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Sri Sai Ram Towers . Hyderabad Real Estate Inditrade Property Solutions. Snapshot. Hyderabad – an attractive investment destination Sri Sairam Towers (SST) – a top-of-the line investment at affordable prices The opportunity – ease of payment, immediate investment returns possible
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Sri Sai Ram Towers Hyderabad Real Estate Inditrade Property Solutions
Snapshot • Hyderabad – an attractive investment destination • Sri Sairam Towers (SST) – a top-of-the line investment at affordable prices • The opportunity – ease of payment, immediate investment returns possible • Inditrade Property Solutions – geared to service the individual investor
Hyderabad An opportunity of the Decade
Property demand drivers - Robust • Immigration drives property prices, and employment and livability drive immigration. Hyderabad offers both! • Hyderabad derives its demand from three factors • World class infrastructure – development ahead of requirement • Education and health infrastructure comparable (better) to the best in India • Affordability – post a correction in real-estate prices following the Telangana movement, Hyderabad real-estate is amongst the most affordable compared to other major Indian cities Together, this makes Hyderabad an extremely attractive real-estate investment opportunity with significant possible upside
Infrastructure – key to business growth • Nehru outer ring road (ORR) • 160 Km of 8 lane highway, with service roads on either side and a rail corridor in between the ORR and the service road – 70% complete • 1 Km around the ORR is automatically ear-marked as development corridor – with permission to construct commercial property • PV Narasimha Rao Expressway • completed in 2009, this is an 11.6 Km elevated expressway connecting Mehdipatnam to Aramgarh junction towards the airport. This has reduced travel time to the airport by almost 25 mins • Inner Ring road • being broadened to 150 ft – to allow connectivity of arterial roads, ORR and the PVNR Expressway
Hyderabad – where traffic MOVES The ORR links Shamsabad to Gachibowli in phase 1. When completed, it will encircle the city. Arterial roads are being widened, and along with an inner ring road (under construction) will allow smooth flow of traffic
Mass Transit Systems • Hyderabad Metro Rail • Planned as an elevated rail, covering 71 Kms (phase 1), with 66 stations. L&T started construction in 2011 • Multi-Modal Transport System (MMTS) • Rail transit system connecting 3 parts of the city, with connecting links with bus routes. Phase 1 operates over 43 Kms and covers 27 stations.
Shamshabad Airport • Rajiv Gandhi International Airport (RGIA) is constructed over 5400 acres to the south of the city • In 2009, RGIA was rated as the best airport in the 5-15mn passenger category by the Airport Council International • Currently RGIA can handle 12mn passengers per annum and has 30 aircraft parking slots. When developed fully (3 phases), the airport will have a capacity to handle 40mn passengers.
Trends in office space – strong demand Source : Cushman & Wakefield Hyderabad Office Report 1Q11 • Vacant office space in suburban Hyderabad is the lowest in the city at 9% • With limited availability of Grade A space, office rentals are likely to appreciate in that area • Corporates continue to hire office space in the suburbs
Politics – no fresh downside • Demand for a separate state of Telangana led to the coastal Andhraites – traditional business drivers – to withdraw money from Hyderabad and invest in Vizak. Consequently, prices in Hyderabad fell sharply since 2007 • While the demand for Telangana continues, a further drop is not likely as office demand has picked up and job creation has resumed • In the event that a new state is created, Hyderabad will continue to be the capital city, and will likely attract fresh investment • Status quo will inhibit rapid increase in price, but increase in job creation will drive demand and consequently prices • In the unlikely (but speculated) event of Hyderabad becoming a union territory, real-estate prices are expected to experience a rapid growth In summary, the worst is in the price, upside is likely. Quantum of price rise depends on speed of resolution of the impasse. At current prices, Hyderabad real estate is significantly cheaper than any other top tier city in India.
Suburban Hyderabad Benefitting from growth
Residential demand and recent price trend – strongest uptick in Miyapur • Site of the largest Bus terminal – with ability to cater to 100,000 travelers • Start of the Metro Rail, 0.5 Kms from Hafeezpet MMTS • Within 2 KMs of the ORR • Madhapur IT hub – 5 Km • Gachibowli IT and Finance District – 6-7 Kms Source : Cushman & Wakefield Hyd Residential Report 1Q11
Sri Sairam Towers – a Premium Project, at down-to-earth prices • 7.5 acres land, 26% built up area ; 74% open space • 8 Blocks of 14 storeys each • 578 residential apartments ranging from 1200 to 5400 sqft. Options of 2 BR, 3 BR , 3BR with terrace, 3BR Duplex, 4/5 BR duplex with triplex terrace • 3 level parking – landscaped lawns around all buildings • Visitors car park for each block • Club, gym, steam, sauna, jacuzzi, swimming pool business centre and other facilities
The Offer • Base price Rs 3100 psft including interest subvention till delivery (on 85% of price), and 1 year rent guarantee post delivery (by JRG Group) • Price varies with floor rise (above 5th floor), and location and size of flats • Central amenities will cost an additional Rs 5 lakhs per flat: • 2 car parks – Rs 3 lakhs • Gas connection • Maintenance corpus • Maintenance costs till handover to society • In addition, there is a stamp duty of 7% and 0.5% registration charges to be paid by the buyer. Service Tax of __% is applicable on the construction cost
Interest and Rent – how does it work? • Project is approved by all leading housing finance companies (HDFC, LIC Housing and DHFC), and banks (ICICI) • Buyer takes a loan from the lender by paying 15% down-payment and drawing the rest 85%. The buyer will pay the entire EMI to the lender. Sri Sairam builders will pay the buyer the interest component of the loan till the completion certificate is received • On paying the registration and other central charges, the buyer – at his option, will enter into a property management agreement with JRG BIC (a wholly owned subsidiary of JRG Group) • JRG BIC will under-write a rent of Rs10 psft for 12 months from the date that the flat owner hands over possession of the flat to JRG BIC under the property management agreement. The buyer will receive the under-written rent whether JRG BIC is able to find a tenant for the property or not. • Both these options are available to the buyer if he so desires. There is no compulsion to take either of the options.
Interested? • Contact • Ravi Varma – Head Inditrade Property Solutions • Email – ravivarma.p@jrg.co.in • Cell - +91 9912346869 • Sms : INDI PROP to 56677 • See a walk through http://www.youtube.com/watch?v=U3Ll3GZj3BY
About Sri Sairam • SSR Group has operated in Hyderabad since 1991 and has delivered over 15 landmark buildings • With over 2000 satisfied customers, SSR ranks among the quality mid-market builders in Hyderabad • A corporate structure with Karvy as an investor and project evaluation and approval by various institutions – LIC HF, HDFC among them, provides strong financial support and comfort • SSR is a ISO 9001:2000 certified company
About Inditrade Property Solutions • Inditrade Property Solutions (IPS) is a division of the JRG group • The JRG group has been in the business of retail financial services for over a decade • The group networth exceeds 120crs, and JRG Securities is listed on the BSE • The principal shareholders of the group are Barings Private Equity – a leading international investor. The operations of the company are managed by experienced professionals from varied background • JRG Group operates in all of South India and Maharashtra, and services more than 150000 retail and high net worth investors. • JRG employs more than 1000 people across over 400 locations