Chennai: Chennai's Rs1.08-billion revenue property development company Vijay Shanthi Builders Limited says it is coming out with a scheme shortly to take over the interest burden on home loans from its customers till such time that they get the possession of the apartment.

The scheme is termed 'Pre EMI' and will be available to buyers of apartments in its five mid-income projects - Park Avenue, Lotus Pond, Infiniti, West Park and Statue Circle - coming up in Chennai.

"There is no catch or hidden cost in the scheme. Our clients can avail of this scheme irrespective of the lending institution," says Suresh Kumar, managing director.

While 70 per cent of all apartment cost is met through loans by the buyers, Kumar said the impact of the Pre EMI scheme on Vijay Shanthi will not be much.

The other way of attracting prospects is to reduce the apartment cost, which would not amount to much.

No family split
Denying a family split with brother Naresh Jain having quit as the company's executive director and starting a property development company of his own, Kumar say, "My brother wanted to realise some of his own ideas. "Neither Vijay Shanthi or I have any stakes in Atmosphere Lifestyle Homes Pvt Ltd, promoted by Jain."

When contacted, Jain confirmed that there had no been any split, "My wife and I continue to hold slightly less than an 8-per cent stake in Vijay Shanthi. I am also on the company's board."

Meanwhile Vijay Shanthi, after catering to the middle-income segment for a long time, is now into development of premium projects as well and is also branching out of Chennai.

The company's premium projects in Chennai are Pebble (4000-5000-sq.ft apartments), Edge Water Villa (2750-2850-sq.ft), Club Cabana (2500-sq.ft duplex houses), Solitaire (1700-2000-sq.ft apartment), Whisper (5300-sq.ft apartment) and Aqua (3000-sq.ft apartments).

Vijay Shanthi is also getting into commercial property space by promoting 22,000-sq.ft Fusion in Chennai. Outside Chennai, the company has also promoted Faber Hill, a 100- villa community project in Salem at the foothills of Yercaud.

"We are interested in promoting township projects in Madurai and Coimbatore and are scouting for land. We are also promoting a residential project in Udaipur," Kumar adds.

With projects totalling around 30-35-lakh sq.ft on the drawing board, the Rs12-crore equity-based Vijay Shanthi is considering equity placement with qualified institutional buyers.

"The quantum of the issue is yet to be finalised. We will raise the money sometime next financial year," he adds.

At a time when a couple of Chennai-based property development companies are tying up with bigger construction companies like L&T, Kumar asserts, "We do not see any need for a tie-up as we have the capability to grow on our own."

According to him the company has strong brand equity in the market and is not worried about the entry of big property development companies from Mumbai, Delhi and other places.

Hoping to close FY08 with a turnover of Rs220 crore, Kumar said the company is targeting a  revenue of Rs500-crore turnover.