Shares of Bengaluru-based property developer Brigade Enterprises zoomed over 10 per cent today. The rally followed the company's announcement to acquire land in Chennai.

The land, measuring over 15 acres and located in Perungudi on fast developing OMR stretch of Chennai, will be purchased from Kansai Nerolac Paints for Rs 550 crore.

Brigade has an ongoing project – Vantage – in Chennai and is likely to launch another project – Metropolis – by the end of 2015. The company owns 57 acres of land in Chennai, besides a sizeable land bank in Bengaluru.

While the land may take some time to develop and revenues may be back-ended, the company’s aggressive expansion plans in cities beyond Bengaluru has possibly enthused investors.

Brigade is constructing over 16 million sq ft (msf) in various cities including Mysore, Kochi and Mangaluru, besides Chennai and Bengaluru.

Besides property sale, the company earns rental income for office space at World Trade Centre, retail properties such as Orion mall and outlets such as Solitaire. Brigade also owns Grand Mercure and Sheraton Gateway hotels in Bengaluru.

Brigade's consolidated revenue for 2014‐15 increased 38 per cent year-on-year to Rs 1,331 crore. Profits rose 29 per cent year-on-year to Rs 115 crore. Net debt has also risen in 2014-15 from Rs 843 crore in March 2014 to Rs 1,214 crore as of March 2015, largely to fund its ongoing projects.

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