Bangalore-based real estate company, Brigade Enterprises is close to clinching a land deal in Chennai under joint development arrangement as part of its initiative to increase its presence in the southern region.
The company is in final stages to close in 20 acres of land in the city with a development prospects of two million sq ft in the near future.
“The company should get an significant revenue upside of around Rs 1000 crore if the deal is closed by the realtor,” industry sources familiar with the development said. However, deal specifics of this proposed joint development is not known. Brigade, earlier, acquired around 21 acres of property in the city in the last fiscal.
“Brigade is looking at Chennai as the next growth area for the company. So, they are aggressively looking at joint development model to acquire land assets,” an industry expert said.
Brigade Enterprises,which has presence in residential, commercial and retail segment of the real estate industry, plans to launch around 9.2 million sq ft of new projects in Bangalore, Hyderabad, Chennai along with some of the tier-II cities of Karnataka like Mangalore, Mysore among others.
Meanwhile, the company is also in the process of leasing its commercial properties.
“Out of the total three million sq ft of commercial space, Brigade has already leased around 30 per cent and the rest will be leased in the current financial year,” a company source said.
The realtor is also planning to launch two affordable projects in the near future. Brigade Enterprises has registered 9.8 times rise in its net profit to Rs 58.12 crore in the third quarter ending December of the current financial year on the back of higher income from sound growth in sales.
Total income of the company rose by 2.2 times to Rs 144.23 crore as compared to Rs 65.31 crore registered in the corresponding period last year.
During October-December, operating profit of the company increased by 6.79 times to Rs 94.28 crore as compared to Rs 13.88 crore reported in the same period last year.
