In what could be a first step in a plan to unlock the value of around 1,000 acres of unused land owned by the Tatas, group subsidiary Tata Housing is developing a 36-acre land parcel in the National Capital Region (NCR).
The Tata Group conducted an internal study in 2009 and identified excess or "non-core" land parcels belonging to the group across India, totalling about 1,000 acres. According to a person familiar with the development, the land could be worth between R30,000 crore and R50,000 crore. The prices have escalated since, and the valuation today would be much higher.
According to three people close to the development, Tata Housing is developing the land parcel on Golf Course road in Gurgaon. The company is developing a luxurious project on the 36-acre plot that belongs to Tata Realty, a Tata Group company.
“The land belongs to Tata Realty and Tata Housing will be developing it. Both companies have entered into a revenue sharing agreement,” a source close to the development said on the condition of anonymity.
Tata Housing will invest around R1,500 crore in the project, company sources told Hindustan Times.
A senior Tata Group official said the plan to develop excess land could be carried out in three ways — outright purchase, floating special purpose vehicles, and profit-sharing with the group company that owns the land.
The Gurgaon land is the first plot from the exercise to unlock value from surplus land. According to the internal study, it was proposed that Tata Housing would develop these land parcels.
The Tata Group did not respond to queries from HT. An email to Brotin Banerjee, managing director and CEO, Tata Housing, remained unanswered. However, during a brief conversation with the reporter over the phone Banerjee said, “We are yet to get government approvals (for the project) and hence would not be able share details about the project.”