Chennai, July 9 The TVS Group is considering joint development of its 5-acre property on Anna Salai, in Chennai.
According to reliable sources, the TVS Group has decided to tie up with a partner to set up a multi-storey commercial complex on the property where TVS Sundaram Motors today has its Honda and GM showrooms as well as car repair service facilities — a landmark in the area.
The TVS family had been considering the proposal for some time, but only recently did it arrive at a consensus. However, a final decision is yet to be taken.
The objective is to put a multi-storey business and commercial complex, apart from some retailing space. It is most likely to go for a partner to develop the project, the source said.
Industry experts say this would insulate the group from the construction and project risks while giving it the advantage of revenue and modern built-up space. An international property consultant is working on the project details.
With more than five acres available as a single block facing the 8-lane Anna Salai, and an additional access from a parallel road, it is estimated that the developers would be able to put up multi-storey buildings of over 8,00,000 sq ft.
Considering the prime location, lease rentals at the property could run into three figures a square foot, sources in the industry say.
The stretch of Anna Salai on which the property is located is among the prime commercial properties in Chennai. In terms of land value, developers estimate that the property would be valued at well over Rs 12,500 a sq ft going by current trends.
Taking into account the area of the property and the TVS ownership, the property would also attract a premium.
The property could be valued close to Rs 300 crore. Last year, for instance, the Prestige Group acquired a 2.8 acre property at Nandanam on Anna Salai about 3 km away, at about Rs 115 crore which is about Rs 9,450 a sq ft.
