Real estate private equity firm of financial services group ASK Group and TVS Emerald, the real estate arm of TVS Motor Company, will invest ₹400 crore to develop affordable housing projects in Chennai.

The joint venture will see investment of ₹200 crore each from both the parties over four-five years.

The project developed in a Chennai suburb (Porur), will be a combination of apartments and villas and is aimed at the mid-segment. Sunil Rohokale, Managing Director and Chief Executive Officer, ASK Group, told BusinessLine that the number of apartments and villas is yet to be worked out. The prices will range from ₹30 lakh to ₹65 lakh.

The project will be developed on 10 acres with saleable area of 5.48 lakh sq ft with an equity investment of ₹83 crore. Rohokale said construction will begin in six-nine months once the approval is in place. Rohokale said Porur is well connected to other parts of the city and has a huge potential for growth given its proximity to job markets.

Rohokale agrees that the real estate industry is facing a slump right now. But he explains that the economy will improve and suburban areas like Porur will be high on demand four-five years down the line.

Other projects

After implementation of the Real Estate Regulatory Authority, many small real estate businesses are willing to sell pockets of land or looking to partner with builders for development. “This too opens up opportunities for us,” Rohokale added.

That is also the reason, Rohokale says, ASK Group is focusing on suburban areas for two other projects in the pipeline. “We are looking to develop two more projects in the South in coming years, preferably in Chennai and Bengaluru,” he added. “However, we are yet to partner with developers for those projects,” he said.

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