L&T Realty Buys Khatri Estate Site on Elphinstone Road for Grade A Office Tower

L&T Realty acquires Khatri Estate land for a Grade A office tower

L&T Realty Developers Limited, the real estate arm of the Larsen & Toubro Group, has acquired a 1.34-acre parcel at Khatri Estate on Elphinstone Road in Lower Parel, Mumbai, to build a premium Grade A commercial office tower. The land rights were assigned by AVA Smart City LLP for a total consideration of Rs 448.6 crore, of which Rs 300 crore was paid in cash. The transaction was completed through a deed of assignment executed on January 9, 2026.

The site will be developed as part of the company's Innovation Campus portfolio. For companies looking for large-format workspace in south-central Mumbai, the project signals a single, large commercial tower with generous floor plates and a set of shared amenities, with leasing planned for top-tier corporates in banking, financial services, technology and professional services.

Project details and planned specifications

The 1.34-acre site measures 6,474 square yards, or about 5,413 square metres. A floor space index of 3.0 has been considered in valuing the property. The company plans a single tower on the parcel, which will rise over three basement levels, a ground floor, six podium levels and 28 office floors above the podium.

Each office floor is planned at about 14,000 square feet of carpet area, a floor plate that suits corporate occupiers seeking open, consolidated floors. The development also includes 55,000 square feet of RERA carpet area for non-residential use, which L&T Realty will deliver as warm-shell space on floors 9 to 15 to the seller, or as mutually agreed, along with proportionate parking.

The tower is planned with a business lounge, a creche and food and beverage outlets. Construction is expected to take around 36 months. The project is currently listed as upcoming, and the start of construction has not yet been announced.

• Site area: 1.34 acres (6,474 sq yards)
• Floor space index considered: 3.0
• Structure: three basement levels, ground floor, six podium levels, 28 office floors
• Floor plate: about 14,000 sq ft carpet per office floor
• Warm-shell delivery to seller: 55,000 sq ft RERA carpet on floors 9 to 15, or as mutually agreed
• Planned amenities: business lounge, creche, food and beverage outlets
• Indicative construction period: around 36 months

Location and connectivity on Elphinstone Road

The parcel sits next to Lower Parel, one of the city's established commercial hubs, and is served by Lower Parel station on Mumbai Metro Line 3 (Aqua Line), within the locality and a few minutes' walk from most nearby towers. Worli and Mahalaxmi metro stations are about 1 km and 1.5 km away. Line 3 reaches Bandra Kurla Complex in roughly 15 to 18 minutes and the airport stations in about 35 to 40 minutes without an interchange. Elphinstone Road, Lower Parel and Dadar stations on the Western Railway network are each about 1 km away, and Chhatrapati Shivaji Maharaj International Airport is around 10 km by road.

Palladium Mall is roughly 84 metres from Lower Parel metro station. The area already hosts several Grade A office towers, including Peninsula Business Park, One World Center, Indiabulls Finance Centre, Lodha Excelus, Naman Midtown and One Lodha Place. K.E.M Hospital, Wadia Maternity Hospital and Tata Hospital (Bhoiwada) are within reach of Elphinstone Bridge, and the Siddhivinayak Temple is accessible from the area.

Road access is set to improve. The Sewri–Worli Elevated Connector, a 4.5-km four-lane elevated corridor being built by MMRDA, will link the Atal Setu with the Bandra–Worli Sea Link and the under-construction Mumbai Coastal Road. Its deadline has been extended to May 31, 2027. Reconstruction of the Elphinstone Bridge, which is being replaced by Mumbai's first double-decker road over bridge spanning 132 metres, has reached about 80 percent completion. The connector also provides faster access to the upcoming Navi Mumbai International Airport.

Lower Parel office market context

Office rents in Lower Parel were reported at ₹135 to ₹225 per sq ft in 2026, up 12.5 percent year on year. Grade A furnished space in the area is quoted in a band of ₹170 to ₹225 per sq ft per month, with common area maintenance charges of ₹15 to ₹25 per sq ft on top.

Lower Parel Grade A building	Rent per sq ft per month (April 2026)
Peninsula Business Park	₹220 to ₹225
One World Center	₹200 to ₹220
Lodha Excelus	₹180 to ₹210
Indiabulls Finance Centre	₹170 to ₹190
Naman Midtown	₹175 to ₹185

L&T Realty's footprint in Mumbai

L&T Realty was established in 2011 as the real estate arm of Larsen & Toubro, a group with a market value of about $21 billion. Its portfolio spans roughly 6.5 million square metres (about 70 million sq ft) of commercial and residential projects across Mumbai, Navi Mumbai, Bengaluru and Chennai.

In Mumbai, the company has delivered about 20 projects. These include L&T Crescent Bay in Parel, which was handed over in August 2018, a short distance from the new Khatri Estate site, along with Emerald Isle Phase 2 in Powai, handed over in June 2023, and Elixir Reserve in Powai, handed over in April 2025. On the commercial side, L&T Tech Park 1 and L&T Business Park (TC IV) are completed. The company's earlier Elphinstone Road work is described on its L&T Realty Elphinstone Road project page.

The Khatri Estate acquisition also reflects a broader shift toward buying land directly in prime locations, rather than relying only on joint ventures to develop them. Local residents say the company has also begun efforts to acquire nearby residential buildings.

What comes next

With the land secured, the next steps for the project are the design and approval stages, followed by the start of construction, which is expected to take around 36 months from that point. Leasing to corporate occupiers is planned as the building progresses. Further updates on the project's launch, approvals and leasing terms will be announced by L&T Realty as they become available. Buyers and occupiers interested in the project can follow developments on the company's channel-partner microsite.