Tata Housing Development Co. Ltd. and textile major Arvind Ltd have formed an equal joint venture to develop a township project spread over 134 acres near Ahmedabad.
This will be a nine million square feet integrated township on the city’s outskirts that will include residential, commercial and retail spaces, apart from a hospital, a school and other civic amenities. The partnership with Arvind will help it tap the Gujarat market.
Arvind has three running projects in the city including a prestigious residential project in eastern Ahmedabad having a built-up area of around three million square feet. Sanjay Lalbhai, CMD of Arvind Ltd, said, “Arvind is excited to have joined hands with Tata Housing for their first ever real estate venture in the state of Gujarat. This partnership will create and deliver significant value to the consumers in real estate and shall benefit the state of Gujarat in general and real estate sector in particular.”
Gurgaon Launch
Tata Housing will also invest Rs 2,000 crore in the next three years to build a luxury housing project in Gurgaon, ‘Primanti’, that will be priced starting at Rs 1.5 crore. The project comprises 1,100 units, with 80 per cent open spaces.
Tata Housing will invest Rs 1,000 crore this year to acquire new projects and is targeting the addition of 20-25 million square feet of area over-and-above the 40 million square feet in its possession at the end of the last financial year.
Tata Housing MD and CEO Brotin Banerjee, said the company had bought 36 acres of land from group company Tata Realty and Infrastructure for about Rs 800 crore. The proposed investment will be met through internal accruals.
Giving details of his expansion plans for this financial year, Banerjee said: “We will launch 8-10 new projects this year. Besides, we are looking at two new lines of business related to land development. It will be smaller in size than the realty business.”
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Meanwhile, the company plans to expand operations into overseas markets. “We are looking for partners to enter into two countries in the Saarc region,” he said. Banerjee said the plan to make a foray into the international market was in advance stages, while the proposal for expanding into two new lines of business is still at a preliminary stage. But Banerjee refused to share further details on these new initiatives.
The company had 40 million square feet of developable area at the end of the last financial year and is looking to add 20-25 million square feet this financial year.
“We will invest Rs 1,000 crore on acquisition of new projects, which will be outright buy of land and joint development agreement with land owners. Some of it would go toward our overseas foray,” he added.
This will be Tata Housing’s second project in the city and the company is in advanced stages of launching two more projects in the NCR this fiscal through joint ventures.
“We have signed term sheets for a couple of projects in Delhi-NCR. One project would be affordable housing,” he added.