Tata group firm Tata Realty and Infrastructure Limited announced an investment of Rs 5,000 crore to develop a premium IT park project in Navi Mumbai as it expects demand for office and data centre spaces to rise in coming years.
Tata Realty and Infrastructure Ltd Managing Director (MD) and Chief Executive Officer (CEO) Sanjay Dutt said that the company will develop 7 million square feet of area in this ‘Grade-A’ IT park project ‘Intellion Park’ in a phased manner over the next eight years, according to news agency PTI.
He added that the company will develop this project in partnership with UK-based investment firm Actis.
“We have 47.1 acre of land located in Ghansoli, Navi Mumbai. On this land parcel, we are doing 7 million square feet of development, predominantly IT space and data centres with some complementary retail and non-IT office space,” Mr Dutt told PTI.
“The total investment on this project is Rs 5,000 crore. This is Tata Realty’s largest single investment in office real estate,” he highlighted.
Once the project is completed, more than 70,000 people will be able to work in the IT campus, according to Mr Dutt.
Actis has been roped in as investment partner in this project. This is the third such partnership with Actis. “Tata Realty is a majority shareholder in this IT park project,” Mr Dutt said but did not disclose the amount invested by the Actis group.
The total investment will be funded through equity and debt. The construction work has started in the IT park project.
In the first phase, the company is developing five lakh square feet (0.5 million square feet) building. The company has already started pre-leasing process of this 5 lakh square feet area. The Navi Mumbai area commands a monthly rental of Rs 60-70 per square feet. Around 2-3 million square feet office space gets leased in this area.
“Actis is proud to be associated with this state-of-the-art project, which will not only provide an office destination of choice for tech companies to thrive in, but also be a buzzing social place for their talent, strengthening these companies’ ability to attract and retain top quality talent, an increasingly important competitive advantage,” said Ashish Singh, Partner, Actis India.
Tata Realty and Infrastructure Limited – which is a 100 per cent subsidiary of Tata Sons, has an extensive portfolio of over 50 projects across 15 cities.