See Rs 4500/sq ft realisation from Panorama: Brigade Ent

Talking about the Brigade Enterprises launch of luxury project Brigade Panorama in west Bangalore, Suresh Kris, CFO of the company said the total project size is of 1.5 million square feet, out of which around 0.9 million sq feet booking was already done during the launch. According to him the average realisation for the  new project would be around Rs 4500 per sq but does not see revenue recognition from the new project in the current quarter.For FY15, the company expects pre sales of 3 million sq ft. The company has many more projects in the pipeline but the details would be available only past the board meeting.

Below is the transcript of Suresh Kris' interview with Latha Venkatesh & Sonia Shenoy on CNBC-TV18.Sonia: Tell us about Brigade Panorama project and what will be the realisation level or the rate at which this project is launched?A: Brigade Panorama is around 1.5 million square feet project side and we have launched 0.9 million sq ft, bookings are also good. This has two-three bedroom apartments ranging from 1,070 sq ft to 1,800 sq ft. The launch price on average is around Rs 4,000 plus car park and including other things would be Rs 4,500. It could be around 30-40 minutes drive from central Bangalore to this project. This has good connectivity to other roads like Mysore etc.Latha: What is therefore the likely jump you will see in Q4 booking itself?A: We have planned for some of the launches like the Brigade Panorama, which is of a good size as well as Brigade Cosmopolis, which is the joint venture between GIC Singapore, sovereign fund and Brigade. We had launched that during this quarter and the second phase of Cosmopolis. As per our plans which this is on to achieving our annual expected business plan. This is not that we have deviated from that.Latha: This comes into revenue recognition in the current quarter, does it?A: These are all our new sales booking. It will not immediately come into revenue recognition but its impact maybe felt after you reach 25 percent threshold. Sonia: In the last quarter your average realisations were about Rs 5,100 per sq ft, you mentioned that this project is at about Rs 4,500 per sq ft, so what would that do to you average realisations in the next quarter, the blended realisations?A: Blended realisations may not get affected because even Cosmopolis’ realisaiton is around Rs 7,000 per sq ft and depending on the project it will go on and get affected whether it is plus or minus but as long as price increase is per our plan, it will reduce our margins and affect our margin.Sonia: By the end of FY15 what would your revenue growth and your presales amount be?A: We are expecting pre sales of about 3 million sq ft this year because for Brigade Panorama around 4 lakh sq ft have already been booked in prelaunch and launch. It has added to our kitty now - around 3 million sq ft at Rs 5000 maybe around Rs 1500 crore could be the minimum sale value for this year; I am talking about new bookings.

However, revenue recognisition is as per the plans and definitely we will be able to have minimum 30 percent growth on consolidated basis compared to last year on revenue recognition. Latha: Where do you stand on Real Estate Investment Trust (REIT)? Are you all looking at it or like others are you waiting for MAT clarifications?A: We are waiting for some more clarification because we have a very simple balance sheet in the sense even though we have leasable space with us and definitely we need to plan accordingly to have the good value for our stakeholders. Sonia: Any more projects that you have on the anvil that we can expect launches of in the next two-three months?A: That we have already planned. We will give during the next board meeting. We will finalise that and give it to you.