Brigade Enterprises and GIC acquires land property in Chennai

Brigade Enterprises (BEL), and GIC, Singapore’s Sovereign Wealth Fund jointly acquired approximately 16-acre property in Perungudi near Chennai. The real estate property was bought from Kansai Nerolac Paints for Rs 537.86 crore. The Perungudi is the prime commercial corridor of Chennai. The acquisition was completed through Perungudi Real Estate and formed special purpose vehicle by Brigade Enterprises with GIC.

BEL’s new acquired property is easily accessible with close proximity to amnesties like hospitals, schools and shopping centres. The company will develop the new land into a mixed use project, comprising offices and residential units.

BEL has two existing joint venture projects with GIC, which are the development of an IT special Economic Zone of over 3 million square feet in Brookfields, Bangalore. The second project is Brigade Cosmopolis, a high end residential project with several amenities in Whitefield, Bangalore.

On financial front, BEL’s revenue increased by 40.98 per cent to Rs 508 crore in Q3FY16 as compared to same period in previous fiscal year. The company’s EBITDA too rose by 14.53 per cent to Rs 134 crore in Q3FY16 on a yearly basis. However, its net profit declined by 16.35 per cent to Rs 31.25 crore in Q3FY16 as compared to same period in previous financial year.

The share price of BEL increased by 4.92 per cent on bourses in early trades; and is trading at Rs 145 on an intraday basis. Meanwhile, Kansai Nerolac Paints’ share price too rose by 6.15 per cent and is trading at Rs 288.9 on an intraday basis.

GIC is a leading global investment firm with over USD 100 billion assets under management. The company has investments in over 40 countries and has been investing in emerging markets for more than two decades.

BEL focuses on residential, commercial, retail and hospitality projects. The company operates through three segments viz. Real Estate, Hospitality and Leasing. The total leasable area of the company is approximately 1.6 million square feet in commercial and retail assets. BEL’s Real Estate segment is engaged in the development of residential and commercial real estate projects on sale basis. The company’s Hospitality segment develops hospitality assets, and is also engaged in identifying hotel operators and monitoring the operation of the hotel assets.