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 firstname.lastname@example.org and I will send you the details and connect you to the company front ending this deal asap.