Tata Realty and Infrastructure Ltd (TRIL) will purchase commercial projects in Pune, Bengaluru and Chennai for ₹1,200-1,400 crore with the objective of developing three office projects. TRIL targets three office projects of around 12 million sq. ft at these locations.
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.
TRIL’s announcement to take up three office projects aligns with the group’s strategy to gradually deviate from low cost housing. While the company plans to complete its existing low-cost housing projects, its future residential project launches will be homes of above ₹40 lakh. 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.
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 in order to bite into India’s growing commercial buildings space.