Brigade Enterprises share price jumps 5% on plans of new residential project in Chennai

Brigade Enterprises share price rallied 5% in the early trade to a high of ₹1,054.40 apiece on Thursday after the company announced expansion plans in Chennai. 

The real estate developer Brigade Enterprises has signed a joint development agreement with PVP Ventures Limited to develop a 2.5 million square feet, high- rise residential project, spread across 16 acres in Perambur, Chennai.

According to the company, the project has a revenue potential of about ₹2,000 crore.

“The residential sector is showing sustained growth across the country, with Chennai gaining momentum from the increased presence of IT/ITeS, BFSI, manufacturing, automotive, and GCC companies in the region,” said Pavitra Shankar, Managing Director, Brigade Enterprises.

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The company has a land bank of over 12 million square feet of residential projects across Chennai, which will be its second biggest market after Bengaluru, Shankar added.

Brigade has also signed a 45-year lease agreement to build a 250-room resort on East Coast Road (ECR), and is in talks with leading hoteliers for management of operations, the company said in a regulatory filing.

“We currently have a collective operational room count of around 1,500 rooms across five cities. The ECR property in Chennai will be our first resort and is part of our plan to increase our total room count by another 1,200 keys over the next four years,” said Nirupa Shankar, Joint Managing Director, Brigade Enterprises.

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During the quarter ended December 2023, the Bengaluru-based real estate developer Brigade Group reported a net profit of ₹56 crore, an increase of 31% year-on-year (YoY). Its revenue was ₹1,208 crore in Q3FY24.

The company’s net bookings in the real estate segment of Q3FY24 is 1.7 mn sq ft with a sale value of ₹1,524 crore. Collections for the quarter stood at ₹1,394 crore.

At 10:05 am, Brigade Enterprises shares were trading 0.78% higher at ₹1,012.10 apiece on the BSE.

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