Bengaluru-based developer Brigade Group has launched Brigade Real Estate Accelerator Program (REAP). It’s the first real estate major in the country to have a start-up focused accelerator.
Speaking on the rationale behind such a move MR Jaishankar, CMD, Brigade Group said since we are currently in a fast changing world, the intention is to bring better technology into the field of real estate.
The aim is also to encourage start-ups in the hospitality, retail and education spaces.
On the hospitality front, he said currently the group has three operating hotels with about 500 operational rooms but plans to take the number to about 2000 operational rooms in 36 months by opening more hotels, he said.
Experts of CNBC-TV18's Jude Sannith interview with MR Jaishankar
Q: What was your rationale behind REAP?
A: As you know, real estate is a brick and mortar business which is quite a traditional line of business, but we are in this fast changing world in the click and progress economy. And the intention is to bring much more technology into the field of real estate. Our intention in addition to real estate, we also want to encourage start-ups in the field of hospitality, retail and education. These are the four areas of our focus.
Q: Going forward, are you also looking at expanding the focus on start-ups by working with some advanced start-ups for instance, by working with start-ups who have already reached some sort of maturity.
A: The programme itself, it is a real estate accelerator programme which means start-ups have already spent some time and they need to go to the next level of their growth wherein they require good mentoring, a bit of finance and giving them opportunities to test their proof of concepts and to take it further.
Q: How many more hotels can we expect in the next 16-18 months from the group?
A: Currently, we have three operating hospitals and in the next three months we will be opening our Chennai Hotel, a holiday inn on Old Madras Road (OMR). And in the next 12 months we will be opening Holiday Express near Racecourse, Bengaluru and in 18 months or earlier, the Four Points by Sheraton, Kochi and overall in the 36 months or so, we expect to reach operationally about 2,000 rooms.
Q: Currently, how many rooms are operational?
A: About 500 plus rooms are operational now.
Q: Could you give us a sense finally, on investment outlook for this year? How much investment will you be making? Also, if you could give us a sense of the capital expenditure (Capex) that is planned.
A: In the year, that will happen. Something in the range of Rs 800-1,000 crore investment would happen.
Transcript to follow