Friends – Here is a good commercial real estate investing. I would recommend that you react fast for this, as I have been slow in blogging about it and it is already 50% booked in the last 10 days.
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 industrial space property (picture given above).
- Total investment involved here is appx 58 crores of which you will be a part owner in proportion to your investment.
- This property is in an industrial park called Avigna Industrial park. The company front ending this deal has already done three similar investments in the same industrial park and the legal and commercial diligences are in place. This specific property has a land area of 5,64,300 sq ft (appx 13.5 acres) and box area of 7,02,828 sq ft ( ground plus mezzanine space).
- The tenant is a leading Toy manufacturer who has signed up the space for ten years lease with a 5% rent escalation per annum and an eight-year lock in. The tenant already has four manufacturing plants in Bangalore and this will be their fifth facility.
- The rental returns after management fees and property taxes is appx 8.6% in year 1 and it goes up by 5% each year.
- Beyond this there will be capital appreciation – assuming a conservative 5% capital appreciation per annum – the overall ROI comes to 13% plus.
- I think it is a good investment – the location is good, the property is fairly priced, the rental yields are good plus the company front ending this deal has done three such transactions in the same industrial park 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.