Tata Realty and Infrastructure Ltd to invest Rs 1,400 cr in commercial projects across three cities
Tata Realty and Infrastructure Ltd (TRIL) is reported to buy commercial projects in Chennai, Pune and Bengaluru worth Rs 1,200 – 14,00 crore. The company is said to have planned to build IT parks of around 12 million sq. ft in the said locations.
With a considerable low-costing portfolio, TRIL is making a strategic shift towards building more Rs 40 lakhs plus category mid-income homes. The Tata Group company will gradually scale down its investment in low-cost housing.
Managing Director and CEO of TRIL, Sanjay Dutt stated, “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.”
The company has six under construction projects including a 7 million sq. ft business park at Ghansoli in Navi Mumbai on a 47-acre plot. TRIL purchased the plot with its then-partner Standard Chartered Private Equity for Rs 325 crore.
In 2015, TRIL in partnership with Standard Chartered Private Equity had formed a Rs 3,000 crore investment platform to buy commercial assets in India. In 2018, Standard Chartered was replaced by UK based Actis Llp as TRIL investor partner.
At a time when most of the big developers and institutional funds are hurriedly investing in the growing demand for office spaces, TRIL is also focusing on expanding its commercial real estate portfolio.
Sunil Dutt stated that TRIL is undergoing a significant shift in its strategy of the housing business. He said that while TRIL is completing its existing low-cost housing projects, the company plans to launch housing projects above Rs 40 lakh. The company is also planning to scale down its focus only on six cities including Delhi-NCR, Bengaluru and Mumbai out of 15 cities at present.