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Tata Realty looks to list 20 million sq ft of commercial assets as REIT

Tata Realty and Infrastructure (TRIL) is planning to list its Real Estate Investment Trust (REIT) with a portfolio of 20 million sq ft of commercial assets in the next few years.

This will be done after the portfolio is expanded from present 6.2 million sq ft to 20 million sq ft via new developments and acquisitions.

Sanjay Dutt, managing director and chief executive officer of TRIL told The Economic Times that the existing land bank has potential of 20 million sq ft commercial development in the next three to four years. The portfolio may also include office spaces and data centre assets. He added that his team has looked at least four proposals from developers looking to monetise their portfolios including single assets and carved-out portfolios across the country. “We are targeting a 45-50 million sq ft in commercial portfolio in over seven years. However, as we are developing several built-to-suit projects for clients, the pace would stand accelerated,” he said.

Apart from monetisation of assets and inventories (it sold properties worth Rs 2,000 crore over past two years), holding company Tata Sons will ensure sufficient capital infusion, Dutt added. TRIL achieved close to 15 percent rental growth in FY20 from leasing its existing it 6.2 million sq ft commercial portfolio, and expects similar growth this fiscal as well, despite the COVID-19 pandemic. Dutt noted that the June quarter saw 8 percent increase in rentals, which is expected to be 11 percent by the end of 2020.

Ongoing projects include a 1 million sq. ft development in Gurugram expected by November 2020; another 1 million sq ft in Gurugram expected by 2021; a 47-acre plot in Navi Mumbai, where 0.5 million sq ft development is expected to commence soon; and another 0.8 million sq ft is in advanced stage of pre-lease for a built-to-suit campus.

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