KnightFrank IM Siroya Center

Page 1

Confidential Offering Memorandum

Siroya Centre, Andheri, Mumbai


TABLE OF CONTENTS

EXECUTIVE SUMMARY LOCATION OVERVIEW PROPERTY DESCRIPTION TRANSACTION DETAILS MARKET ANALYSIS REGIONAL OVERVIEW DISCLAIMER

05 15 25 43 49 57 65

Exclusive Investment Advisors Rajeev Bairathi Executive Director North and National Head Capital Transactions Group rajeev.bairathi@in.knightfrank.com

Shobhit Maleta Director Real Estate Asset Management Services shobhit.maleta@in.knightfrank.com

Vikas Karamchandani Senior Manager Capital Transactions Group vikas.karamchandani@in.knightfrank.com

Knight Frank (India) Pvt. Ltd. Paville House, Near Twin Towers Off Veer Savarkar Marg, Prabhadevi Mumbai 400 025, India


Hilton Mumbai Ascot Center

Hyatt Regency

Siroya Centre, Andheri, Mumbai

Blue Dart Center

EXECUTIVE SUMMARY ITC Maratha

Prime Corporate Park

Public Parking Space


The Offering Knight Frank, as exclusive advisor, is pleased to present the opportunity to acquire Siroya Centre (the “Property”), a 1,00,000 square feet Grade A Commercial building located in Mumbai’s commercial hub - Andheri. The Property encompasses Basement plus 6 storeys and is entirely occupied by Jet Airways as its Corporate Office. The Property is 100% occupied offering stable existing cash flow with near term upside potential. Strategically located at a distance of less than 1.5 Km. from the Mumbai International Airport and close to renowned Grand Hyatt & ITC Maratha, the existing building layout is ideal for current & prospective tenants alike. Opportunities to acquire high end product in such prime locations at attractive discount are rarely available, making the purchase of Siroya Centre a coveted proposition.

Property Profile Address

Sahar Road, Behind ITC & Hyatt, Andheri (E)

Land Area

2,675 sq.m.

Leasable Area 1,00,000 sq.ft. Stories

Lower level plus Ground plus 5 Floors

Occupancy

100% (Single Tenant)

Submarket

SBD West (Secondary Business District), Mumbai

Tenant

Jet Airways (Registered & Corporate Office)

Commercial leased asset developed by Legend Siroya

Pre-Leased Asset

Grade A Construction

1,00,000 sq.ft. Area 100% Leased

Occupied by Jet Airways as its Corporate Office

Lease Tenor of 5 Years with 3 Year lock in

Located in Mumbai’s Commercial Hub

Surrounded by 5 Star Hotels like ITC & Hyatt

Enhanced Connectivity with Metro Rail & Elevated T-2 Road becoming operational

06 | Executive Summary

Executive Summary | 07


Renowned LocalitySahar Road

Strong Office Market in Mumbai

Locality is well renowned due to its proximity to the International Airport & hosts some of the global 5 Star Hotel brands like Hyatt Regency, The Hilton, ITC Maratha, The Leela, etc.

Ÿ Despite the uncertain economic conditions,

Ÿ

Most Preferred Commercial Location

SEEPZ

Ÿ Andheri East has been accepted as the Secondary

commercial hub after Bandra-Kurla Complex in Mumbai Ÿ Owing to its proximity to both domestic and international airport and other commercial hubs in Mumbai, it has become one of the most sought after locations for commercial office space in Mumbai Ÿ Major commercial localities include the Chakala MIDC (Maharashtra Industrial Development Corp), SEEPZ (Santa Cruz Electronic Export Processing Zone), Sakinaka, Solitaire Corporate Park etc. Ÿ Top MNCs such as Glenmark, P&G, HDIL, HUL, L&T, Citi, etc. have set up their bases in the area

Ÿ

Chakala MIDC

Powai

Ÿ

Solitaire Chandivali

Ÿ

Mumbai witnessed 4.4% y-o-y absorption growth of office spaces to 7 Mn.sq.ft. in 2013, as against the 6.7 Mn.sq.ft. in 2012 SBD West claims the largest share of the total stock in Mumbai i.e. ~35%, which depicts the preference of developers for this locality IT Sector have increasingly preferred Grade A office space particularly in Western Suburbs. Since supply of such quality is limited, it has benefitted absorption & rental growth in this zone In 2013, at a city level, overall capital values & rentals for commercial spaces in Mumbai rose by 3.2% and 2.8% respectively. However Rentals & Capital Values in SBD West increased by 7% and 5% respectively SBD West & Navi Mumbai Micro Markets together constituted ~70% of the total absorption in Mumbai in 2013. Of the top 10 transactions in terms of area in 2013, 5 were located in the SBD West area including 3 in Andheri East itself

Sakinaka

08 | Executive Summary

Executive Summary | 09


Stable In-Place Cash Flow Ÿ Benefiting from 100% occupancy and existing long term lease to

Jet Airways, the Property enjoys a stable and consistent net operating income Ÿ Opportunity to capitalize on increasing rentals in the dynamic Andheri Office Market on renewal of the lease terms

Convenient Transportation Access Ÿ The Property is located just 1.4 Km. from the Mumbai

Ÿ Ÿ

Ÿ Ÿ Ÿ

10 | Executive Summary

International Airport & 3 Km. from the Western Express Highway which connects entire western region in Mumbai from Bandra to Dahisar Located at 10 minutes from Andheri & Ville Parle Railway Station provides easy access to the Western suburban area With the recent operation of Metro Rail from Andheri to Ghatkopar, time from the Central suburban area is now reduced from 90 minutes to 20 minutes. Nearest Metro Station – Airport Road is just 1.4 Km from the property It also enjoys good connectivity to other parts of the city through Jogeshwari-Vikhroli Link Road (JVRL) and Andheri Kurla Link Road. The new six-lane elevated Terminal 2 road has enhanced its connectivity further towards the south region These linkages provide excellent connectivity & convenient transportation access from all parts of the city

Executive Summary | 11


Siroya Centre, Andheri, Mumbai

LOCATION OVERVIEW


Andheri (East), Mumbai Overview Andheri is a residential cum Commercial suburb of Mumbai, situated in the west of the city on the Salsette Island. With a population of 1.5 Million, it is the largest suburb of Mumbai. Like other suburbs of neighborhood of Mumbai, Andheri is divided into a west and an east section, which are separated by the railway line. Andheri East Area Contemporary West Andheri is largely a residential area, whereas East Andheri has a mixture of commercial and residential areas. Owing to infrastructural development in the city, Andheri East has become a prime real estate zone and is witnessing a rapid development in residential properties. Excellent Infrastructure The area hosts Andheri Rail Station which is among the busiest rail stations in the country. Also the Mumbai International Airport which handles 30 Million passengers annually is located in the area. It also enjoys good connectivity to other parts of the city through Jogeshwari-Vikhroli Link Road (JVRL) and Andheri Kurla Link Road.

16 | Location Overview

Location Overview | 17


Andheri (East), Mumbai High End Corporates

Sought After Commercial Location

Andheri East has been accepted as the Secondary commercial hub after Bandra-Kurla Complex in Mumbai. Major commercial localities include the Chakala MIDC (Maharashtra Industrial Development Corp), SEEPZ (Santa Cruz Electronic Export Processing Zone), Sakinaka, Solitaire Corporate Park etc. Top MNCs such as Glenmark, P&G, HDIL, HUL, L&T, Citi, etc. have set up their bases in the area.

Andheri East is very well connected to the western and central suburbs of the city. Further its connectivity to western region has improved substantially with the recent commissioning of the Phase I of Metro Rail and to southern region owing to Sahar Elevated Access Road. The Phase I of the Metro, which connects from Andheri to Ghatkopar, has reduced the travel time from the Central suburban area from 90 minutes to just 20 minutes. Due to its proximity to the airport & other parts of the city along with the planned infrastructure developments, Andheri East has become one of the most sought after locations for residential as well as commercial office space.

Blue Dart Center

Prime Corporate Park Ascot Center Public Parking Space

Hilton Mumbai ITC Maratha Hyatt Regency

18 | Location Overview

Location Overview | 19


Sahar Road Attractions

Location Analysis 3

World Class Hotels 1

Apart from being close to the International Airport, Sahar road is a prominent location with World Class 5 Star hotels in the vicinity. Grand Hyatt & JW Marriott are landmarks of the area. Other notable hotels include ITC Maratha, Hilton, Hotel Leela, The Lalit, The Orchid, Sahara Star, etc.

4 5

3 2

Restaurants & Cafeterias The area encompasses a number of quality restaurants & cafeterias within walking distance from the Site. Some of the distinguished restaurants include The Glass house in Hyatt, Stax, Citrus & Stella in The Leela, The Brasserie and cafeterias such as The Coffee Bean & Tea Leaf, CafĂŠ Coffee Day, Carafe, Starbucks, etc.

4

4 2

5

1

3

5 1 2

Other Nearby Amenities Public garden spread across 2 acres is located right in front of the property, enhancing the property view. Also there is ample availability of public parking in the area. The locality also provides other amenities located at walking distance from the property such as gymnasium & fitness centers, international schools, hospitals, etc.

20 | Location Overview

Travel 1. International Airport

Social Infrastructure 1.4 Km.

Commercial Hubs

1. Hyatt Regency

0.2 Km.

1. Chakala MIDC

3.2 Km.

2. Airport Road Metro Station 1.4 Km.

2. ITC Maratha

0.2 Km.

2. Sakinaka, Andheri

4.0 Km.

3. Western Express Highway 3.0 Km.

3. The Lalit, Mumbai

1.0 Km.

3. SEEPZ

4.5 Km.

4. Andheri Railway Station

4.5 Km.

4. The Leela Hotel

1.3 Km.

4. Chandivali

4.7 Km.

5. Ville Parle Railway Station

4.5 Km.

5. The Orchid

3.0 Km.

5. Powai

6.0 Km.

Location Overview | 21


Mumbai’s very first Metro Ÿ Mumbai's first metro railway link which connects

Ÿ

Ÿ

Ÿ

Ÿ

22 | Location Overview

the northwestern suburb of Versova-Andheri with Ghatkopar on the northeastern fringe commissioned recently in June 2014 It is to operate 200-250 services a day, carrying around 11 lakh passengers between the two points with a total of 12 elevated stations en route. Airport Road Metro Station, which is the 6th station from both ends, can be reached from the Property within minutes With this service, the journey on the 11.4 Km. (8 miles) Versova-Andheri-Ghatkopar stretch will reduce to 20 minutes which otherwise takes around 90 minutes at present by road transport Areas which would benefit from metro connectivity have already seen a price appreciation over the past eight years, and this trend is set to continue with the metro railway link's imminent launch

Location Overview | 23


Siroya Centre, Andheri, Mumbai

PROPERTY DESCRIPTION


Neighborhood

Site Connectivity

ITC Maratha Located next to the property is ITC Grand Maratha, a 386 room luxury hotel by the 2nd largest hotel chain globally. The hotel contains a portfolio of renowned restaurants which include Bombay High, Peshwa, Pan Asian, Catherines, Peshawri, etc.

Hyatt Regency A 6-storey luxury 5-star hotel with 401 rooms by Hyatt is located next to the property. It is considered to be the landmark for the region and houses some fine restaurants such as STAX, Glasshouse, Bakery, etc.

Mumbai International Airport

Metro/ Rail Transport

The property is located at a distance of just 1.4 Km. from the Mumbai International Airport. The 2nd busiest airport in country is spread over an operational area of 2900 acres handling annual passenger traffic of 30 Million. Recently it was modernized with new integrated Terminal T2 for handling the increasing passenger traffic.

Airport Road Station on the newly commissioned Mumbai Metro Phase-I is just 1.4 blocks away from the property. Also the property is located at an equidistant from Andheri & Ville Parle railway station, a 10-minute drive. Located on the Metro route and proximity to railway stations greatly enhances the accessibility and attraction of the property and nearby areas.

Corporate Offices The property is also surrounded by corporate buildings such as Blue Dart Centre which is Blue Darts Mumbai HO & Prime Corporate Park which house many corporates such as Lucent, Alcatel, DHL & M.I. Swaco.

26 | Property Description

Bus Transport

Road Transport

Bus Terminals of Ambassador Hotel & Andheri Warehouse stop are within 1 Km. distance from site. Also the Sahar Main Bus depot is at a distance of 1.2 Km. from the property.

The property is 3 Km. from the Western Express Highway which connects entire western region in Mumbai from Bandra to Dahisar. Also a 6-lane elevated road connecting to the Western Express Highway was developed along with new terminal T2, which has enhanced property’s connectivity to the Southern part of the city. Property Description | 27


Siroya Centre, Andheri, Mumbai

Site Description Location

This property is located behind ITC Maratha & Hyatt Regency on Sahar Road, Andheri East in Mumbai

Address

Siroya Centre, Sahar Road, Behind ITC & Hyatt, Andheri (E)

Year Completed Land Size

2,675 sq.m. Lower level + Ground + 5 Floors

Carpet Area

57,887 sq.ft.

Chargeable Area 1,00,000 sq.ft.

28 | Property Description

(in sq.m.)

(in sq.ft.)

2007

Floors

Parking

Floor by Floor Breakdown

110 Car Parks at the lower level & others at the open area in the property. It also benefits from the public parking space available in the close vicinity

Plot Area Floor Ground First Second Third Fourth Fifth Carpet Area

2,675

28,794

863 863 930 930 930 863 5,378

9,284 9,284 10,012 10,012 10,012 9,284 57,887

Terrace Basement Built Up Area Loading Chargeable Area

863 1,503 7,743 1,547 9,290

9,284 16,178 83,349 16,651 1,00,000

Property Description | 29


Structural Details

Mechanical Details HVAC

Superstructure

Foundation

Exterior Walls

The property is framed with concrete encased structural steel columns & beams with elevated concrete slabs. The building consists of load bearing walls with flat slabs The foundation consist of conventional spread footings & concrete slabs. The exterior wall consists of a predominant glass façade system on the front and left side & RCC work on rest two sides.

The HVAC in the building consist of individual air handling units (AHU) on each floor. It also consists of package & split Ac’s for specific areas within the property.

Electrical System Consists of 24/7 power supplied by Reliance Energy and is 100% backed up by DG Set. Water Supply

Consists of potable water that is provided by the city of Mumbai (BMC).

Elevators

Consists of 2 passenger elevators with capacity of 18-20 people each & 1 service elevator with capacity of 5-6 people

Exterior Doors

The exterior doors consist of glass.

Interior Floors

Interior Floors are mixture of exposed hardwood, concrete & carpet. Each floor has a pantry & attached toilet.

Life Safety

The property is partially sprinkled, has battery powered smoke detectors, fire control & security cameras.

Interior Stairs

The Property is served by a central stairwell and exterior fire escape.

Work Stations

The Property contains ~410 modular work stations and ~152 cabin work stations.

Ceilings

Ground floor units have a false ceiling with a height of 14' and the upper floors have a ceiling height of 12'.

Security

30 | Property Description

Property consists of a security cabin at the entrance and a security guard is on site 24/7.

Property Description | 31


Legend Siroya (Developer) Legend Siroya Realtors is a part of the Siroya Group of Industries, a four-decade-old multi-national corporation. The Siroya Group of Industries originally a NRI group based in Sharjah, U.A.E was established by Mr. D.B.Siroya in the year 1974. The Group has been into real estate business past 20 years and has completed more than 16 projects in Mumbai. With projects comprising of residential, commercial, hospitality and mixed-use real estate projects, the Group boasts of a diversified portfolio with a panIndia presence. With more than 20 Mn.sq.ft. of construction, it currently has over 60 projects ongoing in Mumbai, Pune, Bangalore and Hyderabad. The subject property was developed by the Group in 2007 and leased out.

32 | Property Description

Property Description | 33


Siroya Centre, Andheri, Mumbai

TRANSACTION DETAILS


Siroya Centre, Andheri, Mumbai

MARKET ANALYSIS


Market Analysis

Business District-Wise Share of Office Stock

Absorption

35%

Andheri East falls in the SBD West area of Mumbai along with other surrounding regions such as Goregaon, Jogeshwari, & Malad. Andheri East has been accepted as second most important commercial hub after Bandra Kurla Complex.

16% 9% 17% 11%

12%

The eastern part of Andheri is a mixture of commercial and residential areas while the western part is largely a residential area. Most of the commercial activity takes place in East as it is also an important industrial hub and several commercial centers are located here. Located at the center of Mumbai, it offers easy commutation to any part of the city. The area enjoys good connectivity through Jogeshwari-Vikhroli Link Road (JVRL), Andheri Kurla Link Road, the VersovaAndheri-Ghatkopar metro link and it has benefitted the markets of Andheri East.

Business Districts in Mumbai Business District

Micro-markets

Central Business District & Off Central Business District (CBD & Off CBD)

Nariman Point, Cuffe Parade, Ballard Estate, Fort, Mahalaxmi, Worli

Alternate Business District (ABD)

BKC, Bandra (E), Kalina and Kalanagar

Central Mumbai

Parel, Lower Parel, Dadar, Prabhadevi

SBD West

CBD & Off-CBD

SBD Central

ABD

PBD

Top 10 Transactions in 2013 Source: Knight Frank Research

Central Mumbai

Supply & Vacancy The total current office Stock in Mumbai stands at 110 Mn.sq.ft. SBD West claims the largest share of the total stock pie ~35%, which depicts the preference of developers for this locality. The overall vacancy rate for the city is 15%, a 1% drop from the 2012 level of 16%. In 2013, only 3.5 Mn.sq.ft. of new supply was added to Mumbai’s office stock, a 30% reduction from previous year.

12

Suburban Business DistrictCentral (SBD Central)

Kurla, Ghatkopar, Vikhroli, Kanjurmarg, Powai, Bhandup, Chembur

Peripheral Business District (PBD)

Thane, Airoli, Vashi, Ghansoli, Rabale, Belapur

Building Name

Developer/ Landlord Quarter

Area

Location

Transaction

HSBC Cognizant ISDI Parsons Barclays Johnson & Johnson Clariant Chemicals Walt Disney Covergys Colgate Palmolive Tata Group

Nesco Mindspace SEZ One India Bulls Annexe Nirlon Arena Space Reliable Tech Park Solitaire Corp Park Gcorp L&T Business Park Lodha Sim Tools

Nesco Group K Raheja Corp Indiabulls Real Estate Nirlon Arena Enterprise Reliable Group Satellite Group Gcorp L&T Realty Lodha Group

250,000 230,000 210,000 180,000 150,000 150,000 125,000 120,000 100,000 100,000

Goregaon (E) Airoli Parel Goregaon (E) Andheri (E) Airoli Andheri (E) Thane Andheri (E) Thane

1Q 2013 2Q 2013 2Q 2013 1Q 2013 1Q 2013 3Q 2013 1Q 2013 2Q 2013 4Q 2013 1Q 2013

Industry-Wise Absorption in 2013

20%

10

16%

8 12% 8% 4

Andheri, Jogeshwari, Goregaon, Malad

Client (in sq.ft.)

Sectors

New Supply, Absorption and Vacancy

6

Suburban Business District West (SBD West)

Despite the uncertain economic conditions, Mumbai witnessed 4.4% y-o-y absorption growth of office spaces to 7 Mn.sq.ft. in 2013, as against the 6.7 Mn.sq.ft. in 2012. SBD West & Navi Mumbai Micro Markets together constitute approximately 70% of the total absorption. Of the top 10 transactions in 2013, 5 were in the SBD West area including 3 in Andheri (E) itself.

4%

2

0

0 2010

2011

New Supply (In Mn.sq.ft.) Vacancy (In %)

2012

2013

2014F

2015F

Absorption (In Mn.sq.ft.)

The BFSI sector has been the primary driver of the office space market in Mumbai. However an unprecedented drop in the rupee saw IT/ITeS sector companies perform much better in 2013. Absorption of office space was led by IT/ITeS (25%) followed by the BFSI (20%). IT Sector have increasingly preferred Grade A office space particularly in SBD West. Since supply of such quality is limited, it has benefited absorption & rental growth in this zone.

Others 19%

IT/ITeS 25%

1

FMCG 5%

BFSI 20% Media & Entertainment 6% Pharmaceutical 10%

Manufacturing 15%

2

3

Source: Research Reports Source: Knight Frank Research

50 | Market Analysis

Source: Research Reports

Market Analysis | 51


Capital Values & Rentals

Lease Comparables Average Rentals, Capital Trends & Forecast

In 2013, Rental levels have declined in most of the locations in Mumbai except in SBD West & Thane Belapur road area. At a city level, capital values for commercial spaces in Mumbai rose by 3.2 % y-o-y, led by the Western Suburbs and the Navi Mumbai/ Thane belt, where growth was 7% and 6% respectively. Overall Rentals in Mumbai appreciated by around 2.8% y-o-y in 2013 whereas that in SBD West appreciated by 5% and in Thane-Navi Mumbai by 4.5%. Andheri East has a cost advantage over traditional commercial hubs such as Bandra Kurla Complex (BKC) and Nariman Point as the latter have been out pricing themselves. The commercial capital values vary between `12,000- `15,000 per sq.ft. and the lease rentals are in the range of `95-`145 per sq.ft. per month.

240

30,000

210

26,250

180

22,500

150

18,750

120

15,000

90

11,250

60

7,500

30

3,750

0

0 2008

2009

2010

2011

2012

2013

2014F

2015F

Average Rental Trends (`/sq.ft./month) Average Capital Trends (`/sq.ft.) Source: Research Reports

Outlook

Grade A Capital Values

As in 2013, there will be limited new supply added to the stock in 2014 in Mumbai. Including deferred projects, the new supply expected in 2014 will be approximately 4 Mn.sq.ft. Due to the limited additional supply, rental values will continue to grow moderately.

35,000 30,000 25,000 20,000 15,000 10,000 5,000

Capital Values (In `/sq.ft.)

52 | Market Analysis

Thane/ LBS

Kalina

Goregaon/ JVLR

Worli/ Prabhadevi

Powai

Navi Mumbai

Malad

Lower Parel

BKC

Andheri (E)

CBD

0

Source: Research Reports

Andheri, BKC and Lower Parel will continue to interest occupiers; however the CBD will continue to lose share. Numerous clients that have searched for an office space in 2013 will likely take up new space in 2014 post the national elections hoping for a more inspiring economic trend and improvement of sentiments. National Elections, New Banking Licenses & operational of Metro Rail could be real game-changers for Mumbai’s commercial real estate market & could lead to a noteworthy price hike in the coming months.

1.

The Qube Tenant Industry Size Rental Executed

3.

2.

Pharmaceutical Research Associates Other service sector 12,500 sq.ft. `130 psf/ month May-13

CNB Square Tenant Industry Size Rental Executed

Toshiba Elevators Manufacturing 12,000 sq.ft. `120 psf/ month July-13

Kalpataru Square Tenant Industry Size Rental Executed

4.

Lloyds Register Asia Other service sector 21,168 sq.ft. `130 psf/ month July-13

Atrium 2 Tenant Industry Size Rental Executed

TSA HR Other service sector 10,000 sq.ft. `110 psf/ month Sep-13

Market Analysis | 53


5.

Silver Utopia Tenant Industry Size Rental Executed

7.

54 | Market Analysis

Shell Manufacturing 40,000 sq.ft. `130 psf/ month July-13

Inizio Tenant Industry Size Rental Executed

6.

Tenant Industry Size Rental Executed

8.

Kelly Services Other service sector 6,000 sq.ft. `120 psf/ month May-13

Landmark L&T Engineering Manufacturing 12,000 sq.ft. `135 psf/ month Jun-13

TNS Kaledonia Tenant Industry Size Rental Executed

AM Todd Manufacturing 13,500 sq.ft. `120 psf/ month May-13

9.

L&T Business Park Tenant Industry Size Rental Executed

Colgate Palmolive Manufacturing 70,000 sq.ft. `130 psf/ month Jan-13

10.

Gazebo Tenant Industry Size Rental Executed

3m IT/ITes 10,000 sq.ft. `125 psf/ month Jan-13

Market Analysis | 55


Siroya Centre, Andheri, Mumbai

REGIONAL OVERVIEW


Mumbai City Overview Mumbai, the summer capital of Maharashtra, is the country's financial powerhouse and its economic nerve centre. The city contributes almost 5% of India’s GDP and up to 40% of the GNP. It is a multi-functional city with a vast array of economic opportunities, which has resulted in it attracting a large migratory population from all over the country. The city is well connected to international nodes by two ports and an international airport. Located on a peninsula extending southwards from the mainland of Maharashtra it consists of two distinct regions: Mumbai city district and Mumbai suburban district. The city district region is also commonly referred to as the island city or South Mumbai. The total area of Mumbai is 437 sq.km. with the island city spanning over 67.79 sq.km. and the suburban district across 370 sq.km., administered by the Municipal Corporation of Greater Mumbai.

Population Growth Trend in Greater Mumbai 140

Population ( in Mn.)

120 100 80 60 40 20 0

1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001 2011

Island City

Suburbs

Total Source: Knight Frank Research

58 | Regional Overview

Regional Overview | 59


City Infrastructure

Project

Distance

Observations Project

Distance

Observations

EXISTING ARTERIAL ROAD NETWORK EXISTING SUBURBAN RAIL NETWORK Bandra-Worli Sea-Link

Western Expressway

Eastern Expressway

Sion-Panvel Highway

Sahar Elevated Access Road (Terminal 2 Road)

60 | Regional Overview

5.6 Km.

25 Km.

24 Km.

25 Km.

2.2 Km.

It connects intersections of the Western Express Highway and S.V. Road at Bandra end and Khan Abdul Gaffar Khan Road at Worli. It has helped in decongesting the traffic problems at Mahim junction for those commuting between suburban locations and island city, reducing the travel time between the two locations.

Churchgate-Virar

60 Km.

Crucial for south-north connectivity in the western zone, separate lines for suburban trains provide excellent connectivity.

CST-Kalyan-Kasara/ Khopoli

121 Km./ 115 Km.

This suburban rail network provides excellent south-north connectivity of the city within the central suburbs.

Extending from Bandra to Dahisar, this 8 lane arterial road has been enhancing the south-north connectivity in the city.

CST-Vashi-Panvel

49 Km.

This suburban rail network provides connectivity between Mumbai and Navi Mumbai.

This 6-lane arterial road between Sion & Thane provides the South-North connectivity.

Thane-Panvel

49 Km.

This suburban rail network provides connectivity with the satellite city of Navi Mumbai.

Monorail Phase I (Wadala-Chembur)

8.2 Km.

This route is operational having 7 stations commissioned 2014 providing connectivity with locations like Bhakti Park, BPCL colony and Chembur.

11.40 Km.

Recently commissioned the Mumbai’s very first Metro provides the much needed west-east connectivity. This link enhances the connectivity with office locations of Andheri like Sahar Road, MIDC and SEEPZ.

This 8-lane road has been instrumental in providing the westeast connectivity between Mumbai and Navi Mumbai. The six-lane Sahar Elevated Access Road is a dedicated, elevated, express access road that connects the Western Express Highway (WEH) with the forecourt of Terminal T2 of the Chhatrapati Shivaji International Airport. It facilitates easier and quicker access to the commuters proceeding to and from the airport.

Metro Rail Phase I

Regional Overview | 61


Project

Distance

Proposed Infrastructure in Mumbai

Observations

EXISTING AIR & WATER NETWORK Airport 1450 acres

~Area of

Ports

Project

“-“

Distance

Chhatrapati Shivaji International Airport (CSIA) is one of India’s busiest airports having recorded passenger traffic of 30 Mn. in 2010-11 with a growth rate of 14%. Currently CSIA has three domestic terminals at Santa Cruz and two international terminals at Sahar in operation.

Mumbai Metro Line 1 (Operational) Versova-Ghatkopar

There are two principal ports: Mumbai Port Trust (MbPT) and Jawaharlal Nehru Port Trust (JNPT). JNPT is the country's largest container port. MbPT and JNPT handled 56.18 million tonnes and 65.75 million tonnes cargo traffic respectively in 2011-12. JNPT has a container terminal, which has been developed through private investment on a Build-OperateTransfer (BOT) basis.

Observations

Status

Expected Completion

Planned

Beyond 2017

Line 2 Charkop-Mankhurd

UPCOMING ARTERIAL ROAD NETWORK Mumbai Trans Harbour Link (MTHL)

Multi-modal Corridor (Virar-Alibaug)

62 | Regional Overview

22 Km.

140 Km.

This `96,300 Mn. six-lane sea bridge is expected to be the most significant link between Mumbai and Navi Mumbai at Sewri and Nhava respectively. The financial feasibility has been concluded. The authority has shortlisted contractors so that the work can be commissioned by 2014.

This `100 Bn. project is basically broadening Planned of the existing route of Virar-Bhiwandi-Panvel -Pen-Alibaug. This corridor will primarily enhance the connectivity at the periphery of the MMR and also with other cities by serving as a link to important national highways that link Mumbai to cities like Ahmadabad, Delhi, Chennai and Bangalore. The land survey work is in progress and Phase I Virar-Chirner (Near JNPT) is expected to be complete by 2017.

Project

Distance

Observations

Status

Expected Completion

UPCOMING SUBURBAN RAIL NETWORK

Beyond 2017

Metro Rail 31.90 Km. Phase II (CharkopBandra-Mankhurd)

The west-east connectivity through this MRTS is expected to benefit residential pockets like Charkop and Oshiwara in the western suburbs and Chembur and Mankhurd in the central suburbs.

Planned

Beyond 2017

Monorail Phase II (Jacob CircleWadala)

With 11 stations on route, this project is expected to enhance connectivity in otherwise congested locations of Lower Parel and Dadar. Although the financial feasibility is completed, the project work will be commissioned only after a successful run of the Phase I.

Planned

2016-17

12 Km.

Regional Overview | 63


Project

Distance

Observations

Status

Expected Completion

Confidential Memorandum & Disclaimer

UPCOMING MAJOR INFRASTRUCTURE PROJECT Navi Mumbai International Airport

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In wake of the air travel demand from Planned MMR increasing from 30 Mn. passengers in 2010-11 to an estimated 119 Mn. in 2030-31, this second international airport is being developed in Navi Mumbai. While the residential market has witnessed an enormous growth in anticipation of this project, it will provide a major boost to the economy of the Navi Mumbai region with a host of commercial activities that are likely to come up. The project has secured the Environmental Clearance in November 2010. Phase I is expected to have an annual capacity of 10 Mn. passengers.

Phase I by 2017

Various initiatives are anticipated to boost growth along different corridors across the city which would transform Mumbai to a global commercial hub and a preferred residential location.

This Information Memorandum has been prepared by Knight Frank India Pvt. Ltd (“Knight Frank”) based on information from various sources. The information contained in this Information Memorandum and any other subsequent information provided is intended to act as a guide only and is given without any liability whatsoever on Knight Frank or Siroya Group (“Siroya”), or any of its affiliates, or its or their respective directors, officers, employees, advisors or agents and is not intended to constitute legal, tax, regulatory, accounting or other specialist advice or opinion. The information contained herein should be considered as preliminary and indicative and does not purport to contain all the information that the recipient may desire. In all cases, the recipient should conduct its own investigations and analysis. Knight Frank & Siroya disclaim any responsibility for any errors or omissions in such information. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or adequacy of the content of this Information Memorandum, or any associated written or oral statement provided. In particular, no representation or warranty is made by or on behalf of Knight Frank or Siroya that any information, projection, forecast, calculation, forward-looking statement, assumption or estimate contained in this Information Memorandum should or will be achieved. Knight Frank or Siroya, either individually or collectively, do not assume any responsibility for valuation or appraisal of the property or any associated liabilities. The information set forth herein is based upon economic, monetary, market and other conditions as in effect on, and the information available as of, the date hereof, unless indicated otherwise. The contents of this Information Memorandum along with all annexures are confidential in nature and may not be disclosed, whether in whole or in part, or used for any other purpose. Knight Frank has been appointed by Siroya as Consultant and will not be responsible to anyone other than Siroya. This Information Memorandum is not to be taken as a recommendation or an offer by Knight Frank or Siroya or any other person to enter into the transaction. Siroya reserves the right to modify the sale process and any related documents at any point of time, to withdraw from the process or to terminate discussions at any time with any party at its discretion without assigning any reason or assuming any liability. Siroya will not be bound to accept the offer or to bear any costs or liabilities incurred by the recipient or recipient’s advisors. No liability for negligence, misrepresentation or otherwise is assumed for the information contained herein either by Knight Frank or Siroya and/ or their principals, directors or employees and/ or their respective advisors. If you have no interest in the property at this time, please return this Offering Memorandum immediately to: Rajeev Bairathi Executive Director - North and National Head - CTG rajeev.bairathi@in.knightfrank.com Knight Frank (India) Pvt. Ltd. Paville House, Near Twin Towers, Off Veer Savarkar Marg, Prabhadevi, Mumbai 400 025

64 | Regional Overview


Knight Frank (India) Pvt. Ltd., Paville House, Near Twin Towers Off Veer Savarkar Marg, Prabhadevi, Mumbai 400 025, India


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