VGN Developers to raise Rs 700 Crore PE fund

Published: December 6, 2010 at 12:38 PM | Author: Administrator
News Source: Business Standard - TE Narasimhan (Chennai May 07, 2010)

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Chennai-based VGN Developers Pvt Ltd is planning to raise Rs 600-700 crore private equity (PE) fund to support its proposed investment of around Rs 3,000 crore in various residential projects.

The company has developed two million sft of residential projects in the last four years. Over the next 3-4 years, it is planning to develop another 7-8 million sft, said Pratish Devadoss, managing director, VGN Developers.

"The total investment, including land, would be around Rs 3,000 crore," said Devadoss.

The company is planning to fund the project through internal accruals, debt and equity. "We just signed an agreement with a PE player, who will invest around Rs 80 crore. Going forward, we are planning to raise another Rs 600-700 crore," he said without disclosing the name of the PE player.

Around 80 per cent of the upcoming projects would be in Chennai, Coimbatore and other places in Tamil Nadu.

The company on Wednesday launched "Platina", its residential project proposed at Ambattur here. The project, spread across 17 acres, will have 670 housing units and is estimated to cost around Rs 120 crore.