Tata Realty to expand commercial portfolio
Buoyed by healthy leasing demand ...
"We already have a very large residential portfolio, so it makes sense for us to increase the commercial segment also. Because earlier it was skewed towards residential, we want to balance the business. So our immediate focus is to grow commercial," he said. He noted that all of its commercial assets have been leased and hence, the company wants to build more of such assets. Dutt was of the view that a major benefit in the commercial space is that there is no oversupply in the segment as compared to residential realty.
The Tata Realty CEO told IANS that the company started to emphasise more on the commercial segment in 2018. The company is also banking on the investment through listing of its Real Estate Investment Trust (REIT). Tata Realty also is planning to invest in data centres along with IT parks. Dutt said that at the locations where the company is constructing IT parks, it is also exploring opportunities to build data centres.
Talking of operations amid the pandemic of the commercial business, he said that its commercial portfolio was largely unaffected amid the pandemic as it received nearly 100 per cent rent for its 6.2 million square feet of leased properties. "We have had nearly 15 per cent rental growth last year and expect similar performance this year. As you know most predicted offices to be severely hit but current data points suggest net absorption for H1 2020 is at 11 million square feet and is projected to be 22-27 million square for 2020. Considering the work from home and Co-Work and Artificial Intelligence taking jobs and so on, this is a good absorption and demonstrates the depth of talent India has and the cost arbitrage that we continue to monetise," he said.