M3M India Pvt Ltd plans to partner multiple realty companies to separately develop a 185-acre premium land asset in the National Capital Region (NCR), said two people familiar with the talks.

The Gurugram – based firm acquired the land parcel for ₹ 1,211 crores from the Sahara Group three years ago. The land is on Dwarka Expressway—a highway connecting Dwarka in Delhi to Gurgaon in Haryana, and one of the most promising realty markets in the country.

M3M to tie up with builders to develop 185-acre land in NCR

The firm is in talks with Shapoorji Pallonji Real Estate to develop one parcel of land.

“Shapoorji Pallonji is in talks with M3M for 20 acres in Dwarka Expressway, where it plans to do residential development but there will be a small portion of retail as well,” said one of the two people mentioned above, who didn’t wish to be named.

The person said Shapoorji would likely enter into a joint development agreement (JDA) with M3M if a deal is finalized.

Pankaj Bansal, director at M3M India said the company is looking to collaborate with the “right partners.”

“There are corporate groups who want to enter the NCR market but with clean partners with land parcels in good locations,” he said, adding talks are on with several companies to develop the land parcel.

“We want to have a retail shopping mall there and are in talks with international players for it. We will also develop a part of the land on our own,” Bansal said.

The land is estimated to have a development potential of almost 30 million square feet. It can be utilized for mixed-use development combining residential, commercial and office space.

The people said talks are also progressing with other realty companies on developing the land through separate joint development agreements.

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In the last three years, land acquisition has slowed down in India with lower residential demand from end consumers and high leverage among developers. As a result, several realty companies signed joint development agreements with landowners or with other developers, in a bid to either monetize their own land parcels or in some cases, to take over the development rights themselves.

“There are many mid-sized developers, who have good land parcels but are unable to develop all of it themselves and they are partnering with stronger developers, backed by corporate groups who have the financial bandwidth as well development capability,” said Mudassar Zaidi, executive director – North, Knight Frank India, a property advisory.

After almost two years of a slump, the January-June period saw the launch of 91,739 housing units, an increase of 46% from a year ago, a Knight Frank report said last week, even as sales in the same period grew just 3% to 124,288 units.

Santhosh Kumar, vice-chairman of Anarock Property Consultants says a lot of consolidation in the real estate sector is happening through this route where developers want to monetize their assets and they become the master developer, and bring in other developer partners.