Valor Estate and Macrotech in pact for Mumbai Residential project 

Valor Estate, previously known as DB Realty, has entered into a binding agreement with Macrotech Developers (Lodha Group) for a prestigious residential project in Malad West, Mumbai, sources have told Business Today TV.

The project, which spans 5.4 acres of prime land, is likely to achieve a significant gross development value of up to Rs 3500 crore, they added.

The project is slated for launch within the next 12 months, with an anticipated completion timeframe of four to five years. The development marks a strategic move for Valor Estate as they continue to implement their asset/capital-light operating model strategy, the sources added.

"According to the terms of the agreement, Valor Estate will receive up to 18% of excess net revenue, in addition to Rs 100 crore towards the land cost. The estimated net revenue for Valor Estate stands at approximately Rs 600 crore, with no further capital deployment required from their end. This partnership enables Valor Estate to unlock part of its extensive land bank, which will be in line with the strategic goal", they added.

Valor Estate's portfolio of partners includes industry players such as Prestige Estate, Adani Realty, Godrej Properties, Man Vastucon, and now, their maiden partnership with Macrotech Developers. 

Sources also said that that Valor and Macrotech will look at exploring more projects in Mumbai as per this framework.

In March, Valor Estate had announced  the transfer of 186 acres of land to the Brihanmumbai Municipal Corporation (BMC) at a valuation of Rs 248 crore for a period of three years, extendable up to five years.

The company reported consolidated quarterly numbers with net sales reaching Rs 144.22 crore in March 2024, marking a 147.16% increase from Rs 58.35 crore in March 2023. Despite a quarterly net loss of Rs 6.54 crore in March 2024, this was a significant improvement from the Rs 51.62 crore loss reported in March 2023. Additionally, the EBITDA stood at Rs 41.03 crore in March 2024, reflecting a 251.79% increase from Rs 27.03 crore in March 2023.

The National Company Law Appellate Tribunal (NCLAT) reportedly nullified an insolvency resolution against DB Realty following a settlement with the Bank of India. As per reports, DB Realty's promoters agreed to pay dues amounting to Rs 703.35 crore, leading to the withdrawal of insolvency proceedings initiated by the lender.