Tamil Nadu Shelter Fund, managed by the Tamil Nadu Infrastructure Fund Management Corporation, has invested Rs 95 crore ($12.7 million) in an affordable housing project by Vijay Raja Homes Pvt Ltd.
The fund will be utilised for the construction and development of VRX 360 in Thirumazhisai, a suburb in western Chennai.
Tamil Nadu Shelter Fund has seen investments by global investors like the World Bank. It invests in environmental, social and governance compliant affordable housing impact projects for commercial returns.
“Vijay Raja is committed to create projects that offer remarkable luxury yet are highly affordable for all walks of life. The affordable segment is our key focus and we believe in the government’s vision of housing for all. This is an industry where the phrase affordable luxury is considered as an oxymoron,” said Chendilnathan, chairman and managing director, Vijay Raja Homes.
JLL India was the exclusive advisor for the transaction, it said in a statement.
"Thirumazhisai is an ideal location – with great connectivity to both the city via the outer ring road and the industrial corridors via NH4. The physical infrastructure will be further enhanced with the development of Phase II of the Chennai Metro up to Poonamallee. Apart from upcoming residential developments, this micro-market also houses large auto OEMs (original equipment makers) and industrial estates," said Siva Krishnan, managing director, Chennai and Coimbatore, and head of residential services in India, JLL.
The statement said that Vijay Raja, a 70-year old company, has constructed and sold over 8.7 million square feet to more than 5,700 customers till date.