Information Memorandum
PRIMECO TOWERS, BANGALORE
[Grade-A IT Office 5star Hotel, Hyatt Leased Retail]
*Strictly Private and Confidential
STRONG LOCATION, QUALITY ASSET Primeco Towers Bannerghatta Road, Bangalore Pre-leased 34,276 sft. in, located on main Bannerghatta road, prime business district. Mixed use Grade A+ completed asset with office, retail and hotel. Hosts major tenants: Paychex, BIAS, Huron, Neustar, Central mall etc. An intimidating glass-clad building equipped with 3 basements, grand lobby and podium. Private and Confidential
PRIME TOWER TRIPLE HEIGHT LOBBY
PRIMECO TOWERS PRIMECO Towers is a mixed use Grade A+ development with prime offices, retail and Hyatt Hotel. It hosts some major players like Paychex, BIAS, Huron, Neustar, Central mall etc. Its intimidating glass-clad building is equipped with three level basement car parking, a grand entrance lobby and podium with vibrant spaces.
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PRIMECO TOWERS 6.5 ACRES Land Area
~80,000 SFT. Office Floor Plate
~75%
Floor Efficiency
1.30 MILLION SFT. Saleable Area
2.00 LAC SFT.
9.60 LAC SFT.
1.33 LAC SFT.
Retail- A
Office- B
Hotel- C Private and Confidential
PRIMECO TOWERS 100%
Power back
ELEVATORS 6 10 passenger Capacity
2 SERVICE LIFTS
4 Escalators
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TENANT - USA BASED TECHNOLOGY COMPANY VA, USA Headquarter Founded
1996
Customers
8,000+
Revenue
US $700+ Million
Listed
NYSE
Neustar Inc. is a part of the Lockheed Martin(American defense company). It’s unique capabilities have made it the leader in the field of Customer Analytics, Risk and Compliance, Network & Communication and Security & Web management services.
Chicago | Los Angeles | Louisville | New York | San Diego | San Francisco | Costa Rica | London
Neustar helps top brands in technology, insurance, internet, online banking, retailers etc. Few of the Neustar clients:
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BASIC LEASE TERMS Shot at site
Warm Shell Rent Benchmarking (Rs./sft/month)
71
NEUSTAR
77
AVERAGE IN THE SAME BUILDING
80-85
MARKET BENCHMARK*
Leased Area
34,276 sft.
Car-parking
45
Rent Commencement
September, 2020
Monthly Rent
Rs. 115/ sft.
Lease Term
9 Years
Lock-in period
5 years 6 months
Security Deposit
4.36 Cr. (12 months)
Lock In ends
March, 2026
Rent Escalation
5% every year
*As per latest market info on latest lease at Kalyani magnum Private and Confidential
COMPELLING INVESTMENT RATIONAL 10.50%
Gross Yield
Grade A+ Tenant
5.50 year Lock-in
MNC
Tenant
Excellent Location
Lease Start Date is post Covid, Sep 2020. New Asset | Part of larger development neighboring 5 star hotel (Hyatt) US based Grade-A technology Tenant Tenant is locked-in for 5.50 years out of a total term of 9 years
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COMPELLING INVESTMENT RATIONAL 10.50%
Gross Yield
Grade A+ Tenant
5.50 year Lock-in
MNC
Tenant
Excellent Location
Tenant has been paying rentals timely and regularly through the Covid pandemic Walking distance to upcoming metro High going-in yield for a Grade A + asset in Bangalore Buying Rate comparable to premium residential rate in the close proximity Excellent location with good connectivity via road and METRO Private and Confidential
SUPERIOR LEASE TERMS LIMITS RISK
Dec
Sept
Sept
March
Sept
2019
2020
2021
2026
2029
LEASE SIGN
RENT START
INVEST
LOCK-IN END
LEASE END DATE
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PROMINENT OCCUPIERS IN THE PRIMECO TOWERS
Primeco Towers itself hosts several IT MNCs and other companies.
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EXCELLENT CONNECTED LOCATION KORAMANGALA
MG ROAD JAYANAGAR
IBM ORACLE
3 Entry & Exit points for lease of access to CBD Walking distance to
Metro Station Excellent Location
VEGA MALL
HSR LAYOUT BTM J. P. NAGAR BANASHANKARI
APOLLO
FORTIS ACCENTURE NTT, VMWARE
L&T SOUTH CITY PARK
PRIMECO IIM-B
MANTRI WOODLAND
MAHINDRA WINDCHIMES
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Walking Distance to Upcoming Metro & just 3 kms from Operational Metro Station OPERATIONAL METRO 3 KM
PrimeCo
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PRIMECO TOWERS
MAJESTIC TRIPLE HEIGHT ENTRANCE PLAZA
TOWER LIFT LOBBIES Private and Confidential
Shot at site
PRIMECOTOWERS TOWERS-PRIMECO ELEGANTEXTERNAL EXTERNAL ELEGANT LANDSCAPES LANDSCAPES
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PRIMECO TOWERS VIBRANT PODIUM WITH CAFES AND Shot at site RESTAURANTS Shot at site
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PRIMECO TOWERS - MASTER PLAN
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PRIMECO TOWER B - TYPICAL FLOOR
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PRIMECO TOWER KEY PLAN 01 - PARKS AND OPEN SPACE [1796.37 SQM]
11 PAX
11 PAX 02 - PARKS AND OPEN SPACE [813.85 SQM]
[02] - 5 % SURFACE CARPARKS [AREA = 618.57 SQM]
[01] - 5 % SURFACE CARPARKS [AREA = 578.50 SQM]
[03] - 5 % SURFACE CARPARKS [AREA = 108.03 SQM]
VOID
FHC PHE
COMM
ELEC
CHILLER PIPE
N
FHC
KEY PLAN [NOT TO SCALE]
1 M/s. S.J.R Prime Corporation No 1, SJR Premises, 7 & 8th Floor Industrial Layout, Kormangala 7th Block Bangalore - 560 095
2
3 PROPOSED COMMERCIAL BUILDING / MALL AT BANNERGHATA ROAD BILEKAHALLI VILLAGE, BEGUR HOBLI, BANGALORE SOUTH TALUK
BLOCK - B [3B+G+12F]
FIFTH FLOOR PLAN
N ---
WORKING
DRAWING
THOMAS CONSULTANTS
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PROMINENT OCCUPIERS IN THE IMMEDIATE VICINITY
The asset is located in a well established business, retail and housing hub. several major Indian companies, hospitals, institutions and MNCs in and around its vicinity
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MODERN GOOD QUALITY FIT -
Shot at site
OUTS WITH ALL MOTORIZED HEIGHT ADJUSTABLE WORKSTATIONS Private and Confidential
KEY INVESTMENT TERMS
Shot at site
Investment Amount Minimum- INR 25 lacs (can be scaled in the multiples of INR 5 lacs)
Management Fee 0.50 % of the invested amount per annum
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STRONG FINANCIAL PROJECTIONS
Return Projections - 8 Year Average
Yield – Gross
10.50%
Yield – Net off Property Tax
10.40%
Yield – Net off YA fee, and Property Tax Gross IRR Net IRR
9.90%
12.59% 11.91% Private and Confidential
STRONG PROJECTED YIELD AND RETURNS
Net Yield Growth
12.00%
A projected investment of Rs. 25,00,000 will see an estimated return of Rs. 17,313 per month in year 1 and Rs. 21,174 per month in year 5.
10.00% 8.74%
8.31%
9.19%
9.67%
10.16%
10.51%
11.05%
11.61%
08.00% 06.00% 04.00%
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Net Income in hands of investors per month in each year (INR) Investment Amount
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
25,00,000
17,313
18,209
19,149
20,137
21,174
21,887
23,012
24,193
50,00,000
34,625
36,417
38,299
40,275
42,349
43,774
46,024
48,386
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SENSITIVITIES
Even on a conservative capital appreciation of 2% per annum, the investment will yield net compounded returns of 11.47% per annum and 2.02x MoIC
Sensitivities to capital appreciation 1.00%
2.00%
3.00%
4.00%
5.00%
Net IRR
10.74%
11.47%
12.20%
12.95%
13.71%
Multiple
1.93x
2.02x
2.11x
2.22x
2.32x
Sale Price Psft. (INR) Profit on total investment (INR)
17,439
18,869
20,401
22,040
23,794
48,31,17,905
53,21,36,982
58,46,38,089
64,08,31,120
70,09,36,409
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KEY RISKS Risk
Level
Completion risk
None - Fully constructed
Leasing risk
NA - Investment linked to preleased rentals, locked in for 5.50 years
Title risk
NA - Freehold property
Approval risk
None - OC approved building from BBMP. Development plans approved by local government authority (BBMP & BDA)
Vacancy
Low - Neustar has signed the lease during the Covid pandemic and considering a 5.5 years lock-in period and high profitability, the vacancy risk is significantly low Private and Confidential
OWNERSHIP STRUCTURE Investor Manages all the cash flow
Securities of SPV issued to investors
YieldAsset
Facilitator
SPV *
Escrow Agent /Trustee
Manages the asset
Asset
*Special Purpose Vehicle Private and Confidential
FRACTIONAL OWNERSHIP Method of part ownership via a SPV where multiple investors get fractional exposure to a high value tangible asset and thereby capturing benefits of high yielding asset while mitigating risk.
Better efficiency: Buying big with Fractional investment enables high ticket size properties which have higher floor efficiency which leads to better rental income. Grade-A assets of can bepurchased. These properties are leased to grade A tenants with very secure lease deeds with detailed and well negotiated lease terms.
Start investing with small capital in grade A commercial properties which otherwise is not available to non HNI investors. Diversify your portfolio by investing in multiple properties fractionally.
Low Vacancy: Fractional Investment is normally done inpre-leased Grade-A assets which tend to have lower vacancy levels and risks Property and tenant management: Managed by professionals, hassle free regular income. Private and Confidential
ABOUT YIELD ASSET Yield Asset is a tech platform disrupting real estate investing for small investors. We offer fully vetted real estate investment opportunities with fractional ownership. Yield Asset aims to offer compelling risk adjusted pocket friendly opportunities. Our vision is to be the most trusted platform for real estate investments with asset-level transparency and ease of liquidity.
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WHY YIELD ASSET Investment in rental yielding commercial real estate has generated great wealth to investors. However, it has been available only to those with right connections and deep pockets. This asset class and its benefits has been out of reach for most of people. Yield Asset’s endeavor is to simplify the investment process and pocket-size the investment amount so that small investors can add its benefits to their investment portfolio.
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OUR MEMBERS TO HAVE FRICTION -
LESS ACCESS TO PRESCREENED COMMERCIAL REAL ESTATE INVESTMENT EXPERIENCED TEAM
CURATED OPPORTUNITIES
LOWER FEE
+50 years of investing experience collectively
We offer only pre-screened properties.
Lower fee compared to market
“Feet on the ground” real estate knowledge
Fully vetted through rigorous duediligence process
Diversified board for industry leading governance
Provide regular reports and access to investment dash board.
We align our fee over the property ownership cycle to be fully committed.
FULL SERVICE WITH TRANSPARENCY End to end service including screening, investment, lease management and administration. Provide granular details and disclosure Regular updates
ACTIVE PROPERTY MANAGEMENT Active property management Active engagement with tenants. Management of compliance, accounts and rent distribution
EASE OF LIQUIDITY Secondary sale of securities on platform Wider investor base for deeper market and better liquidity
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EXECUTIVE TEAM We have a strong team with extensive experience in institutional real estate investing and technology.
RAJESH BINNER Co-founder, Investment
GAUTAM TARAFDAR Director Sales & Operations
20+ years experience in real estate
20+ years experience
Real estate Development FDI Investments
Leasing, Sales, Marketing and CRM
Banking & Finance Leasing Advisory & deal structuring
MBA, Mumbai University
Mixed-Use development specialist Work experience from International Markets i.e., Dubai and Dhaka
MRICS Private and Confidential
OUR MENTOR & ADVISOR KALPESH MAROO
NAVIN DHANUKA
PARTNER - DELOITTE INDIA MENTOR
MANAGING PARTNER UNITERN ADVISORS ADVISOR
Chartered Accountant
MBA, ICFAI
Kalpesh is a tax expert and currently a partner at Deloitte India. He has rich expertise in taxation and deal structuring aspects in the fields of investment trusts, mergers and acquisitions, private equity, etc.
Navin has rich experience in the real estate industry across asset management, real estate management, financial structuring, corporate finance, etc.
Previously, he was a Partner at BMR Advisors and worked at Ernst & Young.
Previously, he was a senior Principal at Piramal fund management and a senior Vice President at Walton Street India. Private and Confidential
COMMERCIAL REAL ESTATE (CRE) An unexplored asset class for non Ultra HNI investors Commercial real estate refers to properties used for business purpose and yields regular rental income. It includes office space, retail malls, industrial / warehouse spaces etc. It serves as a hedge against inflation and appreciates as the economy grows.
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Low Risk
WE HELP YOU BUILD INSTITUTIONAL GRADE CRE PORTFOLIO Earn rentals, create a more defensive portfolio with commercial real estate and improve your risk-adjusted returns.
Debt/ FD
CRE
Lower Returns
Higher Returns
Mutual Funds
Equity
High Risk
Capital Preservation Real estate, when properly managed, is a hard asset that preserves capital.
Cash Flow Commercial real estate can generate stable and predictable cash flow.
Non-Correlated The performance of commercial real estate is not closely correlated with stocks and bonds. Private and Confidential
CRE INVESTMENT IS BETTER Residential
Commercial (CRE)
Rental Income
Ranges 2%-4% p.a. of capital investment
Ranges 7%-11% p.a. of capital investment
Capital Appreciation
Depends on comparable properties which is hard to ascertain and grows at a slower pace.
Depends on demand for office space which grows at a fast pace every year and can lead to higher appreciation
Quality of Tenant
Individuals. Not easy to assess and ascertain thus exposed to default risk
Corporate/ MNCs Assessable and hence one can reduce default risk
Shorter that ranges between 6 and 12 months
Longer well documented and negotiated lease terms that ranges between 5 and 10 years with lock-in period etc.
Lease Term
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YIELD ASSET HELPS INVESTORS OWN INSTITUTIONAL GRADE REAL ESTATE AND DIVERSIFICATION WITH FRACTIONAL OWNERSHIP
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Contact us +91 78298 80003
query@yieldasset.com
Disclaimer: Yield Asset and its affiliates are in brokerage and listing of real estate opportunities. This material should not be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. We are not soliciting any action based on this material. This document is for the general “information only” and is not, and under no circumstances is to be construed as, an offer to sell or a solicitation of an offer to buy any securities, derivatives of any security or as an offer to provide any portfolio management services, investment advisory services or any securities market related services. This document has not been registered with or approved by any supervisory or regulatory authority. Nothing contained herein may be relied upon as a guarantee, promise, assurance, or a representation as to the future. No assurance can be given that the objective or strategy or vision or mission regarding the services offered by us will be achieved or that the participants will receive return of their principal deployed or not incur losses, including loss of principal deployed. The recipient is cautioned not to put undue reliance on any of the assumptions, scenarios, projections, representative data, expected yields or other information contained herein. Certain transactions including those involving real estate investments, futures, options, and other derivatives as well as noninvestment-grade securities give rise to substantial risk and are not suitable for all investors. The material is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied on as such. Opinions expressed are our current opinions as of the date appearing on this material only. We endeavor to update on a reasonable basis the information discussed in this material, but regulatory, compliance, or other reasons may prevent us from doing so. The recipients should also note that there can be no assurance that any of the prospective opportunities described in this document will be consummated or any other arrangement with any other person will fructify, or in either case continue even if consummated or fructified. Please ensure that you. Private and Confidential