Tata group's realty firm Tata Housing today announced its foray into Sri Lanka with an investment of over USD 400 million (about Rs 2,400 crore) to develop a township project at Colombo.
The project will be developed in partnership with Urban Development Authority of Sri Lanka.
Tata Housing, a subsidiary of Tata Sons, had already ventured into the Maldives with a real estate project.
The Colombo project is mixed use township.
"The first of its kind initiative by an Indian real estate company will involve investments of over USD 400 million," Tata Housing said in a statement.
A company spokesperson the investment will be spread over the next 6-8 years.
The project would commence with start of construction of residences for rehabilitation of the current tenants in the first phase and launch of a mix-use development project at Slave Island in Colombo.
The project will be spread over 8 acres of land, out of which three acres will be earmarked for rehabilitation.
The Sri Lankan Urban Development Authority have rehabilitated residents of the Slave Island till the time of the completion of the project. The authority aims to provide better housing facility to the occupants with over 550 residences.
Commenting on the announcement, Tata Housing MD and CEO Brotin Banerjee said: "Tata Housing clearly recognises the opportunity for long-term and sustained growth in the Sri Lankan housing market. Our investment represents our strong ties with our neighbours and urban renewal within prime locations of the country".
The rehabilitated occupant will have condominium ownership and privilege of mortgage facility by ownership.
In the luxury project, the project will have estimated 4 residential towers comprising about 650 units. The project will also have retail area, office space and business hotels and service apartments.
"We are extremely glad in partnering with Tata Housing to pilot the first redevelopment project under the PPP model which provide a better quality of life for the current tenants of slave island. We are sure that the experience of Tata Housing and their thrust on quality would result in this project to be a landmark in Colombo," Sri Lanka Urban Development Authority Chairman Nimal Parera said.
Tata Housing has 70 million sq ft under various stages of planning and execution and an additional 19 million sq ft in the pipeline in major cities of India.