TVS housing arm ropes in Singapore's Keppel Land for project near Chennai

Emerald Haven Realty Limited (EHRL), part of the $8.5 billion TVS Group and housing arm of TVS Motor, has roped in Asian property company Keppel Land Limited (Keppel Land) to develop a housing project in South Chennai.

The partners will develop the project through a JV, in which Keppel Land's subsidiary will take 49 per cent stake for Rs 77.2 crore (around 14.1 million Singapore dollars).

The residential project is currently being undertaken by Emerald Haven Life Spaces (Radial Road) Limited (EHLS), a subsidiary of TVS Emerald. EHLS will transfer its undertaking, consisting of the project and the site, to a SPV. 

Keppel Land through its wholly-owned subsidiary Orizona Pte Ltd (Arizona) will acquire the stake in the JV company.

The total development cost of the project is expected to be about Rs 540 crore (around S$98.2 million), with Keppel Land’s share estimated to be about Rs 260 crore (around S$48.1 million).

The partners will jointly develop a project on a 2.4-hectare site along Pallavaram Thoraipakkam Radial Road (PTR), a fast-developing information technology (IT) corridor in South Chennai.

Completion of land acquisition is subject to the satisfaction of certain conditions precedent and is expected to take place in the first half of 2021.

The JV will look to do larger residential/mixed development projects in Chennai, going forward.

Ho Kiam Kheong, President (India), Keppel Land, said that the partnership is in line with hif firm's strategy to strengthen its presence in top-tier cities in India, and creates a platform for future collaboration with TVS Emerald.

“Leveraging TVS Emerald’s extensive network and deep understanding of the local property market, as well as Keppel Land’s international experience and strong execution capabilities, we are confident that this upcoming condominium development will attract homebuyers seeking thoughtfully-designed homes located along the IT corridor of PTR,” he said.

Keppel Land and TVS Emerald plan to develop a premium condominium offering recreational facilities and a modern clubhouse. The gated development will have a total saleable area of about one million sft and will consist of apartments mostly in two- or three-bedroom configurations, with many units offering a view of the adjacent Kovilambakkam lake.

Construction is expected to commence in the third quarter of 2021.

K Gopala Desikan, Director of TVS Emerald, said that TVS Emerald has been developing and delivering projects in Chennai for close to seven years.

For this upcoming development, we are delighted to partner with reputed Asian property company, Keppel Land, which places paramount importance on enhancing customer experience.

TVS Housing Limited (TVSH) / Emerald Haven Realty Limited (EHRL), is a 100% subsidiary of TVS Motor. In 2019-20, the Company launched Flourish Apartments at Salamangalam comprising 208 residential units. This project falls under the category of "affordable homes" defined by the Government of India. 61% of the apartments have been sold till date.

During 2019-20, project Lighthouse in Chennai was launched - a 14 storey residential apartment complex comprising 279 units and 73% of the apartments have been sold till date.

During the year, the Company geographically expanded to Bengaluru via Joint Development Agreement (JDA) for a 6.4 acre land parcel in Kagglipura, Bengaluru.

EHRL also entered into a JV Agreement with ASK Real Estate Special Opportunities Fund - II (ASK).

The Company has completed construction of 1.4 Million Sft till date and the total area under development as on date is 5.5 Million Sft.