Concorde to invest 225 crore over 2 years on expansion of commercial portfolio
Friday, 23 Jun 2023
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Concorde to invest X225 crore over 2 years on expansion of commercial portfolio
Isha Rautela Bengaluru
Real estate developer Concorde will release a total of 5 lakh sq ft(or 0.5 million sq ft) of commercial space this year and will invest X225 crore over the course of two years, according to a top company executive.
The move is in line with the company’s plans to alter the composition of its portfolio, which consists of both residential and commercial segments.
EXPANSION PLANS
Speaking about the aggressive expansion of its commercial segment, Grishma Reddy, Director, Concorde, told businessline that it will focus on micro markets thatare already established and will be playing the mid-segment range as they estimate a huge demand in the segment. Going forward, it
plans to release 1.5-2 million sq ft of commercial space in Bengaluru.
The company generated revenue of Y400 crore in FY23 and has set aside 3225 crore specifically for its commercial business, with ₹100 crore allocated for the current year and 125 crore earmarked for the following year.
“We will focus on establishing Grade-A office space in the micro markets. Currently, we have three projects in the pipeline for thisyear,” she said.
Expanding further on its optimistic outlook for the development of its commercial space, the director emphasised that aside from the significant opportunity it presents, there is also a robust investor sentiment supporting the venture.
Looking ahead to the future, the company has set its sights on generating 70 per centofitsrevenue fromitsresidential division and the re Grishma Reddy, Director, Concorde
maining 30 per cent from its commercial division. By FY27, the company’s goal is to achieve an annual turnover of 600 crore.
RESIDENTIAL SEGMENT
In the residential market, the company operates within the mid-to-premium segment, providing apartments ranging from 60 lakh to X1 crore. A majority of these apartments fall within the size range of 1,300-1,800 sq ft and are available in configurations of 2 and
3 BHKs. In addition, a configuration that has gained popularity after the Covid-19 pandemic is the 2 BHK apartment withastudy.
“As far as the residential arm is concerned, we will launch a total of 16 lakh sq ft across three projects this year. Across the three projects, we will launch around 1,100 apartments,” noted BS Nesara, Chairman, Concorde.
The real estate developer largely operates on an assetlight model across all segments. Currently, its ongoing projectsinclude three residential apartment complexes, three plotted segments, and one commercial project. This year, the company is sitting with ₹500-600 crore worth of inventory across all its projects.
Concorde is a Bengalurubased real estate developer and has developed 25 million sq ft of residential and commercial real estate to date.
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Concorde to invest X225 crore over 2 years on expansion of commercial portfolio Isha Rautela Bengaluru Real estate developer Concorde will release a total of 5 lakh sq ft(or 0.5 million sq ft) of commercial space this year and will invest X225 crore over the course of two years, according to a top company executive. The move is in line with the company’s plans to alter the composition of its portfolio, which consists of both residential and commercial segments. EXPANSION PLANS Speaking about the aggressive expansion of its commercial segment, Grishma Reddy, Director, Concorde, told businessline that it will focus on micro markets thatare already established and will be playing the mid-segment range as they estimate a huge demand in the segment. Going forward, it plans to release 1.5-2 million sq ft of commercial space in Bengaluru. The company generated revenue of Y400 crore in FY23 and has set aside 3225 crore specifically for its commercial business, with ₹100 crore allocated for the current year and 125 crore earmarked for the following year. “We will focus on establishing Grade-A office space in the micro markets. Currently, we have three projects in the pipeline for thisyear,” she said. Expanding further on its optimistic outlook for the development of its commercial space, the director emphasised that aside from the significant opportunity it presents, there is also a robust investor sentiment supporting the venture. Looking ahead to the future, the company has set its sights on generating 70 per centofitsrevenue fromitsresidential division and the re Grishma Reddy, Director, Concorde maining 30 per cent from its commercial division. By FY27, the company’s goal is to achieve an annual turnover of 600 crore. RESIDENTIAL SEGMENT In the residential market, the company operates within the mid-to-premium segment, providing apartments ranging from 60 lakh to X1 crore. A majority of these apartments fall within the size range of 1,300-1,800 sq ft and are available in configurations of 2 and 3 BHKs. In addition, a configuration that has gained popularity after the Covid-19 pandemic is the 2 BHK apartment withastudy. “As far as the residential arm is concerned, we will launch a total of 16 lakh sq ft across three projects this year. Across the three projects, we will launch around 1,100 apartments,” noted BS Nesara, Chairman, Concorde. The real estate developer largely operates on an assetlight model across all segments. Currently, its ongoing projectsinclude three residential apartment complexes, three plotted segments, and one commercial project. This year, the company is sitting with ₹500-600 crore worth of inventory across all its projects. Concorde is a Bengalurubased real estate developer and has developed 25 million sq ft of residential and commercial real estate to date.