TCS to sell real estate assets to raise Rs 500 crore
, ET Bureau|
Updated: Oct 16, 2017, 01.26 PM IST
India's second-largest software exporter Tata Consultancy Services (TCS) has initiated a process to encash its real estate assets in Maharashtra, Gujarat to raise anywhere about Rs 500 crore, two people in the know said.
“TCS has put residential apartments including those in and around Mumbai and Ahmedabad on the block. These residential apartments were used by company employees,“ a person with direct knowledge of the matter said.
There are more than 200 apartments and houses for which the company is expecting to raise somewhere in the vicinity of Rs 500 crore. TCS has already roped in two real estate brokers to sell its assets in the next six months.
The real estate properties are currently used by the company employees as accommoation. The apartments are located in areas like New Mumbai, Central Mumbai and North West Mumbai. In Ahmedabad, the properties are located on the Western part of the city. People in the know said there are so me apartments owned by the company in other cities of Maharashtra and Gujarat as well, which would also be put on the block.
“The price of the apartments range from around Rs 50 lakh to about Rs 2 crore. Buyers will have to approach brokers and if there is more than one buyer, an informal bidding could be carried out,“ another person close to the development said.
A questionnaire sent to TCS sent on Thursday remains unanswered. People quoted above said TCS is also looking to formally advertise the sale of the apartments during next few weeks. The marketing department would be handling the process.
When asked about the reason for the move, the person with knowledge of the matter said, “It's a strategic decision that has been taken at the highest level. The company feels the resources could be better deployed.“
ET could not independently confirm the precise reason for the sale.
Last week, TCS reported a better than expected performance in September quarter with higher sequential growth in dollar-denominated revenue than the prior four quarters and also saw buoyancy in client addition. TCS reported 3.2% sequential growth to $4,739 million for the quarter.
“TCS has put residential apartments including those in and around Mumbai and Ahmedabad on the block. These residential apartments were used by company employees,“ a person with direct knowledge of the matter said.
There are more than 200 apartments and houses for which the company is expecting to raise somewhere in the vicinity of Rs 500 crore. TCS has already roped in two real estate brokers to sell its assets in the next six months.
The real estate properties are currently used by the company employees as accommoation. The apartments are located in areas like New Mumbai, Central Mumbai and North West Mumbai. In Ahmedabad, the properties are located on the Western part of the city. People in the know said there are so me apartments owned by the company in other cities of Maharashtra and Gujarat as well, which would also be put on the block.
“The price of the apartments range from around Rs 50 lakh to about Rs 2 crore. Buyers will have to approach brokers and if there is more than one buyer, an informal bidding could be carried out,“ another person close to the development said.
A questionnaire sent to TCS sent on Thursday remains unanswered. People quoted above said TCS is also looking to formally advertise the sale of the apartments during next few weeks. The marketing department would be handling the process.
When asked about the reason for the move, the person with knowledge of the matter said, “It's a strategic decision that has been taken at the highest level. The company feels the resources could be better deployed.“
ET could not independently confirm the precise reason for the sale.
Last week, TCS reported a better than expected performance in September quarter with higher sequential growth in dollar-denominated revenue than the prior four quarters and also saw buoyancy in client addition. TCS reported 3.2% sequential growth to $4,739 million for the quarter.
