TCS, formerly Tata Consultancy Services, has begun the process to encash the real estate assets of the company in Gujarat and Maharashtra. The company is the second-biggest software services exporting company in India. The sale proceeds are expected to be in the region of Rs.500 crore (approximately US $77,285,725). The company has put on the blocks a number of residential property it owns in Ahmedabad and Mumbai. The location of properties are both within the city and also in their suburbian regions. The residential properties on the block were used by company employees.
Many TCS employees, in fact, presently resides in those apartments. These apartments are spread over a number of areas like North West Mumbai, New Mumbai, and Central Mumbai.
Sale for money
TCS presently owns about 200 apartments. The company is also the owner of many houses. It is confident of gathering about Rs.500 crore from the proceeds. The company has already contracted two brokers of real estate. It hopes to sell all properties within the first half of 2018. TCS apartments in Ahmedabad are situated to the north of the metropolis. The company also owns a number of properties in other locations of Gujarat and Maharashtra. All of them will be put for sale as well. The price range of the apartments varies from Rs.50 lakh minimum to approximately Rs.2 crore. The buyers must approach brokers to get their hands on these properties. In case there are multiple buyers, bidding may happen.
TCS declined to reply to questionnaires sent to it. According to people in the know, the company is yet to decide whether it would advertise the sale in a formal manner. If this decision is taken, this would be done by October or November of 2017. The process would be handled by the marketing department.
When questioned about the rationale of the sell, a person associated with the move said that the sale makes a strategic move for the company. The decision to divest these assets were taken at the highest level. It is the belief of the company heads that these resources could be much better employed. TCS, for its part, reported a much better than anticipated performance in the September quarter. It enjoyed better sequential growth in the dollar-denominated revenue when compared to its prior four quarters. The company reported about 3.2 percent sequential growth.