Brigade Enterprises gains 2% on signing agreement to jointly develop office space in Bengaluru

Brigade Enterprises Ltd shares gained more than 2% on Thursday, April 4, after the real estate company announced that it would jointly develop an office space in Whitefield, Bengaluru, with United Oxygen Co. Pvt. Ltd.

The Brigade Enterprises stock gained as much as 2.2% to hit an intra-day high of ₹963.85 in the opening session on the National Stock Exchange (NSE) on Thursday. However, the share price later pared some of its gains to trade just 0.9% higher at ₹950.5 at 12:00 pm.

In a stock exchange notification, Brigade Enterprises informed that it has signed a joint development agreement (JDA) with United Oxygen to develop a ‘Grade A’ office space on ITPL Road, Whitefield, in East Bengaluru.

The project will have a leasable area of 3 lakh sqft, and a gross development value (GDV) of worth around ₹340 crore. GDV is the estimated value that a new development would fetch in the open market if it were to be sold in the current economic climate.

The term ‘Grade A’ is used to describe the office space that is built to the highest specifications in terms of functionality, design, onsite amenities and location. These offices are usually built to cater to high-end companies and fetch higher rentals than average rental areas in the neighbourhood.

“Bengaluru continues to be the most favoured office leasing market, and demand continues to improve in the Whitefield micro market. Given this property’s prime location, metro connectivity and the property’s innovative and sustainable design at the forefront, we are confident that this project will perfectly align with the growing need of an ideal solution for professionals seeking top-tier work facilities,” said Brigade Enterprises joint managing director Nirupa Shankar.

Commenting on the partnership, United Oxygen’s director Ashwin Poorswani said, “Brigade Group’s fundamental foresight of identifying market gaps, differentiating on product, and future enabling office towers to avoid asset obsolescence is what aligned with our vision of a true Grade ‘A’ office tower.”