L&T Realty, the real estate development division of Larsen & Toubro, has engaged in a collaborative effort to develop a 12.2-acre land parcel located in Thane’s Panchpakhadi area. The project, aimed at rehabilitating numerous slum pockets, holds a substantial development potential exceeding 3.12 million sq ft. Originally initiated by developer Jagdale Infrastructure, which secured a letter of intent from the Slum Rehabilitation Authority in 2022, L&T Realty has now joined as a partner in the venture. Under the terms of the agreement, L&T Realty will act as the primary developer, receiving 69% of the project's profits, with the remaining 31% going to Jagdale Infrastructure. Anticipated to span five years, the project encompasses the redevelopment of over 20 slum societies. Financial documents accessed through CRE Matrix estimate L&T Realty's profit share at approximately Rs 698 crore, while Jagdale Infrastructure is expected to receive around Rs 303 crore. The joint development agreement, facilitated by L&T Realty's subsidiary L&T Parel Project, involved a stamp duty payment exceeding Rs 34.88 crore during the transaction's registration on May 7. Originally owned by the Maharashtra government, the land was designated as a slum rehabilitation area in October 2016. Occupied by slum dwellers organized into numerous societies, the project aims to provide over 1.2 million sq ft of rehabilitation space. L&T Realty's responsibilities encompass the design, development, construction, marketing, branding, and sale of the project's free-sale component. Additionally, the company will oversee partner responsibilities related to approvals and rehabilitation construction. Despite attempts to obtain clarification from L&T Realty and Jagdale Infrastructure, responses to ET's email queries were unavailable at the time of publication. Joint development and redevelopment initiatives play a pivotal role in optimizing land use, particularly in the face of escalating land prices and diminishing vacant parcels in major urban centers. By revitalizing existing properties and efficiently utilizing limited space, such projects contribute significantly to sustaining urban property market growth and vibrancy, making them essential components of the contemporary real estate landscape.