TCS to Acquire Bengaluru Real Estate Firm for ₹2,250 Crore, Plans New Delivery Centre

Tata Consultancy Services (TCS), in a major effort to increase its operational presence, has acquired Bengaluru-based commercial real estate company Darshita Southern India Happy Homes Pvt Ltd. The ₹2,250 crores all-cash deal is said to comprise land and a building, which TCS intends to convert into a new delivery centre.

The acquisition also carries a call option, through which TCS has an opportunity to acquire 100% of the company in two years, according to a regulatory filing. This is necessary to maintain future expansion plans for the property in the long term.

Darshita Southern India Happy Homes, which was established in 2004, focuses on building leasing-oriented commercial properties for industrial clients. However, the property is still being built and has not produced revenue in the last three years. Nonetheless, TCS sees strategic value in acquiring the asset as it looks to further strengthen its infrastructure in the global city of Bengaluru, one of India’s top IT destinations.

The move aligns with a larger trend of IT giants investing in commercial real estate instead of relying solely on leased office spaces. With its premises, TCS avails itself of better control in operations and also provides a long-term cost rationalization which also will come in the long run with the strategic plans.

With the rapid pace of digital transformation across the planet, IT companies have surged to invest in physical infrastructure to support the growing needs of the clientele. Bengaluru still maintains the top spot thanks to its burgeoning tech ecosystem, pool of talent, and mature infrastructure. This only adds to TCS’s commitment to bolster its presence in the city.

Although TCS did not mention a timeline for making the delivery centre operational, the investment indicates a long-term plan to bolster its service capabilities. With a presence across India and the world, the company is expanding its delivery network to ensure it is well-poised for business dynamics.