KnightFrank IM Karapakkam

Information Memorandum 10.75 acres of land parcel at Karapakkam, Chennai Available for Outright Purchase July 2014

Information Overview for “Karapakkam”

The Proposal On behalf of Ambattur Property Developers (P) Ltd. (“Company”), Knight Frank India Pvt. Ltd. (“KFI”), has been appointed as an exclusive advisor for offering conveyance of land held by Ambattur Property Developers (P) Ltd. situated at OMR Road, Karapakkam, Chennai. (“Site”) on an “as is where is” basis.

Old Mahabalipuram Road(OMR) or IT Corridor is a major road in suburban Chennai, India, beginning at the Madhya Kailash temple in Adyar in South Chennai and continuing south till Mahabalipuram in Kanchipuram district, ultimately merging with the East Coast Road. This is popularly called as the 'IT Corridor' because this stretch has become home to many IT/ITeS companies. This road is State highway49A. Given the city-centric location, the Site offers a perfect eco-system for a large scale Commercial/ Residential development. This document provides further details with respect to the land along with the disposal process.

TAKEAWAY >> Unique opportunity to acquire large city centric land

TABLE OF CONTENTS

THE PROPOSAL

02

PROPERTY INFORMATION

03

CHENNAI OMR OVERVIEW

06

TRANSACTION PROCESS

14

DISCLAIMER

02

18

Information Overview for “Karapakkam”

USPs

Property Information Executive Summary

size and contiguity Corporate Ownership and Possession

connectivity and location Flat topography and rectangular shape

Significant frontage & visibility

Particulars

Details

Site Area

10.75 acres

Zoning

Industrial

Address

147, Karapakkam, Sholinganallur, Kancheepuram District

Structures

Vacant Plot

Site Location

The subject site is located on OMR road, Chennai

Site Access

The property can be accessed from OMR road (100 ft. road) which also acts as its primary access. By virtue of having a good frontage of approx. 114 ft. on main road, the subject land parcel enjoys excellent visibility and good accessibility.

Neighborhood

Adjacent to Prestige Tower and near Vishranthi IT Park

Distance from main locations

•SholinganallurJn (OMR) – 1.3 km.

•Siruseri SIPCOT IT Park ( OMR) – 9 km.

•KelambakkamJn (OMR) – 14 km.

•VandalurJn (GST) – Via Kelambakkam– 33 km.

•ECR (Akkarai) – 3.5 km. – Via Medavakkam – 7.5 km.

•Tambaram(GST) – Via Medavakkam – 16 km.

•Radial Road – GST & OMR Connecting road (200 Ft.) – 4.4 km.

•Pallavaram (GST) – Via Radial Road – 7.5 km.

•Madhya Kailash (Start Point OMR) – 11 km.

Surroundings

The corridor, an ambitious six-lane project with service lanes and landscaping, is still in the making. The first phase — 20.1 km. from Madhya Kailash junction in Adyar to Siruseri — was to have been opened by 2005. Plagued by delays, primarily due to problems in land acquisition, the stretch became operational in 2008. Feasibility studies are being conducted for phase 2 between Siruseri and Mahabalipuram.

Nature of Offer

Outright sale on “as is where is” basis. All costs related to change of land use, mutation and any other cost incurred towards necessary statutory approvals would be borne by the buyer.

Sale Process

The land would be transferred through an interest driven approach followed by shortlisting of selected parties for final negotiation. Detailed process is provided in the following sections.

No price guidance shall be provided by Ambattur Property Developers (P) Ltd. or Knight Frank (India) Pvt. Ltd. The sale of the land is subject to – Board approval and other necessary corporate approvals, as required.

03

Information Overview for “Karapakkam”

LAYOUT PLAN

SITE PHOTOGRAPHS

04

Frontage

Frontage

OMR Road

OMR Road

Information Overview for “Karapakkam”

LOCATION MAP

Chennai Map

North  Tondiarpet  Madhavaram  Perambur  Ayanavaram  Puzhal

Central  Nungambakkam  Boat Club  Anna Nagar  Kilpauk  T Nagar  Mylapore  R.A. Puram  Adyar

South  Old Mahabalipuram

Road  GST Road  East Coast Road  VelacheryTambaram Road

West  Sriperumpudur  Ambattur  Poonamalle  Korattur  Mogappair  Porur  Manapakkam

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Information Overview for “Karapakkam�

Chennai City Overview

INTRODUCTION Chennai is the state capital and most populous urban centre in all of Tamil Nadu. Chennai, formerly known as Madras, is India's fourth largest metropolitan city. Serving as the gateway of the southern part of India, the city is located along the 12 km. long Marina Beach on the Coromandel Coast of the Bay of Bengal. It forms the city's east coast and is one of the longest beaches in the world.

CITY STRUCTURE The four National Highways, leading to Kolkata (Nh5), Bangalore (NH4), Thiruvallur (NH 205) and Trichy (NH 45). The NH-4 and NH-5 are a part of the golden quadrilateral project. In addition to these, Arcot Road, Kamarajar Salai, Thiruvottiyur High Road, Old Mahabalipuram Road and East Coast Road are the other important radial roads in CMA. The central part of the city constitutes old city areas of the Alwarpet, Boat club road, Kilpauk, Mylapore, Nungambakkam, West Mambalam, etc. while the North Chennai constitute areas of Avadi, Ambattur, Padi, Perambur, Manali. In the south areas Adyar, Besant Nagar, OMR, Guindy, Tambaram, Velachery etc. The western part of city comprises Anna Nagar, Koyambedu, Mogappair, Porur, Poonamallee High Road etc.

06

CITY SNAP SHOT Area

1,189 sq.km.

Population (as estimated under 2011 Census of India)

8.69 mn.

Population Density

7308 persons per sq.km.

Sex Ratio

986 per 1000 males

Literacy Rate

90.33 %

Net State Domestic Product (2010-11) at Current prices

`4.91 Lakh Crore

Contribution of Chennai

8%

Per Capita Net State Domestic Product (2010-11)

`73,000

Popular Languages

Tamil

Area

1,189 sq.km.

Population (as estimated under 2011 Census of India)

8.69 mn.

Source: City Skyline of India 2008-09, Indicus Analytics

Information Overview for “Karapakkam”

DEMOGRAPHIC ANALYSIS The average rate of annual growth for the period between 1971 and 2001 was 2.35% for CMA and 1.67% for the city. The rapid rate growth of certain areas within CMA can be attributed to their proximity to the main city and major urban centres, rail transport availability, ground water availability and residentially developed land availability. Chennai is a city of migrants like any other metropolitan city in India. According to 2001 Census, migrants to Chennai city from other parts of Tamil Nadu State constitute 74.5% and show a downward trend in the migration to the city from 37.24% in 1961 to 21.57% in 2001. Migrants from other parts of India constitute 23.8% and the remaining 1.71 % of the migrants is from other countries. Population in CMA has grown by 7.7% between 2001 - 11.

Demographic, socio-economic and health profile of Tamil Nadu State as compared to India figures:

Item

Chennai

India

Total population (Census 2011) (in mn.)

8.69

1028.61

Decadal Growth (Census 2001-2011) (%)

7.7

21.54

Sex Ratio (Census 2011)

986

933

Population below Poverty line in Urban Tamil Nadu (2009-10) (%)

12.8*1

26.10

Female Literacy Rate (Census 2011) (%)

87.16

53.7

Infant Mortality Rate – Tamil Nadu Urban (2009)

26*1

34

Crude Birth Rate – Tamil Nadu (2009)

16.3*1

22.5

Crude Death Rate – Tamil Nadu (2009)

22.5*1

7.3

Source: Provisional Census of India 2011; Planning Commission Press note on Poverty, March 2012*1; Family Welfare Statistics India, 2011, Ministry of Family & Welfare

The rate of natural increase declined from 26.3% in 1971 to 16.08% in 2001. Migrants from other urban areas to Chennai constitute 63.4% and only 36.3% are from rural areas. As per 2001 Census it was estimated that a floating population arriving in CMA through trains, buses and air is about 0.22 million and an equal number of persons may be departing from the metropolitan area. This floating population needs to be considered in estimating the infrastructure, transportation and social needs of CMA. Below are the population trends and projections for CMA:

POPULATION TRENDS

Population (million)

12 10 8 6 4 2 0

1971

1981

1991

2001

2011

2021

Source: Census of India 2011 & CMDA Master Plan 2026 07

Information Overview for “Karapakkam�

SOCIO ECONOMIC SCENARIO The table below gives the classification of households in Chennai with respect to the various income groups:

Chennai City Income Segment (per annum)

No. of Households

%

< `300,000

606,000

53%

`300,000-500,000

400,000

35%

` 500,001-1, 000,000

75,000

7%

> `1,000,000

58,000

5%

Total

1,139,000

100% Source: Indicus Database 2008-09 Housing Skyline of India

The following chart shows the classification of households as per Socio-economic status and about one-third of the population falls within SEC A and B category:

E1 13%

E2 5%

A 12% B1 14%

D 24%

B2 7%

C 25%

SEC

By Education

By Occupation

A1

Graduation & Post Graduates (General & Professional)

SEP/ Office & Execs (Senior & Middle Level)

A2

Graduation & Post Graduates (General & Professional)

Shop Owners, Sup. Level, Officers & Execs (Junior Level)

B1/B2

SSC + <Grad

Skilled Workers, Petty Traders, Clerk, Salesman

C

Schooling 5-9 years

Skilled Workers, Petty Traders, Clerk, Salesman

D

Schooling upto 4 years

Skilled/ Unskilled Workers, Petty Traders, Clerk, Salesman

E

Illiterate

Skilled/ Unskilled Workers, Petty Traders Source: Indicus Database 2008-09 Housing Skyline of India

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Information Overview for “Karapakkam”

ADMINISTRATION The Chennai Metropolitan Development Authority (CMDA) has jurisdiction over the extent of 1,177 sq.km. covering the Chennai Municipal Corporation (176 sq.km.), 16 Municipalities (240 sq.km.), 20 Town Panchayats (156 sq.km.) and 214 villages in 10 Panchayat Unions (617 sq.km.)

For administrative purposes, the city has been divided into five talukas: 1. Egmore - Nungambakam 2. Fort Tondiarpet 3. Mambalam - Guindy 4. Mylapore - Triplicane 5. Perambur Purasawakkam

Chennai - Talukas

2

5

The Chennai Metropolitan area consists of three districts: 1. Chennai city 2. Kanchipuram 3. Thiruvallur

1

The metropolitan region of Chennai covers many suburbs that are a part of Kanchipuram and Thiruvallur districts. The larger suburbs are governed by town municipalities while the smaller ones are governed by town councils called panchayats. The neighboring satellite towns include Mahabalipuram to the south, Chengalpattu to the south-west, Kanchipuram town, Sriperumbudur, Tiruvallur and Arakkonam to the west.

4 3

ECONOMY Chennai has witnessed a great deal of industrial expansion in recent times with the mushrooming of engineering plants, automobile-assembly plants, educational institutions, textiles, leather goods, chemicals, computers, granite, hardware and shipping. The city is referred to as the "Detroit of South" as it houses about 40% of India's automobile industry. It is also being recognized as one of the country's important destination for software technological know-how, being a major centre for IT & ITeS outsourcing. The city has been growing at a rapid pace, and there is a notable demand for the integration of past developments with the future requirements.

Chennai's economic structure has transformed from a small and medium scale manufacturing industry to a knowledge-based industry.

The city has a diversified industrial base and is home to a large number of manufacturing companies across sectors such as automobile, textile, leather, electronics and automotive components. Chennai has gained prominence as one of the most important clusters for automobile components in South East Asia and is known as the “Automotive Capital of India”.

In the context of a changing industrial climate, there are a host of industries where the state is strengthening and deepening its presence, some of these include:  Automobile & Automotive components  IT/ITeS  Electronic Hardware

Automobile & Automotive components Engineering and auto parts industry have traditionally been strong industry segments in Tamil Nadu. With the advantages of two seaport, engineering base and proactive government policy; Chennai has become the Detroit of the South, contributing to 65% of the heavy vehicle production and 42% of the car production in the country. Auto clusters which were once located in the outskirts of the city in locations such as Ambattur & Guindy have become part of the Chennai Corporation owing to population growth. New auto clusters have emerged in Chengalpettu, Sriperambudur and Oragadam. Prominent automobile manufacturers with their set up in Chennai include Ford, Hyundai, BMW, Daimler, Mitsubishi and Renault-Nissan.

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Information Overview for â&#x20AC;&#x153;Karapakkamâ&#x20AC;?

IT / ITeS Tamil Nadu was amongst the first states in the country to formulate an industry specific policy for IT sector. FSI incentives were offered for IT developments from 2004 under the Development Control Regulations, 2004. Electronics Corporation of Tamil Nadu Limited (ELCOT) a public sector undertaking was formed in the year 1977 for the promotion of electronic & information technology in the state.

The first government promoted IT park, called Tidel Park became operational on Rajiv Gandhi Salai in 2000. Today Rajiv Gandhi Salai is termed the IT corridor of the city and is home to majority of the IT/ITeS companies of Chennai.

The software export from Tamil Nadu in the year 2010-11 stood at `42210.65 crore with Chennai contributing to about 99% of the software export from the state. The sector employs around 350,000 people, making it as second largest IT cluster in the country. The sector has evolved from handling back office operations of IT companies to becoming a hub for gaming and android based technology support besides witnessing a new trend in supporting Computer Aided Design (CAD).

Electronic Hardware Chennai is an emerging location for electronic hardware manufacturing & export hub. Manufactured items include wireless handsets, mobile handsets, semi-conductors, PV Panels, photo voltaic cell, computer peripherals and consumer electronics. Prominent manufacturers are Nokia, Motorola, Dell Computers, Samsung, CISCO, Foxconn, Sanmina-SCI, Flextronics, and Nokia-Siemens.

The total investment in the sector in the state is about `12,000 crore, having an estimated turnover of about `27,000 crores with an employment of about 60,000. Sriperambudur & Oragadam in south west Chennai are the hubs for electronic hardware manufacture in the state

Economic Outlook Chennai is the fifth largest contributor to India's GDP. The average GSDP growth rate per annum of the state is at 11%. The state ranks fourth in collection of tax revenue at 9% of the national tax collection. In the state budget of 2011-12, manufacturing sector was the focus of future economic development in the state. It has been proposed in the budget that the state would come out with new industrial and land acquisition policies to attract investment.

The state government is currently discussing with industrial houses, which may attract 22 major projects having an investment potential of nearly `21,500 crore. Investors from Korea, Japan and Thailand are amongst those who have expressed investment interest in the state. The outlook for the industry sectors of IT, Automobile and Electronic Hardware is promising. Availability of skilled manpower, competitive operational costs, connectivity & infrastructure has made Chennai a popular choice for multi-national companies looking to locate in India.

Planned infrastructure in the form of industrial parks, Information Technology & Investment Region, new townships & mass transit systems would accelerate economic growth of the city. Corridor for the proposed industrial growth would be concentrated along Rajiv Gandhi Salai for IT/ITES, NH-45 for Automobiles and NH-4 for Electronic Hardware & automobiles.

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Information Overview for “Karapakkam”

INFRASTRUCTURE AND TRANSPORTATION The table below shows the infrastructure initiatives undertaken by government:

S. No.

Project

Project Cost (`Crore)

Project Status

Scheduled Completion

1

Chennai Metro

14,600

Tunneling work for Underground corridor in progress.

Track laying work completed for elevated corridor

2014-15

2

MRTS (Mass Rapid Transit System) (Phase I & II – Operational, Phase III is proposed)

1,357

Phase III construction on-going

2014 (Phase III)

3

Greenfield Airport

5,000

Formal approval by the government is awaited The viability of the project is uncertain as of date

To be Announced

4

Outer Ring Road

1,099

GMR — NAPC consortium awarded the Phase I contract Land acquisition for Phase II on going

2014 (Phase I)

5

Chennai Mono Rail

16,650

Following Four Corridors have been proposed: Vandalur to Puzhal via Avadi, Karayanchavadi (54 km.); Vandalur to Velachery via Tambaram East (23 km.); Poonamallee to Kathipara via Porur (18 km.); Poonamallee to Vadapalani via Valasarawakkam (16 km.)

2015

6

Avadi – S.P. Koil Train Link

810

State Government's approval is awaited

To be Announced

7

Linking of NH 47 and 46

NA

Central government is planning to link Chennai and Bangalore through Nellore and Chitradurga

To be Announced

Total Investments

39,516 Source: Chennai Metropolitan Development Authority

CHENNAI AIRPORT EXISTING AIRPORT Chennai's airport provides both domestic and international connectivity and is located off GST Road, 16 km. from the CBD. The Chennai airport comprises of two terminals, the Kamaraj Terminal, which handles domestic flights connecting to 20 destinations across the country and the International Terminal, named Anna Terminal, which connects major destinations like London, Frankfurt, Dubai, Muscat, Bahrain, Dhahran, Jeddah, Singapore, Kulalampur and Sri Lanka. Chennai is currently serviced by 26 international and 9 domestic airlines. Chennai Airport has handled 12.77 million passengers and 300,000 tonnes of cargo in 2012 - 13.

PROPOSED AIRPORT A new Greenfield Airport is proposed to be set up near Chennai, Sriperumbudur. The Greenfield airport is proposed on an area of 4,820.66 acres (19.5 km²).The expansion of Chennai airport is proposed to come up on an area of 1,069.99 acres (4.3 km²). The estimated cost of both of airports is approximately `2,000 crore. The green field airport would have four runways.

ROADS AND PUBLIC TRANSPORT The city is well connected with all important commercial centres of the state. Out of the total length of 1,989.21 km road in Chennai city, the length of the National Highway is 29.70 km and that of the State highway is 17.50 km.

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Information Overview for “Karapakkam”

ROAD Road transport system is well developed in the city. The intra-city transportation services are provided by the government-owned Metropolitan Transport Corporation (MTC). In recent times MTC has started many new luxury services such as low floor vestibule buses, semi deluxe and AC Volvo buses. Chennai Mofussil Bus Terminus that has all intercity buses is the major transportation facility in the city.

OUTER RING ROAD The Chennai Metropolitan Development Authority (CMDA) has proposed the formation of an Outer Ring Road (ORR) on the fringe of Chennai Metropolitan Area (CMA) to ease the traffic congestion in the city. It is proposed to connect the Chennai-Trichy Road (GST Road), Chennai- Bangalore Road (GWT Road), Chennai-Thiruvallur High Road, (CTH Road), Chennai-Nellore Road (GNT Road) and Thiruvottiyur Ponneri-Panjetty Road (TPP Road). The length of the proposed ORR is 62 km. connecting Vandalur in the South and Minjur in the North. The road is planned for a width of 220 ft. with a provision for developing commercial complexes along both sides of the road.

PORT Chennai port which endeared itself to the progress of Indian industries and economy is one of the best in the country. Besides the existing major sea port, a new satellite port with facilities for bulk cargo handling is operational at Ennore, 30 km. away from Chennai easing the congestion at Chennai port.

RAIL Chennai is well connected with other parts of the country by rail. Chennai Central is the city's main railway station with over 100 trains departing and arriving every day. Chennai Egmore is Chennai's second rail terminal. Located just 1 km. away from Central, it provides train connections to most of Tamil Nadu.

The commuter rail system in CMA operated by the Southern Railways consists of 3 major corridors radiating from the city-centre:  Chennai Beach - Tambaram BG line running south-west  Chennai Central - Thiruvallur BG line running west  Chennai Central - Gummidipoondi BG line running north

They account for 1,150,000 commuter trips per day. While the first two corridors carry intercity passengers on separate dedicated lines, the third corridor carries both commuters and intercity passengers on the same lines. In addition, the Phase 1 & Phase 2 of the Mass Rapid Transport System (MRTS) are currently in operation traversing a length of more than 15 km. covering the residential and IT corridor on the south eastern side of the city.

The State government has decided to expand the metro network by introducing three new routes; Moolakadai - Tirumangalam, Moolakadai – Thiruvanmiyur and Luz- Poonamallee via Iyyappanthanagal. This will further boost connectivity along the areas like Ambattur, Perambur, T Nagar and Vadapalani.

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Information Overview for â&#x20AC;&#x153;Karapakkamâ&#x20AC;?

CHENNAI METRO RAIL PROJECT The metro rail project envisages the creation of two initial corridors along the following routes: Corridor

Routes

Corridor 1

Washermanpet - Broadway Chennai Central Station Rippon Building - Government Estate - Tarapore Towers Spencers - Gemini - Anna Salai - Saidapet - Guindy - Chennai Airport

Corridor 2

Length (km)

Chennai Central - Vepery Kilpauk Medical College Aminjikarai - Shenoy Nagar Annanagar East - Anna Nagar 2nd avenue - Tirumangalam Koyambedu - CMBT - Vadapalani Ashok Nagar - SIDCO - Alandur St. Thomas Mount TOTAL

The following map shows the routes of the existing and proposed railway network in Chennai.

23.1 km. (underground 14.3 km.)

22.0 km. (underground 9.7 km.)

45.1 km.

The major portion of this project will be underground and the remaining on elevated portions. Project execution is underway and the project is scheduled to be completed by 2014-15.

MASS RAPID TRANSIT SYSTEM (MRTS) The MRTS project involves three phases of development, of which Phase I and Phase II are already complete. The Phase I of Chennai Mass Rapid Transit System (MRTS) from Beach to Thirumayilai and Phase II of Chennai Mass Rapid Transit System (MRTS) from Thirumayilai to Velachery are operational. The Phase II extension of MRTS from Velachery to St. Thomas Mount (length of 5 km.) is being developed.

Following are the Chennai MRTS project details: Phase

Length (Elevated) In km.

Route

Stations

Cost (Initial estimate) in `Crores

Sanction

Opening

Phase I

8.55 (5.80)

Chennai Beach Thirumayilai

8

260 (53.46)

1984

1997

Phase II

11.16 (7.84)

Thirumayilai Velachery

9

65 (733.4)

1998

Nov-07

Phase II Extension

5 (5)

Velachery St. Thomas Mount

3

(417)

2007

2014

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Information Overview for “Karapakkam”

TRANSACTION PROCESS The following chart presents the way forward for prospective buyers interested in the subject land.

1

3

2

Submission of sealed binding offer* along with Refundable Participation Deposit of `50 lac from interested buyers who have submitted Expression of Interest post detailed Due Diligence.

Top 3 bidders to be notified for closed room private negotiations.

4 Confirmation of acceptance of bid offer to highest bidder in the private auction post receipt of 10% Earnest Money through binding Termsheet Execution.

Simultaneous closed room auction with shortlisted buyers.

5 Completion of Sale by execution of deed of conveyance for entire land and handover of possession.

*The sealed binding offer should be in the format attached in the following page on your letterhead and addressed to: Mr. Rajan Kumar Mishra, Regional Head - Land & Industrial (South) - Capital Transactions Group, Knight Frank (India) Pvt. Ltd. No.3, Gitex Bldg., 3rd Floor Khader Nawaz Khan Road, Nungambakkam - 600 006, India.

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Information Overview for “Karapakkam”

To be reproduced on a letter head of the bidder Fact Sheet 1. Full Name of the Applicant (Use block letters): 2.

Applicant’s registered office/place of business: Address: Telephone No.: Fax No.: E-mail Address: Authorized Signatory’s: Mobile No.:

3. Status of the Applicant (tick whichever is applicable) Public Limited Company Private Limited Company Partnership Individual / Sole Proprietary

(Furnish documents in support) 4. Source of Fund: 5. We hereby declare that the information stated herein above is complete and correct and any error or omission therein, accidental or otherwise, will be sufficient justification for Proposed Vendors to reject My/our bid Forthwith.

Signature: Full Name: Designation: Date:

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Information Overview for “Karapakkam”

Disclaimer “The statements, information and opinions expressed or provided in this publication are intended only as a guide to some of the important considerations that relate to the property sale. Although we believe they are correct and not misleading, with every effort having been made to ensure that they are free from error, they should not be taken to represent, nor are they intended to represent, sales advice or specific proposals, which must always be reviewed in isolation due to the degree of uniqueness that will attach thereto.

Neither Knight Frank nor any persons involved in the preparations of this publication give any warranties as to the contents nor accept any contractual, tortuous or other form of liability for any consequences, loss or damage which may arise as a result of any person acting upon or using the statements, information or opinions in the publication. This publication is confidential to the addressee and is not to be the subject of communication or reproduction wholly or in part.”

Contact Details: Rajan Kumar Mishra Regional Head-Land & Industrial (South) Capital Transactions Group, +91 9663144521 rajan.mishra@in.knightfrank.com Knight Frank (India) Pvt. Ltd. No.3, Gitex Bldg., 3rd Floor, Khader Nawaz Khan Road, Nungambakkam - 600 006, India.