Bengaluru-based Brigade Group announced on Thursday that it will invest ₹40,000 crore over the next three years to develop housing, commercial, hospitality and warehousing projects across major cities in South India. According to reports from Rediff Moneynews, this investment forms part of the company's expansion plan and will create a development pipeline of 40 million sq. ft. across its markets. Speaking to CNBC-TV18, Managing Director Pavitra Shankar confirmed the investment plan, stating that the company does not intend to favour any one business segment, with the investment plan broadly mirroring its existing business mix.
The company's commercial growth strategy will be anchored by the World Trade Centre (WTC) platform, which will be central to Brigade's expansion plans. As reported by CNBC-TV18, Brigade Group has secured licences for three new WTCs in Devanahalli and Whitefield in Bengaluru, and Coimbatore. Additionally, the Orion brand will expand into Chennai and Hyderabad, significantly strengthening the company's presence across its key markets. The group has emphasized maintaining a disciplined approach to capital allocation while scaling its presence in residential, commercial, retail, hospitality, and emerging sectors like warehousing.
The announcement came as Brigade Group marked the completion of 40 years in business on Thursday. As reported by Rediff Moneynews, over the past four decades, the company has developed more than 110 million sq. ft. across 300+ projects and established its presence across 10 cities. The Group has built a diversified portfolio that includes residential communities, office developments, retail destinations, and hotels. According to CNBC-TV18, the company has developed more than 110 million square feet across over 300 projects in 10 cities over the past four decades, with Bengaluru remaining its key market while significantly expanding presence in Chennai and Hyderabad over the past decade. M R Jaishankar, Executive Chairman, emphasized that "Brigade was built on the belief that real estate is ultimately about creating places that have enduring value for people, businesses and communities. Over four decades, we have grown with the cities and markets in which we operate, adapting to changing aspirations and economic realities." He added that "The next phase will be about taking that experience into new markets and new opportunities."
The planned investments will be funded through a combination of internal accruals, project-level financing, strategic partnerships and other funding avenues. According to CNBC-TV18, Managing Director Pavitra Shankar revealed that the investment will be allocated as follows: 70% to residential, 20% to office and retail, and 10% to hospitality. The company plans to double its office portfolio and hospitality portfolio, while also expanding its residential business depending on opportunities available. Brigade's operating leasing portfolio currently stands at around 10 million square feet and is expected to expand through additional launches and developments.
Over the next three years, the group plans to invest across residential, commercial, retail and hospitality, along with emerging businesses such as warehousing. As reported by CNBC-TV18, the company estimates its planned developments and new businesses will generate around 23,000 direct and indirect employment opportunities across construction, engineering, hospitality, retail, facility management and technology. Managing Director Pavitra Shankar emphasized that Brigade intends to deepen its presence across its existing markets rather than aggressively add new cities, stating that "Bengaluru will continue to remain a big focus for us, but we will also look at deepening our presence across all our lines of business in the same markets." The company is also entering industrial development and plans to continue its focus on integrated townships. Additionally, Brigade Group has set an ambitious Net Zero emissions target by 2045, which will be achieved through energy-efficient design, renewable energy, water conservation, responsible waste management, and sustainable construction practices.
The company is also evaluating a REIT as one of the potential options to monetise its commercial and hospitality assets as the portfolio expands. As reported by CNBC-TV18, Managing Director Pavitra Shankar stated that the company is "constantly evaluating" the REIT option, but its immediate priority is to grow the portfolio before deciding on the most appropriate monetisation route. She explained that "We look at it as one of the potential monetisation options for that portfolio. The main thing we are looking at is growing the portfolio first, and then we will see whether, at that point in time, the best way to monetise is a REIT or any other option." On the Reserve Bank of India's recent rate hike, Shankar said higher interest rates could affect sentiment, although she expects underlying housing demand to remain resilient in certain segments.
The company's corporate social responsibility initiatives include Brigade Foundation, which will undertake the development of Pipeline Road in Yeshwanthpur, Bengaluru as part of the Government of Karnataka's "Namma Bengaluru, Namma Koduge" scheme, in association with Bruhat Bengaluru Mahanagara Palike (BBMP). Additionally, Brigade REAP, the company's real estate accelerator, supports over 100 startups, while the Earth Fund invests in sustainable innovation. These initiatives demonstrate the group's commitment to supporting entrepreneurship and sustainable development across its markets.
