Tata Realty & Infra buys 25-acre land parcel in Bengaluru for Rs 986 crore

economictimes.indiatimes.com:

Tata Realty and Infrastructure Ltd (TRIL), the real estate development arm of Tata Group, has acquired a land parcel spread over 25.3 acres in Doddanekundi near Whitefield locality in Bengaluru for over Rs 986 crore. The company has bought the land parcel from Graphite India through its wholly owned subsidiaries TRIL Bengaluru Real Estate Five Ltd and TRIL Bengaluru Real Estate Six Ltd.

While the definitive documents for the transaction were signed on Monday, the registration of the deal is expected to be concluded soon, showed a regulatory filing. The deal values the plot at nearly Rs 40 crore per acre, which is the costliest transaction for a land parcel in this vicinity.Industry experts believe the ongoing market consolidation in favour of large and established developers will gain further momentum owing to their better execution ability and access to liquidity.

Transactions for land parcels have started to gather pace again with many deals including outright acquisitions and joint ventures in key property markets of Mumbai, Pune, Chennai, Hyderabad, and Bengaluru either being closed or expected to close soon. Last week, ET reported a land deal concluded by the government at over Rs 100 crore per acre in Hyderabad.

The ongoing upcycle in the housing market segment is prompting more real estate developers to opt and propose residential developments on their land parcels that are already part of their land bank or are being acquired now. Out of the total 2,181 acres of land transacted between January 2022 and May 2023, around 84% or 1,822 acres has been allocated for proposed residential developments, showed data from JLL India.