Casagrand forays into commercial real estate space; to invest ₹8,000 crore in five years
Casagrand, a Chennai-based residential property developer, on Tuesday announced its entry into the commercial real estate segment with the launch of a new venture ‘Casagrand Commercial’.
The company is planning to develop 10 million sq ft of commercial space by 2027 with an investment outlay of ₹8,000 crore in the next five years.
Addressing a press conference, Arun Mn, Founder & MD, Casagrand, said the company sees a huge growth potential in the commercial real estate space, especially at this time when the sector is booming with huge amount of investments, several new project launches, and high office space absorptions post the Covid-19 pandemic-led lull.
Casagrand Commercial will focus on developing IT/ITeS space, small retail malls (strip malls) and standalone retail space in Chennai, Bengaluru and Hyderabad markets.
Speaking on the sidelines of the event, Arun said, of the total investment of about ₹8,000 crore, the company will infuse ₹1,000-1,500 crore of its own cash, leverage another ₹1,500 crore through equity and raise ₹4,000-5000 crore in debt from banks and NBFCs.
“We see a rental potential of ₹900 crore annually once we are close to 10 million sq ft of developed space,” Arun added.
Established in 2004, Casagrand has developed over 36 million sq ft of residential properties across Chennai, Bengaluru, Coimbatore and Kodaikanal catering to over 40,000 customers.
Arun said in the last fiscal, the company clocked around ₹2,500 crore of revenue from the residential business and this year the revenue will be upwards of ₹3,000 crore. “Next year onwards we will be consolidating all these new businesses also into the revenue stream,” he added.