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Big Ticket Sales in Chennai

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Big Ticket Sales in Chennai

Last updated: February 28 2013
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  • Big Ticket Sales in Chennai

    I think we will see more such big ticket sales in chennai.

    Tata Communications has sold a nearly 1.5-acre property in the heart of Chennai for Rs 195 crore to VGN Group, a real estate developer.

    According to reliable sources, VGN has bagged the property with a bid that works out to about Rs 31,250 a sq. ft for the property on Nungambakkam High Road.

    The deal is expected to be registered by the weekend, according to the conditions of the transaction. This property has apartment blocks for Tata Communications’ employees.

    The deal was mediated by international property consultants, Jones Lang LaSalle, which conducted an e-auction.

    Four leading Chennai-based developers – the others were Ceebros, Arihant and Jain Housing – participated in the auction.

    The four developers were shortlisted from a list of a dozen developers and others who had evinced interest in buying the property.

    The price works out to about Rs 7.5 crore a ground – about 2,400 sq. ft, a common measure used in Chennai – for the 26-ground property. The size of the land parcel is rare in Nungambakkam, in central Chennai, which is one of the premium localities with a thriving residential and commercial development.

    Leading property developers pointed out that while the price is a new high, as in the case of each new property transaction, the developer has landed a good deal.

    With a potential to build 2.5 times the ground area, the Floor Space Index cost of built-up space works out to about Rs 12,500 a sq. ft.

    As of now, one of the costliest residential projects, The Art, on Kothari Road about a kilometre away, commands Rs 22,000 a sq. ft.
    Last edited May 12 2015, 06:14 PM.
  • #2

    #2

    Re : Big Ticket Sales in Chennai

    May be you can append it in my thread.
    https://www.indianrealestateforum.co...n-city?t=51877

    Auctions are heating up.

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    • #3

      #3

      Re : Big Ticket Sales in Chennai

      Sounds like a steal. Even if VGN builds an apt with 2000/sq.ft construction cost. They can easily command more than 14,500/sq,ft on Nugambakam high rd.
      Obviosuly commercial makes more sense though

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      • #4

        #4

        Re : Big Ticket Sales in Chennai

        195C (12.5K per develop-able sqft) is just land cost.
        Stamp duty and reg is another 9%

        =13.625K (12.5K + 9%) + 2.5K (20% interest/holding cost for 1-1.5yrs) + 3K construction cost

        =close to 19K.

        If they sell it for 23-25K, they will realize 4-6K profit, 20% profit
        Of course, they will make another 20% in common area loading.

        Net net, this is a very good deal for VGN.

        Hope they make use of the plot and create a landmark building.

        A nice 30 story building would do wonders. Not sure if they can get approvals.
        With CMDA relaxing height requirements, they might. Everyone is doing 20 nowadays on main roads.

        I am not sure if VGN brand name can be an issue when they compete with high end developers. So they will be very careful.

        But again, location will pull in more people.

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        • #5

          #5

          Re : Big Ticket Sales in Chennai

          I wish Tata themselves have developed it instead of VGN.

          VGN's history on A class development is questionable ?

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          • #6

            #6

            Re : Big Ticket Sales in Chennai

            Where is this land

            Is this the OLD VSNL quarters near the IT commissioner office
            I can almost be sure that VGN wil do a JV with a high end bangalore or bombay or north indian brand
            By themselves they cannot pull a 25K price tag they dont carry that reputation IMHO

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