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.
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. 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.