Brigade Enterprises Planning New Projects In Chennai: MD

Leading real estate firm Brigade Enterprises Ltd. plans to launch 20% to 30% of its upcoming residential projects in Chennai, a key market for the company. These new launches are expected in the next four quarters, according to Managing Director Pavitra Shankar.

Brigade Enterprises on Thursday announced the launch of its premium residential project, Brigade Altius, in Chennai. The company expects a potential revenue of Rs 1,700 crore from the newly launched project. The project is located in Chennai’s IT corridor, Sholinganallur.

“This particular project is targeted at the upper-mid segment. It is about 1.4 million square feet, potentially about Rs 1,700 crore in gross development value, and it comprises about 660 units,” Shankar told NDTV Profit.

The project will have three 43-floor towers rising to about 143 meters.

It is the company’s fourth project in Chennai after Brigade Icon, Brigade Xanadu and Brigade Nebula. The latest premium residential project will help the company cement its plans to become one of the largest brands in Chennai, according to Shankar.

“With this project, I think we are certainly cementing our plans to become one of the largest brands in Chennai, and residential launches have been supporting our business development over the last couple of years as well. In addition to our hospitality and office portfolio in Chennai, the residential portfolio is also expanding dramatically,” she said.

“In terms of launches, it is going to be 20% to 30% of our upcoming launches in the next four quarters. In terms of land bank, it is almost 30% of our land bank as well,” the MD explained, emphasising the importance of the Chennai market for the company.

The Brigade Group comprises three verticals — real estate (property development), lease rentals (property management) and hospitality projects. On being asked if the three verticals can grow big enough to be listed separately, she said the company has already filed a DRHP for its hospitality portfolio.

As the portfolio size for other verticals grows, the company could consider separate listings for them as well. “Whether we do it or not will depend on a number of conditions, but by the nature of running a business, it is something we think about,” she said.

Calling the real estate sector a “lumpy business,” she said the company had aimed for 12 million sqft of launches in FY25. “We may just about hit that number, or come away a couple of million square feet short, but I am still pretty happy in terms of what all we have been able to launch so far this year,” she said. The company had a gross development value guidance of Rs 10,000 crore to Rs 11,000 crore for FY25.

The company had a pre-sales guidance of Rs 5,400 crore for FY25. In the first nine months, it achieved 67.5% of the target. On this, she alluded to the delay in launches and said the company is short by three to six months to achieve this target but remains confident of the demand.

Shares of Brigade Group closed 0.59% lower at Rs 952.5 apiece on the NSE on Friday, compared to the benchmark Nifty settling flat at 22,552.5, up 0.03%.