TVS Emerald, an associate of TVS Motor and a leading real estate developer has formed a 50:50 joint venture with one of the largest senior living community operators Columbia Pacific Group to develop and operate a senior living residential project in Chennai.
A foray into the asset class of senior living for TVS Emerald, and third senior living community for Columbia Pacific in Chennai, the project will be built on a plot of around 2.7 acres in Thaiyur. It will consist of 250 homes with a mix of one and two-bedroom configurations, with the option to combine the two types to create a three-bedroom home.
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Designed as per international standards to offer a complete solution to the needs of senior residents, the project is planned for launch in 2024 and is expected to take four to five years for delivery from the launch date. The project will see a revenue potential of around `175 crore.
Sriram Iyer, president & CEO, TVS Emerald told FE, “ For the company, senior living is an interesting vertical, an asset class we would like to get into. Senior living is the natural extension of the residential communities we have developed. We see a big potential in the senior living in the years to come.”
According to him, Chennai and Bengaluru are key markets for the company to grow this vertical as there is a sizeable senior population with specific needs. The company’s goal with this project is to meet the rising demand in this space and provide residents of senior living communities with a range of amenities in a safe, secure and holistic living environment with an enhanced quality of life.
“ As for as partnership goes, there is no better tie-up than with Columbia. We are open to more projects with the company as we want to grow this vertical significantly in the future,” he said. After the completion of this project, the company will chalk out a business plan for this vertical, he added.
The senior living segment in India is valued at over $ 10 billion and is growing at a CAGR of 10%, post the pandemic. It is one of the fastest growing categories within real estate.
Mohit Nirula, CEO, Columbia Pacific Communities said, “The project in Chennai will be our 13th senior living community in the country and our third community in Chennai. We have two other JVs and this is the third JV we are announcing today. Since it is a 50:50 joint venture, we will be investing in the JV accordingly.”