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

HT Estates - - HTESTATES - Bidya Sa­pam bidya.s@livemint.com

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


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