Prestige and Arihant Group Acquire 3.48-Acre Land Parcel in Velachery, Chennai
Prestige Group has entered into a fresh joint venture with Chennai-based Arihant Group to acquire a prime land parcel in one of south Chennai's most sought-after residential micro-markets. Prestige Group and Arihant Group have entered into an agreement to jointly acquire a prime 3.48-acre land parcel in Velachery, Chennai from Rane Madras. The deal marks another significant step in Prestige's expanding Chennai portfolio and strengthens its partnership with a well-established local developer.
The transaction has been structured through a dedicated joint venture entity. The land transaction was executed through their JV entity, Canopy Living LLP, and facilitated by property consultant CBRE. The project will be constructed on a 3.48-acre land parcel acquired from Rane (Madras) Ltd for Rs. 361 crore. More precisely, the transaction, valued at ₹361.18 crore, has been executed through their joint entity, Canopy Living LLP, with the seller retaining part of its original holding. The seller of the land is Rane (Madras) Ltd., which originally held a 4.5-acre plot in the area.
On the development potential of the site, disclosures indicate a substantial residential project is planned. 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. This positions the Velachery project as one of the larger JV-led launches expected in Chennai over the next couple of years.
Location was a key driver behind the acquisition. 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 making it a compelling location for high-end urban living. Velachery's appeal to developers has been building for years thanks to its central location and infrastructure. Velachery has emerged as one of the fastest-growing residential and commercial zones in Chennai, thanks to its strong connectivity to the IT corridor along OMR and its well-developed social infrastructure.
Leadership commentary underscored the strategic intent behind the deal. Irfan Razack, who chairs Prestige Group, said that the Chennai market remains important in the firm's national growth plans. He further noted that this project is part of their larger ambition to create signature housing developments across India's metro cities.
The deal fits into a wider pattern of institutional-grade land transactions reshaping Chennai's premium housing corridors. Other major developers have been active in the same belt, with Brigade Enterprises acquiring 5.41 acres in Velachery for ₹441.7 crore, showing continued confidence in the corridor. Elsewhere in the city, Ashiana Housing secured 23 acres at Mahindra World City for a ₹1,200 crore senior-living project, reflecting the broader appetite among branded developers for Chennai land banking.
For Rane (Madras) Ltd, the sale served a strategic corporate purpose as well. For Rane (Madras) Ltd., the transaction supports its financial restructuring and business consolidation efforts. Meanwhile, from a growth perspective, for Prestige Group and Arihant Group, this marks a strategic move to strengthen their presence in the southern real estate market.
On timelines, the developers have indicated a structured completion schedule for the land formalities before construction begins. According to official statements, the land acquisition is expected to be completed by September 30, 2026, following which construction of the residential project will commence in phases. No official project name, RERA number, unit configuration, or pricing has been announced yet, and homebuyers should treat any third-party estimates on pricing or unit count as indicative until Prestige and Arihant release formal launch details.
