Tata Housing is in talks to sign a development management agreement with NCR-based developer Lotus Greens to build a housing project in Noida, marking its entry into the region.
The mid-segment project on 37 acres will be a part of the 300 acre sports township ‘Lotus Greens Sports City’ in Sector 150, Noida. “The company plans to develop the project in two phases, the first of which is scheduled to be launched in mid-August this year,” said a person close to the development.
Tata Housing also had recently signed an similar agreement with Mumbai-based builder Neptune Group to develop a 10-acre housing project in Bhandup, Mumbai.
The company is said to be exploring other clear land parcels too with Lotus Greens for more such projects, according to the person quoted earlier.
Email questionnaires sent to Lotus Greens did not elicit any response. However, Tata Housing in an emailed response said the company has not signed any deal with Lotus Greens for their foray in the Noida market as yet.
Lotus Greens has already roped in Godrej Properties, the real estate development arm of the Godrej Group, to work as a development manager for developing a 36-acre land parcel in the sports township in Sector 150, Noida. The project is expected to be launched by October this year.
The trend of local builders tying up with big corporate real estate players is gaining momentum, with bigger brands getting revenue without putting in equity, while smaller players earning brand credibility to up sales in a slow market.
Also high land prices is making the joint development agreement route the most preferred option for many real estate developers.
Godrej Properties, one of the first developers to follow the development management route, had recently signed a similar agreement with Ramprastha for a project in Sector 89, Gurgaon.
The company had in January also had entered into a development agreement with Thane-based realty developer Vihang Group for a 15-acre land parcel in Thane.
Gurgaon-based SARE Homes has also reportedly signed a memorandum of understanding for three such projects in Lucknow, Coimbatore and Noida where it will be the development manager.