Tata Realty frontrunner to buy Chennai land for Rs 500 crore
Tata Realty and Infrastructure Ltd (TRIL) has emerged as the frontrunner to acquire a 22-acre land parcel in Chennai from Xander Investment Management and Realvalue Promoters for about Rs 500 crore, two people aware of the development told media.
If TRIL clinches the deal, it will be the first large transaction that the company will have undertaken after it reorganised its operations. “The company is conducting due diligence on the property located on Thoraipakkam road in Chennai, an upcoming IT corridor. While TRIL is the frontrunner, a local Bengaluru-based builder is also in the race,” the persons cited earlier said, requesting not to be named.
Xander Investment Management had invested about Rs 220 crore as debt four-five years ago in a residential project by Realvalue, but the project failed to take off. “Realvalue has defaulted on many projects and now the fund is looking to recover its money by divesting the land parcel,” said one of the persons cited earlier, requesting not to be named.
In a bid to simplify structures and leverage synergies, Tata Sons had recently announced the reorganisation of its infrastructure and real estate businesses— TRIL and Tata Housing Development Company. “The company has been actively looking for growth opportunities, including joint developments and outright land deals, to support its future growth,” the person cited earlier said.