• Brigade Tech Park II
  • Brigade Tech Park II
  • Brigade Tech Park II
  • Brigade Tech Park II
  • Brigade Tech Park II
  • Brigade Tech Park II
  • Brigade Tech Park II
  • Brigade Tech Park II
PER SQUARE FEET
  • Opportunistic Opportunistic
  • Metro Metro
50,500 SF
Whitefield, bangalore
  • MIN INVESTMENT
  • NO OF INVESTORS
  • RENTAL YIELD
  • RETURN TARGET
  • 100%
Of ₹ 28,65,00,000 Property Value
  • There is an opportunity to purchase a 50,500 square feet Grade A office in Brigade Tech Park, Whitefield, Bangalore for an all-in cost of Rs. 28.65 crores which sets-up to a remarkable 9.21% yield (incl. 0.5% top-up for pre-book investors) and 20.3% IRR - both highest on the Property Share platform. This is in-part due to our negotiated purchase price of Rs. 4,750 per sf which is at a 31% discount to prevailing market rates.

    Background
    The floor is currently owned by over 45 different investors spread across the world which has led to multiple challenges including delays in decision making on tenancy and maintenance of the property. The floor has been vacant for 2 years since the last tenant Tata Elxsi vacated the unit. This is a unique opportunity put together by the Property Share investment team which has worked tirelessly with the owners in the unit over the past few weeks to set-up an opportunistic and lucrative investment opportunity. The purchase price is 18% lower than the 3rd floor unit that Property Share purchased in the same property in Nov '17 (currently leased to Standard Chartered).

    Bangalore Metro
    The purple line of the Bangalore Metro is being extended by 13 stations from Indiranagar to Whitefield with one station directly outside the Brigade Tech park gate. Once operational (estimated 2020) Whitefield will get connected to the entire city making it easy for employers to hire talent from anywhere across the city and leading to significant uptick in rents and capital values.

    Rent Guarantee
    Property Share has negotiated a rent guarantee of 6 months for investors so that there is no loss of rent during vacancy. Initial conversations with JLL, CBRE and other brokers have indicated strong demand for space in the area from tenants. Brigade (which owns Tower 1) has leased a 10,000 sf unit to IDEA Cellular in Jan'18 at Rs. 40 per sf.

    We believe this is a fantastic opportunity to own a high quality asset that once leased will lead to significant upside in value over the next few years. No wonder that some of the Sellers have decided to invest back in the property through Property Share.

    • HIGH RENTAL YIELD on All-in Price
    • HIGH RETURNS IRR
    • CONNECTIVITY Operational by 2020
    • QUALITY Building by Brigade Group
    • 100%
      INVESTMENT AMOUNT
    • 44%
      RENTS
    • 1%
      INTEREST ON DEPOSIT
    • 84%
      PROFIT ON SALE
    • 229%
      TOTAL
    Return Target : 20.3%
  • ₹ 28,65,00,000
    • Purchase Price
    • Stamp Duty
    • Registration
    • Brokerage
    • Acquistion fee
    • Legal
    • Reserve
    • Rent Guarantee
    • Purchase Price
    • Stamp Duty
    • Registration
    • Brokerage
    • Acquistion fee
    • Legal
    • Reserve
    • Rent Guarantee
    All in price

Brigade Tech Park is located next to ITPL, Bangalore’s oldest tech park with tenants including TCS, Xerox, IBM, GE, Atos, Oracle, Perot.

Whitefield is the 2nd largest office market in Bangalore with approx. 30 million sf of office stock (25% of total Bangalore market) with offices of TESCO, GE, TCS, Accenture, SocGen among others.

The purple line of the Metro is being extended by 13 stations to Whitefield (est. completion 2020) with one station directly opposite the Brigade Tech park gate.

PropertyShare’s unit is located on the 2nd floor of Tower B and is divided into 3 units totaling 50,500 sf which can be leased to 3 different tenants if required.

  • ₹ 28,65,00,000
    • Purchase Price
    • Stamp Duty
    • Registration
    • Brokerage
    • Acquistion fee
    • Legal
    • Reserve
    • Rent Guarantee
    • Purchase Price
    • Stamp Duty
    • Registration
    • Brokerage
    • Acquistion fee
    • Legal
    • Reserve
    • Rent Guarantee
    All in price
  • ₹20,20,000
    gross rent
  • ₹2,38,738
    property management fee
  • ₹17,81,262
    net rent
Annual Yield : 9.2%
  • 01 Jul 2019
  • 3 YEARS
  • 30 Jun 2028
  • 50,500 SF
  • ₹ 40
  • 9 YEARS
  • 15%

TENANT DETAILS

Name : Vacant

Country : India

Office Locations :

Description : Property Share's unit is being marketed by CBRE and JLL and is currently in discussions with various tenants.

  • 9.21% Rental Yield (Highest on the platform)
  • 20.25% IRR
  • 2.29x Profit Multiple
  • Located in in ITPL, Whitefield, Bangalore’s 2nd largest office market.
  • Grade A business park by the Brigade Group
  • Current tenants include Standard Chartered, Qualcomm, Scope International, IDEA Cellular
  • Whitefield is being connected by extending the current purple line by 13 stops from Byappanahalli station.
  • Once completed (expected 2020), rents and prices in Whitefield will increase significantly leading to strong upside on investment.
DAY 0 Year 1 Year 2 Year 3 Year 4 Year 5
Investment (28,65,00,000) - - - - -
Rent Received - 1,21,20,000 2,42,40,000 2,42,40,000 2,42,40,000 2,78,76,000
Rent Guarantee - 1,21,20,000 - - - -
Rental Top-up - 14,32,500 - - - -
Interest on deposit - 3,63,600 7,27,200 7,27,200 7,27,200 7,27,200
Sale Value - - - - - 52,78,57,679
TOTAL ₹ (28,65,00,000) ₹ 2,60,36,100 ₹ 2,49,67,200 ₹ 2,49,67,200 ₹ 2,49,67,200 ₹ 55,64,60,879
  • A detailed investment note on the property by our Investment Team
  • A detailed report on the title by our lawyers Cyril Amarchand Mangaldas
Picture

MOU signed

05-Oct-2018
Picture

Listing opened

08-Oct-2018