Chennai Based Real Estate Developer Casagrand Ventures Into Commercial Real Estate Market Planning to Spend Around INR 8000 Cr in 5 Years

Casagrand Commercial by Casagrand

Chennai Based Property Development Company Casagrand has announced plans to expand into the commercial real estate market, with plans to spend 8,000 crore over the next five years.

To that effect it has announced the formation of a new company called "Casagrand Commercial," targeting the commercial real estate market.

With an expected expenditure of 8,000 crore over the following five years, the business intends to build 10 million square feet of commercial space by 2027.

In light of the recent commercial real estate surge after the Covid-19 pandemic-induced slump, Arun MN, Founder & MD of Casagrand, said at a press conference that the business sees a great deal of growth potential in the commercial real estate industry.

In the cities of Chennai, Bangalore, and Hyderabad, it will concentrate on creating office, retail, and information technology (IT/ITeS) space.

The markets of Chennai, Bangalore, and Hyderabad will be Casagrand Commercial's primary emphasis as they create IT/ITeS space, small retail malls (strip malls), and freestanding retail space.

Arun, speaking on the event's periphery, said that of the overall investment of about 8,000 crore, the business will put in 1,000-1,500 crore of its own capital, leverage another 1,500 crore via equity, and borrow 4,000-5,000 crore in loans from banks and NBFCs.

Whenever we're around 10 million square feet of built space, we expect rental possibilities of 900 crore yearly," Arun said.

Since its founding in 2004, Casagrand has built 36 million square feet of residential space across Chennai, Bengaluru, Coimbatore, and Kodaikanal, serving the needs of more than 40,000 consumers.

Arun forecasts that the residential division would bring in more than 3,000 crore this fiscal year, up from the 2,500 crore it brought in during the previous year. The new firms will be integrated into the income stream starting next year, he said.