Commercial Property Investment Company in Bangalore - With Strata you can get access to the best Real Estate & Property investment opportunities in all sectors.
2. Investment Highlights
2
Targeted IRR*
12.1%
* Calculated with a value appreciation of 5% CAGR
9.4%
Entry Yield
Lease Period
10 yrs
Tenant Lock-in
5 yrs
Major Industrial Hub
Hosur (40 km from Blr)
Tenant
Leading furnishing
brand
PRIVATE & CONFIDENTIAL
This is an opportunity to invest in a Grade-A industrial space located in Hosur, Tamil Nadu. The asset spans 2,79,815 sqft.
and is leased to a leading mattress & home furnishing brand. The opportunity is valued at Rs. 64.1 Cr.
With a lucrative yield, long lease, marquee tenant, and healthy value appreciation, the asset is an ideal long-term
investment opportunity.
3. 3
Source: JLL - Invest India - Great places for manufacturing,
Make in India, Savills India - Manufacturing & Warehousing
Industry & Manufacturing In India
The Indian industrial & manufacturing sector has seen tremendous growth over the past decade and is fast
emerging as a major contender in the global manufacturing ecosystem. With a growing economy, increased
investor interest, and government impetus, India stands at the pedestal of rapid industrialization.
PRIVATE & CONFIDENTIAL
Foreign Investments
in FY2020
Projected Industrial
& warehousing
absorption for 2021
$73.3
Billion
47.7
mn sqft
Consumer market
by 2030
3rd
Largest
2.57
Times
Growth in GDP since 2005
PRIVATE & CONFIDENTIAL
4. 4
Source: JLL - Invest India - Great places for manufacturing,
Make in India, Savills India - Manufacturing & Warehousing
Key Growth Drivers
PRIVATE & CONFIDENTIAL
Fast growing consumer economy
Production linked incentive scheme
Emerging alternative to China
Major infrastructure developments
Make in India program
Introduction of GST
Low taxes for manufacturers
Demand from e-commerce
PRIVATE & CONFIDENTIAL
5. 5
Source: JLL - Invest India - Great places for manufacturing,
Make in India, Savills India - Manufacturing & Warehousing
Tamil Nadu - A Manufacturing Powerhouse
PRIVATE & CONFIDENTIAL
Long the industrial hub of India, Tamil Nadu is at the forefront of India’s push towards manufacturing. It has become one
of the most sought-after investment destinations due to its strategic location, conducive business environment, state-of-
the-art infrastructure, proactive governance and favourable ecosystem.
37,220 41 50% $30+ Bn ₹ 61,474 Cr
Highest no.
of factories
Highest no.
of SEZs
Of Garment
units in India
Annual
Exports
In investments
(2020)
PRIVATE & CONFIDENTIAL
6. 6
Source: JLL - Invest India - Great places for manufacturing,
Make in India, Savills India - Manufacturing & Warehousing
Recent Developments
PRIVATE & CONFIDENTIAL
Incentives announced for manufacturing of
Electric vehicles
Electronics
Aerospace
Green energy
Textiles
SGST reimbursement for goods made & sold in TN
₹ 4,684 Cr ₹ 1,423 Cr ₹ 1,100 Cr
₹ 1,250 Cr
₹ 7,948 Cr ₹ 635 Cr
₹ 2,430 Cr ₹ 700 Cr
PRIVATE & CONFIDENTIAL
8. 8
Source: JLL, Colliers
Hosur Industrial &
Warehousing Market
Strategically located between
Bengaluru & Chennai, Hosur is a
manufacturing hub and home to
a wide array of manufacturers
from automotives & electronics
to consumer durables and
packaged food.
PRIVATE & CONFIDENTIAL
1200+ acres
Among the largest industrial
complexes in India
Part of the
Chennai-Bengaluru
Industrial Corridor
KEY ADVANTAGES
Strategic Location
Excellent infrastructure
Skilled labour pool
Established Hub
9. 9
PRIVATE & CONFIDENTIAL
Recent News Snippets Of Hosur Market
EV maker Ather Energy choses Hosur
over Bengaluru for ₹635-cr plant
Feb 2021
Feb 2021
Ola commences construction of mega factory
on 500-acre site in Tamil Nadu
Tata Group to invest Rs 7,000 crore in building
electronics manufacturing unit in Hosur
Dec 2020
Embassy Industrial Parks to set up base in Hosur
Aug 2020
Delta Electronics eyes Krishnagiri for Rs
4,000 crore electronic plant Jan 2021
10. Location Overview
The asset is located in the industrial town of Hosur, Tamilnadu and lies next to a state highway. Both Bengaluru and
Chennai are easily accessible through National Highway 44. The asset can also be reached via air from Hosur airport
(5 Km), Bangalore airport (80 Km), and through rail from Hosur railway station (7 Km).
10
PRIVATE & CONFIDENTIAL
11. Tenants In The Vicinity
Given its strategic location and excellent infrastructure, the Bengaluru-Hosur belt is home to a wide range of manufacturing units,
warehouses, & logistics parks.
11
PRIVATE & CONFIDENTIAL
13. AVIGNA PHASE 1
Warehouse - B1
Warehouse - B2 Warehouse - B3
Warehouse - B4
13
PRIVATE & CONFIDENTIAL
Asset Description
Avigna Logistics & Industrial Park spans 79 acres, and is being built across
two phases. The first phase is nearing completion and comprises of five
Grade-A units which together measure over 10,67,000 sqft.
Unit B2 spans 2,53,296.09 sqft. of carpet area, 13,194.17 sqft. mezzanine
area and 13,324.5 sqft. of utilities and operations area. It also has 21
loading bays. The structure is a Pre-Engineered Building (PEB) built to
meet global manufacturing standards and comes with a 25 years
warranty on steel structure and a 30-year warranty on roof stability.
Strata has previously invested in two units in the park under the Strata
Avigna Warehousing Opportunities I & II.
Source: Based on representations made by the developer, Avigna
16. Tenant Overview
The tenant is an Indian home furnishing startup
headquartered in Bengaluru.
The company is popular for its mattresses and has
recently branched out into furniture and fittings.
The company is backed by marquee VC’s to the
tune of over ₹ 300 Crores.
The tenant is leasing the asset and the adjacent
Unit B4 to consolidate & expand its manufacturing
capabilities so that it can meet growing demand.
PRIVATE & CONFIDENTIAL
Founded: 2016
Staff: 500+
Annual Revenue: ₹197 Cr. (FY 2020)
Valuation: ₹ 1,900 Cr
16
18. Lease Overview
Rent per sqft of BUA
Escalation in rent
INR 15.84/month
3% per annum
Security deposit INR 1.89 CR
Lock-in Period 5 years
Lease Period
Property Tax
10 years
To be borne by the investors
The tenant has signed a lease for 10 years with a 5 year lock-in period and an annual rental escalation of 3%.
Lease Timeline
Lease Start Date
Tenant Lock-in
end date
Lease end date
November 2021
February 2027
February 2032
20
PRIVATE & CONFIDENTIAL
19. Rental Yield
21
PRIVATE & CONFIDENTIAL
9.4%
1% Rental Top up
9.2%
10.1%
11%
Nov 2021 Feb 2025 Feb 2028 Feb 2031
Rental Yield
Rental top up
The entry yield for this opportunity is 9.4% (including the rental top-up). The rents escalate by 3% YoY.
21. Financial Model
Day 0 Year 1-2 Year 3-4 Year 5-6 Year 7-8 Year 9-10 Total
Investment
Rental Income
Pre-Booking Offer
Interest on Deposit*
Sale Value**
Estimated Property Tax
Management Fee
Cash Flow
(64,10,00,000) (64,10,00,000)
10,79,69,995
64,10,000 64,10,000
20,89,693
(1,28,20,000)
(8,39,444)
(64,10,00,000) 10,28,10,243 10,29,75,616 10,99,51,429 11,73,52,069 1,16,93,24,863 96,98,08,663
20,89,693
(1,28,20,000)
(8,39,444)
20,89,693
(1,28,20,000)
(8,39,444)
20,89,693 20,89,693
(1,28,20,000) (1,28,20,000)
1,04,48,464
1,04,41,21,456
(41,97,221)
(8,39,444)
1,04,41,21,456
(8,39,444)
(6,41,00,000)
11,45,45,368 12,15,21,180 12,89,21,820 13,67,73,159 60,97,31,522
*Assumed at 5.5% p.a.
**Calculated with a value appreciation of 5% CAGR
23
PRIVATE & CONFIDENTIAL
22. Targeted IRR
Annual Growth 3.0% 4.0%
10.6% 11.3% 12.1%
5.0%
13.3%
7.0%
12.7%
6.0%
We are targeting a 5% annual capital appreciation on the asset, giving a targeted return of 12.1% IRR.
Growth Sensitivity
24
PRIVATE & CONFIDENTIAL
26. Redefining CRE Investments & creating
a new asset class
Strata is a tech-enabled real estate investment platform that allows investors
to own, earn from, and sell fractions of Grade-A commercial properties.
Asset Selection
Fractionalized Buying
Asset Management
Liquidation
28
PRIVATE & CONFIDENTIAL
360
0
27. CRE vs. Other Asset Classes
29
PRIVATE & CONFIDENTIAL
Lower
Returns
Volatile
Higher
Returns
Stable
Residential
Gold Stocks &
Mutual Funds
Commercial
Real Estate
28. The Strata Platform
Strata is data enabled, fully online platform for fractional investments in Premium Commercial Real Estate.
Data driven investment approach
with insights on properties,
locations, pricing and building
specifications
Liquidate your holdings
with multiple exit options
Transparent investment
process, access to detailed
reporting and fair pricing,
declared upfront
Invest at a click of a button. Get
real-time data and 24*7
portfolio access
Strata handles the entire life
cycle of the property including
asset management and eventual
sale
Data Driven
Risk Management
Liquidity
Transparency
Convenience
Professional Edge
With 360 due diligence and
exhaustive selection criteria we
mitigate asset related risk
0
30
PRIVATE & CONFIDENTIAL
35. Snapshot Of Metrics
Assets under
Management
₹ 270 CR
Total sqft
Managed
8.27 Lakhs
11
45.5%
5.5%
10.6%
20.4%
18%
Professionals
NRIs
Family Offices
Business Owners
CXOs & Senior Executives
Current investor base
37
PRIVATE & CONFIDENTIAL
Tenants In our Portfolio
36. 38
CEO Co-Founder Head of
Investments
Head of
Marketing
Acquisitions
Lead
Sudarshan
Lodha
Priyanka
Rathore
Nihar
Shah
Ankit
Shah
Praveen
Nair
A successful
lawyer, Sudarshan
brings over 9 years
of leadership
experience in real
estate & private
equity law.
Solicitor General
of India
DE Shaw |
WeWork India
Piramal Capital |
Anand Rathi |
HSBC Private
Banking
OLA | Avail Finance
Aditya Birla Capital
| JLL | Colliers
A skilled analyst,
Priyanka has over
8 years of
experience in real
estate financial
modelling.
Over 13 years of
experience across
private equity and
wealth
management.
Over 15 years of
marketing and
brand comm
experience.
12 years of
experience in
property acquisitions
advisory, investment
analytics and capital
structuring.
Strata’s Leadership
37. PRIVATE & CONFIDENTIAL 39
Our Recent Investments
*Calculated at 7% growth rate
*Calculated at 7% growth rate
E-Zone Investment Opportunity
Financial District Opportunity
Goregaon (E), Mumbai
Financial District, Hyderabad
Rs. 33.6 Crores
Rs. 46.6 Crores
Investment Amount
Investment Amount
9.6%
8.9%
Avg. Rental Yield
Avg. Rental Yield
120
152
No. Of Investors
No. Of Investors
13.4%
13.5%
Target IRR*
Target IRR*
100%
funded
in 1 day
100%
funded
in 4
days
38. 40
PRIVATE & CONFIDENTIAL
Our Backers
US based Mayfield is an active investor in early stage startups
and has over $2.5 Billion in AUM. The firm’s portfolio includes
IndiaProperty, LendingKart, Lyft, matrimony.com, and Amagi.
Propstack is India’s leading source of real estate data and market
intelligence. Its clients include the likes of KKR, Blackstone,
Goldman Sachs, BNP Paribas, Morgan Stanley, Ascendas etc.
Previously:
Elevation (previously SAIF Partners) is one of Asia’s largest VC
firms with investments in over 100 companies and $3 Billion in
AUM. SAIF’s portfolio includes PayTM, Swiggy, PropTiger,
JustDial, ClearTax, and MakeMyTrip
40. “Tech-enabled real estate investment platform Strata has raised Rs 140 crore
for investments in its warehouses amid the lockdown. - Times Of India
Fractional real estate investment is a new way to invest in commercial real-
estate. - Financial Express
42
PRIVATE & CONFIDENTIAL
Media Coverage
42. 44
Nothing stated in this memo is meant to be exhaustive and may not contain adequate disclosure of all the risks associated with the
opportunity, and should not be construed as investment, business, legal, or tax advice. The content contained herein does not
constitute an offer or an invitation to offer in relation to the opportunity, or by Strata to sell securities or an offer to buy or sell any
property. Direct and indirect purchase of real property involves significant risk and investments may lose value and are not insured by
any Governmental Agency nor are they guaranteed by Strata. The information stated herein is presented only for general informational
purposes and no specific securities or services are being promoted or offered. Any historical returns, expected returns, future liquidity,
or probability projections may not reflect actual future performance. The cost of acquisition of the asset, administrative costs, legal
fees, government charges, assumptions relating to income, etc., provided are approximate values. Such approximations involve known
and unknown risks, liabilities, and uncertainties in projected outcomes as well. Investors must seek their own legal or other professional
advice. Investors must be able to afford to bear losses on the investment made and have the ability to bear the risk of illiquidity. All
information presented herein is proprietary and based on independent research not meant for reliance, circulation, or reproduction by
any third party without the express consent of Strata. All images and illustrations are subject to copyright, and all logos are owned by
their respective copyright holders.
Deck Disclaimer
PRIVATE & CONFIDENTIAL
