Realty firm Brigade Group on June 27 said that it has entered into an agreement to develop a housing project in Chennai with an estimated revenue of Rs 1,500 crore over the next five years.
The company has signed a Joint Development Agreement (JDA) to develop around 2.1 million square feet in Chennai, Brigade Group said in a statement.
The land, located at Perumbakkam, just off OMR (Old Mahabalipuram Road) Sholinganallur junction, is spread over 15 acres and will be developed as a large residential township. Many real estate developers are entering into JDAs with landowners, instead of buying land outrightly, to expand their businesses in a capital-light asset model.
"South India will continue to be a key focus for us, and this project is part of our strategy to expand our presence in Chennai. The project will have a revenue realisation of over Rs 1,500 crore in about 5 years. We expect a very positive response from customers, especially from the IT and ITeS sectors as it is located in the heart of the IT Office belt," said Pavitra Shankar, Executive Director and Head of Residential Business at Brigade Enterprises Ltd.
Brigade Group is targeting a revenue of about Rs 6,000 crore over the next five years from its Chennai residential business alone. Further, as part of its consolidation plans in Chennai, the group is expanding their residential, commercial and retail verticals.