DEBT AVAILABLE
TENANTED
MIN INVESTMENT
NO OF INVESTORS
RENTAL YIELD
RETURN TARGET
Embassy Tech Square - Investment Case: Listen to Kunal, Property Share Co-founder & Chief Investment Officer, speak about how the location, purchase price and quality of the tenant make this property and excellent investment opportunity. Also, there is a pre-approved bank loan from HDFC, which reduces the tax liability and magnifies returns.
ATTRACTIVE PRICE
Per square foot
HIGH RENTAL YIELD
on All-in Price
ESCALATION
every 3 years
LEVERAGED
In-place debt from HDFC
There is an opportunity to purchase a 40,392 square feet commercial office space in Embassy Tech Square within the Cessna Business Park on Sarjapur Outer Ring Road, Bangalore for an all-in cost of Rs. 39,00,00,000 (Rs. 9,655 per sf) which implies a 7.6% yield.
Located within the Cessna Business Park which houses the HQs of CISCO and offices of LG, InMobi, Flipkart and Akamai, Embassy Tech Square is a 1.2 million sf Grade A office development by the Embassy Group comprising four towers, of which Property Share is planning to acquire a floor in the Delta tower. Sarjapur ORR is the largest office market in Bangalore with less than 2% vacancy (40 million sf, 35% of total Bangalore market) with offices of JP Morgan, CISCO, Accenture, Cognizant, Wipro, Oracle, Intel, Honeywell, SAP, HSBC, KPMG, ADOBE, Sony, Goldman Sachs, Flipkart among others.
Property Share’s unit is leased to US based Syniverse, a $2.6 billion telecom technology company headquartered out of Florida and owned by private equity major, The Carlye Group. Syniverse is paying a rent of Rs. 52.9 psf which is 25% below market rent (Rs. 70 psf) due to which the Seller is selling the floor at Rs. 8,853 psf which is 20% below market rate (Rs. 11,000 psf).
This is a leveraged opportunity. There is in-place debt from HDFC for 42% of the purchase price which magnifies returns and reduces tax leakage due to interest offset.
Return Target : 18.4%
Sarjapur ORR is the largest office market in Bangalore with less than 2% vacancy (40 million sf, 35% of total Bangalore market) with offices of JP Morgan, CISCO, Accenture, Cognizant, Wipro, Oracle, Intel, Honeywell, SAP, HSBC, KPMG, ADOBE, Sony, Goldman Sachs, Flipkart among others.
Well laid out floor divisible into 4 separate office with lifts in the middle and bathrooms in the four corners.
Annual Yield : 7%
31 Dec 2013
3 YEARS
30 Dec 2028
40,392 SF
₹ 53
15 YEARS
15%
Name : Syniverse Technologies Inc
Country : Florida, US
Office Locations : Various
Description : Syniverse technologies is a US based telecom technology and research firm owned by private equity giant The Carlyle group. It employs around 23,000+ employees. It had a market capitalisation of approximately $2.6 billion as of 1st Oct 2017.
PROFIT AMOUNT
SALE PRICE PSF
MOIC
IRR
| DAY 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
|---|---|---|---|---|---|
| Investment | (22,70,00,000) | - | - | - | - |
| Rents | - | 2,72,48,844 | 2,72,48,844 | 3,13,36,171 | 3,13,36,171 |
| Interest on Deposit | - | 10,41,133 | 10,41,133 | 10,41,133 | 10,41,133 |
| Management Fee | - | (39,00,000) | (39,00,000) | (39,00,000) | (39,00,000) |
| Income Tax | - | (16,33,406) | (16,33,406) | (24,91,745) | (24,91,745) |
| Capital Gains Tax | - | - | - | - | (1,19,57,711) |
| Interest on Debt | - | (1,46,70,000) | (1,46,70,000) | (1,46,70,000) | (1,46,70,000) |
| Debt Reapyment | - | - | - | - | (16,30,00,000) |
| Sale Value | - | - | - | - | 57,09,99,000 |
| TOTAL | ₹ (22,70,00,000) | ₹ 80,86,571 | ₹ 80,86,571 | ₹ 1,13,15,559 | ₹ 40,73,56,848 |
Hand shake on the price
05-Oct-2017
