Bengaluru-based Brigade Group plans to invest around ₹40,000 crore over the next three years to develop 40 mn sq ft of housing, commercial, hospitality and warehousing projects across major cities in South India, as part of its expansion plans. Of this, around 70% will be allocated to residential, 20% to office and retail, and 10% to hospitality.
The company, which marked 40 years in business on October 8, plans to build a development pipeline of around 40 million sq ft across its markets, Executive Chairman M R Jaishankar said while outlining the company’s growth plans for the next three years.Over the next three years, Brigade plans to invest across residential, commercial, retail, hospitality and its emerging businesses, including warehousing. The investments will be funded through a combination of internal accruals, project-level financing, strategic partnerships and other appropriate funding avenues, while maintaining a disciplined approach to capital allocation."About 70% of the planned investment will be allocated to residential projects, 20% to commercial developments and 10% to hospitality," Jaishankar told reporters.
He said the company expects the projects to generate a gross development value (GDV) of around ₹65,000-70,000 crore.Over the last 40 years, since its inception, Brigade has developed more than 110 million sq. ft. across 300 projects and established its presence across 10 cities. The Group has built a diversified portfolio that includes residential communities, office developments, retail destinations, and hotels.
The 10 cities include Bengaluru, Chennai, Hyderabad, Mysore, Kochi, Thiruvananthapuram, Gujarat Gift City, Coimbatore, Chikkamagaluru and Mangaluru.
{{/usCountry}}The 10 cities include Bengaluru, Chennai, Hyderabad, Mysore, Kochi, Thiruvananthapuram, Gujarat Gift City, Coimbatore, Chikkamagaluru and Mangaluru.
{{/usCountry}}"Brigade was built on the belief that real estate is ultimately about creating places that have enduring value for people, businesses and communities. Over four decades, we have grown with the cities and markets in which we operate, adapting to changing aspirations and economic realities," said Jaishankar.
The World Trade Centre (WTC) platform will remain a key pillar of Brigade’s commercial growth strategy. Building on its successful portfolio of WTC developments, the Group has secured licences for three new World Trade Centres in Devanahalli and Whitefield, Bengaluru, and Coimbatore.
At the same time, Brigade is extending the footprint of its flagship Orion brand beyond Bengaluru, with upcoming developments in Chennai and Hyderabad, marking a significant expansion into two of South India’s most dynamic commercial and consumption markets, the company said in a statement.
The Group has set a target of achieving Net Zero emissions by 2045 and is working towards this through a combination of energy-efficient design, renewable energy, water conservation, responsible waste management and sustainable construction practices across its developments.
On REITS and expansion plans
Asked about plans to enter REITs, Jaishankar said the option has always been on the cards. “I can’t say it will be in one year or two years, but most likely in five years,” he told reporters.
On expansion plans, he said the company is currently focused on the South Indian market, although it sees opportunities in NCR, Pune and Mumbai. While the company is already present in GIFT City, Ahmedabad, it could expand into these markets “at the right time,” he added.
On RBI monetary policy
Commenting on the RBI monetary policy, Jaishankar said the 25 basis points increase in repo rate is “manageable” and would not hurt homebuyers. “This is perhaps the lowest interest rate that homebuyers have seen in the last 40 years,” he said.
"At the moment we have 33 million square feet of ongoing projects, 16 million square feet of upcoming launches. Over the next 2-3 years, we will be increasing that number to 40 million square feet and investing over ₹40,000 crore in order to achieve that number," Brigade Enterprises Managing Director Pavitra Shankar said.
Brigade Enterprises Joint MD Nirupa Shankar noted that office demand continues to be strong despite global uncertainties and said the company is expanding its office assets portfolio to cater the requirement of global and domestic companies.
Brigade group has also set a target of achieving Net Zero emissions by 2045.