Brigade to launch 10 housing projects, to invest Rs 3,000 cr on const: MD

Real estate firm Brigid Enterprises will launch 10 housing projects in this financial year across Bengaluru and Chennai with an estimated construction cost of Rs 3,000 crore as it looks to boost demand for residential properties, said MD Pavitra Shankar.

In an interview with PTI, she sounded very bullish on the Indian residential market and said that the company wants to increase housing sales by 15-20 percent during the current financial year 2023-24.

“Overall, last fiscal year was a very good one, mainly driven by our residential and hospitality businesses. Things in retail were also very good and the office was quite stable,” Pavitra said.

Bengaluru-based Brigade Enterprises achieved record sales bookings of Rs. 4,109 crore, most of which contained a small portion of commercial properties, up 36 per cent over the 2021-22 financial year.

Also in terms of space, sales bookings grew 34% to 6.3 million square feet.

“I think it reflects general demand by customers,” she said, adding that the impact of raising mortgage rates was not evident on a ground level.

Asked about plans for the current fiscal year, Pavitra said the company has allocated 7.54 million square feet of breakout space in the residential sector across 10 new projects/new phases in existing projects.

Regarding the construction cost and sales value of these new launches, it said the total estimated value of sales is around Rs 6,000 crore.

Pavitra said the construction cost of the 7.54 million sq ft development will be around Rs 3,000 crore over the next 4-5 years.

She said Brigid Enterprises released 5.4 million square feet in the residential sectors in the last fiscal year.

In terms of vertical leasing, Pavitra said the company saw a 26 per cent increase in revenue to Rs. 752 crore in the last financial year from Rs. 596 crore in the previous year. Rental income consists of revenue from commercial assets and facilities management business.

Office leasing grew by 33 percent from 0.9 million square feet in FY22 to 1.2 million square feet in FY23.

In its retail centers, it said, the number of visitors increased by 106 percent in the last fiscal year, and the company saw a 78 percent annual growth in retail consumption during fiscal year 23.

Hospitality portfolio occupancy in the Brigade was 69% versus 62% occupancy prior to COVID.

The company recorded a consolidated net profit of Rs. 222.17 crore in the latest financial year as against a net loss of Rs. 64.76 crore in the 2021-22 financial year.

Total income increased to Rs. 3,563.21 crore in the 2022-23 financial year from Rs. 3,065.51 crore in the previous year.