Realty firm Tata Housing has bought 7 acres of land in Mumbai for Rs 214 crore (Rs 2.14 billion) from KEC International for development of a premium housing project.
Tata Housing signed an agreement with KEC International on Saturday to buy 7.3 acres of land parcel in Thane, according to sources.
Tata Housing, a real estate arm of Tata group, will build premium homes on the land and expects Rs 1,300 crore (Rs 13 billion) revenue from the project, they added.
When contacted, Tata Housing spokesperson declined to comment on the land deal.
KEC International is global infrastructure engineering, procurement and construction (EPC) major. It has presence in the verticals of power transmission, power systems, cables, railways, telecom and water.
Tata Housing generally enters into a joint venture with land owners. However, the company seems to have changed the strategy and has now started buying land outright.
Tata Housing had recently bought a 20 acre land parcel in north Bangalore for a consideration of around 120 crore (Rs 1.2 billion) from Alstom and a one acre land parcel at Hailey road in Delhi.
Amid slowdown in the real estate market, Tata Housing is utilising this opportunity to buy quality land parcels at marquee locations to increase its presence in the premium and super premium segments across major markets in the country.
In a big-ticket land deal in Mumbai, Steel major Tata Steel has sold its 25-acre Borivali land parcel for Rs 1,155 crore (Rs 11.55 billion) to Oberoi Realty. In 2012, Lodha Group had acquired a 17-acre land parcel at Lower Parel from DLF for Rs 2,725 crore (Rs 27.25 billion).
Tata Housing is a subsidiary of Tata Sons Ltd, which holds 99.86 per cent stake in the realty firm.
The company is currently developing 70 million sq ft of area and an additional 19 million sq ft is in pipeline. It has ventured into Maldives market and is actively exploring other markets including Sri Lanka and other South Asian countries.
Image for representation purpose only.
Photographs: Tata Housing