Real estate player Brigade Enterprises does not expect any big commercial sales in this calendar year, says CFO Suresh Kris. He believes that the total could be only on the lease rental basis and that too will come only after two years.
“We expect at least Rs 5,000/sq ft on an average on the residential deals,” says Kris in an interview to CNBC-TV18.
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Meanwhile, Kris says that the project growth of the company in Bangalore has been quite encouraging. It launched the Golden Triangle project in the first quarter, which has been successful.
“We may also launch some new projects during June-August. We have plans to do close to 7.8 million assets, close to 8 million square feet on residential side and another 1 million,” he added.
The company’s profits stood at Rs 28.39 crore on a standalone basis for the fourth quarter (Q4) of the financial year 2012-13.
Below is the verbatim transcript of Suresh Kris’s interview on CNBC-TV18
Q: Which key projects did you book this quarter and what kind of average prices have you got for them?
A: We have booked the income in Meadows and Exotica during this quarter which has increased our total turnover to around Rs 300 crore this quarter and the margin is also fine. We expect the same price range of about Rs 3,300-3,400/square feet for Meadows and close to Rs 4,800-5,000/square feet for Exotica in coming months.
Q: At this point, what are you guiding in the first half of the next financial year in terms of key projects you hope to launch?
A: We have few projects in Bangalore, which is very encouraging. Presently, we have Golden Triangle, launched during the first quarter and has great success. We may also launch some new projects during June-August. We have plans to do close to 7.8 million assets, close to 8 million square feet on residential side and another 1 million on commercial and hospitality side during this year.
Q: Can you break-up the average realisations that you are expecting to see both from the commercial and the residential side of the business in this calendar year?
A: This calendar year we may not expect any commercial big sales at all. Total could be only on the lease rental basis which will come only after two years. We expect at least Rs 5,000/sq ft on an average on the residential deals.
Q: You launched two projects; one in Hyderabad in January and the other one in Mysore. How have they progressed so far and what kind of contribution are you expecting?
A: The Hyderabad project is not very big in terms of the area. Our presence will be good in Hyderabad. In Mysore we have launched our first phase project which is also successful. Hyderabad is very high-end project and we expect at least during the end of this financial year we will be able to book some income on these two.