallonji to complete Minerva

Indicating more consolidation in the city's realty space, under which smaller builders join hands with biggies to develop and market projects, Lokhandwala Infrastructure has roped in the Shapoorji Pallonji group to complete its under-construction flagship project, Minerva. Minerva is a 90-floor tall skyscraper coming up in the Mahalaxmi area of central Mumbai overlooking the Race Course.

The tony project has been delayed for years even though the entire civil structure has been ready. Such tie-ups free up cash flows for both the partners and speed up completion on time. The shift has gained currency since the introduction of the sectoral regulator Rera.

Under the development model, large realty players step in as development managers for smaller developers and landowners in return for a share of the revenue, profit or a management fee. Such partnerships got a boost in the past two-three years due to the rising stress level in the sector. Earlier like big names like Godrej Properties and Piramal Realty among others have joined hands with smaller ones to develop, market and sell their upcoming projects.

Thursday Lokhandwala Infrastructure and the realty arm of the Shapoorji Pallonji group, SPRE, signed an agreement under which SPRE will finish the remaining work on the marquee project, Minerva, apart from managing and marketing the same, where a unit is priced in the upwards of Rs 20 crore. SPRE will also make some changes in the configuration. "Minerva is one of the key luxury residential destinations in the megapolis. The partnership strengthens our portfolio and fits well with our strategy of increasing product offering in the ultra-luxury residential segment," SPRE chief executive Venkatesh Gopalakrishnan told PTI.

He further said the development management business comprises a significant portion of its total portfolio and the company sees more opportunities for this model in the city. Lokhandwala Infrastructure, as per its website, is developing various projects in the megapolis, including luxury projects like Victoria and Empress Court in Worli, a commercial project in Andheri and two residential projects in Dubai.

"We believe our customers will derive enormous benefits from this value proposition," Lokhandwala managing director Moiz Lokhandwala said, adding the credibility of the brand Shapoorji Pallonji will make Minerva, a landmark of the city.

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