Friends – Here is one more good investing opportunity in commercial office space. I would recommend that you react fast for this, as the past investments of this variety have got fully booked within a week.
The details are as follows:
- Investment required for participating in this opportunity – Minimum investment of Rs 25 lacs.
- Your will be owning part of a company proportionate to your investment (through shares in this company) which will own this commercial office space property (picture given above).
- The property is one floor in a building called Express Zone in the Western express highway – this is a well-known office complex opposite Oberoi mall in Goregaon which has been in operation since 2012.
- This area is an established office area with other office buildings like Oberoi Commerz, Nirlon Knowledge park, Infinity IT park and Nesco IT park in the vicinity.
- The tenant is Reach Local – a US based provider of online advertising and marketing services. They started with one floor in this building in 2012 and now have 3 floors and 600 people working in this building. The floor that is being invested is their India HQ. The company is part of Gannett Inc – a large US based media and marketing company which also owns the USA Today Network.
- The tenant has a process of signing lease agreements for 4 years and the current agreement is for 4 years starting 1st April 2021 and has a 4-year lock in. Which means that the rent is assured from 1st April 2021 for four years.
- The total purchase price of the floor (consisting of 24,317 sq ft) is appx 33.6 crores. The price per sq ft is just below Rs.13,000 /sq ft – which is slightly below the last few transactions in that area.
- The rental returns after management fees and property taxes is appx 8.5%.
- Beyond this there will be capital appreciation – which will be surely more than 5% per annum as this location is central and two metro stations are coming up in that area is the coming 2 years.
- The current stamp duty in Mumbai is 3% and it is going up to 5% from April 1st – hence, the transaction is likely to be completed by March 31st. Keeping this in mind, please react fast and keep the liquidity with you for completing the investment in March.
- I want to share that I am not investing here (as I do not need any more passive income) – however, if you are building your passive income streams – this is surely a good option.
In case you are interested, please write to me at firstname.lastname@example.org and I will send you the details and connect you to the company front ending this deal asap.