SINGAPORE (EDGEPROP) - Mainboard-listed CapitaLand India Trust Management and L&T Realty have entered into a non-binding term sheet for a commercial platform to develop close to 6 million sq ft of prime office spaces across three Indian cities.

CapitaLand India Trust Management is the trustee-manager of CapitaLand India Trust, while  L&T Realty is the real estate development arm of Indian conglomerate Larsen and Toubro.

“The Indian office leasing market continues to grow with demand for quality office space from international and domestic clients,” says Shrikant Joshi, CEO and managing director of L&T Realty.

The offices will be located across Bengaluru, Chennai, and Mumbai. Under this agreement, L&T Realty will build and develop the office spaces, while CapitaLand India Trust will market the office spaces. The latter expects most of the capital commitment for these projects to start from 2H2024.

Subsequently, CapitaLand India Trust will acquire these office properties in phases.

“The proposed commercial platform with L&T Realty provides CapitaLand India Trust an opportunity to scale up its presence across three major cities in well-established micro-markets,” says Sanjeev Dasgupta, CEO of the trustee-manager.

Dasgupta adds that the development expertise of L&T Realty and the customer network and leasing capabilities of CapitaLand India Trust will create synergies across the platform.