CHENNAI: VGN Developers, one of the major residential project developers in the city, launched a super luxury project in Nungambakkam on Saturday at an estimated cost of more than `500 crore.
According to Pratish Devadoss, managing director of VGN Developers, this is the first high-end luxury project the developer is embarking upon in the city. “It is being planned with a project cost of `500 crore and is located in prime real estate in the city,” he said. The project worth is, however, expected to be around `600 crore.
The project will come up right next to the Taj Coromandel hotel on Nungambakkam High Road and comprise an area of 1.5 acres with 72 three BHK apartments of 3278 to 3467 sq ft with retail cost of `six crore. “The project will have 15 floors - 13 floors of residences and club house on the 14th and 15th floors,” Devadoss said.
According to Devadoss, the recent spate of luxury apartment launches in the Chennai market is driven by the fact that demand for a good high-end project is inelastic unlike other segments. “For a high-end customer, when a good project comes, he/she has to buy it and hence demand there is inelastic,” he said. The project is being partially funded by Edelweiss, which has infused capital of ` 250 crore while the rest is being funded by internal accruals.