Brigade Enterprises is stepping up its commercial real estate expansion, with a focus on leasing newly completed office assets, expanding its annuity portfolio and aligning fresh supply with occupier demand.
The company has 6.8 million sq ft of commercial development under construction, including the World Trade Center and Orion Mall in Hyderabad. The projects require a balance capital expenditure of approximately ₹3,350 crore for completion.
Lease-up of World Trade Center Bengaluru and Brigade Twin Towers will remain a priority over the coming quarters, supported by a healthy leasing pipeline, Managing Director Pavitra Shankar said during the company’s Q2 earnings call with analysts.
The company will continue to phase new commercial supply in line with occupier demand, she added.
Commercial leasing portfolio expands to 9.6 million sq ft
Brigade added 0.27 million sq ft to its operational leasing portfolio during the September quarter, following the completion of Brigade Square in Thiruvananthapuram and Arcadia at Brigade Cornerstone Utopia in Bengaluru.
Brigade Square, a 185,000 sq ft development, is fully pre-leased. With these additions, the company’s total operational leasing portfolio expanded to 9.6 million sq ft, with occupancy at 90%.
The company transacted close to 6 lakh sq ft of commercial space during the quarter. This included approximately 1 lakh sq ft in sales, 1.5 lakh sq ft in fresh leasing, 2.13 lakh sq ft in churned space and 1.34 lakh sq ft of investor space.
Office rental collections remained strong at 99%, while office-only lease revenue increased 8% year-on-year to ₹201 crore.
Brigade’s occupier base is diversified across global capability centres (GCCs), IT, IT-enabled services, banking, financial services and insurance (BFSI), engineering, life sciences and flexible workspace operators.
GCCs accounted for 41% of office leasing during Q2, reflecting continued demand from multinational companies for high-quality office infrastructure. Green-certified technology parks accounted for 61% of market absorption, indicating a growing preference for sustainable commercial buildings.
Three Brigade properties, WTC Annexe, Brigade Twin Towers and Brigade Deccan Heights, received IGBC Gold certification during the quarter.
Orion Mall portfolio records 16% growth in retailer sales
Brigade’s retail portfolio maintained steady performance, with its Orion Mall properties recording 94% trading occupancy.
Retailer sales across the portfolio grew 16% year-on-year, driven by stronger electronics and restaurant sales. Mall footfall remained stable, supported by new store openings, festive activations, promotional events and major movie releases.
The company is also upgrading the lower ground floor of Orion Gateway by introducing bridge-to-luxury brands as part of its strategy to premiumise the retail offering.
Hospitality business posts strong operating performance
Brigade’s hospitality business, BHVL, delivered a strong performance during Q2, with average room revenue (ARR) increasing 11% year-on-year to ₹7,876.
Revenue per available room (RevPAR) grew 10% to ₹5,922, supported by an occupancy rate of 75%.
Bengaluru remained a key growth market, recording 81% occupancy and 12% growth in RevPAR.
BHVL’s profit after tax more than doubled to ₹22 crore from the year-ago period, aided by lower finance costs following debt repayment after its IPO and improved operating performance.
The hospitality business continued to benefit from resilient domestic demand, with growth primarily driven by higher room rates.
Facility management business expands footprint
Brigade’s in-house facility management subsidiary, Aureya FM Services, now manages 16 million sq ft of space.
The business reported revenue of ₹71 crore during the quarter, with an EBITDA margin of 30%, providing another source of recurring income for the group.
Sustainability initiatives gain recognition
Brigade also reported progress on its environmental, social and governance (ESG) commitments.
The company secured a GRESB Real Estate ESG score of 93.7 and a four-star rating for FY26. Its Brigade Citrine project received the IGBC Net Zero Carbon (Design) certification with 76 credit points.
The company said the certification extended its net-zero approach beyond individual landmark developments to the design of its broader property portfolio.
Launch pipeline gains momentum
Q2 marked a revival in Brigade’s property launch cycle, with sales launches and development potential moving in the right direction.
For the second half of the financial year, the company’s priorities include executing planned launches on schedule, converting property sales into collections and expanding its annuity portfolio.
The combination of commercial leasing, retail, hospitality and facility management provides Brigade with multiple recurring revenue streams as it continues to invest in its development pipeline