Brigade to develop island resort in Kerala

Brigade Enterprises, the Bangalore-based real estate developers, plans to develop a high-end resort and spa on 18 acres in a backwater island at Kottayam, Kerala.

The company has also applied for two 25-acre IT/ITeS SEZs, one each in Mangalore and Mysore.

Addressing a press conference to announce the company's initial public offering, Vineet Verma, Chief Executive Officer, Brigade Hospitality Services, said, "The company is yet to shortlist a partner for this island resort which is at the design and development stage. Also it is too early to determine the cost but it will be a 80-room to 100-room resort."

The company is also planning a star hotel at Devanahalli, close to the upcoming international airport, on a two-acre plot.

"We have roped in InterContinental to manage the hotel which will have about 250 rooms. Under the agreement, InterContinental will operate the property for 15 years with the option to renew the agreement for two consecutive additional terms of five years each," he said.

Brigade Enterprises has also initiated two hotel projects one each in Bangalore and Mysore with the Starwood group, owners of the Sheraton chain of hotels.

The Sheraton Bangalore Hotel is located in the Brigade Gateway project in north Bangalore.

"The total sanctioned developable area for the hotel is about 520,000 square feet. The hotel is designed to have between 230 and 250 rooms, with 20 floors, and a meeting space of approximately 6,400 square feet. The hotel is scheduled to be completed in 2009," said Verma.

"As for the Sheraton Mysore Hotel, we entered into an agreement with Starwood for the management. The hotel will have approximately 220 rooms and Starwood will operate the property for a period of 15 years with the option to renew the agreement for two consecutive terms of five years each," he added.

The company which presently operates 115 serviced apartments in Bangalore and Mysore will add another 135 apartments by mid-2008. It has entered into an agreement with AAPC Hotels Management Pte. Ltd, which is a member of the Accor Asia Pacific Group.

The company plans to raise up to Rs 648 crore through an initial public offer which opens on December 10 and closes on December 13.

For the issue, the price band has been fixed between Rs 351 and Rs 390. The funds raised are to be used for land acquisition and construction at ongoing projects.

According to P V Maiya director, Brigade Enterprises, "The company as on November this year has completed 4.23 million square feet involving 41 projects, 7.34 million square feet involving 14 projects are ongoing and 6.24 million square feet involving 20 projects are forthcoming."

Brigade Enterprises which has strong focus in building residential apartment blocks is now eyeing integrated lifestyles enclaves.