Brigade Group, a real estate developer headquartered in Bengaluru, is unveiling an extensive strategy to fortify its presence across South India's commercial, retail, and hospitality sectors. Spearheaded by Nirupa Shankar, the joint managing director, the company aims to significantly augment its office space, retail portfolio, and hospitality offerings. By focusing on tailored expansions in key cities such as Bengaluru, Chennai, and Hyderabad, Brigade Group seeks to solidify its position as a premier player in the region's dynamic real estate landscape.
Brigade Group plans to expand its office space by 3.15 million square feet across Bengaluru, Chennai, and Hyderabad by the culmination of the fiscal year 2025. Currently, with 1.4 million square feet under construction, the company anticipates a revenue potential of INR 380 crore from these developments.
The upcoming projects are slated to include 1.2 million sq ft in Bengaluru, 1 million square feet in Hyderabad, and the remaining allocation in Chennai. Currently, they have 7.5 million sq ft of office assets. Over the next two years, they aim to add 4.5 million sq ft across these cities, bringing their total office portfolio to about 12 million sq ft in the next four years.
In Bengaluru, the emphasis is on the expanding IT area of Whitefield, which is complemented by ongoing developments in north Bengaluru totaling 1.3 million square feet. Brigade Group intends to pursue a significant built-to-suit approach, leveraging its 3.5 million square foot land parcel near the international airport, in which the landowner and the renter of a commercial property agree to customise the property to the renter's specifications.
The real estate titan also aims to bolster its retail portfolio, with plans to nearly double its presence. This expansion includes the addition of a destination mall in Hyderabad covering 0.6 million square feet and two smaller malls in Bengaluru’s under-development townships, collectively spanning 0.2 million square feet. The surge in retail rental income, up by 60%, shows the company’s commitment to catering to evolving consumer demands and increasing footfall.
Under its flex office space brand, BuzzWorks, Brigade Group presently operates 3,110 seats, with aspirations to double this capacity to approximately 1,000 seats by the end of the next fiscal year. Noteworthy is the flex segment’s contribution of 25-27% to the overall office segment, indicating a rising trend of flexibility and adaptability in workspace preferences, especially witnessed in tier II cities.
In the hospitality realm, Brigade Group sets sights on enriching its offerings with the addition of four new properties—one each in Chennai, Hyderabad, and two in Bengaluru. This expansion, totalling 1 million square feet, aims to cater to the burgeoning demand for quality accommodations and experiential stays.
The company’s high financial performance, with a net profit of INR 56 crore in Q3FY24—a 31% increase year-on-year—underscores its resilience and growth trend. With the offices and retail spaces segment contributing approximately 20% to total sales and the residential segment commanding over 65%, As of December 2023, the company's net debt stood at INR 2,775 crore. Brigade Group remains poised for sustained expansion and profitability.
As Bengaluru spreads horizontally, entering into growing residential areas such as Sarjapur, the company sees enormous potential for retail and commercial growth. Furthermore, its planned expansion into smaller cities such as Thiruvananthapuram and Kochi demonstrates a focus on regional diversification and market penetration.
Brigade Group’s ambitious plans show its commitment to innovation, sustainability, and customer-centricity, setting new benchmarks in South India’s real estate landscape.
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