Archive

Posts Tagged ‘oragadam’

The Plotline of Investment

December 3, 2012 Leave a comment

Invest in Plots Chennai

 

Many people are looking at plots in the peripheries of the city as a means of short and medium-term investment.Arjun Narayanan finds out more

Land is undoubtedly emerging as a much sought after asset for investments.While purchasing a plot by end users is common,there are many who look for plots as a short to medium term investment.Since availability of plots within the city limits seems beyond question,the obvious choice is the outskirts,where a lot of manufacturing companies have set up shop.
Buying a plot calls for lower finances and allures many investors for this very reason.”I personally feel that property requires more money and the appreciation that happens in case of an apartment is not as high as in case of a plot,”says Mahipat Bhandari,a city-based businessman,who has purchased a plot in Kayarambedu.
It is areas like these that are up for grabs on the investment map today.”The area towards GST,Oragadam,Sriperumbudur and the stretch along the ECR,after Muttukaadu,are attracting investors and developers today.The connectivity is improving in these areas and many educational institutions and hospitals are being proposed here.These aspects work like a trigger for developers and investors,who are looking for plots in the suburbs of the city.It works well as a long-term investment,”says Wilson Mathews,Director,Sales and Marketing,TVH.

With increased economic activities and growing income,space for residential property has become an issue in Chennai.Employees of multinationals and manufacturing enterprises (that are set up on the outskirts) are also planning for a permanent residence in these areas and as that happens,what was once a suburb has now become a part of the city.”Even a few years ago,Tambaram was seen as a suburb.But today,it has become a part of the city.There are many IT professionals residing in the area there and facilities are increasing there,”says Rakesh Jain,a city-based entrepreneur,who has invested in a plot near Guduvanchery and has plans not to sell the plot for at least the next three years.”After seeing some appreciation,I am planning to get into a joint development with a builder,”says Rakesh,who holds the plot jointly with another investor.
“Most real estate developments being proposed in recent times follow the joint development route.In such a case,a developer doesn’t invest money in land;both partners join hands to develop property,”says Wilson.Rakesh also sees a lot of merit in investing in a plot over a house.”Apartments require a lot of maintenance and that becomes cumbersome if you are living in another city.Besides,you can do a lot with a plot.Selling it becomes easier,”he says.

So how does a person clearly decide between investing in a plot and a house Wilson feels that one needs to prioritise his/her needs and keep the budget in mind,which means that the purpose of investment,the time in hand to remain invested,the source of funding and the desired cash flow are the key factors while making a decision.”Don’t bite off more than you can chew,”he says,with a note of caution.”If a person already has a house,then its ideal to invest in a plot in one of the locations in the suburbs.Growth is happening in the periphery of the city,”he says.A planned decision will then help a person invest in plots as a short term or medium term investment.

As published in Times of India, Times Property – December 2, 2012

Profiling GST, OMR and Oragadam

September 18, 2010 Leave a comment
HOLISTIC LIVING

With rising population,integrated townships are poised to be the next big thing in Chennai,even as suburbs in the city play host to a number of such projects.RADHIKA RAMASWAMY visits three important corridors in the city to find out more

GRAND SOUTHERN TRUNK (GST)

The 20-kilometre stretch from Tambaram to Maraimalai Nagar on GST Road could well be mistaken to be within city limits.Such is the development here. GST Road has been touted as a premium industrial corridor and connects all the Southern districts of the State to Chennai via both road and rail. Home to manufacturing giants, IT majors, schools and colleges, the road, over the past three years, has turned into a commercial hub of sorts. One of the first companies to set up its unit on GST Road was Team (Team co Hitech Enginering Ltd) in Vandalur (20 years ago). This was followed by a series of developments in and around Maraimalai Nagar. Mahindra World City,an integrated township,spread across 1,500 acres,developed in the year 2000 transformed the landscape of GST and triggered the growth of integrated townships in this area.Arun Excello’s Estancia and Shriram Properties’ The Gateway are upcoming integrated projects here.”While OMR is IT-centric, GST is a mix of IT, telecom, automobile and ancillary units,”says P Suresh,MD,Arun Excello.”The city has reached a saturation point in terms of significant residential development.With Chennai expanding and peripheral areas playing host to large-scale industrial boom,self-contained townships have become the order of the day.”

OLD MAHABALIPURAM ROAD (OMR)

The OMR phenomenon occurred in the late 90s. What was once a stretch with green patches and large land parcels on either side of the road has evolved into a premier IT corridor.Tidel Park was the first IT establishment to foray into OMR,which is now called Rajiv Gandhi Salai. This was followed by the mushrooming of several other IT parks.Today,over 2.7 lakh people work out of here. “The IT boom led to an unprecedented residential demand along the stretch and several residential projects have come up since 2000,”says K K Raman,Vice-President,DLF Homes “Nobody has the time or the energy to go to far-away places for entertainment and recreation. People prefer everything right from education to healthcare centres in the vicinity of their homes. This is where integrated townships come into play. An integrated township is not just about a home. It is about creating a lifestyle that takes care of every single need of the resident.”DLF Homes is coming up with a 58-acre integrated township project called Garden City in Shollinganalur. Over the next two years,the number of people working in OMR is expected to cross four lakhs. With this,the demand for gated communities will only increase. There are currently over five full-fledged integrated townships on OMR.

ORAGADAM AND SRIPERUMBUDUR

Oragadam,centrally located between Grand Southern Trunk and NH4,has been touted as Chennai’s largest and the most developed industrial belt. With over 22 Fortune 500 companies (of which six are global car manufacturers),the Sriperumbudur-Oragadam belt has seen tremendous industrial growth in less than four years. The area is well-connected via road and rail and according to industry experts,the presence of automobile giants like Renault and Nissan and Ford has triggered growth around Oragadam. Several manufacturing giants such as Motorola, Dell, Flextronics, Samsung, Nokia, Apollo Tyres,and TVS Electronics,have set up their respective units in the industrial belt stretching from Sriperumbudur to Oragadam. Three integrated townships – Arun Excello’s Temple Green,Hiranandani (Hirco Group)’s Palace Garden and Inno Geo City are being developed in Oragadam. Aniruddha Joshi,Executive Director,Hirco Group,Says, “Today,owning a home in the city has become cumbersome and costly. The only solution to the spiralling price and increasing interest rates on home loans is to own a property in an integrated township coming up in the outskirts of the city. The new industrial corridor foraying into places like Oragadam will generate new jobs and will attract people to relocate out of Chennai. Our township will provide them with homes that are located conveniently close by. We are building the whole infrastructure from the ground up – roads,electrical power,telecommunications backbone,water and sanitation. By doing so,we reduce our townships dependence on the public infrastructure and make them self-sustaining – a key differentiator in a country where the public infrastructure is under considerable pressure.”That apart,today’s buyer profile consists mainly of young people,who want to fulfil their aspirations at the earliest.Moreover,these buyers want all this,within the constraints of a certain level of pricing. Townships are an ideal option for such buyers,due to the inherent advantages of economies of scale – they offer various amenities,at relatively lower price points.

 

Times Property, Times of India, 18 September 2010

A Model Initiative

 

All these years,we have seen companies that sell fairness creams and talcum powders use film personalities to get the message across.Now,it looks like the trend has caught on with real estate firms.SUDHIR SRINIVASAN finds out more

When the world woke up to posters of a certain film starring Madhavan titled Oragadam on Monday,June 21,little did people realise that the posters were advertisements for a new project of Arun Excello Foundations Private Limited,a citybased real estate firm.Another real estate firm, VGN Developers Private Limited,has recently roped in Sameera Reddy to help promote its project.
So,how has this trend caught on finally What’s in it for the real estate firms here “There is no doubt that film personalities call the shots in Tamil Nadu,”begins P Suresh,Managing Director of Arun Excello Foundations Private Limited,”How else do you explain the fact that the State’s last three Chief Ministers have all been associated with films,”he says.Arun Excello’s campaign ended with newspaper advertisements and radio jingles announcing that a new residential project titled Temple Green (apartments ranging from 575 sq ft to 1,280 sq ft) was being constructed in Oragadam,and that it wasn’t a real film.”An individual called me,and without bothering to enquire about the rates and the location of the place,conveyed his interest in buying the property that he referred to as the property that Madhavan advertises for,”he says.
For VGN Developers Private Limited,having a film personality endorse its product isn’t a new idea.After all,Mandira Bedi was its brand ambassador for about a year-anda-half in 2007 and 2008. Says Pratheesh Devadoss, Managing Director of VGN Developers,”As the face of the company has significantly changed since then,we needed a bigger and better name.So we have signed Sameera Reddy to endorse an upcoming project of ours titled Platina (670 aparments spread across 17 acres near Ambattur).”
P Suresh says,”The project needs to be big enough to demand the endorsement of such a personality.For instance,my advertisement campaign cost me approximately Rs2 crores.But at the end of the day,it’s the choice of each company.”However,not every company is of the same opinion.”I frankly don’t find it necessary to sign a celebrity as my company’s brand ambassador,”says Suresh Jain,MD,Vijayashanti Builders,”At the end of the day,I believe that newspaper advertisements in a real-estate supplement work better as the intended audience gets to know about the product. “Well,even though companies may differ on the subject of celebrities being signed as brand ambassadors,one thing is for sure.A new trend is emerging.

TOI online, Times Property, 10,July 2010

Affordable housing

QUICK BYTES: Several upmarket Chennai developers are waking up to the need for budget homes and have launched large-scale projects in this segment.RADHIKA RAMASWAMY analyses

IN THE PAST SIX TO EIGHT MONTHS,ONLY AROUND 3,000 AFFORDABLE UNITS HAVE BEEN DEVELOPED IN CHENNAI

 

 

There was a time when buying a house was restricted to the realm of those who had the financial resources.There was a time when the average middleclass buyer contemplated the purchase of a home when he/she touched the age of 40.Today,the disposable incomes,aspirations and standards of living of people have gone up by many notches.As a result,there has been a paradigm shift in the home-buying pattern,thanks to the real estate industrys latest buzzword,affordable homes.In the last four years or so,affordable home was just a jargon in the vocabulary of real estate.Several prominent developers in the city did not cater to this segment.Until last year.This year is different.More than 30 prominent developers have embarked on building affordable/budget projects across the city.
What are the factors that have accounted for an upsurge in this housing segment According to a recent study,the total housing shortage across the country is 24.71 million units and in Tamil Nadu alone,it is 2.81 million units.As per the Chennai Metropolitan Development Authority’s (CMDA) second master plan,the city requires over 4.13 lakh houses by 2011,of which 3,52,000 should cater to the low-income and middleincome groups.In the last six to eight months,only around 3,000 affordable units have been developed in Chennai.
In the ongoing Budget Home 2010 exhibition being held at the Chennai Trade Centre,Nandambakkam,until July 4,over 60 developers from across the State,are showcasing their affordable home projects that range from Rs30,000 to Rs35 lakhs.G Sakthivel,Managing Director,Eyeball Media Private Ltd,the organiser of Budget Home 2010,says,”Last year only two prominent builders had affordable projects.This year,over 15 prominent builders are showcasing their budget projects in the exhibition.With prominent developers coming forward with affordable projects ranging between Rs10 lakhs and Rs 30 lakhs,it has become easier for middle-income groups to invest in a house in the outskirts of the city.”
As Kalyan Jayaprakash,Director,Inno GeoCity (a township being developed in Oragadam by a global investment group called Inno),points out,”There is an obvious demandsupply gap in housing across the country,especially in the affordable housing segment.In fact,many big developers catered only to the topof-the-pyramid segment until last year.The profile of home buyers ranges from young professionals in the age group of 20 and 35 to senior citizens,who want to spend their retired lives in the peaceful outskirts,the introduction of affordable projects was but obvious.”
The economys revival is also among the many reasons attributed to this sudden surge in affordable projects.The revivial has witnessed significant industrial expansion,as a result of which,there are recruitments taking place on a large scale.The situation has,therefore,become ideal for developers to create projects for the young,migratory professional demographic.

“Affordable is a relative term,”says S Ramakrishnan,CEO,MARG ProperTies Limited.”For a factory supervisor,affordability will range anywhere between Rs4 lakhs and Rs6 lakhs,for an IT professional,the budget will be between Rs12 lakhs and Rs25 lakhs.We are trying to merge the aspirations of a buyer with the value of the project.Our objective is to provide houses that match a buyer’s needs and aspirations.”MARG ProperTies is developing a large 1,000-acre township,MARG Swarnabhoomi off ECR primarily catering to the middleincome group.”Budget housing is definitely not possible within city limits.Which is why the outskirts are ideal with large land parcels,coupled with necessary social infrastructure.That apart,suburbs also play host to a number of IT majors and manufacturing industries.So why not”adds Ramakrishnan.The projects that fall under the affordable category promise to provide facilities identical to their upmarket counterparts.That apart,most of them are strategically located near industrial /manufacturing /I T units,and therefore,cater to people working in and around the area.”We call this walk-to-work.It is possible for a young couple with a combined income of Rs40,000 a month to invest in these affordable projects.Their EMI will work out to Rs10,000 every month,which is not too much in the long run.”
Kishore Kumar,VP – Marketing and Customer Care,True Value Homes (TVH),which is building TVH Swaya (in Sriperumbudur with units priced between Rs10.9 lakhs and Rs21 lakhs) says,”Banks were not liberal in giving housing loans earlier.But now banks are ready to give housing loans starting from Rs10 lakhs.If there are funding agencies readily available to give housing loans and people who are ready to invest in homes at a very young age,there is no reason why we shouldn’t cater to this segment.”With gap in rentals and EMIs coming down,it makes more sense for people to invest in these low-cost homes than pay life-long rentals.R V Shekhar,MD,Lancor Builders,however,has a different point of view,”It is true that there are many takers in this segment but when it comes to giving loans worth Rs10 lakhs or Rs15 lakhs,banks usually demand for 15% of owner’s equity.Owing to this,several buyers might back out and developers also may not be willing to risk his reputation.But with people queuing up for houses below Rs30 lakhs,budget housing is definitely the need of the hour.”

Times of India, Times Property, 03,July 2010

Oragadam calling

Rapid industrial development in some suburbs have caught the eye of builders. Oragadam is the latest on their radar, reports Prince Frederick
 
GROWTH DRIVER: The Renault Nissan factory set on the six-lane State Highway linking Oragadam and Singaperumal Koil

Maraimalai Nagar, Sriperumbudur and now Oragadam. The first two are industrial zones that developed into self-contained areas with residential spaces, educational institutions, hospitals and other social infrastructural facilities. Now there are distinct signs that the third will also go the same way.Oragadam, one of the biggest automobile hubs in South Asia, is evolving into a multi-faceted industrial zone. The Oragadam SIPCOT area contains a diversity of industries, including engineering, bio-tech, IT and electronics units. The cream of technology majors have set up shop: Renault Nissan, Daimler AG, Komatsu, Allison Transmission, Unipres, NSK ABC, Mega Tech, Delphi TVS, Seco Komos, Momentive, Johnson Lifts, JCBL Marbles, GKN Driveline and Tenneco. 

Besides the SIPCOT zone, industrial units proliferate in other parts of Oragadam too. 

“Three lakh people are expected to work in the industrial units at Oragadam in three years’ time,” says P. Suresh, managing director, Arun Excello. 

Expecting the demand for housing to go up, builders are making a beeline to this suburb, located south-west of Chennai. 

A sign of this growing interest is three humungous townships. Hirco Palace Gardens is set on 369 acres of land, with 10,000 dwelling units planned. The first phase of this massive project is almost complete. 

The Inno Group has announced Inno GeoCity, which offers 4,000 houses (independent and semi-independent) in an 131-acre township. Temple Green Heights, a 100-acre township by Arun Excello, will provide 2,600 houses. 

Collectively, these three projects are aimed at the working population. The projects fit into a broad category; they have something for every purse. With flats offered at Rs. 3,400 per sq.ft., Hirco’s township falls in the premium segment. It is clearly aimed at the middle-level to the top executive. With basic prices of Rs. 2,399 per sq.ft and Rs. 1,750 per sq.ft., Temple Green Heights and Inno GeoCity fit into the definition of affordable housing. 

The social infrastructural facilities offered by these projects include schools and health care facilities. End users form a majority of buyers in these projects. Builders says buyers’ decision has been motivated by the obvious advantages of living close to their workplaces and having a diversity of social infrastructure within easy reach. And, the charm of living in less crowded suburbs. 

“As Oragadam is connected by a matrix of wide roads to other happening towns, residents have easy access to facilities that lie beyond. For example, residents of Oragadam can draw on the resources in Sriperumbudur, which has many educational institutions,” says Kalyan Jayaprakash, director, Inno GeoCity. 

Four-lane and six-lane State Highways provide multiple entry points to Oragadam via flourishing towns (Padappai, Sriperumbudur, Walajahbad and Singaperumal Koil). 

In industrial circles, Sriperumbudur and Oragadam are spoken of as twin towns. Together, these two towns account for an FDI of $16 billion. 

Some believe Oragadam is poised to become an industrial superpower in that area. “Being connected to Oragadam will be the prime driver of development in many of the neighbouring areas. Oragadam will become the central point of a massive industrial revolution. It will impact development of areas within a 15 to 20 km radius,” says V. Suresh, principal executive officer, Hirco. “Oragadam shall be the catalyst of growth in the region.”

The Hindu, Property Plus, 02, July 2010

Inno, a global realestate group, to invest $150 mn in India

June 23, 2010 1 comment

 

Inno, a global investment group focused on real estate, is planning to invest around $150 million (Rs 690 crore) in various residential projects in the country in the next six to seven years. 

Speaking to reporters at the launch of Inno Geocity, a Rs 750-crore flagship residential project to come up in the industrial belt of Oragadam near here, Rajamannar Ramaswamy, group managing director, Inno Group Holdings Limited, said the company had raised $200 million (around Rs 920 crore) so far and had invested $50 million in three projects including a hotel project and residential projects in Chennai, and a villa project at Coimbatore.

Inno Investments has raised four India-focused real estate private equity (PE) funds and funded six projects in India with a total gross development value (GDV) of Rs 2,600 crore, involving development of over 14 million sft.

“For every project, we are going to investors for money. This model suits the company and the investors,” Ramaswamy said. “So far, we were investing in projects and were operating in joint venture model. Since we got the expertise now, upcoming projects will be undertaken on our own.”

Commenting on the Inno Geocity, Sajid Sathak, managing director, Inno Geocity, said this would be a self-contained township with a GDV of Rs 750 crore and will be spread over 131 acre with four million sft of built-up area. The project will be developed in phases over the next four to five years with around 4,000 dwelling units. Phase-I with 1,000 units would be ready in the next 18 months, he added.

Business Standard, 23, June 2010

Poised for growth – Oragadam

 

Oragadam,the industrial hub on the outskirts,is growing rapidly. However,are there enough residential projects in the area to accommodate the rising population RADHIKA RAMASWAMY and HARINI SRIRAM find out Real estate development in the city has been witness to several transformations over the past four to five years.While in certain areas residential development was a defining factor for industrial growth,in others,commercial and industrial growth have paved the way for improved infrastructure and connectivity.

Landscape of Oragadam

Oragadam,centrally located between Grand Southern Trunk and NH4,has been touted as Chennai’s largest and most developed industrial belt.With over 22 Fortune 500 companies (of which six are global car manufacturers ),the Sriperumbudur-Oragadam belt has seen tremendous industrial growth,in less than four years.The area is well-connected via road and rail and according to industrial experts,the presence of automobile giants like Renault-Nissan and Ford has triggered growth in and around Oragadam.In addition,JCBL Ltd,Essar Steel,BPCL,Delphi TVS Diesel Systems Ltd,GE Bayer and Silicons (India) Pvt Ltd have set up offices at SIPCOT Industrial Park.

Industrial impact

Has this industrial expansion paved the way for residential development in and around Oragadam Are there enough projects in the pipeline to cater to the large working population The State Industries Promotion Corporation of Tamil Nadu (SIPCOT) is spread over 347 acres in Oragadam and houses a number of industrial units and intends to expand in order to accommodate more industries and residential complexes.MRJ Premnath,General Manager,SIPCOT,says,”We have more than 10,000 employees,most of who commute to and from their homes in the city by company buses.It is high time that there are apartments or villas built in Oragadam,so that people do not have to spend two hours traveling.” Devendar Singh,Deputy Manager,Motherson Group of Companies,GST Road,is quick to agree.”For me, he says,traveling from GST Road to the city is a nightmare.I recently bought an apartment in Oragadam (in Temple Green,an Arun Excello project).In fact,nearly half the project is occupied by employees from my company.Living so close to work will cut down on travel time and reduce additional expenditure incurred by companies when providing transportation.We want more such projects in this part of the city,as it will benefit thousands of employees working in and around Oragadam.”

The flip side of the customers perspective is that sometimes,regardless of the facilities offered,moving to a new home outside the city is a less than appealing perspective. Kiran Chandan,Deputy Manager,Renault-Nissan,says,Despite working at Renault-Nissan,whose offices are in the Oragadam area,my wife and I moved from Tambaram to Kodambakkam.We did so,largely,because my wife works in Nungambakkam and commuting,for her,would have been difficult. Kiran adds that commuting,for him,is quite a problem now.He continues,We have been looking,for some time,for an opportunity to move closer to Oragadam.Our budget,currently,is about Rs35 lakhs.So far,we havent really found anything. Oragadam used to be a sleepy little village even about three years ago.However,when SIPCOT was set up in 2007,the area underwent a sea change.The resultant flood of working professionals and their family,complete with residential and shopping demands had,and still has,the potential to wake the sleeping giant of urban development in the area.

Times Property, Times of India, 19 June 2010