Brigade Group plans to invest Rs 3,000 crore for World Trade Centre in Chennai

WTCBangaloreBy Accommodation Times Bureau

 A Bengaluru-based property developer Brigade Group is constructing a 1.8 million sq ft World Trade Centre in Chennai. The developer is seeking to invest Rs 3,000 crore for the next three years to expand its commercial property portfolio by 8 million sq ft. At present office project is spread over 12 million sq ft. 

  Vishal Mirchandani, chief executive-retail & commercial at Brigade Group said, “The expansion of commercial portfolio will be funded by internal accruals, bank debt and commercial paper that the firm had raised in the past.”

“We want commercial assets to be 30% from 20% of the company’s total portfolio by 2020. It contributes 40% of the Earnings Before Interest, Taxes, Depreciation and Amortization (EBIDTA) now,“ Mirchandani said, adding that the group will launch 6 million sq ft of office space in the year to March 2017.

The debt-to-equity ratio of the company stood at about 0.88% in the third quarter of the current financial year.

 The Brigade has 18 million sq ft of residential projects under construction at present. It has a land bank of 545 acres, with a development potential of 49 million sq ft. There are many other big construction firms that have sharpened the focus on rent-yielding office project in past to increasing demand for commercial properties these includes RMZ Corp, Embassy Group and Puravankara Projects.

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