Tata Realty and Infrastructure Ltd (TRIL) will buy commercial projects in Pune, Bengaluru and Chennai for ₹1,200-1,400 crore, a top company executive said. The company will build information technology (IT) parks of around 12 million sq. ft at these locations.
The Tata Group company, which has a sizable low-cost housing portfolio, is also making a strategic shift to build more mid-income homes in the ₹40 lakh-plus category. It will gradually scale down its investment in low-cost housing. Under Tata Value Homes, its affordable housing segment, the company has six under-construction projects.
“We already have a large portfolio of housing projects across 15 cities. So, it makes sense for us that we add more commercial now. It gives us more scale and de-risk from depending on one segment of real estate,” Sanjay Dutt, managing director and chief executive officer, TRIL, said in an interview.
The company is also in the process of building a 7 million sq. ft business park on a 47-acre plot at Ghansoli in Navi Mumbai. Two years ago, TRIL, along with its then partner Standard Chartered Private Equity, had bought the land for ₹325 crore.
TRIL’s focus to expand its commercial real estate portfolio comes at a time when several other large developers and institutional funds are rushing to capitalize on the growing demand for office spaces, even as the residential market is yet to recover from a prolonged slump.
Many private equity and investment firms, including Blackstone Group and Brookfield Asset Management, have been lapping up several large fully leased prime commercial office buildings in prime real estate markets across India.
The company plans to scale down its focus to just six key cities such as Mumbai, Bengaluru and Delhi-NCR from its existing 15 cities at present.
This article was first published on livemint.com.