City-based Casagrand group of companies announced its foray into the commercial real estate segment to develop 10 million sq. ft of leasable areas in Chennai, Bengaluru and Hyderabad by 2027.
“It is another new vertical in which we are planning to invest ₹8,000 crore in the next five years,” said Arun Mn, founder and managing director, during an interaction.
“Though, we have been in the business for the last 18 years, we were slightly apprehensive about this segment. Over the years, we have gained confidence and thought it was time to make a foray into it,” he said.
As per the plan, the new vertical called ‘Casagrand Commercial Division’ aims at developing workspaces, IT/ITES buildings, retail malls and standalone retail spaces with an estimated annual rental potential of ₹900 crore.
To begin with, the company will soon unveil its maiden project in Chennai measuring 2 million sq. ft.
“This is an exciting time as many government initiatives are being taken to develop the infrastructure, and we see a huge potential in this sector and a gap between demand and supply,” he said.
“We intend on achieving 10 million sq. ft of leasable area across the metro cities by 2027. We welcome landowners and companies to join us in this journey as we have charted strong growth plans in commercial real estate for the coming years,” he said.
To a question, he said that the project cost would be met partially through internal accruals, borrowings and debt.
Last year, Casagrand earned a revenue of ₹2,500 crore and this year, it aims at selling projects worth ₹4,550 crore eyeing a revenue of more than ₹3,000 crore, he added.
The other ventures of Casagrand are residential, industrial and warehousing, education, IT & office parks, co-live, independent houses, facility management, engineering and consulting and interiors.
