real estate market: Cornerstone Properties, VSR in equal joint venture to launch a residential development company

Real estate company Cornerstone Properties has entered into an equal joint venture with Vishwa Samudra Group (VSR Group), a Hyderabad-based infrastructure conglomerate, to launch a residential development company.

The new company, Akhinta Enterprises, will focus on developing luxury residential projects in Bangalore priced above Rs 2 crore.

The company will invest over Rs 500 crore to construct 5 million square feet of residential projects in Bangalore.

“The growth of the residential market has been impressive in recent quarters. We successfully undertook the joint development project and with the recovery of the market, we saw an opportunity to launch a premium brand,” said Akshay K Reddy, Director of Akhinta. Companies.

As part of its growth plan, Akhinta will develop plots of land owned by Cornerstone Group and other suitable plots of land in strategically located areas close to social and work centers on the Outer Ring Road, Whitefield and Bangalore North.

The company’s first high-end project, totaling 104 units under the Akhinta brand, ‘Cornerstone Akhinta Residences’, will be set up at BTM Layout, Bangalore.

“End users largely drive the residential market in Bengaluru, and as we have seen over the past few years, there has been a trend towards home ownership. We will continue to work with top builders to JD projects, focusing on middle income homes,” said Captain K Srinivas, CEO of Cornerstone Group.

Cornerstone Group, which owns over 1,500 acres of land bank in Bangalore, has collaborated with top real estate developers in the South, including Sobha and Sobha, under the joint development model, with a potential development portfolio of 15 million square feet across all asset classes.

In the first quarter of 2022, the city recorded a record sale of 13,663 units, a year-on-year growth of 34%. Alongside demand, residential supply remained robust in the first quarter of 2022 with 10,106 launches, a ten-quarter high. The average price of residential units in the city rose 7% year-on-year, a testament to the underlying confidence in the market, according to Knight Frank India.