One good industrial property investment off Bangalore with rental yield of 8.4%

Friends – Here is a good industrial estate investing opportunity in an industrial complex in Hosur, which is about 50 kms away from Bangalore.

The details are as follows:

• Minimum investment required for participating in this opportunity –Rs. 25 lacs.
• Your will be owning part of a company proportionate to your investment (through shares in this company) which will own this industrial real estate (rendered images of the property shown above).
• Total investment involved here is appx. 38 crores, of which you will be a part owner in proportion to your investment.
• Assuming each investor invests only 25 lacs – then a total of 152 investors are required and that will happen in about 2-3 weeks and then the opportunity would be fully booked.
• The property is an pre-engineered building with 1.24 lac square feet space built on a land parcel of appx 5.5 acres in an industrial park called Avigna Industrial park.
• This is a well-known industrial space where similar investments have been made for appx 10 lac sq feet in the past two years and I have recommended through this website, quite a few of these investments.
• The space is being occupied by two different companies – both well known in the automotive supplier space (one is a French MNC and other is an Indian company with HQ in Pune).
• The French MNC has signed up for 10 years lease with a lock in of 5 years  and the Indian company has signed up for 15 years with a lock in of 6 years (till Dec 2029).
• The rents start from Jan 2023 and the rental yield (after deducting the management fees, property tax and insurance) for the first year is 8.4% per annum and the agreement has a 5% increase in rents every year.
• As this industrial park has had similar investments in the past 2 years, the legal diligence is easier and the buying price and the rental yield are all similar to the last few deals done here
• Beyond this there will be capital appreciation – assuming a conservative 5% capital appreciation per annum – the overall ROI comes around 13%.
• I think it is a good investment – the location is good and is known, the property is fairly priced, the rental yields are good plus the company front ending this deal is trust worthy and hence I am recommending it.
• 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 rajasekharan.sg@gmail.com and I will send you the details and connect you to the company front ending this deal asap.