Brigade IPO : a major milestone

In a company’s history, transition from a private limited company to a public limited company is a most important event.

Brigade Enterprises Ltd has reached this milestone and set the path to a new trajectory by entering the capital market with an initial public offering. This was preceded by weeks of hard work and excitement. We look forward to the challenges of growth across all our domains.

The main objective of the issue is to fuel the future growth plans of the Company by way of land acquisition and meeting construction and development costs in relation to our ongoing and forthcoming real estate and hospitality projects.

Brigade entered the capital market with its initial public offering of 16,624,720 equity shares (each of Rs 10) for cash through the 100% book building process. The issue comprised a green-shoe option of up to 2,493,708 shares. The shares are proposed to be listed on the BSE Ltd and the NSE of India Ltd.

The Global Co-ordinators and Book Running Lead Managers (GCBRLMs) to the issue are J.P. Morgan India Pvt. Ltd and Enam Securities Pvt. Ltd and the Book Running Lead Manager (BRLM) is ICICI Securities Ltd.

The bids / issue opened for subscriptions on 10 December and closed on 13 December. The price band fi xed was Rs 351 to Rs 390 per share. The initial public offering was oversubscribed more than 13 times and the company issued shares at Rs 390 each.

About us
Since 1990, Brigade is a name instantly identified with Bangalore: the city in which we are headquartered, which we understand with instinctive ease and with which we share our past and future.

Brigade group has its corporate headquarters in Hulkul Brigade Centre, Lavelle Road, Bangalore.

Brigade Enterprises Limited
We are one of the leading real estate development companies based in Bangalore, primarily focused on the development of residential, commercial and hospitality properties in South India. Our residential properties include integrated lifestyle enclaves and apartment buildings targeted towards middle income and high income customers.

Since our inception in 1990, we have concentrated our business within the Bangalore region and other nearby areas such as Mysore. We have an in-house, fully integrated property development team consisting of 180 engineers and architects who oversee the development of properties from inception to completion. Our dedicated marketing and sales teams comprising of 43 individuals, regularly interacts with our customers to enable an educated, user-friendly purchasing or leasing experience.

As of September 10, 2007, we have completed a total of 67 properties, comprising of 41 residential properties, 21 commercial properties and five hospitality properties, aggregating to approximately 5.67 million sq. ft. of Saleable Area and approximately 6.74 million sq. ft. of Developable Area. As of September 10, 2007, we are developing two integrated lifestyle enclaves, 12 residential properties and two hospitality properties, aggregating to approximately 12.53 million sq. ft. of Saleable Area and approximately 13.84 million sq. ft. of Developable Area (our "Ongoing Properties"). As of September 10, 2007, our forthcoming properties (properties that are in planning stage, where approvals are in the process of being obtained but construction has not yet begun) include four integrated lifestyle enclaves, 14 residential properties, nine commercial properties and five hospitality properties, aggregating to approximately 22.37 million sq. ft. of Saleable Area and approximately 29.33 million sq. ft. of Developable Area (our "Forthcoming Properties").


Residential
Some of our completed landmark properties include Brigade Millennium, an integrated lifestyle enclave, consisting of Saleable Area and Developable Area of approximately 1.83 million sq. ft. We are currently developing 16 properties, including Brigade Gateway and Brigade Metropolis, which are integrated lifestyle enclaves and that comprise of a combined Saleable Area of approximately 10.83 million sq. ft. and a combined Developable Area of approximately 11.89 million sq. ft.

Our integrated lifestyle enclaves are conceptualised as self-contained, gated communities, which generally include a combination of apartment complexes, commercial and retail space, recreational clubs, parks, schools, convention centres and car parking and which historically have ranged from 1.62 million sq. ft to 7.23 million sq. ft. of Developable Area.


Commercial
Our commercial properties include commercial office space, software and IT parks, schools, hospitals and retail malls with entertainment facilities, such as multiplexes. Our properties in the hospitality sector include serviced residences, hotels, resorts, spas, recreational clubs and convention centres in Bangalore and other parts of South India.

Some of our developed commercial properties in the main business areas of Bangalore include 'Brigade Software Park', 'Brigade South Parade' and 'Brigade Techpark'. We developed these properties with an emphasis towards providing modern and high quality facilities for our domestic and multinational clients. Some of our prominent clients who occupy these premises include Cisco Systems India Private Limited, Digi Captions India Private Limited, Mahindra Engineering Design & Development Company Limited, Mindtree Consulting Limited, Spice Communications Limited, Tata Coffee Limited and TTK Prestige Limited.

Given below is an overview of our completed and ongoing commercial properties:

Brigade Software Park
We completed Brigade Software Park in October 2000. It is located in South Bangalore. It has a total Developable Area of approximately 0.23 million sq. ft. and comprises of two blocks of buildings.

Brigade Techpark A
We completed Brigade Techpark A in Fiscal 2006. It has a total Developable Area of 0.18 million sq. ft. Brigade Techpark A is located to the east of Bangalore and is in the Whitefield area which is situated near an information technology park and an export processing zone. Brigade Techpark, has facilities such as centralized air-conditioning, a multi-level car park, a swimming pool, a gymnasium and power generation.

Brigade Techpark B
We developed another commercial property targeted toward IT and ITES industries called Brigade Techpark B which was completed in Fiscal 2006. Brigade Techpark B has a total Developable Area of approximately 0.37 million sq. ft. Brigade Techpark B is also located in Whitefield area of Bangalore. A substantial portion of the completed development has been sold as of September 10, 2007.

Brigade IT Park, Mangalore
We have leased 1.09 million sq. ft. of land on a lease cum sale basis in Ganjimutt, EPIP Industrial Mangalore from the Karnataka Industrial Areas Development Board for a period of 20 years for the purposes of developing commercial space. We have applied for SEZ status for this project.

Brigade IT Park, Mysore
We have been leased 1.09 million sq. ft. of land on a lease cum sale basis in Koorgalli village, Mysore, by the Karnataka Industrial Areas Development Board for a period of 20 years for the purposes of developing commercial space.


Brigade Hospitality Services Pvt. Ltd,
BHSPL, a subsidiary of Brigade Enterprises Limited was formed in 2004. With the experience gained from property development, and an increasing focus on quality of life and living, entering the hospitality industry seemed a natural progression for Brigade Group, six years ago.

We are involved in the hospitality business with 'Brigade Homestead', our serviced residences with, as of September 10, 2007, 89 operational keys and our Woodrose Club with 26 operational keys. We have approximately 223 keys under development in serviced residences across two locations in Bangalore. We are also developing three hotels with approximately 700 keys and three resorts with approximately 196 keys in South India. We intend to operate these serviced residences, hotels and resorts ourselves and through arrangements with international hotel operators, such as Starwood, InterContinental, Banyan Tree and Accor.

We have completed the development of, and are currently managing, two serviced residence properties, under the brand name 'Brigade Homestead'. We are also in the process of developing nine hospitality properties including four serviced residence properties, three hotel properties and two resorts. These serviced residences, hotels and resorts will be developed by us and branded and managed under the brand names such as Sheraton, Holiday Inn, Mercure Homestead Residences, Banyan Tree and Angsana Resort under agreements with Starwood, InterContinental, Accor and Banyan Tree.

Given below is an overview of our hospitality properties.

Brigade Homestead
Brigade Homestead serviced residences comprise approximately 89 operational keys and are managed by us. Two such serviced residences in Lavelle Road and in Jayanagar in Bangalore are operational, and we are in the process of developing two serviced residences in Jayanagar and Koramangala in Bangalore. Brigade Homestead 1, which is located on Lavelle Road and Cambridge Road in Bangalore offers 55 serviced residences with the options of studio residences, one bedroom residences or two bedroom residences. Brigade Homestead 2, which is located in Jayanagar, Bangalore offers 34 serviced residences with the options of studio residences, one bedroom residences or two bedroom residences. The standard facilities for both serviced residences include air-conditioned bedrooms, well equipped kitchenettes, house keeping, internet access and travel assistance.

The Sheraton Bangalore Hotel
Brigade Gateway: We entered into an agreement with Starwood on October 4, 2006 for the management of a Sheraton hotel to be built within Brigade Gateway Enclave. The agreement is for a period of 15 years with the option to extend the term of the agreement for two consecutive five year periods. The total sanctioned Developable Area for the hotel is approximately 0.52 million sq. ft. The hotel is designed to have between 230 to 250 keys, with 20 floors, and a meeting space of approximately 6,400 sq. ft. The hotel is currently scheduled to be completed in 2009.


The Sheraton Mysore Hotel
We entered into an agreement with Starwood on August 17, 2007 for the management of a proposed Sheraton hotel in Mysore. Under the terms of the agreement, the hotel will have approximately 220 keys and Starwood will operate the property for a period of 15 years with the option to renew the term for two consecutive additional terms of five years each.


Banyan Tree Resort and the Angsana Resort
We have entered into a management agreement with Banyan Tree to develop a resort hotel in Chickmagalur, in South India. Under the management agreement, we will own the hotel and Banyan Tree will manage the hotel for a predetermined fee based on both an incentive fee and a base fee.


Brigade Foundation
Brigade Foundation is a Public Charitable Trust having its place of business at Penthouse, Brigade Towers, No. 135, Brigade Road, Bangalore- 560 025. Brigade Foundation was formed under the Deed of Declaration of Trust dated July 13, 2003 and registered as Document No. 341/2003-04, Book IV before the Senior Sub-Registrar, Shivaji Nagar, Bangalore. The deed of Declaration of Trust was amended through Amendment to Deed of Declaration of Trust dated December 4, 2003. The object of the Trust is to start Kindergarten, Nursery, Primary, Elementary and High School, Colleges and any other educational or other institutions.

Brigade Foundation is running the Brigade School at Brigade Millennium, J. P. Nagar, VII Phase, Bangalore 560 078 effective from academic year 2004.


Awards
Our Company is certified as an ISO 9001:2000 property developer. Our Company was also awarded a certificate of recognition by the International Facility Management Association in December 2003 for being amongst the best service providers in the real estate industry.