Friends – Here is a good commercial real estate investing opportunity.
This is part of a property where already I have recommended similar investments in the past 18 months. The legal and commercial diligences are already in place and the investors in the earlier opportunities are a happy lot.
I think this opportunity will get fully booked in about 2-3 weeks and hence if you are interested, please react fast.
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 33.6 crores of which you will be a part owner in proportion to your investment.
- The property is an industrial space coming up in Hosur area with land area of 1,02,038 sq ft (just above 2 acres) and box area of 1,32,250 sq ft (ground plus mezzanine space).
- This property is in an industrial park called Avigna Industrial park. The company front ending this deal has already done four similar investments in the same industrial park and the legal and commercial diligences are in place.
- 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.
- This company already has four manufacturing plants in Bangalore and this will be it’s fifth facility. It is export focussed with 70% of it’s revenues coming from exports.
- The structure will take one year to be ready – however, the rent starts from Feb 2022.
- 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 four 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.