Vascon Engineers To Develop Rs .2000 crore Township At Oragadam

Vascon Engineers on Tuesday said that it has signed a pact with Bhalakh Realtors Private to develop a 105-acre township at Oragadam, a rapidly growing suburb located at a distance of about 45 km away from Chennai on Tambaram-Kancheepuram Road.

The company said that it would develop about 10 million sq ft in four phases over a period of 6 years. The total investment in the project is estimated to be approximate Rs.2000 crore.

"We plan to develop a 105-acre township, predominantly residential, at Oragadam on the outskirts of Chennai in four phases. In all, we will develop around 10-million sq ft," Vascon Engineers' Managing Director, R Vasudevan.

The project will be developed in a joint venture with and the association will be on a revenue-sharing basis, Vasudevan said. "They bring in land and equity and we will do the development," he said.

Construction will start in a year's time and Phase I of the project will be completed in two-and-a-half years, he said, adding the entire project will be completed in six-years. Funding will be through internal accruals, project collections and some debt, he said.

"We expect to realise around Rs 3,500-crore in sales from this project," he said. This is the Pune-based company's second real estate project in Tamil Nadu, the first being Tulips in Coimbatore where Phase I work is on "in full swing", he said.

Apart from residential, this project, spread over 7-acres, will also include a hotel and hospital for which the company is scouting for a joint venture partner, he said, adding "we will ink deals with our partners within the next six-months."

The company will expand its footprint further in the southern state with another project at Madurai in about a year's time.

"We are planning to develop another 30-acre project in Madurai on which we propose to start work in about a year. It will predominantly be residential but will have a shopping mall and a multiplex," he said.

Investment details are presently being worked out for this project, he said.