Spend upto Rs10,000crore over 3years
Brigade Enterprises has lined up around 20 million sq. ft of residential space to be developed in the next three years in south India and Rs 10,000 crore to be spent across verticals, including commercial and hospitality
MUMBAI: Bengaluru-based Brigade Enterprises Ltd will spend up to Rs10,000 crore to double project launches across verticals, including residential, commercial and hospitality, in the next three years, a top company executive said.
Despite the slowdown in launches in the past year, BSElisted Brigade Enterprises has lined up around 20 million sq. ft of residential space to be developed in the next three years in south India, including in Bengaluru, ChennaiandHyderabad. In the past three years, it launched around 10 million sq. ft.
“We will be investing anywhere between Rs8,000-10,000 crore in the next three-to-four years to fund our ongoing and upcoming projects. Our funding would be a mix of internal accruals, sales and institutional finance,” Brigade Group chairman M.R. Jaishankar told Mint.
Brigade Enterprises already has a partnership with Singapore -based private equity firm GIC Singapore Brigade under which each party will invest Rs750 crore for land purchases. The platform has concluded signed land deals, two in Bengaluru and one Chennai.
According to Jaishankar , the residential market is showing signs of recovery after the slump due to demonetization, implementation of new real estate regulations and goods and services tax (GST).
The government’s thrust on affordable housing would help push growth in the segment, he said, adding the firm has earmarked around Rs3,000 crore for building affordable houses.
With prices of up to Rs65 lakh per apartment, a large portion of the launches will comeunderthe affordable housing segment.
According to rating agency ICRA, despite the slowdown in the overall real estate market, listed firms have improved sales volumes and continued to gain market share.
According to a 12 March report by ICRA, sales of 11 large listed firms, including Prestige Estates Projects Ltd, Sobha Ltd, Puravankara Ltd, Brigade Enterprises Ltd, DLF Ltd rose 29.3% to 17.26 million sq. ft (mnsq ft) in the nine-month period ending 31 December 2018, from 13.35 in the same period a year ago.
Brigade has also lined up an aggressive expansion drive to morethandoubleits commercial office business. The company has chalked out plans to launch another 14 million sq. ft of office space in cities such as Hyderabad, Chennai and Trivandrum, entailing an investment of around Rs4,000 crore.
At present, the company which builds the World Trade Center towers in India, operates around 9 million sq. ft of office space and earns a rental revenue of around Rs250 crore.
With the opportunity to REIT these assets in future, commer- cial office has now become a strategic business vertical, said Vishal Mirchandani, chief executive officer (CEO), retail and office spaces, Brigade Enterprises.
The company is also in the
CURRENTLY, THE COMPANY’S HOSPITALITY BUSINESS SPANS ACROSS HOTELS OPERATED UNDER FIVE MAJOR BRANDS