Brigade Enterprises, Bengaluru-based construction company, is all set to launch about 25 new projects this year developing a total area of 20-25 million square feet. The new projects will be about 70 per cent residential, while remaining 30 per cent will be a mix of commercial office space, retail and hospitality.
About 20 projects will come up in Karnataka including Bengaluru and Mysore, while remaining five will be launched in Chennai, Hyderabad and Cochin. The overall cost of these 25 projects will be upwards of Rs 5,000 crore to be spread over five years’ time.
Speaking to Realty Plus about the company’s growth plans, M R Jaishankar, CMD, Brigade Enterprises, says, “Currently, we have 30 million sq ft of new projects in handout of which five million sq ft has already been launched in the last three months. We hope to launch the remaining 20-25 million sq ft this year which will comprise about 25 new projects. These will be launched at regular intervals over the years.”
“The project’s overall investment will be upwards of Rs 5,000 crore which will be spread over a period of five years. The funds will be generated through institutional funding, customer advances, internal accruals and from monetisation of commercial buildings that we have. Also when the stock markets look better, we will look at the primary and secondary market but not as of now,” he adds.
Most of the Groups under construction projects are now complete and all the financial commitments for their existing projects have also been met.
Private equity
Meanwhile, media reports suggest that Brigade Enterprises is looking to raise around Rs 150 crore through private equity route by offloading a part of its stake in one of the commercial projects in the city.
"The company is looking at offloading part of its stake in a commercial project in the Whitefield area of Bangalore and is in talks with PE players to raise around Rs 150 crore," a PE industry source told PTI.
The project named Summit Brigade Metropolis, which is situated at Whitefield, has 800,000 sq ft of built-up area and spread over two towers, sources said.
Brigade Enterprises, which has presence in residential, commercial and retail segments, has earlier started monetising its commercial spaces in another project called Gateway in the Garden City.
The company usually earns upward of 30 per cent by selling its commercial projects.
When contacted, a Brigade spokesperson said, "Monetisation of a commercial property is a normal course of action for the company and there is nothing new in it. However, we will not be able to comment on any specific project".
Net profit of Brigade declined 34.60 per cent to Rs 13.08 crore in the September quarter compared to Rs 20 crore reported in the same period last year. This was despite 47.27 per cent spike in sales to Rs 166.98 crore.
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