Vision India Real Estate to invest $100-200mln in 3 years
Vision India Real Estate, a closely-held business group in the US, is investing $5 million (as per the FDI norms) in Gem Group’s upcoming residential project in Chennai. This will be the first joint development project for the US company, that is proposing to invest $100 to $200 million over the next three years on projects, especially in the logistics arena.
A special purpose vehicle has been floated for the purpose. The diversified Chennai-based Gem Group would provide land and Vision India would develop the residential project. Vision India Real Estate is an integrated property development and asset management group that develops and manages residential, hospitality and logistics facilities in India. It will co-invest with other projects and go on its own as the case may be.
It has developed 40 million sq ft of space, half of it in the logistics space in the US and Europe. About 15 million sq ft has been for residential segment and 5 million sq ft towards hospitality, Vision India partner Ilan Elad said on Wednesday.
Gem Grove, a Rs 320 crore residential project, is coming up on 6.64 acres of land at Padur on the Old Mahabalipuram Road in Chennai. It will have 712 housing units, covering a built-up area of approximately 8 lakh sq ft.
Over the next three years, Vision India Real Estate is planning to invest $100 to $200 million.
Gem Group chairman R Veeramani said the decision to partner with Vision India is to tap their expertise in developing such projects in the US and Europe. “We would like to attribute our foray into the development of luxury housing targeted at the affordable segment, to the revival in the Chennai’s residential market over the last few months, which has been witnessing a hectic construction activity driven by low mortgage rates as well as price rationalisation,” he added.
Starting at Rs 2,399 per sq ft, the Gem Grove project is being marketed by Homebay, the residential marketing subsidiary of the global real estate advisory firm Jones Lang LaSalle Meghraj.
Located on the burgeoning IT corridor, the Gem Grove will have three blocks ready for occupancy by July 2012 with the remaining three blocks ready for occupancy by May 2013.