Friends – Here is a good commercial real estate investing opportunity in a new office complex in Bangalore.
The details are as follows:
- Investment required for participating in this opportunity – Minimum investment of Rs. 30 lacs.
- Your will be owning part of a company proportionate to your investment (through shares in this company) which will own this office space property (rendered images of the property shown above).
- Total investment involved here is appx. 58 crores.
- Assuming each investor invests only 30 lacs – then a total of 195 investors are required and that will happen in about 2-3 weeks and then the opportunity would be fully booked.
- The property is a brand new office complex in KR Puram Area in Bangalore – just off the Outer ring road and very close to the upcoming Mahadevpura Metro station -the location is excellent.
- This property is called Krrish towers and has 15 floors, of which this investment will be for buying the 1st, 2nd floor and 11th to 15th floors plus 76 car parks.
- Total floor area being invested is 75,763 sq ft out of a total 135,000 sq ft area in the building.
- Another part of this property is designed to be a five star hotel, which is also coming up parallelly.
- The purchase price for this office property comes to Rs. 7400 per sq ft and it is in line with the going rate in that locality.
- The rent comes to Rs 52 per sq ft and it is slightly below the going rate of Rs. 55 – this will make the tenant sticky for longer term.
- This space has already been leased to a tenant since July 2021 and they have signed a 15 year lease agreement (till 2036) with a 5 year lock in (till July 2026) and a 15% increase in rent every three years.
- This tenant is one of world’s largest designers and manufacturers of athletic and casual sportswear – they have 2000 employees in India (and 16000 employees worldwide) and a revenue of Euro 6.8 Billion.
- The rental returns after management fees and property taxes is appx 8.8% in year 1 (including 1% rental top up for year 1) and it goes up by 15% every three years.
- Beyond this there will be capital appreciation – assuming a conservative 7% capital appreciation per annum – the overall ROI comes to 15%.
- 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 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 email@example.com and I will send you the details and connect you to the company front ending this deal asap.