One good office property investment in Bangalore with rental yield of 8% plus

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 1^st, 2^nd floor and 11^th to 15^th 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 rajasekharan.sg@gmail.com and I will send you the details and connect you to the company front ending this deal asap.