Brigade Group, with an eye on floating a Real Estate Investment Trust, is to increase its property portfolio and rental revenues.
“We expect a slight uptick in rental revenues primarily because the company’s World Trade Centre, Kochi is likely to see stabilised rentals and the Orion East Mall in Bengaluru is expected to add some rentals. The company is gearing up for two more projects as well — Nalapad Brigade Centre and Bhuwalka Icon both in Bengaluru — to contribute additional rentals,” said MR Jaishankar, CMD, Brigade Enterprises.
The company’s rental revenues touched ₹124 crore in first half of FY17. For the second half, the company expects to increase it substantially with more properties.
Out of the company’s total 2.16 million sq feet leased area, close to 2 million sq feet has been leased out.
“We are developing around 19 million sq feet, out of which around 17.35 million is ongoing projects in residential, and about 1.3 million sq feet is commercial projects and the balance (0.49 million) is hospitality projects,” Jaishankar said.
On the hospitality front, the company’s properties have good occupancy rate gain from Grand Mercure and Sheraton Grand. Property additions are to happen in the next two years.
Talking about regulations introduced in the sector, Jaishankar said the Karnataka government has already announced the rules and the discussions with the government are in progress. “So it is a matter of time before it becomes applicable... We need to gear up a little bit more and our team is definitely working towards that. Then of course the major legislative change of GST is there that is also a very welcome move.”