Bengaluru-based developer Brigade Enterprises Ltd, better known as the Brigade Group, has announced the purchase of a 5.41-acre land parcel in the Chennai suburb of Velachery, for around Rs 442 crore. Brigade said in a statement that the land has a development potential of around 800,000 square feet, with a topline potential of around Rs 1,600 crore.
Real estate consultants Knight Frank India acted as the facilitators for the deal. Brigade and Knight Frank said in a statement that with the new land purchase, Chennai is now the second biggest market for the developer, after its home base of Bengaluru. The two parties said that the project will be located close to the city's tech corridor of Old Mahabalipuram Road (OMR), as well as the legacy central business district.
Brigade has a World Trade Center branded commercial development in Chennai, as well as other residential and mixed use projects. The company, beyond Bengaluru and Chennai, also has a presence in markets such as GIFT City near Ahmedabad, as well as locations in Kerala.
"Chennai has grown into our second largest market after consistent and strategic investment in business development. This acquisition reinforces our commitment to expanding our footprint in the city with a focus on marquee land parcels in excellent locations," said Pavitra Shankar, managing director of Brigade Enterprises, in a statement.
The transaction managers, Knight Frank, said that the Brigade deal represents the interest that listed firms and large capital sources are evincing towards Chennai as a major, strategic location.
"Chennai has emerged as a strategic hotspot for leading South India-focused developers. This transaction highlights the increasing appetite for premium locations backed by strong infrastructure and long-term residential demand. The city is firmly on the radar for serious institutional capital and branded players, making a strong case for sustained residential investment," said Reshmi Panicker, executive director of land and residential services at Knight Frank India.
On May 14, Brigade Enterprises' shares closed 0.4 percent higher at Rs 1,085 on the National Stock Exchange.
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