Shares of Brigade Enterprise rallied 5% on 22 February after the company announced signing a joint development agreement for a high-rise residential project in Perambur, Chennai.

In its regulatory filing, the company said that they have signed a joint development agreement along with PVP Ventures Limited for developing a 2.5 million square feet high-rise residential project in Perambur, Chennai, that will have a revenue potential of up to Rs 2,000 crore.

The filing added, “Bengaluru, Chennai, and Hyderabad are key focus markets for Brigade and this strategic expansion in the residential and hospitality sectors is an integral part of the overall growth plan.”

Pavitra Shankar, managing director of the company, said, “The residential sector is showing sustained growth across the country, with Chennai gaining momentum from the increased presence of IT/ITeS, BFSI, manufacturing, automotive, and GCC companies in the region. We have a land bank of over 12 million square feet of residential projects across Chennai, which will be our second biggest market after Bengaluru.”

Furthermore, the wholly-owned subsidiary of the company, Brigade Hotel Ventures Limited, has signed a 45-year lease agreement with the Landowners for building a 250-room resort on East Coast Road (ECR) in Chennai.

The company added that the ECR property will be our first resort and will be a part of our plan to increase the total room count by another 1,200 keys for a period of the next four years.

At 10:57 am, the shares of Brigade Enterprise shed all its early gains and were trading 0.80% lower at Rs 997 on NSE.