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Bannerghatta Road , Bangalore
8.8%
HIGH RENTAL YIELD
18.2%
HIGH RETURNS
₹ 11,350
ATTRACTIVE PRICE
Grade A+
QUALITY
Name
LG
Country
Seoul (South Korea)
Description
South Korean multinational electronics company (Fortune 200) Distributor of products for electronics system design, maintenance and repair.
Time Period
Lease Start Date
01 Jan 2017
Lock-in Period
3 YEARS
Lease End Date
01 Jan 2026
Tenant Highlights
12,310 SF
Total Area
₹82
Rent Per SF
9 YEARS
Lease Period
15%
Escalation
Name
Element 14 (Phase I)
Country
Leeds (U.K.)
Description
UK based technology major
Time Period
Lease Start Date
01 Jul 2017
Lock-in Period
3 YEARS
Lease End Date
01 Jul 2027
Tenant Highlights
19,000 SF
Total Area
₹78
Rent Per SF
10 YEARS
Lease Period
15%
Escalation
Name
Element 14 (Phase II)
Country
Leeds (U.K.)
Description
UK based technology major
Time Period
Lease Start Date
15 Oct 2021
Lock-in Period
3 YEARS
Lease End Date
14 Oct 2026
Tenant Highlights
13,276 SF
Total Area
₹90
Rent Per SF
5 YEARS
Lease Period
15%
Escalation
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IBC is a 2 mn sf Grade A office park in South Bangalore with a blue-chip tenant roster including Accenture, Oracle, LG, Byju’s, Swiggy among others. It is located at the start of Bannerghatta Road, close to the dense residential hubs of Koramangala, Jayanagar and JP Nagar.
The project is spread over 4 towers. Property Share’s unit is in Tower D on the 11th Floor.
There is an opportunity to purchase a 32,277 square feet floor in IBC Knowledge Park, Bangalore tenanted to LG Electronics and Elements 14 for an all-in cost of Rs. 40,00,00,000 (Rs. 11,350 per sf) implying a 9% yield for pre-book investors and 18.2% IRR.
IBC is a 2 mn sf Grade A office park in South Bangalore with a blue-chip tenant roster including Accenture, Oracle, LG, Byju’s, Swiggy among others. It is located at the start of Bannerghatta Road, close to the dense residential hubs of Koramangala, Jayanagar and JP Nagar. The property is within walking distance of 2 metro stations on the Red Line of the Metro which is currently under-construction and estimated to be completed by 2022 which is well within the hold period of investment.
Property Share’s floor is leased to electronics and home appliances major LG Electronics and to electronics component distributor Elements 14.
We believe the pricing, location (upcoming metro line), rental yield and quality of the development will lead to significant upside over the next 4-5 years.
Investment Note
Property Share's Detailed Investment Note
Legal Title Report
Detailed Report on the Title diligence of the property by Amarchand Mangaldas
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