From ET Realty
MUMBAI | BENGALURU: Realty developer Tata Housing Development Company has entered into an agreement to jointly develop a 200-acre land parcel in Bengaluru, said two persons familiar with the matter. The developer is looking to develop an integrated township on the land parcel located near Trumpet junction in Bengaluru.
“The agreement with the local land owner was registered last week and the project’s master plan is being finalized. The entire project is expected to be completed in more than five phases spread over 12-14 years,” said one of the persons mentioned above.
The integrated township will be the biggest residential project in Bengaluru and will also be the largest for Tata Housing Development Company so far. The developer is already developing an integrated township spread over 100 acres in Ahmedabad.
Tata Housing Development Company declined to comment on the story.
Tata Housing Development Company is looking to develop around 60% of this project as residential, while the rest as retail and commercial space. Of the commercial development, key component will be for non-information technology workspaces, given the proximity to nearly 1,000-acre Bengaluru Aerospace Park.
To begin with, Tata Housing Development Company will finance the project through internal accruals and will decide on inducting any financial investor once the master plan the project is ready.
Currently, under-construction projects in the vicinity include Ozone Urbana and Brigade Orchid, while property prices around this location are hovering near Rs 5,000 per sq ft.
Tata Housing has around 70 million sq ft space under various stages of planning and execution across the country with an additional pipeline of 19 million sq ft. Of this, the company has two projects under construction in Bengaluru.
As a strategy, several developers are entering into a joint development agreement with land owners in the backdrop of high land prices that continue to move upward across the country. Out of Tata Housing‘s total portfolio, around 70% projects are in partnership with local developers and land owners.
According to property market experts, the trend of consolidation in the realty sector is expected to gather momentum hereon with existing land owners and builders entering into such joint development agreements across major property markets across the country.