L E A D E R S
NEW INDIAT H E
I N B U I L D I N G
I N D I A N REAL ESTATE
I N D I A N REAL ESTATE
Smart Green Cities in India
Trillion Dollar Infrastructure Opportunity
I N D I A N REAL ESTATE
• India’s population will surpass China’s population in 2025
• By 2050, India will be the world’s ...
I N D I A N REAL ESTATE
• Golden Corridor Super Highway coming soon to link these cities:
• To be populated with hundreds ...
I N D I A N REAL ESTATE
• First-to-market mega mixed use projects in India
• Entered India in 1999
• One of the first to b...
I N D I A N REAL ESTATE
• The Indian Real Estate Sector opened to the world in 2002
• REC was one of the first approved by...
I N D I A N REAL ESTATE
State of the Real Estate Market
• 90% of land is under land title ‘defect’
• Very little land bank...
I N D I A N REAL ESTATE
• Bangalore pop 10m
• Mumbai pop 18.4m
• New Delhi pop 13m
• Chennai pop 8.9m
• Pune pop 5m
• Kolk...
I N D I A N REAL ESTATE
International real estate:
Century 21 Caldwell Banker
£300M Global Emerging Market Fund (GEM)
Mult...
I N D I A N REAL ESTATE
REC has fostered strategic marketing relationships
with other hotel, recreational and financial gr...
I N D I A N REAL ESTATE
“Luxury Estates” is the key driver of future housing supply and
a catalyst for the much needed inf...
I N D I A N REAL ESTATE
In the Press
“ The Luxury
Estates-Bangalore
project is one of the
top mega projects in
the Asia-Pa...
I N D I A N REAL ESTATE
REC President
named in the
Top 100 Most
Influential People
2007
I N D I A N REAL ESTATE
Rezoning Delays
• Bangalore Municipal Regional Development Authority (BMRDA)
Land freeze 3600 acre...
I N D I A N REAL ESTATE
Rezoning Resolutions
• 2009 - Land Freeze lifted –Bangalore
• 2011 - permit granted to REC by Inte...
I N D I A N REAL ESTATE
• Luxury Estates Bangalore (2004) - 3,000 acre (146.36 million sq. ft. built-
up) "Smart" City, Ba...
I N D I A N REAL ESTATE
Township Development Projects
Luxury Estates Villas
& Resort
137 Acres
$1 Billion
Luxury Estates
1...
I N D I A N REAL ESTATE
REC’s Townships
REC is reactivating several proposed township projects to come to
market with:
• L...
I N D I A N REAL ESTATE
Township Rendering
I N D I A N REAL ESTATE
Project 1 - Location
• Luxury Estates Villas is located in Bangalore North
• 14 M from new Interna...
I N D I A N REAL ESTATE
• Bangalore is the #1 real estate / business destination
in India
• Bangalore pop.10 million grows...
I N D I A N REAL ESTATE
Self Financing
• Customer Financing Upfront
• Fast sellouts –Due to Housing demand
• 30% down upfr...
I N D I A N REAL ESTATE
Buy Low
Aggregate and purchase lands Tier #1 cities
GetPermits
Convert land use - minimum footprin...
I N D I A N REAL ESTATE
Build - Use credible contractors
(2-4 years per township)
Retain core assets
(shopping centers, ho...
I N D I A N REAL ESTATE
Luxury Estates Villas
• 137 acres 3 phases
• In Bangalore, the IT Capital of India
Phase 1
• Permi...
I N D I A N REAL ESTATE
Timeline for ROI
12 months
Sellout Phase
$200M
24 months
IPO
36 months
Completion
Phases 2 & 3
I N D I A N REAL ESTATE
Luxury Estates Villas Finance Requirements
$10 Million
• Reactivate
Sales System
to Sell units
• C...
I N D I A N REAL ESTATE
Luxury Estates Villas Finance Purpose
Debt/Equity –Corporate Level
Project by Project (Special Pur...
I N D I A N REAL ESTATE
Why Indian Real Estate Now?
Fast
sell-out
Last entry
opportunity for
financing round
Superior Dire...
I N D I A N REAL ESTATE
• Rapid growth and multiple exits
• Rapid Project Sales - $500M to $1B annually
• Indian Firms tra...
I N D I A N REAL ESTATE
REC Valuation Horizons
REC Income Projection – Luxury Estates Villas Phase 1 &2
Revenues $600,000,...
I N D I A N REAL ESTATE
REC Potential Share Price
REC Potential Share Price
P/E Ratio Value Price per Share
P/E 20 x $120M...
I N D I A N REAL ESTATE
REC Placement
Amount Required $25,000,000
Borrower Indian Real Estate Corporation
Interest Rate To...
I N D I A N REAL ESTATE
Name of Company Indian Real Estate Corporation
CEO & Director John Smith
President & Director Jere...
I N D I A N REAL ESTATE
Companies in Bangalore
Upcoming SlideShare
Loading in …5
×

India Real Estate - stats on this explosive market.

800 views

Published on

Discover the explosive Indian real estate market and see stats and information researched and written by Wanda Halpert at Concord Business Plans.

Published in: Real Estate
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
800
On SlideShare
0
From Embeds
0
Number of Embeds
23
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

India Real Estate - stats on this explosive market.

  1. 1. L E A D E R S NEW INDIAT H E I N B U I L D I N G I N D I A N REAL ESTATE
  2. 2. I N D I A N REAL ESTATE Smart Green Cities in India Trillion Dollar Infrastructure Opportunity
  3. 3. I N D I A N REAL ESTATE • India’s population will surpass China’s population in 2025 • By 2050, India will be the world’s largest economy • India has a housing shortage of 18.2M units • India forecasted to be largest economy and population in world by 2050 at 180M increase per decade • Needs 5 million additional housing units/year now or 50M every 10 years • 600M people will migrate from rural to urban by 2030 (McKinsey & Co.) • 900M will be added to Indian Cities by 2050 (Census Bureau - Goldman Sacs) • In Bangalore, with a population of almost 10 million, property values increased by over 50% annually year over year for the past 4 years Real Estate in India
  4. 4. I N D I A N REAL ESTATE • Golden Corridor Super Highway coming soon to link these cities: • To be populated with hundreds of cities from 2015 to 2050 • 70 Cities of + 500k population each will emerge by 2020 India Golden Triangle Bangalore Mumbai Mumbai Delhi
  5. 5. I N D I A N REAL ESTATE • First-to-market mega mixed use projects in India • Entered India in 1999 • One of the first to be approved by the Indian Federal Integrated Township act of 2004 • Smart Green City Focus • Has 5-Core Infrastructure Focus • IPO stalled Real Estate Corp.
  6. 6. I N D I A N REAL ESTATE • The Indian Real Estate Sector opened to the world in 2002 • REC was one of the first approved by the Indian government “Integrated Township Act of 2004” • FDI approvals, secure vehicle for investment in real estate by foreigners • Luxury Estates • REC-Debuts 3000 acre (146.36M sq. ft.) in Bangalore with Government support • No Western style financing instruments for real estate yet exist within India • Duetsche Bank - there was little to no Capital Markets in India in 2006 Emerging Market vs Mature Market
  7. 7. I N D I A N REAL ESTATE State of the Real Estate Market • 90% of land is under land title ‘defect’ • Very little land banking with clear title has been secured to date throughout India • Long Permit process of 6-10 years • Most construction firms- small, illiquid lacking access to capital • 100 acres is considered a mega project • Indian Gov. does not have the will, policies, funds or managerial skills • Private sector in India has to provide all the master planning in each new community. This infrastructure already exists in modern global cities. i.e. commuting, power, waste, emergency services, medical, retail etc. • Competitors are small, illiquid, lack expertise and equipment
  8. 8. I N D I A N REAL ESTATE • Bangalore pop 10m • Mumbai pop 18.4m • New Delhi pop 13m • Chennai pop 8.9m • Pune pop 5m • Kolkata pop 14m REC - a “Smart Green City" model with land options for Tier 1 cities most in need:
  9. 9. I N D I A N REAL ESTATE International real estate: Century 21 Caldwell Banker £300M Global Emerging Market Fund (GEM) Multiple Strategic Partnerships 2000 - 2008
  10. 10. I N D I A N REAL ESTATE REC has fostered strategic marketing relationships with other hotel, recreational and financial groups: CPG Corp. Choice Hotels Jack Nicklaus Greenwich Group Jones Lang LaSalle
  11. 11. I N D I A N REAL ESTATE “Luxury Estates” is the key driver of future housing supply and a catalyst for the much needed infrastructure investments in the rapid urbanization of India.’’ Henry Pol , Jones Lang LaSalle
  12. 12. I N D I A N REAL ESTATE In the Press “ The Luxury Estates-Bangalore project is one of the top mega projects in the Asia-Pacific region” OCO Consulting Leader in World Foreign Investment (spun out of PWC)
  13. 13. I N D I A N REAL ESTATE REC President named in the Top 100 Most Influential People 2007
  14. 14. I N D I A N REAL ESTATE Rezoning Delays • Bangalore Municipal Regional Development Authority (BMRDA) Land freeze 3600 acres around Airport. 2005-2009 • 460 projects frozen. 10,000 workers effected • REC entry projects RGC stuck • $1.6B REC- finance stalled
  15. 15. I N D I A N REAL ESTATE Rezoning Resolutions • 2009 - Land Freeze lifted –Bangalore • 2011 - permit granted to REC by International Airport Authority (BIAAPA) • 2013 - REIT's announced by National Real Estate regulator in June
  16. 16. I N D I A N REAL ESTATE • Luxury Estates Bangalore (2004) - 3,000 acre (146.36 million sq. ft. built- up) "Smart" City, Bangalore, India • Luxury Estates Mumbai (2004) - 5,000 acre (217,800,000 sq. ft. built-up) "Smart" City, Mumbai, India • Luxury Estates Villas and Resort (2005) • Phase 1: 17 gated communities (610,000 sq. ft. buildable) • proposed expansion to 137 acres (5-7M sq. ft.) Bangalore, India • Capri Village (2007) - 1,136 acre gated community Bangalore • Golf India (2007) - a series of prestigious, planned golf course communities across India by golf legend Jack Nicklaus • The Special Economic Zone (2008) - 12,500 acres for commercial development, State of Meghalaya, India Luxury Real Estate Projects
  17. 17. I N D I A N REAL ESTATE Township Development Projects Luxury Estates Villas & Resort 137 Acres $1 Billion Luxury Estates 1,700 acres $45 Billion Capri Village 1,136 acres $22 Billion
  18. 18. I N D I A N REAL ESTATE REC’s Townships REC is reactivating several proposed township projects to come to market with: • Luxury Estates Villas & Resort 3-4M sq. ft. • Capri Village Township 49M sq. ft. • Luxury Estates 146M sq. ft. The 3 projects above represent a $100B(USD) revenue horizon realizable over a 10 -14 years period.
  19. 19. I N D I A N REAL ESTATE Township Rendering
  20. 20. I N D I A N REAL ESTATE Project 1 - Location • Luxury Estates Villas is located in Bangalore North • 14 M from new International airport and 15M annual passenger flow • 2 miles from recently announced 22B-GOVT – 12,000 acre Special Economic Zone BIAL IT Park with 3M Job creation forecast over next decade • 3000 % increase in Gov’t Land assessments since 2006. (Times of India)
  21. 21. I N D I A N REAL ESTATE • Bangalore is the #1 real estate / business destination in India • Bangalore pop.10 million grows at a rate of 36% per decade • Absorbs 52 million sq. ft. Every 12 months • 13,200 Units per Quarter are sold Project 1 - Demand
  22. 22. I N D I A N REAL ESTATE Self Financing • Customer Financing Upfront • Fast sellouts –Due to Housing demand • 30% down upfront • Balance via installments every 60 days over construction duration
  23. 23. I N D I A N REAL ESTATE Buy Low Aggregate and purchase lands Tier #1 cities GetPermits Convert land use - minimum footprints 50-100 acres (3-4 yr. process to date) Self Financing Projectssell outwithin 6 monthspriorto constructioncompletion Generatebillion dollar revenues$$$$$$$earlyin thecycle Our Real Estate Approach
  24. 24. I N D I A N REAL ESTATE Build - Use credible contractors (2-4 years per township) Retain core assets (shopping centers, hotels) Retain annual IT/Energy revenue Provides annual revenues after projects sold Business Model
  25. 25. I N D I A N REAL ESTATE Luxury Estates Villas • 137 acres 3 phases • In Bangalore, the IT Capital of India Phase 1 • Permitted 17 acres debt free land $200M revenue (with 35-40%construction cost) • $28M in presales in place Phases 2 and 3 • $800M - $1.6B revenue 3-4 Year Horizon First Offering Billion $ IPO opportunity
  26. 26. I N D I A N REAL ESTATE Timeline for ROI 12 months Sellout Phase $200M 24 months IPO 36 months Completion Phases 2 & 3
  27. 27. I N D I A N REAL ESTATE Luxury Estates Villas Finance Requirements $10 Million • Reactivate Sales System to Sell units • Complete land prep, roads, services $15 Million • Partial Construction • Secure Remainder of 137 acre land option $100 Million • Secure Land in Bangalore 1,136 acres • 1,700 acres
  28. 28. I N D I A N REAL ESTATE Luxury Estates Villas Finance Purpose Debt/Equity –Corporate Level Project by Project (Special Purpose Vehicles -longer term high return construction loans on secured land Water-falling Phase by Phase -Funding Land Acquisition Finance
  29. 29. I N D I A N REAL ESTATE Why Indian Real Estate Now? Fast sell-out Last entry opportunity for financing round Superior Directors and Advisory Board in the Company International investor opportunity with 24 month IPO window for liquidity Permit delays have allowed massive land value increase prior to build out around the property
  30. 30. I N D I A N REAL ESTATE • Rapid growth and multiple exits • Rapid Project Sales - $500M to $1B annually • Indian Firms trade at 17-404 P/E • Multi-billion Market Capitalization and Valuation Potential • REC - Competitors P/E DLF (2007) (72 P/E) and Prestige Bangalore (2010) (44 P/E) Growth and Multiple Exit Strategies
  31. 31. I N D I A N REAL ESTATE REC Valuation Horizons REC Income Projection – Luxury Estates Villas Phase 1 &2 Revenues $600,000,000 Cost of Construction 40% $240,000,000 Income before Taxes $360,000,000 Term of Construction 3 years P/E Ratios of Competitors Prestige Group 44 X DLF Universal 72 X India Bulls 404 X
  32. 32. I N D I A N REAL ESTATE REC Potential Share Price REC Potential Share Price P/E Ratio Value Price per Share P/E 20 x $120M $2.4B $48 P/E 30 x $120M $3.6B $72 P/E 40 x $120M $4.8B $96 P/E 50 x $120M $6.0B $120 P/E 60 x $120M $7.2B $144 P/E 70 x $120M $8.4B $168 *Other REC Townships & Cities not factored in.
  33. 33. I N D I A N REAL ESTATE REC Placement Amount Required $25,000,000 Borrower Indian Real Estate Corporation Interest Rate To be negotiated Payable At the end of the third year Term 36 months Security Promissory Note or Mortgage Finance Offering The REC Group’s first funding requirements $125M $25M first advance as follows:
  34. 34. I N D I A N REAL ESTATE Name of Company Indian Real Estate Corporation CEO & Director John Smith President & Director Jeremy Conroy Principal Place of Business Vancouver, Bangalore, New York Telephone (604) 689-2556 Email info@concordbusiness.com Corporate Info
  35. 35. I N D I A N REAL ESTATE Companies in Bangalore

×