New Delhi: Tata Housing on Tuesday announced plans to expand to the African property market and will invest Rs1,000 crore to develop two projects in Kenya and Tanzania.
The real estate arm of the Tata group plans to raise $200 million through private equity to fund the overseas operations. It recently signed a memorandum of understanding with the National Housing Bank and a private real estate firm to develop more than 4.5 million square feet of mixed use townships in Kenya and Tanzania.
The two mixed use development projects are expected to be launched by January 2018 in a price range of $75,000 – 1,00,000 per unit, catering to the mid-income segment. “The investment in both projects is expected to be more than Rs1,000 crores across both the phases over the next 3-4 years,” the company said in a statement.
“Our early success in Sri Lanka and the Maldives gave us the impetus to further expand our international footprint. Starting with Kenya and Tanzania, we will cater to the mid-income segments and fulfil their demand for superior quality housing,” said Tata Housing MD & CEO Brotin Banerjee.
With 60% of the urban population living in informal housing, there is consistent growth in demand for housing across both Kenya and Tanzania. Tata Housing has recently handed over the government housing project to the government of Maldives and launched two high-end projects at Odeon and Nadhee in the capital city, Male.