VGN Developers to invest Rs 1,600 cr over two years

Plans six residential projects

Chennai-based VGN Developers Pvt Ltd plans to invest around Rs 1,600 crore in developing six to seven residential projects in and around Chennai over the next two years. It would raise around Rs 700 crore from a foreign investor for the proposed investment.

Speaking to Business Standard, Pratish Devadoss, managing director, VGN Developers, said that the company was planning to raise around Rs 700 crore through FDI, around Rs 800 crore by way of equity investment and Rs 100 crore through internal accruals.

“We have already raised Rs 110 crore from two investors — Pragnya and Paracor Capitals, and discussions are on with other firms,” he said. The proposed investment is only to complete the projects currently in the pipeline, while the company would acquire land with additional investments.

VGN has launched its new mini township project, VGN Brixton, today. The company will invest around Rs 300 crore in the project, of which Rs 60 crore will be through debt, Rs 75 crore by way of equity and the rest from internal accruals.

“The project is coming up on 23 acres at Irungatukottai with a built-up area of 1.6 million sft with 1,872 housing units, would be developed with international Aluminium Formwork Technology (AFL) eliminating use of any bricks. It will be completed in two phases and the first phase of 800 housing units will be ready for delivery by end of 2012,” Devadoss said.

So far, the company has developed 3.5 million sft through its projects and an additional seven to eight million sft would be developed with the completion of the projects in pipeline, said Devadoss.

The company also plans to enter the public market through its after four years.