Real estate developer, Gopalan Enterprises, part of Gopalan Group, aims to increase its office rental income to Rs 500 crore annually and could list its assets as a real estate investment trust (REIT) in the next four-five years, a senior company executive said.
The Bangalore- based company is planning to invest Rs 2,000 crore in developing a 20 million-sq ft office portfolio, C Prabhakar, director of Gopalan Enterprises, told ET.
“There is increasing demand for office space, which has led the company to prioritise the development of large corporate campuses,” said Prabhakar. “This initiative is part of the company’s strategy to boost rental income…”
A REIT is an investment trust that owns, manages, and operates income-generating real estate assets. It allows individuals to invest in this platform, earning income from the property’s rental yield and capital appreciation.
Among Gopalan’s clients are Oracle, Samsung, Google and TCS.
The company is engaged in projects spanning 100 acres across Whitefield, Outer Ring Road in Bengaluru, and Mysore.
Prabhakar said the emphasis will be on development of office and residential properties rather than malls.
Gopalan Aerospace, a subsidiary of Gopalan Enterprises, collaborates with entities such as Defence Research and Development Organisation (DRDO), army, navy and air force, along with partners like Israel Aerospace Industries (IAI) and Rafael.
In Karnataka, the company is expanding its aerospace park from 300,000 sq ft to 1 million sq ft.
“There is a huge opportunity in the defence sector to grow as it is a sunrise sector in India. We have applied for licensing for some of our products and are awaiting approval now,” he said.
Gopalan Enterprises has interests in several industries, including residential and commercial real estate, retail, aerospace, education, skill education, organic agriculture and sports.
