A business group in the US named Vision India Real Estate is bankrolling a sum total of $5 million in an upcoming residential project in Chennai. The project belongs to Gem Group. This is the first time that the US Company is going for a joint development project. It is proposing an investment of $100 to $200 million (approx. Rs 920 crore) in the coming 3 years.
The company delegates was studying the market for previous 24 months and the entered India 2 years ago.
The company is in colaboration with Chennai-based Gem Group to build a Rs 320-crore project at Padur on Old Mahabalipuram Road. The company is thinking upon to develop logistics parks in Bangalore and Chennai, which will be spread over 47 acres each.
A special purpose vehicle has been floated for the purpose. The plan is proposed in such a manner that the Vision India would develop the residential projects on the land provided by Gem Group.
The concerned authorities said, “We have also initiated talks with retail houses, automobile majors, pharma companies and others”. Vision India Realty is a unified property development and asset management group that manages and also develops the hospitality residential facilities in India. It will also invest in some other projects as well.
Over the upcoming three years, Vision India Real Estate is planning to invest $100 to $200 million, as told by Mr Elad to ET. The company has set a target of $500-700 million (Rs 2,300-3,220 crore) turnover in the next three years.
Since the Chennai Market is much more stable than other cities therefore the initial focus will be on this for housing projects. It will touch the hospitality sector in the next year.
The progress reports by Ilan Elad say that about 40 million sq ft has been developed which includes about 5 million sq ft towards hospitality and about 15 million sq ft has been for residential segment.
A project called Gem Grove is planned to be built on 6.64 acres of land at Padur on the Old Mahabalipuram Road in Chennai. The project is a residential project of about 320 cr. It will accommodate 712 housing units covering a built-up area of approximately 8 lakh sq ft.
The chairperson of Gem Group R Veeramani complemented the decision to partner with Vision India saying that it is to tap their excellence in developing such projects in the US and Europe.
The projects by Gem Group are marketed by Homebay, starting at Rs 2,399 per sq ft.
It will set its 3 blocks ready for occupancy by July 2012 with the remaining three blocks ready by May 2013.
