Brigade Enterprises jumps 6% after securing JDA to develop 2.1 million Sqft area in Chennai

Shares of Brigade Enterprises, a real estate and property development company, rose over six per cent in early trade on Tuesday after the company secured a Joint Development Agreement (JDA) to develop residential apartments in Chennai. Brigade Group is targeting a revenue of about Rs 6,000 Cr over the next 5 years from its Chennai residential business, alone 

Amid spurt in volume, the real estate counter jumped 6.1% to Rs 467 per share on the BSE in Tuesday's intraday trade.  

Brigade Group has signed a Joint Development Agreement to develop around 2.1 million sguare feet in Chennai, read a statement from the company. The land, located at Perumbakkam, just off OMR Sholinganallur junction, is spread over 15 acres and will be developed as a large residential township," said the company in an exchange filing, it said.  

“South India will continue to be a key focus for us, and this project is part of our strategy to expand our presence in Chennai. The project will have a revenue realisation of over Rs. 1500 Crores in about 5 years. We expect a positive response from customers, especially from the IT and ITeS sectors as it is located in the heart of the IT Office belt.” said Pavitra Shankar, Executive Director and Head of Residential Business, Brigade Enterprises Ltd. 

Established in 1986, Brigade Enterprises Ltd. is one of India's leading property developers that has developed many landmark buildings and transformed skylines across South India in the cities of Bengaluru, Mysuru, Hyderabad, Chennai and Kochi with developments across Residential, Office, Retail, Hospitality and Education Sectors. 

Earlier, considering strong launch pipeline and healthy residential demand, brokerage house Nirmal Bang has given a target price of Rs 565, an upside of 27% on record price of Rs 445 per share. 

On Tuesday, after surging over six percent, the stock was trading with around two per cent gain to Rs 448.60 per share around 2.20 pm on the BSE.