A ₹361 Crore Landmark Transaction
Prestige Estates Projects Ltd and Arihant Foundations have taken a bold step in Chennai’s property market. Through their joint venture, Canopy Living LLP, they purchased 3.48 acres in Velachery from Rane (Madras) Ltd for ₹361.18 crore. Rane retained 1.02 acres from its original 4.5-acre parcel for its own office development, balancing monetization with future needs.
This transaction, facilitated by *CBRE and legally advised by Shardul Amarchand Mangaldas & Co, signals a new level of professionalism in Chennai land deals.
Project Scope and Value Creation
- Built-up potential: ~7.5 lakh sq. ft. premium residences
- Gross Development Value (GDV): ~₹1,600 crore
- Estimated launch: Early 2026 (sales), with project handover targets beyond 2028
By combining Prestige’s pan-India brand and capital strength with Arihant’s deep local know-how, the JV aims to set a new benchmark for urban mid-city luxury housing.
Why Velachery? The Local Edge
Velachery is one of Chennai’s most coveted zones — well connected to OMR, GST Road, and key IT hubs. Limited land availability makes every acre highly valuable. Paying ~₹361 crore for 3.48 acres translates to a steep per-sq-ft land cost, but rising demand in premium housing justifies the bet.
Beyond One Project: A Strategic Alliance
According to Verified.RealEstate Community Insights , the Prestige–Arihant partnership is not a one-off. Their framework agreement covers residential, commercial, retail, and hospitality projects across Chennai. Velachery is the flagship, but more projects are in the pipeline.
Seller’s Perspective: Rane’s Strategy
For Rane (Madras) Ltd, this wasn’t just a land sale. The company used the deal to reduce debt and rationalize operations, while holding on to part of the land for its office. The move also reflected positively in the markets — Rane’s stock rose ~4% intraday after the announcement, signaling investor approval of the monetization strategy.
Signals for the Chennai Market
- Urban Scarcity Premium: Plots inside the city are very rare, so prices are going up fast.
- Institutionalization of Deals: Big law firms and advisors are now handling these sales, making deals more professional and transparent.
- JV Risk Sharing: Prestige brings money and brand power, Arihant brings local knowledge. Together they reduce risk and can finish faster.
- Benchmark Effect: Other landowners in Velachery and similar zones may now demand higher rates, shifting Chennai’s real estate pricing upwards.
Chennai’s Wider Real Estate Buzz
- Brigade Enterprises acquired 5.41 acres in Velachery for ₹441.7 crore, showing continued confidence in the corridor.
- GRT Hotels bought the Asiana Hotel on OMR for ₹153 crore, with a ₹100 crore upgrade planned.
- Ashiana Housing secured 23 acres at Mahindra World City for a ₹1,200 crore senior-living project.
- Office Market: Chennai’s net office absorption in 2025 is on track for a two-decade high (~9 mn sq. ft.), strengthening residential demand nearby.
What This Means for Buyers & Investors
For homebuyers, deals like Prestige–Arihant Velachery are proof that prime Chennai locations are heating up. But high valuations also mean higher risks. Always verify through:
- Certified EC & Patta Verification
- Guideline Value & Land Use Zone Check
- Legal Opinion via Verified.RealEstate
These steps ensure you’re not caught in hidden loans, disputes, or misclassifications.
*CBRE = Coldwell Banker Richard Ellis.
It’s the world’s largest real estate consultancy firm, headquartered in Dallas, USA. In India, CBRE acts as a
Broker / Transaction Advisor
Valuation & Advisory Expert
Project Manager
Consultant for Investors
CBRE was the facilitator (broker) between Rane (the seller) and the Prestige–Arihant JV (the buyer).