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Tata Realty, CapitaLand in race to buy Graphite India's 25-acre land

BENGALURU: Tata Realty (TRIL) and Singapore’s CapitaLand have emerged as the main bidders for the 25-acre land parcel in the city that belongs to carbon and graphite electrodes maker Graphite India, according to people familiar with the matter. The deal, valued at about Rs 800 crore or Rs 30 crore per acre, will be a big boost for either of the companies as both are looking to scale up their presence in India’s biggest commercial office market. TRIL said last year it will invest about Rs 1,400 crore to build IT parks of about 12 million sqft across Bengaluru, Pune and Chennai. CapitaLand, which has a substantial presence in retail, hospitality and lodging segments in China as well, is looking at raising its India holding to 40 million sqft, from 17.4 million now, in the next five years. The land, located in Brookfield, is adjacent to Whitefield, a micro market which houses business parks of Prestige Estates and Brigade and includes clients like Mercedes-Benz, ABB, Airbus, Capgemini and Qualcomm.

Graphite’s land can be used to construct commercial Grade A office space of about 3.5 million sqft. The location is attractive as it is close to an upcoming Metro station. Other builders including Embassy, RMZ, Salarpuria Sattva were all in the race initially, but are said to have backed out. TRIL, CapitaLand and Anarock Property Consultants, which is running the sale process, declined to comment on the matter. The deal will take another three months to culminate. The land was put up for sale after Graphite India had to shut its factory last year following scrutiny from the Karnataka Pollution Control Board (KSPCB) and National Green Tribunal (NGT). The NGT had ordered the closure after the Supreme Court’s 2018 judgment asking the company to pay Rs 50 lakh in fines for polluting the environment. CapitaLand has become a major player in India’s commercial market space post its acquisition of Ascendas-Singbridge in 2018. The deal gave it access to Ascendas’ 17 million sqft of operating office parks and warehouses in six cities. CapitaLand now has TCS, Mu Sigma and General Motors among its clients. Another 18 million sqft is in different stages of construction, while 7 million sqft through forward purchases have been signed up. TRIL has a business park in Chennai and is building a 7 million sqft business park on a 47-acre plot at Ghansoli in Navi Mumbai. It has a Rs 3,000-crore investment platform with UK’s Actis to buy commercial assets.


February 27, 2020

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