Brigade Enterprises to invest ₹400 crore to develop Chennai office space with leasable area of 8.36 lakh square feet
Upstox
2 min read • Updated: April 15, 2024, 4:01 PM
Summary
Brigade Enterprises said it will be the next commercial launch by the company after the successful completion of the landmark ‘World Trade Center’ on OMR. Earlier this month, the company had signed a joint development agreement with United Oxygen Company to develop a ‘Grade A’ office space on ITPL Road, Whitefield in East Bengaluru.
Brigade Enterprises said on Monday it has entered a joint development agreement with Agni Estates & Foundations to develop Brigade Tech Boulevard, a ‘Grade A’ office space on Pallavaram-Thoraipakkam Radial Road, in Chennai.
The project will see an investment of nearly ₹400 crore and will have a leasable area of 8.36 lakh square feet spread across two towers, the company said in an exchange filing. This will be the next commercial launch by Brigade Group after the successful completion of the landmark ‘World Trade Center’ on OMR, it said.
Nirupa Shankar, joint managing director of Brigade Enterprises pointed out that Chennai is a diverse office market with demand from not only IT and ITeS sector but also from several other industry verticals including engineering, automotive and banking, etc. “Offices that conform to sustainability, with seamlessly integrated digital connectivity and A Grade office certification are in great demand,” he said. “Given the pre-leasing commitments that Radial Road has had in the past, we are confident that the leasing momentum would increase further with this development,” Shankar added.
Earlier this month, the company had signed a joint development agreement with United Oxygen Company to develop a ‘Grade A’ office space on ITPL Road, Whitefield in East Bengaluru. Brigade had stated the project will have a leasable area of 3 lakh square feet and a gross development value (GDV) of around ₹340 crore.
Since its inception, Brigade has completed over 280 buildings amounting to over 8.3 crore square feet of developed space across a diverse real estate portfolio.
For the third quarter of fiscal year 2024, Brigade reported a 41% rise in its revenues at ₹1,208.2 crore compared to the same period a year ago. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 20% y-o-y to ₹296.40 crore. Net profit rose 31% to ₹55.80 crore.
Shares of Brigade Enterprises rose over 10% since the beginning of the year. The stock has gained over 99% in the last one year.