One good commercial property – minimum 10L investment with 7.5% p.a. rental returns

Friends – Brigade Metropolis (pictured above) is a well-known property in Whitefield, Bangalore.  The property has two commercial towers called Summit A and B plus some retail space and around 1500 apartments. It is situated close to a very popular mall called Phoenix Market City and in the coming years, Bangalore Metro would be having a station very close to it.

One floor in Summit A measuring 22,540 sq ft is up for sale by an existing investor. The floor is currently under lease with Capgemini and the lease has commenced from Aug 2019 for 3+3 years. The price per sq ft (including all charges) is coming to appx Rs 8607 and the rental returns from first month onwards (after paying all the charges for property management) is coming to Rs 668 per sq ft per annum – which means a rental return of 7.76%.

I  like this transaction as

• the property is a well-known property;
• it will grow in value over time (with Metro coming in);
• the property price is right;
• the rental returns are reasonable; and
• the min ticket size is low, at 10L, for a property as good as as this.

This transaction is being done through a SPV route, where the current investor owns the property through a Private limited company and the new investors will own shares in the company proportional to their investment. The min investment is 10L.  In case you are interested – please write to me at rajasekharan.sg@gmail.com and I will send you more details and also connect you to the company which is front ending this transaction.