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L&T Realty, the real estate development arm of Larsen and Toubro and Singapore-listed CapitaLand India Trust Management Pte. Ltd, trustee-manager of CapitaLand India Trust (CLINT) have entered into a non-binding term sheet for a commercial platform to develop close to six million square feet of prime office spaces in India.

The office spaces will be developed across Bengaluru, Chennai and Mumbai.

Under this platform, L&T will build and develop office spaces while CLINT will market the spaces.

Depending on the completion of these developments, CLINT expects the majority of the capital commitment for the projects to start from 2H 2024 onwards. CLINT will acquire the ownership of these properties in a phased manner.

"Indian Office leasing market continues to grow with demand for quality office space from international and domestic clients. The net absorption space for January-September 2022 period stood at a three-year high of 30.3 million square feet (2.8 million square metres). We are delighted to have forged partnership with CLINT for premium office space in the three top metropolises of India," Shrikant Joshi, CEO & MD, L&T Realty said.

"The proposed commercial platform with L&T provides CLINT an opportunity to scale up its presence across three major cities in well-established micro-markets. Furthermore, L&T's strong track record in project development and CLINT's extensive customer network and leasing capabilities will create synergies across the platform," Sanjeev Dasgupta, Chief Executive Officer of the trustee-manager said.

Both parties will make an announcement at a later date when definitive agreements are signed, CapitaLand said.