Edited extracts from Press Release:
Real estate-focused PE investor Pragnya Fund has formed a JV with VGN Developers for a residential development project in Chennai. The project, covering an area of 6 lakh square feet at Paruthipattu on the Poonamalli- Avadi High Road, beside State Highway 55, will cater to the affordable housing segment of the market. The launch is scheduled for mid-2011.
From the Venture Intelligence PE-RE Deal database: In 2007, Pragnya Fund had taken a 24.5% stake in L&T South City township project (L&T Eden Park) on Chennai's Old Mahabalipuram Road/IT corridor.
Pragnya Fund has been in the real estate investment business in India and Sri Lanka since 2005-06. In addition to their Chennai projects, the Fund has also invested in an IT SEZ project at Kochi, a mixed-use project in Colombo, two residential projects at Asansol and Barrackpore in West Bengal and another project in Bangalore. The total built up space in these projects is around 12 million square feet. Mr. Subba Rao Dukkipati, Managing Partner of the Fund said that “We are happy to invest in Chennai with VGN as we believe Chennai is a growing market. This project being on the main road is ideal to meet the requirements of the middle income group of Avadi and nearby areas.”
VGN Developers is a leading real estate developer in Chennai and have been in operation since 1942. VGN have developed major residential layouts and apartments across Chennai with a total built space of over 20 million sq. ft. Some of the major projects include VGN Zodiac Ville, VGN La Parisien, VGN Minerva, VGN Platina, VGN Ferndale, VGN Pinnacle and VGN Brixton. Mr. Pratish, Managing Director, VGN Developers Ltd, said that “VGN has always worked to offer customer satisfaction in all their projects and it is same with this project. We will provide apartments that give value to our customers. This is also our first project with a foreign Private Equity Fund and we are sure our partnership with Pragnya Fund would make the project a great success.”