Brigade Group plans to invest around ₹40,000 crore over the next three years to develop a 40 million square feet pipeline across residential, office, retail and hospitality, as the real estate developer looks to scale its presence in its existing markets and double its office and hospitality portfolios.
The company, which is completing 40 years in business, said the planned investments will be funded through a combination of internal accruals, project-level financing, strategic partnerships and other funding avenues.
Speaking to CNBC-TV18, Brigade Enterprises Ltd. Managing Director Pavitra Shankar said the company does not intend to favour any one business segment, with the investment plan broadly mirroring its existing business mix.
“Brigade is looking to invest approximately ₹40,000 crore over the next three years for a 40 million square feet development pipeline. Of this, around 70% will be allocated to residential, 20% to office and retail, and 10% to hospitality,” Shankar said.
She said Brigade plans to double its office portfolio and hospitality portfolio, while also expanding its residential business depending on the opportunities available.
Brigade’s operating leasing portfolio currently stands at around 10 million square feet and is expected to expand through additional launches and developments, according to the company.
Over the next three years, the group plans to invest across residential, commercial, retail and hospitality, along with emerging businesses such as warehousing. The company estimates its planned developments and new businesses will generate around 23,000 direct and indirect employment opportunities across construction, engineering, hospitality, retail, facility management and technology.
Brigade has developed more than 110 million square feet across over 300 projects in 10 cities over the past four decades. Bengaluru remains its key market, although the company has significantly expanded its presence in Chennai and Hyderabad over the past decade.
Shankar said Brigade intends to deepen its presence across its existing markets rather than aggressively add new cities.
“Bengaluru will continue to remain a big focus for us, but we will also look at deepening our presence across all our lines of business in the same markets,” she said.
The company is also entering industrial development and plans to continue its focus on integrated townships, which Shankar said would remain a key priority for the group.
Brigade maintains ₹9,000 crore FY27 pre-sales target
On the residential business, Brigade remains on track to achieve its ₹9,000 crore pre-sales target for FY27, although the company continues to face a dependency on project approvals and their timelines.
“We are on track because we do have the project launches and the land bank and the pipeline in order to reach there,” Shankar said.
She cautioned that delays in approvals could increase pressure on the company to achieve the target within a shorter period of the financial year.
Brigade expects the second half of FY27 to remain more important for launches and sales, in line with the seasonal pattern seen in previous years. Shankar said there has been positive momentum in approvals, particularly in Karnataka, but the company remains heavily dependent on approvals for its H2 pipeline.
REIT among options to monetise commercial, hospitality portfolio
Brigade is also evaluating a REIT as one of the potential options to monetise its commercial and hospitality assets as the portfolio expands.
Shankar said the company is “constantly evaluating” the option, but its immediate priority is to grow the portfolio before deciding on the most appropriate monetisation route.
“We look at it as one of the potential monetisation options for that portfolio. The main thing we are looking at is growing the portfolio first, and then we will see whether, at that point in time, the best way to monetise is a REIT or any other option,” she said.
Morgan Heights work remains halted
On Brigade Morgan Heights in Chennai, Shankar said work on the project remains halted amid the broader dispute concerning environmental approvals and Ramsar land.
She maintained that Brigade had obtained the requisite approvals, including RERA, when the project was launched.
The company has refunded customers and plans to resume work once there is clarity on the approvals, she said.
“We want to have absolute clarity before we pick up the project again,” Shankar said, adding that Brigade remains confident that the required approvals will eventually be secured.
She also said the issue extends beyond Brigade Morgan Heights, with other projects and households being affected by the zone-of-influence ruling.
On the Reserve Bank of India’s recent rate hike, Shankar said higher interest rates could affect sentiment, although she expects underlying housing demand to remain resilient in certain segments.
She said the latest increase was marginal and that some of the market reaction had already been anticipated.
At the same time, Shankar said further monetary tightening could have an impact on sentiment going forward.