Tata Group’s realty arm Tata Housing is negotiating with other group companies for unlocking the value of excess land in tier-1 cities, sources said.
Tata Housing is negotiating with Tata Group companies for projects in tier-1 cities including Mumbai, Pune and Hyderabad. It is expected that if the negotiations go through, property development could start by the end of next year.
“Tata Housing is negotiating with group companies for developing land parcels in Pune, Hyderabad and Mumbai,” one source told HT. According to the person, excess land parcels measuring around 350 acres are in Hyderabad, Pune and some other Southern Indian cities.
HT could not ascertain the break up for the remaining land parcels in Mumbai and NCR.
HT had on Thursday reported that Tata Housing is developing a 36-acre land parcel owned by Tata Realty in the National Capital Region (NCR), as part of the group strategy to unlock the value of its excess land across the country, adding up to around 1,000 acres.
Tata Group had conducted an internal study in 2009 and identified excess or ‘non-core’ land parcels belonging to the group across India that could be developed to realise value.
Initially it was decided that mixed used development—that is both residential and commercial—would be developed out on these land parcels.
However, now it has been decided that only those plots of land where residential properties could be developed are being given priority.
Brotin Banerjee, MD and CEO of Tata Housing, could not be reached for comments. However, Banerjee had on Wednesday told HT that Tata Housing had not got required permissions for its NCR project and was awaiting government clearance.
Sanjay Ubale, MD and CEO, Tata Realty and Infrastructure could not be reached for comments.