Factored In Negatives

Brigade Enterprises (BEL) is a Bangalore-based developer focused on housing for the middle- and upper-middle income segments. Though it has traditionally been a Bangalore-focused developer, in recent times it has expanded into other South Indian cities such as Mysore, Hyderabad and Chennai. Its ongoing projects can be divided into residential projects of around 6 million square feet (msf) which are complete or are nearing completion, and another 3 msf (at its flagship Gateway and Metropolis projects) of commercial and hospitality projects. BEL also has additional planned development of 29 msf in South India. The company has five subsidiaries. The first is Brigade Hospitality Services Ltd, which manages its clubs, service residences, and convention centres. It is the only profit-making subsidiary: it made a profit of Rs 75 lakh in FY10. Brigade Tetrarch is into sports-related activities while Brigade Estates and Projects, Brigade Properties, and Brigade Infrastructure & Power are all real estate developers. BEL also has a 50:50 joint venture (JV) with Classic Valmark (a group of land owners). The JV is called BCV Developers and it aims to develop 120 acres of land in Devanahalli, Bangalore. Positives Important projects nearing completion. BEL delivered four residential projects and two commercial projects in FY11. According to the company’s management, it will complete 3 msf of projects — Brigade Gateway at Malleshwaram and Brigade Metropolis at Whitefield — in CY11. Soon the company will begin to earn lease rental from these projects. Moreover, North Star Office, which has got the status of World Trade Centre (WTC), has commenced leasing it