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Fairmont Apartments by VGN Guindy, Chennai

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Fairmont Apartments by VGN Guindy, Chennai

Last updated: October 31 2019
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  • Re : Fairmont Apartments by VGN Guindy, Chennai

    IMO both K11 maverick007 should calm down on this issue and target all the josh on VGN for the benefit of members with regards to FSI alllllllllll builders over sell that is reason we get such big super built up loading.
    RE overpriced still fancy then 4% yield is must anything less is overpriced

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    • Re : Fairmont Apartments by VGN Guindy, Chennai

      Has the thread gone to sleep amidst all the VGN Bashing (Note - Im not vouching for the builder)

      It seems CMDA has gone slow in granting approvals. On the other hand vgn claims to have pre sold 150-200 flats in Fairmont from what I gather. Can anyone shed some light on this, or anything else

      Bottom line, At the current juncture the investment could be seen as a punt for those who can stomach the wait without the loan burden.

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      • Re : Fairmont Apartments by VGN Guindy, Chennai

        Hello Friends,
        I was planning to book a flat in VGN Fairmont , impressed on the location and connectivity. But seeing negative feedback on VGN, i should revisit my plan.

        I am seriously looking for a flat in Chennai , could any one suggest a good on going project from a reputed builder?

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        • Re : Fairmont Apartments by VGN Guindy, Chennai

          VGN updated my Cousin on the Fairmont project Project....
          Attached Files

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          • Re : Fairmont Apartments by VGN Guindy, Chennai

            VGN should be desperately looking for Cash flow for interest payments of their NCD due in 2017... Guarantees from Corporate and personal gaurantee of Mr Pratish and Mr Devadoss as well as additional lands at Ambattur and ECR, make a high stake for VGN.... >>>>>>> All these would put VGN management on their toes to deliver fairmont quickly and fairly.....

            In other words, Fairmont is a make or break game for VGN...Any sensible management would try to deliver a quality stuff when things are make or break...



            Brickwork Ratings has revised the ratings of the secured non convertible debentures (NCD) of VGN including the one related VGN Fairmont... From the report...

            1) VGN Raised Rs 280 crores in Jun 2013 with a tenor up to 48 months to acquire the Fairmont Land

            2) This is secured by the way of mortgage of Fairmont land. The NCD have the corporate gaurantee of VGN and personal gaurantee of Mr Pratish and Mr Devadoss. In addition to the Fairmont land, 9 acres of land in Ambattur and 2 acres land at ECR are the securities for the NCD.

            3) VGN already got approval/NOC from Chennai Metro Water and Sewage Board, Swiming Pool NOC, Fire NOC, PWD NOC and airforce NOC. But the company is yet to obtain traffic NOC but VGN obtained HIgh Court Order directing CMDA to approve the plan without traffic NOC.



            http://www.brickworkratings.com/Admi...-18Sep2014.pdf
            Last edited September 24 2014, 05:28 PM.

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            • Re : Fairmont Apartments by VGN Guindy, Chennai

              Originally posted by ambalam
              In other words, Fairmont is a make or break game for VGN...Any sensible management would try to deliver a quality stuff when things are make or break...
              True. Stakes are high and with the back against the wall, VGN will try hard. But, there is no guarantee that VGN's effort alone can make it happen nor does it ensure quality. If the buyers do not bite it for various reasons which may not have anything to do with VGN, it can still be tough.

              Buyer's payment receivables are expected to go in to the escrow which the lenders have the first right to take for interest and staggered redemption of principal on preset calendar date. This is similar to Prestige BV's calendar linked payment from buyers but just that the roles are reversed . Several things will have to go right on projections and in time for VGN to come out unscathed. These kind of bets are of higher order dimensions where a delayed interest by the buyers can result in a domino's effect and impact can be significant.

              As a buyer, whether one wants to be part of the make or break game which is positively correlated to their own make-or-break on their investment, is the question.
              Last edited September 24 2014, 06:59 PM.

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              • Re : Fairmont Apartments by VGN Guindy, Chennai

                I don't think fairmont is make or break for VGN. They are also launching a villa project in Nolambur. They have been in the game for quite some time and I would like to think that they have reserve cash unless they invested every single penny on land.
                Last edited September 25 2014, 11:39 AM.

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                • Re : Fairmont Apartments by VGN Guindy, Chennai

                  Cross posting couple of posts here - as it is more relevant to this project.

                  BW downgrades the VGN issue rating from BBB+ to B-

                  My take:

                  BBB+ down to B- in a year is a rapid descent.

                  Moderate Safety (BBB+) in 2013 for this issue must have been a joke. Terms of the NCD issue made a mockery of this rating - 19% coupon with cash flows in to escrow and calendar redemption schedule.

                  Would Big 3 or the Other 3 (CRISIL//ICRA/CARE) have touched this issue for a rating? Hard to say.

                  FY13 performance in nutshell:
                  Revenue down by 20% to 210 cr
                  PAT down by 50% to 3.15cr
                  Finance cost increased from 20cr to 100 cr

                  Status: Two projects for which the funding was raised was delayed by 9 months and 5 months respectively.

                  One can see how a small delay in the order of months pushed them from BBB+ to B-. BW states that they have paid interest till June 2014 and what happened to Sep 2014 interest is not known yet. Given that this report of BW was dated Sep 2014, one has to be watchful of how things unfold now.

                  VGN went to fund Rs 420 crore taking debt for a land purchase in 2013 with dismal economic outlook (then). Even when the national players are choosing asset light model(JVs, rights) to derisk, here is our regional hero who went bold. One year finance cost on this issue is 15 times the net profit of FY12. Talk about risk management or financial prudence !!

                  Foolhardiness or Stupidity - may be both!

                  As a prospective investor, you have a choice to be wise. Be aware that your booking amount is unsecured and 420 crore lenders have the first lien on those two projects.

                  Read few threads on VGN and you will know that warning signs have been apparent and abundant for a while now.

                  BrickWork - you are way too late to revise the outlook and this thread saw it coming way before.
                  Last edited October 15 2014, 07:19 AM.

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                  • Re : Fairmont Apartments by VGN Guindy, Chennai

                    ஊழலே உன் விலை என்ன ? Savukku article talks about this project at the end...

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                    • Re : Fairmont Apartments by VGN Guindy, Chennai

                      Originally posted by redblue View Post
                      I don't think fairmont is make or break for VGN. They are also launching a villa project in Nolambur. They have been in the game for quite some time and I would like to think that they have reserve cash unless they invested every single penny on land.
                      You r so far from what realy is true value of vgn given its debt position high interest rate low booking plus the land is mortgage so buyer do not have any right I will stay away from any project where land is already mortgage
                      RE overpriced still fancy then 4% yield is must anything less is overpriced

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