Prestige-Arihant Joint Venture Acquires 3.48 Acres in Velachery, Chennai for ₹361 Crore
Strategic Land Acquisition Marks Prestige and Arihant Partnership in Chennai
Prestige Group and Arihant Group have entered into an agreement to jointly acquire a 3.48-acre land parcel in Velachery, Chennai from Rane Madras through their joint venture entity, Canopy Living LLP. The land was acquired for Rs 361 crore.
Project Development Potential
The land is earmarked for the development of premium residential dwellings with a total development potential of approximately 7.5 lakh square feet and an estimated Gross Development Value (GDV) of over Rs 1,600 crore. The 3.48-acre plot sits next to the 100-ft Bypass Road and links in 15 minutes to Taramani MRTS, with a likely FSI above 4.9 to fit 650–700 apartments across two or three towers.
Partnership Structure and Strategy
Irfan Razack, chairman and managing director of Prestige Group, said: "Chennai continues to be an integral part of our national expansion strategy, and this upcoming acquisition in Velachery marks another step in our journey to deliver landmark residential developments. Our partnership with Arihant in the region reflects a shared vision to develop high-quality, thoughtfully designed communities that resonate with evolving urban lifestyles."
The partnership brings together Prestige's pan-India execution capability with Arihant's deep local market knowledge, a combination increasingly favoured for high-value urban land deals in South India. Arihant Foundations and Housing Ltd is a Chennai-based real estate developer with over four decades of experience and a delivery track record of more than 25 million square feet.
Developer Footprint
Prestige Group is one of India's most respected and diversified real estate developers, with a legacy of over three decades and a portfolio spanning residential, commercial, retail, hospitality, and integrated townships across major cities. The Group has delivered 302 projects spanning 193 million square feet and currently has a pipeline of 130 projects across 203 million square feet.
In the first quarter of the current fiscal year, the company acquired a total of 102 acres of land in Bengaluru, Hyderabad, Chennai and Mumbai for developing residential projects, which would have an estimated gross development value of Rs 20,400 crore.
Velachery as a Residential Hub
Located in one of Chennai's most prominent and well-connected neighbourhoods, the site benefits from excellent access to IT corridors, social infrastructure, and thriving residential communities. Velachery has transformed from a quiet suburb into a bustling residential and commercial hub, known for its excellent connectivity, well-developed infrastructure, and proximity to major IT corridors.
The locality has seen steady appreciation in property values over the years, with strategic location near major IT corridors like OMR and Taramani. Velachery commanding ₹9,000–16,000 per sq ft, early-bird pricing may hover near the upper band. Rental yields in Velachery average 3.5–4 percent, better than the Chennai city mean of 2.7 percent, with capital values rising about 9 percent CAGR (2020–2024); the upcoming Metro Orange Line could push annual appreciation to 11 percent once operational.
Market Context
The acquisition, announced on June 28-30, 2025, marks a strategic expansion of both developers' presence in Chennai's central business zone. Prestige has set an ambitious goal to sell ₹27,000 crore worth of property in FY26. The Velachery project will play a key role in helping the company meet this target.