HNI investor eye office space in OBD

Bengaluru:Bids are soon going to be invited for the sale of around 30,000 sq ft of prime retail and office space in the central business district (CBD) of Bengaluru. The targeted bidders are ultra-rich individuals and family offices.

Rathnam’s Complex, also popularly called the Jewels de Paragon building, located in the heart of the city, in Lavelle Road, and the base price for the sale is Rs 40 crore for the entire space or a minimum of one of the four floors

JLL is running the exclusive mandate for the sale.

The sale of the building comes at a time when United Spirits Ltd, owned by Diageo Plc., is in the process to sell 30,000 sq ft in UB City, a high-end retail and office complex in Bengaluru. JLL, which is running the mandate for the sale, is evaluating nine bids that have been submitted by HNI investors and family offices.

“There is huge demand for good quality office space in CBD areas. There is a lot of interest among individual, smaller investors to buy office space particularly when there are opportunities in prime locations in a city. Residential sector isn’t doing well and there is no access yet to REITs (real estate investment trusts), so this is a good way of putting money in real estate,” said Juggy Marwaha, executive managing director, JLL India.

Prime office space in CBD areas across cities up for sale and HNIs and family offices are flocking to buy.

Over the last few years, individual investors have largely stayed away from making fresh investments in residential projects while struggling to sell off and exit earlier investments, amidst a slowdown scenario that has deeply impacted the housing sector.

Comparatively, the commercial office segment as an asset class has fared much better, with high demand for such space and huge institutional investor interest.

ICICI Prudential Real Estate Investments, a division of ICICI Prudential AMC Ltd, recently sold four of its five commercial office investments to ultra-rich individual investors and family offices. Among them are one individual building, and several standalone office units, including a couple of units in Mumbai’s prime office hub Bandra-Kurla Complex.

The firm had invested around Rs450 crore across five transactions in Mumbai, Pune and Noida for a 550,000 sq. ft portfolio, which was leased to large international tenants. These exits resulted in an internal rate of return (IRR) of 10-21% on the investments.

An April report by CBRE South Asia Pvt. Ltd reported that during the January-March period, Bengaluru reported the highest demand for office space and accounted for more than the combined share of the markets of Delhi-NCR, Mumbai and Hyderabad.

Source : https://www.livemint.com/Companies/WxbqUQfKHfs2X5tYT1CCpN/HNI-investors-eye-prime-office-space-in-CBD-areas.html

NHAI Awards Rs 1,047 cr Dwarka Expressway Package to L&T Under Bharatmala Project

The National Highways Authority of India (NHAI) has awarded to L&T one of the five packages of Rs 7,500 crore Dwarka Expressway project in Haryana under the Bharatmala project, the government said today.

The National Highways Authority of India (NHAI) has awarded to L&T one of the five packages of Rs 7,500 crore Dwarka Expressway project in Haryana under the Bharatmala project, the government said today. The package to build eight-lane expressway from Basai RoB to NH 8 – SPR intersection in Haryana will be executed at a cost of Rs 1,047 crore under EPC (engineering, construction and procurement) mode, Ministry of Road Transport and Highways said in a statement.

“The NHAI has issued Letter of Award – LOA for Package-4 of Dwarka Expressway from Basai RoB to NH-8 – SPR intersection in Haryana on EPC under Bharatmala Pariyojna…This eight-lane Expressway (NH-248 BB) will be constructed on EPC Mode at a cost of Rs 1047.007 crore. The 8.76 km stretch of the road will be constructed by L&T,” the statement said.

Development of this section of Dwarka Expressway will ensure seamless and safe movement of traffic between Delhi-Gurgaon and help in decongestion of the Delhi-Gurugaon Expressway, it said. The project comprises of 8-lane elevated structure for main carriageway of Dwarka Expressway, Trumpet Interchange for Manesar Road and Cloverleaf interchange with NH-8-SPR intersection.

The completion period of the project is two years with maintenance period of four years. Under the project, a minor bridge will be widened, additional ROBs, five VUP (vehicle underpass), six Bus Bays with Bus Shelter will be erected and four Junction Improvements will be carried out, it said. “Dwarka Expressway has to be implemented in 5 Packages.

The first package of 5.3 kms is from Shiv Murti to RuB, the second of 4.2 kms from RuB to Haryana border, package 3 from Haryana border to BasaiRoB – 10.2 Kms, package 4 from Basai RoB to NH-8 – SPR intersection – 8.77 Kms, and the fifth package – 5 kms of Western Airport Connectivity from Dwarka Expressway through tunnel,” the statement said. The Expressway is proposed to be built at an estimated expenditure of Rs 7,500 crore. P

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Source : The National Highways Authority of India (NHAI) has awarded to L&T one of the five packages of Rs 7,500 crore Dwarka Expressway project in Haryana under the Bharatmala project, the government said today.

The National Highways Authority of India (NHAI) has awarded to L&T one of the five packages of Rs 7,500 crore Dwarka Expressway project in Haryana under the Bharatmala project, the government said today. The package to build eight-lane expressway from Basai RoB to NH 8 – SPR intersection in Haryana will be executed at a cost of Rs 1,047 crore under EPC (engineering, construction and procurement) mode, Ministry of Road Transport and Highways said in a statement.

“The NHAI has issued Letter of Award – LOA for Package-4 of Dwarka Expressway from Basai RoB to NH-8 – SPR intersection in Haryana on EPC under Bharatmala Pariyojna…This eight-lane Expressway (NH-248 BB) will be constructed on EPC Mode at a cost of Rs 1047.007 crore. The 8.76 km stretch of the road will be constructed by L&T,” the statement said.

Development of this section of Dwarka Expressway will ensure seamless and safe movement of traffic between Delhi-Gurgaon and help in decongestion of the Delhi-Gurugaon Expressway, it said. The project comprises of 8-lane elevated structure for main carriageway of Dwarka Expressway, Trumpet Interchange for Manesar Road and Cloverleaf interchange with NH-8-SPR intersection.

The completion period of the project is two years with maintenance period of four years. Under the project, a minor bridge will be widened, additional ROBs, five VUP (vehicle underpass), six Bus Bays with Bus Shelter will be erected and four Junction Improvements will be carried out, it said. “Dwarka Expressway has to be implemented in 5 Packages.

The first package of 5.3 kms is from Shiv Murti to RuB, the second of 4.2 kms from RuB to Haryana border, package 3 from Haryana border to BasaiRoB – 10.2 Kms, package 4 from Basai RoB to NH-8 – SPR intersection – 8.77 Kms, and the fifth package – 5 kms of Western Airport Connectivity from Dwarka Expressway through tunnel,” the statement said. The Expressway is proposed to be built at an estimated expenditure of Rs 7,500 crore. P

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Source : http://bit.ly/2pasPxb

Commercial Real Estate – Guidelines For Retail Investors

Buying an office or retail space is a huge investment, which is why commercial real estate has been traditionally seen as an asset class that only institutional investors or heavyweight HNIs could invest in. That, however, is changing. Many retail investors are now getting into the office real estate game.

For a perspective of the opportunities in Indian commercial real estate, consider this - Manhattan in New York City has 450 million square feet of Grade A stock, while London has 200 million square feet. In comparison, India’s collective office space stock accounts for only 375 million square feet. This showcases the long-term potential for office space at all levels in India.

Very few of the world’s commercial real estate markets have undergone such a dramatic and rapid change in such a short span of time as India’s has. The next few years will see a quantum spurt in the services and knowledge sector, opening up tremendous opportunities for the retail investor.

Investment Routes:

There are three ways to invest in commercial real estate - directly buy office space from a developer, buy shares of a commercial developer from the stock market, or invest in a real estate fund focused on commercial real estate. As the quantum of investment is usually huge, the prospective buyer needs to take more informed decisions.

Another option, which is investing in Real Estate Investment Trusts, is expected to be opened up shortly by the government. REITs are pooled investment entities where the corpus is invested primarily in completed, income yielding real estate assets and distribute a major part of the revenue/income generated among their investors.

Many developers, especially in cities such as Mumbai, are today offering smaller units of space (as small as 500-1000 square feet) in Grade A buildings. This is in sharp contrast to the scenario a few years back, where only much larger units were available - making it tough for a small investor to invest in office real estate. Investors considering retail space can now consider a multitude of affordable options in free-standing high street outlets or shops in malls.

The advantages of smaller units are two-fold:

• It is  easier to find tenants for them.
• The premises can also be used for business by their owners if they happen to be of an entrepreneurial bent of mind.

Today, even professionals like doctors, auditors, stock brokers and lawyers are buying commercial properties for investment and self-use. Of course, HNIs also continue to plug huge amounts of money into high-ticket commercial properties in the quest for yield.

Private bankers and wealth management firms confirm that their clients have actively started investing in commercial properties after staying away in 2009 and 2010. These investors have bought into commercial properties because they seek assets that can protect their portfolios from inflation and stock market volatility. On their side, banks are willing to lend up to 50-60% of the LTV to buy commercial properties, subject to the borrower’s adequate net worth and established ability to repay.

What to look for?:

Despite the availability of more rationally priced options, investing in commercial real estate is most definitely not child’s play. It requires forethought, research and planning:

• Investors need to establish the soundness of the location and its demand/supply dynamics. If they do not engage in sufficient research, they may end up buying into micro markets which have or will have high vacancies.
• They need to ensure that the economy, job market and population growth in the market is healthy.
• They need to check the developer credentials, potential for infrastructure development, access to public transport and quality of property management in the project.
• They need a knowledgeable real estate agent and a lawyer who can give them sound advice.
• If they are investing in a retail store, they need to consider the frontage, foot-fall and the dynamics of the adjoining catchment.
• Entrepreneurs who wish to buy commercial real estate for self use should ensure that the amenities in the project that match their business needs.

If an investor is looking at an income producing office asset, he should look at:

• The break-up of cash flows.
• The vacancy factor.
• Expenses such as maintenance, property tax and building insurance.
• Lease term, lock-in period and expiry dates.
• Long term capital appreciation potential.
• Refurbishment, refinancing and re-positioning potential.

Why Invest?:

The rental yield for commercial property is usually 9-11%. In contrast, the yield for residential property is much lower at 2-3.5%. The demand for office space in India is likely to stand at around 200 million square feet over the next five years. Post the GFC, the prices across most markets dropped around 35-40% and have bottomed out in most markets, offering investors a good opportunity to buy into commercial real estate.

India’s macroeconomic growth story makes for a rather compelling reason to get one’s own paragraph into it somewhere. Chosen prudently, and office real estate can let you do that in indelible ink. Last year, the demand for office space across India was 26 million square feet and this year is expected to see demand of 28 million square feet. The possibility of diversifying one’s portfolio, the sheer pride of ownership and the benefits of the longer leases that typify commercial tenants are other reasons to look at commercial real estate investing.

Remember, you do not only make a profit on the sale of appreciated commercial property - the rental cash flows of a well-located office or shop space are considerable. Unlike in residential property, the income that can be generated from commercial property is what determines its value. In other words, the capitalization rate is actually the measure of the demand for the property. For those who do their homework well, investing in commercial property is a high-adrenaline and high-returns game that residential real estate investment cannot hold a candle to.

Source: PropertyatNeoDevelopers.Wordpress.Com

Neo Square – A Commercial Project at Dwarka Expressway, Gurgaon

Neo Square – A Neo Developers’ Premier Commercial Project @ Sector 109, Dwarka Expressway, Gurgaon.

1st loss free proposal in Delhi NCR starting @ Rs. 24.60 Lacs, Limited Period Offer.

At Neo Square, prepare to be spoiled for choice – with the finest luxury brands. Offering the retail,hyper market, entertainment, cinema & service apartments and relaxing open terraces. The retail space is designed unlike a typical mall but as an multi use marketplace.

For further details kindly visit: http://www.neosquare.in/ or call us at +91 124 2881000 or email us at info@neodevelopers.com.

Neo Square – A Neo Developers’ Premier Commercial Project @ Sec 109, Dwarka Expressway, Gurgaon

At Neo Square – a commercial project in Gurgaon, prepare to be spoiled for choice – with the finest luxury brands offering the retail, hyper market, entertainment, cinema & service apartments and relaxing open terraces. The retail space is designed unlike a typical mall but as an multi use marketplace.

Welcome to a space that gives business and leisure a whole new location! As the premier development by Neo Developers, Neo Square enjoys the perfect location, perfect amenities and the perfect lifestyle avenues for the modern Indian.

Advantages:
1.) rated as a Gold-graded building by the Ministry of Environment and Forest
2.) coming up on Dwarka Expressway, an 8-lane & 150 mt wide road
3.) front facing development, with unhindered view of the Expressway
4.) instant connectivity within NCR, UIA, UER-1 & UER -2

For further details kindly visit www.neosquare.in or call us at +91 124 2881000 or email us at info@neodevelopers.com.

Neo Square – A Commercial Project at Dwarka Expressway

Neo Square – A Neo Developers’ Premier Project, a commercial project @ Sector 109, Dwarka Expressway, Gurgaon.

1st loss free proposal in Delhi NCR starting @ Rs. 24.60 Lacs, Limited Period Offer.

At Neo Square, prepare to be spoiled for choice – with the finest luxury brands. Offering the retail,hyper market, entertainment, cinema & service apartments and relaxing open terraces. The retail space is designed unlike a typical mall but as an multi use marketplace.

For further details kindly visit: http://www.neosquare.in/ or call us at +91 124 2881000 or email us at info@neodevelopers.com