Tata AutoComp Systems sells a 13.26-acre land parcel in Pune's Maan area to Titania Industrial Development for Rs 134 crore. Tata has applied for rezoning the property in the industrial zone to residential zone. The strategic move aligns with Pune's growth dynamics, particularly in areas like Hinjewadi, which is witnessing increased business activity. Pune is hailed as a top real estate investment destination, exhibiting remarkable growth in sales and value. The present land transaction reflects the current trend of developers opting for residential development on acquired or existing land parcels amid the ongoing upcycle in the housing market across key cities.
Tata AutoComp Systems has sold a land parcel measuring over 13.26 acres in Pune’s Maan area to real estate developer Titania Industrial Development for Rs 134 crore. The company has sold the land along with around 1 lakh sq ft structure on the land. The said property falls under the industrial zone and Tata Autocomp Systems has already made an application to Pune Metropolitan Regional Development Authority (PMRDA) for change of the plot’s zone to residential. As per documents accessed by CRE Matrix, a real estate data analytics firm, the transaction was registered on October 27, 2023. Of the total consideration of 134 crores, Titania Industrial Development paid Rs 24 crore in two tranches of Rs 15 crore and Rs 9 crore on October 4 and October 6, respectively. The buyer had paid nearly Rs 109 crore to Tata Autocomp Systems at the time of registration. Tata AutoComp Systems provides products and services to the Indian and global automotive original equipment manufacturer (OEM) as well as tier 1 suppliers. It has its own capabilities in automotive interior and exterior plastics, composites, sheet metal stampings as well as engineering and supply chain. Tata AutoComp Systems was operating a research and development center, technical center, laboratories, prototype, and assembly area from the structures constructed on this land parcel. The company has relocated all of these activities to its other facilities in Pune’s Hinjewadi and Chakan premises and retained and relocated all its employees. The land sale aligns with Pune's overall growth trajectory, particularly in areas like Hinjewadi, which continues to attract significant business activity. Pune’s PCMC region has been popular with industrial occupiers for manufacturing and warehousing. Hinjewadi houses large IT/ITeS brands, hotels, factories, and housing projects. Thus, any development on these lands would fetch instant demand. Pune is currently seen as the most preferred real estate investment destination and the most affordable amongst the Metro cities as per a CREDAI Pune Metro report. Pune is the fastest growing real estate market among all Metro cities in terms of number of units sold in January-June 2023. Primary sales (excluding Re-Sales) have clocked over 45,000 units worth over Rs 28,000 crore. This shows a 90% growth in sales value and a 40% rise in the total sales volume over the first half of the calendar year in 2019. The ongoing upcycle in the housing market segment is prompting more real estate developers to opt and propose residential developments on land parcels that are being acquired now or are already part of their land bank. Many deals including outright acquisitions and joint ventures in key property markets of Mumbai, Pune, Chennai, Hyderabad, and Bengaluru are either being closed or are expected to close soon.
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