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.
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).
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.
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.
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.
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.
|DAY 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Interest on deposit||-||3,63,600||7,27,200||7,27,200||7,27,200||7,27,200|
|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|