Realty firm Brigade Group has acquired a land parcel in Chennai from TVS group and partnered with landowners in Bengaluru to develop two real estate projects with an estimated sales potential of Rs 4,000 crore.
“Brigade Group has signed definitive agreements for prime land parcels in Chennai and Bengaluru, which have a total revenue potential of Rs 4000 crore in the next 4-5 years,” the company said in a statement.
The agreement to purchase the Mount Road property in Chennai from the TVS Group company has a potential 1 million square feet of a mixed-use development comprising office, retail and residential.
The joint development property in Bengaluru has a development potential of over 2 million square feet of residential apartments.
M R Jaishankar, CMD, Brigade Group said, “We are constantly on the lookout to identify strategically located land parcels that we can acquire and develop. The acquisition of both these properties in Chennai and Bengaluru are part of our growth strategy as we continue to focus on South India with emphasis on Bengaluru, Chennai and Hyderabad.” Brigade Group has a strong pipeline of upcoming projects of 10 million square feet with key projects in Bengaluru, Hyderabad, and Chennai.
Recently, Brigade Enterprises Ltd on Tuesday reported a consolidated net profit of Rs 87.68 crore for the quarter ended June on better sales. It posted a net loss of Rs 40.09 crore in the year-ago period.
Total income jumped more than two-fold to Rs 920.28 crore in the first quarter of this fiscal from Rs 391.52 crore in the corresponding period of the previous year.
“Demand continued to be robust, driven by strong sales in the residential sector during the quarter leasing business picking up and hotels have also started performing well. We expect the momentum to carry on,” said Jaishankar.
“Enquiries have been high, with customer preference shifting towards larger homes, to accommodate the hybrid work model that many companies are still offering their employees,” he added.
On the operational front, the company’s sales bookings stood at 1.2 million square feet with a value of Rs 814 crore during the quarter under review, a growth of 61 per cent in volume and 70 per cent in value over Q1 FY22 performance.
In commercial real estate, the net office space absorption in the June quarter was over 0.4 million square feet, nearly twice that of the same period a year ago.
The rental collections remained stable and demand for the next two quarters is promising with active enquiries for over 1 million square feet across all properties, the company said.
Also Read | What is driving commercial real estate again?
In retail, Brigade said that across its three malls, it witnessed a 35 per cent growth on like-to-like retailer consumption sales over pre-COVID. Multiplexes witnessed an average growth of 33 per cent year-on-year for the April-June period.
Brigade Enterprises has a presence across South India, in the cities of Bengaluru, Mysuru, Hyderabad, Chennai and Kochi with developments across the residential, office, retail and hotels.
The Bengaluru-based firm is one of the leading real estate developers in the country.