Tata Group realty firm Tata Housing has bought 20 acres of land in Bangalore from Alstom T&D India for Rs 120 crore to develop a luxury housing project at the site.
Tata Housing is a subsidiary of Tata Sons, which holds 99.86 per cent stake in the realty firm. It has 70 million sq ft of area under various stages of planning and execution and an additional 19 million sq ft in the pipeline.
Alstom is mainly into power transmission business. On this site, it used to manufacture transformers.
"Tata Housing entered into an agreement with Alstom T&D India to buy its manufacturing unit spread across 20 acres in Bangalore for 120 crores," Tata Housing said in a statement.
Commenting on the agreement, Tata Housing spokesperson said that the company is looking at expanding presence in the fast growing city of Bangalore as part of long term strategy.
"With Bangalore, being credited as the 10th most favoured prop investment destination by Asia Pacific, we are planning to launch an ultra-luxury project on this land to cater to the increasing aspiration of 'higher living' in the city," the spokesperson said.
Tata Housing said that the presence of IT/BPO companies in Bangalore has created an active demand for commercial and residential properties in the city.
The agreement with Alstom T&D India was a part of the expansion strategy of the company and is subject to the mutual satisfaction of terms, conditions and obligations mentioned in the agreement for sale, Tata Housing said, adding that the deal is likely to be concluded upon execution of a sale deed in three months time or earlier.
Tata Housing has presence in Mumbai, Lonavala, Talegaon, Pune, Ahmedabad, Goa, Gurgaon, Chandigarh, Bengaluru, Chennai, Kolkata and Bhubaneswar.
The company is now in the process of expanding footprints to other parts of India across tier I and II cities. It has ventured into foreign markets such as Maldives and is actively exploring other markets, including Sri Lanka and other South Asian countries.