Brigade Enterprises Limited (NSE: BRIGADE) Q3 2025 Earnings Call dated Jan. 31, 2025
Corporate Participants:
M.R. Jaishankar — Executive Chairman
Jayant Bhalchandra Manmadkar — Chief Financial Officer
Pavitra Shankar — Managing Director
Pradyumna Krishnakumar — Executive Director
Nirupa Shankar — Joint Managing Director
Analysts:
Parikshit Kandpal — Analyst
Pritesh Sheth — Analyst
Biplab Debbarma — Analyst
Krishnan Shah — Analyst
Parvez Qazi — Analyst
Abhishek Khanna — Analyst
Rajesh — Analyst
Rahul Jain — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Brigade Enterprises Limited Q3 FY ’25 Earnings Conference Call. We have with us the management of Brigade Enterprises Limited.
As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. M.R. Jaishankar, Executive Chairman. Thank you, and over to you, sir.
M.R. Jaishankar — Executive Chairman
Thank you. Thank you. Good afternoon, ladies and gentlemen, and welcome to the Brigade Enterprises Q3 FY ’25 Earnings Call. I’m joined by our Managing Director, Ms. Pavitra Shankar; Joint Managing Director, Ms. Nirupa Shankar; our Executive Directors, Mr. Roshin Matthew; Mr. Amar Mysore; and Mr. Pradyumna Krishnakumar; CFO, Jayant Manmadkar, along with the members of the senior management team.
We are pleased to share that Q3 FY ’25 has been a period of strong performance and steady growth across all our business segments. In-line with our expansion strategy, we are actively acquiring high-potential land parcels, including a 20-acre site on in Whitefield area with a potential saleable area of 2.5 million square feet and a gross development value of approximately INR3,000 crores. We have a strong pipeline of 15 million square feet of upcoming launches in the next four quarters across Bangalore’s, of which couple of million square feets will be launched are being launched in this quarter itself.
Coming to various SBUs, real-estate, I’ll take it first. In Q3 FY ’25, our real-estate segment achieved a pre-sales of 2.19 million square feet, a 30% growth over Q2 FY ’25 with a sales value of INR2,492 crores, up 27% over the previous quarter. The residential segment is supported by demand for premium housing and sustainable spaces with an average price realization of INR11,364 per square feet, an increase of 5% over Q2 FY ’25.
During Q3, we launched Brigade Gateway Hyderabad in the near Polish Coca submarket, a 4.5 million square feet integrated mixed-use development with premium residential, office, retail and hospitality spaces. And the project is the first-of-its-kind in Hyderabad and will be home to the World Trade Center, Hyderabad, the intercontinental five-star luxury hotel, our flagship retail brand Ora and Mall and almost 600 premium residences.
We also launched — we also launched Brigade in Bangalore, which is India’s first truly net zero residential development, strengthening our presence in the luxury real-estate space and commitments towards our sustainability goals. You will be happy to know of the first phase of the launch in Brigade Gateway Hyderabad that the response to the launch is tremendous coming to leasing, we leased 0.3 million square feet-in Q3 FY ’25, driven by demand from technology, engineering and manufacturing sectors.
Leasing revenue grew 13% year-on-year to INR280 crores with a stable 99% office rental collection rate. Industry-wide global capability centers led leasing activity at 34% with technology companies, flexible office space operators and BFSI firms following Bangalore, Hyderabad, Bangalore and Hyderabad continued to drive over half of the leasing activity, highlighting their growth potential. Retail performance was robust with an 8% year-on-year increase in mall consumption during Q3 FY ’25 driven by festive season promotions and strong footfalls. Cinema sales also grew 20% year-on-year, aided by big-budget releases.
In December of last year, all three malls achieved highest-ever single-day footfalls and parking collections. We expect this momentum to continue, driven by strong demand across residential, office and retail sectors. We will not be in a position to take-up any questions on the hospitality business as we are governed by publicity restrictions due to the DRHP, we have filed for Brigade Hotel Ventures Limited as on 30th October 2024.
I will now hand over to our CFO, Jayant, to present the detailed financials for the quarter. Thank you.
Jayant Bhalchandra Manmadkar — Chief Financial Officer
Thank you and good afternoon. On behalf of the company, we would like to welcome you to the earnings call of Q3 FY 2025. Our Chairman has already shared operational highlights. I’ll be sharing key financial highlights for the quarter.
To start with the consolidated financial performance for quarter three FY ’25, the consolidated revenue for quarter three FY ’25 stood at INR1,530 crores against INR1,208 crores in Q3 FY ’24, an increase of 27%. The consolidated EBITDA for Q3 FY ’25 stood at INR479 crore as against INR296 crore in Q3 FY ’24, an increase of 62%. EBITDA margin for quarter three FY ’25 stood at 31%.
Consolidated PAT was INR236 crore versus INR56 crores for the same quarter last financial year. Consolidated PAT after minority interest stood at INR236 crores as compared to INR74 crores in Q3 FY ’24. The real-estate segment at INR1,103 crores with an EBITDA of 23% during the quarter. The leasing segment clocked a turnover of INR280 crores with an EBITDA of INR20169 crores during the quarter. Real-estate collections for quarter three FY ’25 was at INR1,77 crores versus INR1,394 crores in Q3 FY ’24, an increase of 27 percentage.
With respect to the consolidated performance for nine months period FY 2025, the consolidated revenue for nine months FY ’25 stood at INR3,781 crores versus INR3,302 crores for nine months FY ’24, an increase of 15%. The real-estate segment clocked a turnover of INR2,563 crores with an EBITDA of 18% in Nine-Month FY ’25 as against a turnover of INR2,273 crores with an EBITDA of 10% in Nine-Month FY ’24. The leasing segment clocked a turnover of INR834 crore with an EBITDA of 69% in nine months FY ’25 versus turnover of INR691 crore in Nine-Month period FY ’24, an increase of 21%.
The consolidated EBITDA for Nine-Month FY ’25 stood at INR1,166 crores versus INR869 crores in Nine-Month FY ’24, an increase of 34%. EBITDA margin stood at 31%. Real-estate collection increased by 39% to INR3,99 crores in nine-month period FY ’25 from INR2,882 crores in Nine-Month FY ’24. Overall collections for Nine-Month FY ’25 was at INR5,321 crores versus INR4,078 crores in nine months FY ’24, an increase of 30%.
Net cash-flow from operations stood at INR1,551 crores in Nine-Month FY ’25 as compared to INR986 crores in Nine-Month FY ’24, an increase of 57%. Coming to the debt position and its breakup, the gross debt of the company stood at INR4,531 crores as on 31st December 2024. The cash-and-cash equivalents stood at INR3,404 crores, which includes INR987 crores of QIP funds. Consequently, the company’s net-debt outstanding as on December 31, 2024 is INR367 crores. Debt-equity ratio stood at 0.18. With the continued robust cash-flow, QIP funds and available debt lines, the company has strong liquidity position to meet its expansion plan.
I will hand it back to the moderator for questions.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles you.
The first question is from the line of Parikshit Kandpal from HDFC Securities. Please go-ahead.
Parikshit Kandpal
Yeah. Hi, team. Congratulations on a commendable performance in this quarter. So my first question is on Brigade Gateway. So what was the total value of inventory released and what was the sales contribution from this project?
Pavitra Shankar
Hi, yes. So we had about almost 300 units that we launched. We are not able to sell about 50 of those units because they are mortgage units as per the Hyderabad regulations. Of the remaining 250 units, we have already sold 200 for a value of INR1,000 crores. And also the contribution to the overall numbers is about 72% from new launches in this quarter.
Parikshit Kandpal
Okay. And generally, how is the approval scenario now in Bangalore? I mean, we are still seeing some challenges being faced by some of your peers. So despite that, you’ve put up a very commendable performance in this quarter. So just wanted to check how has been the approval scenario, especially in Bangalore now. Bangalore and both.
M.R. Jaishankar
Approval challenges have always been there. It is not new. But going by the scenario in-life itself is becoming difficult year-on-year and so is approval, I would say. So every state I think the approvals are becoming taking little bit longer than what they were happening earlier. I think Bangalore is not an exception. I think somehow you know there have been delays. A lot is due to change in procedures. A couple of months back, introduction of what is referred to locally as E-khatta is — that is — those are the main things which have slowed down the procedure, but I think we are in business for 38 years, we will sail through.
Parikshit Kandpal
Okay. And just M.R. sir, on the demand-side. So how do you think now there has been concerns on demands and on the real-estate side. So if you can help us understand how is the demand scenario on-the-ground? What are the launches which you have planned in Bangalore, Chennai, Hyderabad in this quarter?
Pavitra Shankar
Yeah. So I think demand on-the-ground is still pretty strong. I would think that we should not really be pegging against what we saw two years ago when there was no real hold in terms of what is the pricing environment that we were in. So today, the launches that we’re looking at are all coming in pretty fully priced. It’s not so much of a price discovery mode other than a few hundred rupees here and there. So from that perspective, if we have a launch where we can sell about 50% of the inventory in the first couple of quarters, that is how Brigade looks at it. We would like to achieve the maximum pricing and velocity at that point in time and then the rest is sustenance. That’s the model that we follow and that is what we feel is the best-suited for our approach.
And considering that kind of you know approach, we are actually seeing a pretty good demand on-ground itself. So both of our launches last quarter, which is Brigade in Bangalore, which is India’s first net zero project in residential and the Tower A of Brigade Gateway did extremely well. In both of them, we sold about 50% already of the inventory, which was much higher than our expectation. So the situation on-ground is still pretty good, provided you get the pricing right.
Parikshit Kandpal
And what is the launch pipeline for the Q4? I mean, in Chennai and Bangalore and anything else you’d like to open up in Hyderabad in the gateway?
Pavitra Shankar
Yeah. So in Q4, we’re hoping to launch about 4 million square feet across Bangalore and Chennai and ideally as well. And I think we have decent visibility on all of these. But of course, the last 10 large sort of steps in approvals in one or two of them is still pending.
Parikshit Kandpal
Okay. And just the last question, Pavitra, what has been the business development for the nine months? I mean, you have been regularly announcing all land acquisitions. So if you can help us get the entire total number of value of the growth development value-added in nine months.
Pavitra Shankar
Yeah, Pradyumna will answer that.
Pradyumna Krishnakumar
Yeah. Hi, Parikshit. So in the nine months, we’ve added about a little more than 8 million square feet with a GDV of about say INR8,000 crores to 9,000 crores. Yeah, to about INR10,000 crores is what we’ve added in nine months. In the past quarter, we have added about 3 million square feet.
Parikshit Kandpal
Okay. And approximately what is the pending — to be spent on this acquisition? I think about INR800 crores?
Pradyumna Krishnakumar
So overall, we have about INR900 crores to be spent still on land.
Parikshit Kandpal
Okay. Okay. And thank you, team. I’ll join later again for the questions. Thank you.
Operator
Thank you. The next question is from the line of Pritesh Sheth from Axis Capital. Please go-ahead.
Pritesh Sheth
Yeah, hi. Thanks for taking my question and congrats on very strong performance. Just one question on Hyderabad, since we have seen a very good success with this project, with this one and even the previous one, Citadel. So how is the pipeline looking like in terms of future projects that we will do in Hyderabad. You know, we will — will we have to still wait for those government auctions to come up or there are some private transactions also being looked at?
M.R. Jaishankar
We are actively negotiating a couple of projects. It is — probably if we’re lucky, hopeful of finalizing one or two of them in this quarter. Otherwise it will move to the next quarter is what I hope. But you know, the team is actually working to finalize a few more projects.
Pritesh Sheth
That’s good to hear. And just in terms of launches, 4 million square feet we have good visibility. But can you give just give a breakup? I suppose Chennai would be bulk of it. So once you give the breakup and specifically you can speak — you can talk about or comment on how Chennai approvals are moving along, that would be helpful.
Pradyumna Krishnakumar
So after launches that we planned in Q4, close to 2 million square feet will be some Chennai and another 2 million square feet plus will be some Bangalore. In terms of the approvals, no, we are seeing some momentum on-the-ground as far as Chennai goes. We have recently got the approval for a project for which is the land that they bought from Pfizer from Pfizer. So that — we’ve got the approvals we’ve got in-place and we are in the process of launching it. We also have another project in the same-location or in similar as similar micro-market which is called Brigade Morgan Heights. So that will be also coming up in this quarter. As far as these projects go, we’ve seen the approvals come through in the last six months in quite a fast manner. So as you were explaining maybe in the last quarter, we’re seeing some pickup on-the-ground as far as Chenna goes.
Pritesh Sheth
Interesting. That’s good to hear and thanks for that clarity. That’s it from my side and all the best.
Operator
Thank you. The next question is from the line of Biplab Debbarma from Antique Stock Broking Limited. Please go-ahead. Good afternoon. First question is on the commercial portfolio. So we have currently around 98% occupancy and there is not much left to lease. So what is the visibility on new projects and when are they expected to be operationalized?
Pavitra Shankar
Yeah. So for the commercial portfolio, currently, we have two projects that will soon come into the portfolio. One is of course Brigade Twin Tower and one is Padmani Tech Valley. So ongoing, we have about 2.67 million square feet of various office projects ongoing right now. But in the next quarter, you’ll see that Brigade wind towers will come into the portfolio. So that’s a 1.2 million square feet project. About INR530,000 is for sales, so that will come under the residential side and the balance will be under the lease. So we’ve already done some sales in that project, almost close to INR2 lakh sales in the — the for-sale segment of Brigadwin towers.
Biplab Debbarma
So in the Twin towers, the remaining 7 million square feet would be for lease. Out of that, how much have we leased?
Pavitra Shankar
No. About 6.6 lakh square feet for lease. And right now, our strategy is to first do the sales. We are still entering a lot of RFPs for that project, but right now, nothing has been leased. A smaller portion has been taken from the co-working space, but the remaining — right now, the focus is on-sales because the rate we’ve been able to get has been a good healthy rate and that market seems to be wanting to buy and it seems to be like a more end-user-driven market.
Biplab Debbarma
And regarding Padmini Tech Valley, by when do you think it will be operationalized?
Pavitra Shankar
So Block A, we will be — sorry, Block C, we have already with the OC, but of course, some spend capital expenditures still remaining. So that will come into the quarter and the portfolio next quarter. And so Block C, which is INR2,64,000 will come into the portfolio. There as well, we are looking our sales strategy for that building, our share of the — our share of that building. The balance is still at somewhere excavations of maybe two, 2.5 years before it becomes operational.
Biplab Debbarma
Okay. Okay. And my final question is, I initially missed the discussion on Coca Pet. Just how much have you launched and how much have you sold? And what would be the selling rate and typical ticket size on Coca Pet project.
Pavitra Shankar
The Tower A is just about 300 units, about 297. We have to hold about 50 of those units for the mortgage restrictions in Hyderabad. So of the remaining 200 — sorry, INR250 or so, we sold 200 units for a total of INR1,000 crores. So on average, INR5 crore ticket size and on average, the price realization is around INR12,500 on an agreement basis and all-inclusive to the customer excluding taxes closer to, INR14,000. So it was a very, very successful launch. I think it is the most successful launch in Hyderabad this year.
Biplab Debbarma
Okay. Thank you. Congratulations again on the stupendous numbers. Thank you, ma’am.
Operator
Thank you. The next question is from the line of Krishnan [Phonetic] Shah from Ashika Stock Broking. Please go-ahead.
Krishnan Shah
So my first question is on the lines of. So what is our annual target for FY ’25? And how likely are we going to complete it.
Pavitra Shankar
We’re not really — as you know, we don’t really do the guidance aspect of things, but I think the visual approach of trying to grow any around 15% per year is there or whether it’s on value area.
Krishnan Shah
Got it. And my second question is in terms of. So we are seeing a lot of affordable housing.
Pradyumna Krishnakumar
We’re not able to hear you clearly.
Krishnan Shah
Yeah. Hello. Is it better?
Operator
Sorry to interrupt, Mr. Krishnan. You are very near to your mic. I would request you to go a little far.
Krishnan Shah
Okay. Is this better?
Operator
Yes, sir. Please continue.
Krishnan Shah
Okay. So my second question is on the lines of premium affordable housing. So where are we seeing more demand at this point in the markets that you are present in and where do we plan to go-forward?
Pavitra Shankar
I think it’s different based on the market. I was just talking about our Brigade Gateway project in. I would call that as high-end, but that market did extremely well in terms of doing high-end launches. And despite selling almost 1 million square feet, we were able to do it in a very short period of time. I still think the sweet-spot for the mid-segment customers anywhere to INR1.5 crores. That’s where we would call the mid segment. There is also — Brigade has also done a lot of upper mid-segment and premium housing where a lot of our inventory is coming in the 2CR to upwards of that range. So there is still strong demand overall.
We are not seeing much appetite for affordable housing at this current point in time and also that’s a supply issue as well. It’s difficult to put INR45 lakh kind of inventory out in this market. So we are focusing on mid-segment, which has always been our strategy. But of late, we are seeing it push towards the upper mid segment and there are some opportunities like Brigade icon in Chennai, Brigade 820 oppos in Hyderabad where we are looking at luxury or very high-end housing.
Krishnan Shah
Okay. So what will our high-end housing prices be? So like I would like to take a range from 1.5 in the mix segment to the luxury segment per unit price?
Pavitra Shankar
It depends. In Brigade icon, it starts at INR7 crores and goes all the way up to INR25 crores. Also, it’s a factor of the unit size and the per square-foot pricing. In Hyderabad, it was up from INR5 crore to INR12 crores ticket size. So I think it’s variable based on the product that we put out there.
Krishnan Shah
Okay. This is helpful. Thank you so much and all the best.
Operator
Thank you. The next question is from the line of Parvez Qazi from Nuvama Group. Please go-ahead.
Parvez Qazi
Hi, thanks for taking my question and congrats for a great set of numbers. So my first question is regarding the WTC that we proposed to build-in Hyderabad. What would be the leasable area for that particular project?
Pavitra Shankar
It will be about 1 million square feet for Hyderabad.
Parvez Qazi
Sure. And secondly, I mean in terms of business development, you said we added about 8 million square feet-in nine months this year. Year for FY ’26, what is the kind of land deals, et-cetera that we may value?
Pradyumna Krishnakumar
So Parvez, typically our our sort of approach is to ensure that at the minimum we the land band that is being utilized at as far as the launches that we do in the particular financial year that has gone by or as we see it happening. So the objective is to at the minimum to add to that number. And wherever the opportunities come, if we find them around line that we want them, that we naturally go-ahead and acquire those baskets of land. But at the minimum, what we would do is refinish the land that is being utilized in our new launches.
Parvez Qazi
Sure. And lastly, just a bookkeeping question. What — how much would we had — sorry, the Bangalore project contributed in Q3 in terms of sales?
Pavitra Shankar
About 50% in this quarter.
Parvez Qazi
Sure. Thanks. And all the best.
Operator
Thank you. The next question is from the line of Abhishek Khanna from Kotak Institutional Equities. Please go-ahead.
Abhishek Khanna
Hello?
Operator
Yes, sir, you are audible.
Abhishek Khanna
Yeah, no, no. I was just checking. Could you share the revenue and EBITDA numbers for the leasing business for Q1, Q2, Q3? I mean, we have it for Q3, but it seems that the leasing revenues and even the EBITDA have gone down in Q3. Is that the case or am I reading it wrong?
Jayant Bhalchandra Manmadkar
Sure. The leasing revenue for Q1, Q2, Q3 is — I’m talking about office lease is about INR164 crore, INR201 crore, INR188 crore.
Abhishek Khanna
And if we were to include the malls as well? I’ll tell you where am I coming from. The EBITDA that I see for 1H in your presentation last quarter was about INR400 crores, which is INR20 crore 200 crores run-rate, but this quarter it seems to be at INR170 odd crores. So I just wanted to check the reason decline and if I’m reading that correct.
Jayant Bhalchandra Manmadkar
So let me repeat, I think the revenue as far as current quarter is concerned, all three put together is INR280 crores and EBITDA is at about 62%, which is primarily because of last quarter, if you see our remarks, we have given that property tax INR15 crore is the charge that has come which is one-time. But on a maintainable basis, going-forward, it will be always around 71%, 72%.
Abhishek Khanna
So you’re saying 3Q we had some one-off tax charges that we paid.
Jayant Bhalchandra Manmadkar
So Q2 also, in Q3 also, we have some one-off expenses. But especially when you look at YTD also, it is about 69%, which on a maintainable basis will be around 71%, 72%.
Abhishek Khanna
Got it. And was the quantum of that charge higher in Q3 than Q2 or was it higher in Q2 as opposed to Q3?
Jayant Bhalchandra Manmadkar
Q2 it was — Q2, it was INR15 crore is a one-time charge. And in Q2, there was one typical Ind As accounting interest that comes for the fit-outs that we do, which was to the tune of INR20 crore both in revenue and cost. That temporarily pulls down the EBITDA.
Abhishek Khanna
But my problem is with 3Q EBITDA, which looks lower than the earlier quarters. That is where the question was. The 3Q EBITDA for the leasing business looks lower than the run-rate for the first two quarters is where I was coming to.
Jayant Bhalchandra Manmadkar
So these are the two things that property tax as well as this, as I explained the fit-out kind of accounting that is pulling it up. But I’ll still request you to look at only on YTD basis and that is a real representative of the…
Abhishek Khanna
And you’re saying the margin should be in the 71%, 72% range going-forward, the normalized margins, right?
Jayant Bhalchandra Manmadkar
Right.
Abhishek Khanna
Okay. And the second question that I had was when you look at the Hyderabad market, would you be focused on where you are right now coca bit or are there other areas also that are of interest to you.
Pavitra Shankar
So naturally, we’ll be looking at the entire market wherever there are good opportunities, whether it is residential, office, retail, hotels, whatever it may be, we’re looking across-the-board.
Abhishek Khanna
Got it. Okay. That is helpful. Thanks a lot.
Operator
Thank you. The next follow-up question is from the line of Parikshit Kandpal from HDFC Securities. Please go-ahead.
Parikshit Kandpal
Yeah, hi. Pavitra, what was the total value of the Citrine project which was launched and how much was the sales contribution from that project in this quarter?
Pavitra Shankar
Yeah. So Citrine, just the total GDV for that project is around INR700 crores. We’ve sold about 50% of it.
Parikshit Kandpal
Okay, 50%. And on Brigade Icon, so how has been the sales response that was launched in Q2? So what was the launch value, how much you would have sold until now in that quarter cost.
Pavitra Shankar
So Icon, we have sold about 25% of the project. That’s in-line with our expectations because it’s very-high end and that’s not something that we want to sell you know very quickly on an accelerated basis. So we expect to sell during the entire timeframe of the construction. We are able to realize an average price of 30,000 rupees in Icon.
Parikshit Kandpal
And the GDV will be about INR1,800 crores, INR1,900 crores here?
Pavitra Shankar
About INR1,800 crores. Yeah.
Parikshit Kandpal
Okay. And just one question now. I mean, you will maybe next year or a year-after that touching that INR10,000 crore pre-sales, given you are now almost crossing INR2,000 crores this quarter you have done and maybe 4th-quarter with launches, you will again cross that number, you may cross. So are — are you gearing up or looking now that from to venture outside, South in MMR or NCR? So any thoughts there, how are you looking at, I mean, because 10,000 becomes a big base to grow from there on. So how do you think two, three years out from here, your plans would be whether you will venture out to newer geographies?
M.R. Jaishankar
I think it is work-in progress. Currently, as mentioned earlier, the focus is still on these three metropolitan cities of Bangalore, Hyderabad and Chennai. We do have a few Tier-2 cities like Mysore and Kochi and like that where some activity will be happening. But the primary focus is this three and maybe in two, three years, we may take a call. I do not know at this point of time.
Parikshit Kandpal
Okay. So just on the office demand…
Pavitra Shankar
We have a lot — we would like to do more in Hyderabad and see that contribute a little bit more. So the way Chennai has also shaped up for Bangalore, we’d like to see the same in Hyderabad. So while we can reach or are working towards reaching these numbers, there is still a lot of opportunity in our existing market without having to look outside. So I think there is still room to grow with where we are today before we really have to consider expansion into other markets because we fully believe that it requires focus to stay on certain markets.
Parikshit Kandpal
Okay. And just wanted to pick your thoughts on the office now we have almost leased-out everything and we are still talking about doing sales. So your thoughts on lease market now and whether it makes sense to do Strata sales in your commercial or whether you should do lease-out. So given that we have very strong balance sheet and cash, so how do you think next two, three years this asset business will shape out?
M.R. Jaishankar
See, it is a part of our strategy. Strata sale also is part of our strategy because even we started our business itself for in 1986, it’s doing a strata sale of offices. In fact, our first three projects were all office status sale. So we are very comfortable with that. It’s always a combination of sales and leasing. So it depends on a case-to-case basis. Some projects when we take — we take with the intention of Strata sale also. So that way it is a part of our overall status.
Parikshit Kandpal
And sir, your views on the office market now. So given that we have leased on everything, so what’s — if you can give some color on the demand on the office side?
Pavitra Shankar
Yeah. So we do have 2.67 million square feet of office that is ongoing. So for instance, we have Boulevard, which is 840,000 square feet-in Chennai. We’ve started the construction for Brigade Tek Valley, which is 730,000 square feet. And we’ve also done — we’ve started the construction for Brigade Square, which is 190,000 square feet-in Trivandrum. So what we are doing is because the existing portfolio is almost leased-out, but like I said, will come into the portfolio and that’s something we definitely need to — we are working on leasing out as well. We’re trying to do some pre-leases over the next couple of years to get the leasing going there.
And apart from that, we have close to 3 million square feet of office space that we — that we will be launching soon. So we have some properties closer to the International Airport, a couple of projects in CBD. So we will be launching all of that. Even in Gift City, we’re launching another 380,000 square feet building. Like I said, the one at the airport is 1.4 million square feet. We are constantly doing new business development because we do want to continue to grow the office portfolio. In fact, we have a good growth plans there and we are tying up properties, but just everything when it comes to office, there is — it’s fairly cyclical, right? Most of the leasing happens closer to once the structure is up. So it’s just a little cyclical, but we are focused — quite focused on some of the ongoing projects and we will be launching a few new projects as well in the coming quarter.
Parikshit Kandpal
Okay. Thanks. Those are my questions. Thank you.
Operator
Thank you. The next follow-up question is from the line of Biplab Debbarma from Antique Stock Broking Limited. Please go-ahead.
Biplab Debbarma
Yeah. Two quick follow-up questions. The 4 million square feet to be launched in Chennai and Bangalore in 4Q FY ’25, what would be the GDV of these projects?
Pradyumna Krishnakumar
The GDV of this will be more than INR4,000 crores.
Biplab Debbarma
Okay. And the Orient mall that you are planning in Hyderabad Koka, how big would that mall would be?
Pavitra Shankar
It will be 6 lakh square feet.
Biplab Debbarma
And so this Orient mall in Hyderabad and WTC in Hyderabad would also be part of your pipeline that would be launched soon, right?
Pavitra Shankar
Yes. In the coming fiscal year, not in the next quarter, but in the coming fiscal year, we’re planning to launch on that. But because the WTC sits on-top of the that come in a little later.
Biplab Debbarma
Okay. Okay. But it is a part of your pipeline there.
Pavitra Shankar
Yes, yes. Definitely, yeah.
Biplab Debbarma
Thank you. Thank you, ma’am. All the best.
Operator
Thank you. Before we take the next question, a reminder to all the participants that you may press and one to ask a question.
The next question is from the line of Rajesh from SBI Mutual Fund. Please go-ahead.
Rajesh
Hi, everyone. I had a follow-up question on the Strata sales strategy, in a hypothetical situation, if we hold onto the assets and lease it out, what would be our yield on cost?
M.R. Jaishankar
And normally when you hold-on to the asset, the yield on cost will be about 8% or so. No, 8% or so. But on the — on our — we sell it on cap-rate, but our own yield may be about 10% to 12%, yeah, maybe mid-teens sometimes.
Rajesh
For Brigade Twin Towers and for Padmini, is it? That’s the kind of yield you would expect on your capex.
M.R. Jaishankar
Yeah. On first year.
Rajesh
On first year, mid-teens type. Okay. Okay. Okay. Yeah, that’s all from me. Thank you.
Operator
Thank you. The next question is from the line of Rahul Jain from Elara Capital. Please go-ahead.
Rahul Jain
Hi, thanks for the opportunity. Just one question. What explains the dip in total collections Q-on-Q?
Pavitra Shankar
Yeah. The collections there is usually a factor of both collections from ongoing projects, so your normal milestone payments. I’m talking about residential because office and other segments were on-track. On the residential side, the slight dip is because most of the collections coming from new launches ended-up happening towards the very end-of-the quarter. So that’s why we didn’t have a full-quarter to sort of realize those numbers. But I think it’s just a timing effect. There’s no real issue on-ground.
Rahul Jain
Got it. Thanks.
Operator
Thank you. The next follow-up question is from the line of Parvez Qazi from Nuvama Group. Please go-ahead.
Parvez Qazi
Hi, thanks for taking my follow-up question. So my question is on the price appreciation. I think most of the projects that we are now launching have ASPs in the range of anywhere between INR10,000 to INR13 odd thousand a square feet. So across the three cities that we are present, I mean, what is your estimate of you could say the pricing increase that we can see over the next year? And secondly, also in terms of ticket size, I mean, what would be a kind of mix in terms of pre-sales for us in FY ’26 as in how much portion do you think we’ll have from units are less than say 4CR and how much, let’s say above 4 Cr. I mean a broad split also will be helpful.
Pavitra Shankar
Yeah, yeah. Yeah. So for some context, I think if you look year-over-year, our increase in average price realization has gone up by 35% to 40%. So there are two factors there. One is the type of product that Brigade is launching, the type of projects that we’re launching. And second is the overall market price increase for like-to-like kind of product. So the big factor of the like-to-like increase for the same kind of product over the last few years, that has already been factored into our pricing and into our launch strategy.
So when we launch, we do not expect to see something like a 20% price increase year-over-year for newly-launched projects. We are fine to see like a single-digit price increase during the life-cycle of the project because when we launch, we’re also looking to sell about 50% within the first few months of the launch. And that will sort of anchor the entire price realization. So for all of the markets and for all of the products that we — all of the projects that we are launching, it depends on that submarket and the product-type itself.
So going-forward, our contribution from what I would call high-end housing, which is, I would say INR3 crores plus, that should be around 20% because of Icon, Brigade Gateway Neopolis and the upper-end of some of our upper mid-segment projects. But typically, we will see what becomes upper mid segment for Brigade in our markets will be between like a INR1.5 crores to INR2.5 crores ticket size is going to be our upper mid segment. And the mid segment will be from 80 lakhs to around 1.5 cr. And we still believe that this mid segment, whether including upper mid segment should be around 80% of the total portfolio and 20% from high-end projects.
And earlier also I had mentioned that we don’t really have much contribution from affordable apart from, you know, our El Dorado project where we have some one-bedroom inventory.
Parvez Qazi
Sure, thanks. And the last question to Nirupa, what would have been the contribution from BTV and WTC this quarter?
Nirupa Shankar
Yeah, so for all projects for this quarter, we got about INR188 crores in terms of the rental revenue and for was contribute about INR51 crores and BTG contribute about INR62 crores.
Parvez Qazi
Sure. Thanks and all the best.
Operator
Thank you. Ladies and gentlemen, you may press star and 1 to ask a question. A reminder to all the participants that you may press star and one to ask a question.
As there are no further questions from the participants, I would now like to hand the conference over to Ms. Nirupa Shankar, Joint Managing Director for closing comments.
Nirupa Shankar
Thank you, everyone. Before we wrap-up, we’d like to share a few highlights beyond our financial performance for this quarter. At Brigade, our commitment to community development remains strong. Through the Brigade Foundation, our not-for-profit trust, we continue to support meaningful initiatives. The library by Brigade at RV University’s Bangalore campus was inaugurated last month. It’s a 60,000 square feet four floor space designed to integrate digital and physical resources across academic disciplines.
Furthermore, we’re excited about the upcoming Brigade School for business at RB University’s campus. The Passionate Compassion Program conceived by Mr. Gita Shankar, founder of the Brigade Schools emphasized the message of balancing personal success with humanitarian efforts with the donation to the Wildlife Rescue and rehabilitation center at Dara Foundation and SiteCare. The renovation of the Pahar in Bangalore is nearing completion with structural improvements, design enhancements and expanded gallery spaces that will soon breathe new life into this historical landmark.
Our annual flagship event hosted by Brigade REIT called Propagate 2024 was held in the first week of December 2024. It was inaugurated by Priyank Kharge Honorable Minister for IT&BT and the event brought together industry leaders, startup founders and banking experts for insightful discussion. We also celebrated the graduation of October 16, marking another milestone in our mission to foster innovation in the real-estate sector.
We’re also incredibly proud of the recognitions we’ve received over the last quarters. We were recognized by IGBC as the Green champion for leading the Green Homes movement in India. Pavitra and I were recognized as Women Icons of the Year South at the Realty Plus Women Icon and Concave Awards 2024. Our Chairman was inducted into the Hall of Fame and awarded the Pride of India as the Commercial Design Awards 2024, alongside being named visionary Entrepreneur and Philanthropist of the Year at the Realty Plus and Excellence Awards 2024.
Our projects were also in the spotlight. Brigade Twin Tiles was recognized as an outstanding concrete structure by the Institute, while Brigade Cornerstone utopia, one facility management project of the year residential and the Realty Plus Excellence Awards 2024 South.
On that note, we’d like to conclude this quarter’s earnings call. Thank you all for joining us today and for your continued interest in Brigade Group. Thank you.
Operator
On behalf of Brigade Enterprises Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.