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    Tata Group's real estate arm plans to expand commercial portfolio to over 20 million sqft

    Synopsis

    The firm is actively negotiating land deals in the southern office market and expects it to contribute a substantial percentage to its overall commercial portfolio in the next 3-5 years.

    real-estate-gettyGetty Images
    “South India including Bengaluru commercial real estate market is extremely important and we are looking to expand very aggressively in these markets,” said Ritesh Sachdev, head-commercial leasing and asset management, Tata Realty & Infrastructure (TRIL).
    Bengaluru: The real estate development arm of Tata Group is looking to expand the size of its commercial portfolio to over 20 mn from current ready and fully leased 6.2 million sq. ft. through new developments and acquisitions, a senior official of the company told ET.

    The firm is actively negotiating land deals in the southern office market and expects it to contribute a substantial percentage to its overall commercial portfolio in the next 3-5 years.

    “South India including Bengaluru commercial real estate market is extremely important and we are looking to expand very aggressively in these markets,” said Ritesh Sachdev, head-commercial leasing and asset management, Tata Realty & Infrastructure (TRIL).

    "We are in talks to acquire some land parcels and are looking at adding strategic assets across locations"

    — Ritesh Sachdev, TRIL

    The company is exploring both organic and inorganic opportunities to scale up its business.

    “We are in talks to acquire some land parcels and are looking at adding strategic assets across locations. If there are ready strategic assets that allow us to scale profitability, we will explore it,” said Sachdev. “If all the acquisition that we are looking at goes through we will be able to scale the portfolio to 40 mn sft in the next five years.”

    The firm that is planning to list its Real Estate Investment Trust (REIT) with around 20-million-sq-ft of commercial assets in the next couple of years, expects commercial real estate to contribute about 60 per cent of the overall portfolio—under the Intellion brand—from the current 30 per cent.

    Commercial real estate market has witnessed continued investor interest post the lifting of nationwide lockdown with Bangalore leading the deal.


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