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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

    Originally posted by sreejay View Post
    Here the only risk is the risk of completion. The sqft rates may double like metrozone annanagar after completion which is also near coovum
    Metrozone soft launch in 2007 for Rs 4500 and in 2010, 5750-6250 and 2012, 7500 range and 2014 8500-9000. All are base prices and add 12-18% for all-inclusive.

    Now, in 2015, finished apartments are not finding takers even at Rs 11000 and some well furnished are quoted at Rs 12000 (carries more than Rs 750 psft worth of furnishings). Note these are all-inclusive. Base price equivalent of these in 2015 would be around Rs 9500. Only entities that made money on Metrzone are PE investors and Ozone.

    No investor beat the interest cost. Doubling is a make-believe and you run the IRR on cash flow, you see the horror story.

    I witnessed up close the IRR of two cases - it was shocking even though topline showed a increase which was a make believe.

    Same story at Fairmont :
    Make-believe price at Rs 6999 with 50% down in 3 mos. Enter the cash flow in excel and run an IRR with the model payment structure - it will be shocking; unfortunately, that will be the true return and excel is not lying but you are being fooled.
    Last edited November 15 2015, 07:26 PM.

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    • Re : Fairmont Apartments by VGN Guindy, Chennai

      Absolutely, it is just window dressing in offering upfront 50% like HIRA, VGN they may take forever to build this and you may think it has increased while bank rolling the promoters (they are not even builders - they sub-contract BL Kashyap and other vendors and default them in payment as they stopped doing work for such people hereafter)

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      • Re : Fairmont Apartments by VGN Guindy, Chennai

        Originally posted by maverick007 View Post
        Metrozone soft launch in 2007 for Rs 4500 and in 2010, 5750-6250 and 2012, 7500 range and 2014 8500-9000. All are base prices and add 12-18% for all-inclusive.

        Now, in 2015, finished apartments are not finding takers even at Rs 11000 and some well furnished are quoted at Rs 12000 (carries more than Rs 750 psft worth of furnishings). Note these are all-inclusive. Base price equivalent of these in 2015 would be around Rs 9500. Only entities that made money on Metrzone are PE investors and Ozone.

        No investor beat the interest cost. Doubling is a make-believe and you run the IRR on cash flow, you see the horror story.

        I witnessed up close the IRR of two cases - it was shocking even though topline showed a increase which was a make believe.

        Same story at Fairmont :
        Make-believe price at Rs 6999 with 50% down in 3 mos. Enter the cash flow in excel and run an IRR with the model payment structure - it will be shocking; unfortunately, that will be the true return and excel is not lying but you are being fooled.
        Hahahaha..... Why don't you tell/show which are the projects from the Suburb beat the return that of Metrozone!

        Embassy Residency? Eden Garden? Unitech?
        Last edited November 15 2015, 10:19 PM. Reason: quote formatting

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        • Re : Fairmont Apartments by VGN Guindy, Chennai

          Originally posted by ambalam
          Hahahaha..... Why don't you tell/show which are the projects from the Suburb beat the return that of Metrozone!
          Even a third rated bond fund totally risk-averse retirees held, may have beat it. Isn't that a shame for a capital asset?

          Real Estate is a Capital Asset - it should beat inflation and for those who take loans for investment, it has to beat the cost of funds at the very least.

          Whether it beat Embassy/Unitech is not a solace - they were clear losers from the get-go, to compare them and taking comfort is the only graceful option for an another loser, so be it.

          BTW, did you run the IRR for Fairmont with the payment structure VGN mandated - please post the numbers and let's wake up a few who are in deep slumber/dreams on 'make believe doubling on phony numbers', showing the reality.

          You can choose to save and post it during next Halloween , if you think it holds enough scariness .
          Last edited November 15 2015, 09:17 PM.

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          • Re : Fairmont Apartments by VGN Guindy, Chennai

            Originally posted by ambalam View Post
            As fairmont being a make or break game, VGN did a fantastic job so far.

            With their aggressive payment schedule they might be collecting 200-300 cores in the next few months which takes away the debt concerns..
            This was one of my top concerns when I was tempted by the pre launch or launch price..

            Vgn will do a fantastic job of collecting 50% in 3 months and service debts, no debt concern there, absolutely right but what goes for construction?

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            • Re : Fairmont Apartments by VGN Guindy, Chennai

              Originally posted by iceemani
              Vgn will do a fantastic job of collecting 50% in 3 months and service debts, no debt concern there,
              200-300 cr collection will only service a portion of the debt. What about the rest?

              This is a 3.5 premium FSI project - they must have paid at least Rs 80-100 crores based on my rough calculation to get the premium FSI and CMDA approval. As someone posted earlier, total debt may have been close to around 700-800 crores.

              They are paying 19% interest and once defaulted, their coupon rate gets upped by 5% more. So, they are paying usurious interest on the debt they raised. They need ~120-140 crores to service the current debt and also there is principal payment that kicks in as staggered installment beginning 2016/2017.

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              • Re : Fairmont Apartments by VGN Guindy, Chennai

                Originally posted by maverick007 View Post
                200-300 cr collection will only service a portion of the debt. What about the rest?
                The fund raised from bookings most likely not be used for construction is what I am trying to say..

                Vgn may halt other projects to divert funds to keep this project alive, but again that is to rise the building to some extent to get 70 or 80% cost from bookings. One should expect delay in any of the vgn's current projects.

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                • Re : Fairmont Apartments by VGN Guindy, Chennai

                  collecting 50% in 3 months and service debts, no debt concern there,
                  Was referring to the quote in bold in my earlier post.

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                  • Re : Fairmont Apartments by VGN Guindy, Chennai

                    Originally posted by maverick007 View Post
                    Was referring to the quote in bold in my earlier post.

                    Reduced debt concern, no construction ... Clear now?

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                    • Re : Fairmont Apartments by VGN Guindy, Chennai

                      omg!!!!!! yesterday happend to travel from airport towards koyembedu.. it took 3hrs nearly....worst part is ekaduthangal !!!!!! opposite to hilton is worst worst..... so who ever booked apartments ask them spare rubber boats .. so u can travel easily during rains.. and while its sunshine use it for canal rides.....

                      other areas in perumbakkam, pallikaranai seems floods announced it seems..... takecare guys!!... have rubber boats ready...

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