MYRE Capital is offering an exclusive opportunity to invest in 17,816 Sq. Ft. of A-grade office space strategically situated in an established residential and commercial hub, Andheri East, Mumbai.
The proposed space spans the entire 10th floor of newly constructed Tower-C in ‘Times Square’.
The entire tower is leased to Smartworks, the market leader in Managed Workspace Solutions. Smartworks has subleased our premises to Indian Financial Technology and Allied Services (IFTAS), a Reserve Bank of India (RBI) subsidiary.
In a post-pandemic world, the ‘hub & spoke’ model has become increasingly popular. With favorable micro market fundamentals, attractive lease terms, and strategic asset location, the opportunity provides a compelling investment proposition.
Average Yield:10.5 %.
Target IRR: 13.6 %.
Lease Tenure: 5+5+5 years. Minimum Investment: ₹25Lacs
2. MYRE Capital is offering an exclusive
opportunity to invest in 17,816 Sq. Ft. of
A-grade office space strategically situated
in an established residential and
commercial hub, Andheri East, Mumbai.
The proposed space spans the entire 10th
floor of newly constructed Tower-C in
‘Times Square’.
The entire tower is leased to Smartworks,
the market leader in Managed Workspace
Solutions. Smartworks has subleased our
premises to Indian Financial Technology
and Allied Services (IFTAS), a Reserve
Bank of India (RBI) subsidiary.
In a post-pandemic world, the ‘hub &
spoke’ model has become increasingly
popular. With favorable micro market
fundamentals, attractive lease terms, and
strategic asset location, the opportunity
provides a compelling investment
proposition.
Average
Yield
10.5%
Target
IRR
13.6%
Overview
Times Square
Strategic Location
Andheri East, Mumbai
Marquee Tenant
Tenant : Smartworks
Sub Tenant : IFTAS (An RBI Subsidiary)
Lease
Tenure
5+5+5 years
Minimum
Investment
₹25Lacs
Highlights
4. Mumbai Overview
ONE OF THE LARGEST
OFFICE HUBS IN INDIA
AREA
~603 SQ. KM
130+ MSF
~7%
Of India’s total GDP
5.85
3.83
2.14
0.45
0.28
0.96
3.59
4.05
0.84
1.45
0.3
1.46
2019 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Net Absorption
New Consumption
241%
Net Absorption
387%
Net Consumption
GROWTH
Q4 2020 over
Q3 2020
Headquarters of MNC and Indian Banks, Banking, Financial
Services, Life Sciences, Media, Consulting Firms
Houses Bombay Stock Exchange [BSE] and National Stock
Exchange [NSE]
Mumbai is the largest
metropolitan city in India which
makes it a melting pot of many
communities and cultures thus
giving various business
opportunities across sectors with
an abundant talent pool.
INDIA’S FINANCIAL CAPITAL
POPULATION
~20 MILLION
LITERACY RATE
~90%
Source: Source: Real Estate Intelligence
Service (REIS), 2020, JLL Research
5. Micro Market Overview
Times Square is located in one of Mumbai’s largest commercial micro-markets,
Western Suburb 1, which has seen the highest tenant absorption of 0.312 MSF
owing to the affordable rentals and excellent public connectivity. With a stellar
tenancy profile, attractive location, and high absorption, the micro-market
presents strong fundamentals.
# Micro Market
Name
Stock [MSF] Absorption [MSF] Key Sub Markets
1. Old CBD 6.65 0.016 Fort, Nariman Point, Cuffe Parade, Churchgate
2. Central Mumbai 13.3 0.204 Worli, Mahalaxmi, Lower Parel, Dadar
3. New CBD – BKC 1.084 0.048 Bandra Kurla Complex, G Block
4. BKC Periphery 6.83 0.012 Kurla, Kalina, Santacruz East, Bandra
5. Western Suburb 1 24 0.312 Vile Parle, Andheri East & West
6. Western Suburb 2 16.5 0.230 Jogeshwari, Goregaon, Malad, Borivali
7. Eastern Suburb 15.6 0.240 Chembur, Ghatkopar, Vikhroli, Powai, Wadala
8. Thane 9.58 0.95 Thane, Ghodbunder Road
9. Navi Mumbai 30.39 0.114 Vashi, Seawoods, Sanpada, Kharghar, Airoli
1
2
3
4
5
6
7
8
9
Source: CBRE YTD 2020
MSF: Million Sq. Ft.
6. Infrastructure
EXISTING INFRASTRUCTURE
UPCOMING INFRASTRUCTURE
Western Express Highway : Most critical artery connecting South
Mumbai to Western suburbs
Jogeshwari-Vikhroli Link Road : Connects the Western and Eastern
express highway
Chhatrapati Shivaji Maharaj International Airport : Primary International
Airport serving MMR
Distance : 1.5 km
Coastal Road : Long freeway along the western coastline connecting
Nariman Point (south) to Kandivali (north)
Estimated Timelines : 2023
JVLR Extension : JVLR will be extended connecting New
Jogeshwari Flyover to New Link Road to ease traffic
Times
Square
Vashi
Bridge
Navi
Mumbai
Sanjay Gandhi
National Park
Times Square is strategically situated near the Mumbai Airport with
excellent connectivity to the upcoming coastal road and the
western expressway.
Source: CBRE YTD 2020
7. Metro Connectivity
Total length of metro lines under construction in Mumbai is
~265 kms and, the primary objective is to decongest road
network in the city. This is expected to reduce average travel
time by 50% to 75%.
Metro Line 1 :
Versova – Andheri - Ghatkopar [11.4 kms]
Metro Line 2 :
Dahisar – Mankhurd [42.1 kms]
2A Dahisar – DN Nagar [18.58 kms]
Estimated Timelines : Q4 2021
Line 6
Line 3
Line 7
Line 2
Line 1
Navi
Mumbai
Metro Line 3 :
Colaba – Bandra – SEEPZ [33.5 kms]
Estimated Timelines : Q4 2021
Metro Line 6 :
Lokhandwala – Jogeshwari – Kanjurmarg [14.5 kms]
Estimated Timelines : 2023
Metro Line 7 :
Dahisar East – Jogeshwari – Kanjurmarg [14.5 kms]
Estimated Timelines : 2023
Times Square
Sanjay Gandhi
National Park
Vashi
Bridge
Source: CBRE YTD 2020
8. In the Vicinity
TIMES
SQUARE
International Terminal
Mumbai Airport
The Lalit
Mumbai
The Leela
Mumbai
JW Marriott
Mumbai
Phoenix
Market City
Andheri Railway
Station
Nanavati Super
Speciality Hospital
Saki Naka
Metro Station
Ajmera Marol
Metro Station
Andheri Metro
Station
Vile Parle
Railway Station
Leela
Business Park
Mahakali
Caves
ANDHERI
EAST
MAROL
ANDHERI
KURLA ROAD
SAHAR
POWAI
Phoenix Marketcity
Metro Station
Andheri Railway Station
Domestic Airport
International Airport
300 m
3.4 km
4.3 km
1.5 km
1.5 km
9. Opportunity Insight
▪ Discover Times Square
▪ Building Overview
▪ Asset Images
▪ Floor Plan
▪ Managed Leasing
▪ Tenant Overview
▪ Lease Overview
10. Discover Times Square
Roots of India
Tap Resto Bar
Global Fusion
FOOD & BEVERAGES
Spread across 6.5 acres of land, Times Square is an iconic IT Park situated in the business hub
of Andheri East. With minimal vacancy, superior connectivity, and on premises amenities, the
park has seen an uptick in new leases & renewals from tenants.
Other Restaurants
in Times Square
Barbeque Nation, British Brewing
Company, Slice of Lime, Chimichurri
OFFICE SPACE
Number of Towers
4 Towers
Total Leasable Area
886,000 SF
Total Current Vacancy
70,000 SF
Vacancy
~8% Renewals YTD : 22,000 SF | New Leases YTD : 82,000 SF
Source: CBRE
11. Building Overview : Tower C
Floor 12 : In advance discussions
Floor 09 : Pepper Content | Teva Pharma
Floor 08 : Teva Pharma
Floor 07 : Xoriant
Floor 06 : Cafeteria
Floor 05 : Fullerton India
Floor 04 : Indira IVF
Floor 03 : FTCash | Pepe Jeans
Floor 02 : Starbucks Corporate Office | NEC India
Floor 01 : Royal Bank Of Scotland | GYM
▪ New Building : Received complete
OC in November 2020
▪ Professional Management :
Smartworks has signed a lease for
the entire building during Covid and
is responsible for the management
& upkeep of the building
▪ Strong Demand : Despite Covid, the
building is majorly occupied by
subtenants and is expected to be at
100% occupancy by December
2021
▪ A-Grade Building : LEED Gold
Rated
Floor 10 : IFTAS
Floor 11 : In advance discussions
12.
13.
14.
15. Floor Plan
▪ Floor plate sub-divisibility: The floorplates
has been designed with 4 subdivisible units,
providing flexibility for enhanced liquidity
and releasing.
▪ Efficient Column distribution: The columns
in the floorplate are situated on the
intersection of the sub-units providing better
useability of the space.
▪ Balcony : In the entire development, few
floorplates have access to a dedicated
balcony.
Balcony
Lobby
Stairs
Stairs
Toilet
Toilet
Toilet
Toilet
Office Floor plate
16. Managed Leasing
BENEFITS
OF
MANAGED
LEASING
Stable Tenancy : Leasing expertise
providing long term tenant stability.
Secure Rental : Dual protection
from managed leasing partner and
sub-tenant.
Vacancy Risk Mitigation : Tenant
Sourcing, management, and
vacancy responsibility of managed
leasing partner.
Superior Asset Upkeep : Value add
facilities, workspace digitization, and
professional building management.
High Stickiness : Managed leasing partner
invests high marketing costs, tenancy
expenses, building upgradation and
furnishing capex.
Rental Assurance : The managed
leasing partner is responsible for the
rental payment irrespective of subtenant
vacancy.
17. Tenant Overview
▪ Smartworks is India’s largest and profitable provider of agile workspaces, serving 500+
enterprise customers.
▪ India’s first flex-space operator to have PAN India presence.
Smartworks is the
market leader in India
Focusing on large
enterprise clientele
with a bespoke, tech
enabled value
proposition
Large Area
> 50,000 SF
Smaller Area
< 50,000 SF
B2C Enterprise
SMARTWORKS
WEWORK
INDICUBE
300+ players
already in the
segment
Area Under Management
4+ MSF
Revenue Growth (2020-2021)
3x
Valuation
3,000+ Cr
Enterprise Clientele
90%+
Institutional Backing
Keppel Land,
Singapore
HURUN INDIA HAS NAMED SMARTWORKS TO
ITS FUTURE UNICORN LIST 2021
“
Source: Forbes
19. Sub-Tenant : IFTAS [An RBI Subsidiary]
Indian Financial Technology & Allied Services (IFTAS) is a
wholly-owned subsidiary of the Reserve Bank of India, that
designs, deploys & provides the essential IT-related
services, required by the Reserve Bank of India, banks, and
financial institutions. Their flagship payment products and
services are a critical part of India’s financial infrastructure,
connecting banking and financial institutions across the
country, reliably and securely.
IFTAS provides critical infrastructure services to RBI, banks,
cooperative societies and other financial institutions.
NEFT Volume
3218+
LAKHS
NEFT Value
22+
TRIILIION
RTGS Volume
166+
LAKHS
RTGS Value
101+
TRIILIION
Live Members
INFINET
291
SFMS
229
CLOUD
75
Source: IFTAS
20. Market Opinion About Tenants
Smartworks leases
200,000 SF in Pune
co-working centre
Smartworks
provides 600 seats
to Ocwen Financial
Services
Smartworks leased
4.5 lakh SF office
space amidst Covid-
19 in Mumbai and
Hyderabad
24x7 RTGS
transaction facility
to start from
Monday : RBI
IFTAS deploys its
GIFT platform
Live Mint
19 Aug 2021
Live Mint
03 Aug 2021
The Economic Times
22 Jul 2021
The Times of India
13 Dec 2020
Outlook India
01 Aug 2019
” ” ” ” ”
Smartworks IFTAS
21. In the News : Times Square
Pepper Content picks up 200 flexi seats at Smartworks Andheri hub
- The Economic Times, 23 Jul 2021
Times Square Concludes Lease Deal with
Smartworks in Mumbai
- Smartworks, 05 Aug 2020
Smartworks has acquired a large leasable area of
2,10,000 SF, entire Tower C, in Times Square.
- The Times of India, 05 Aug 2020
22. Lease Terms
Lease Timeline
Term-1 Start Date Term-2 Start Date End Date
December 2019 December 2024 December 2029 December 2034
The tenant, Smartworks, has signed a lease for the entire building admeasuring ~2,10,000 Sq. ft. during covid. Our floor has been recently
subleased to Iftas (RBI Subsidiary).
Smartworks has spent significant capex in modification, fit-outs, and furnishing costs for the entire building. This facility has seen strong
traction from corporate tenants and has become one of Smarworks most successful managed buildings.
Lease
Area
17,647 Sq. Ft.
Interior Fit-Out
& Furnishing
Smartworks
Rental
Escalation
15% Every 3 year 9 Months
High Security
Deposit
6 months
Next Escalation Nov 2023
Term-3 Start Date
Tenure : 5 yrs
Lock - In : 5 yrs
Tenure : 5 yrs
Lock - In : 5 yrs
Tenure : 5 yrs
Notice
Period
24. Sale Comparable
Favourable Pricing: Our transaction price is at a 4% discount to the recent transactions in Times Square and a 25% discount to the
recent transactions in the micro-market.
Registration Date Building Name Buyer name Area (SF)
Price per SF
(Leasable Area)
Discount
2021 Q1
Times Square
Individual 6,583 INR 17,621 13%
2021 Q1 Lloyd Healthcare ~17,000 INR 15,053 -4%
2021 Q1 Family Trust ~8,000 INR 18,325 17%
2021 Q1 Insync Analytics 8,051 INR 15,215 -3%
Weighted Average Price INR 16,173 4%
2021 Q4 Our Transaction Price 17,816 INR 15,617
Registration Date Building Name Buyer name Area (SF)
Price per SF
(Leasable Area)
Discount
2021 Q2 Kanakia Wallstreet Individual 18,503 INR 18,850 21%
2021 Q1 Silver Utopia PNB Metlife 46,746 INR 18,000 15%
2021 Q1 Fulcrum SBI General 42,000 INR 21,000 34%
2020 Q4 Kalpataru Square Individual 6,935 INR 21,600 38%
Weighted Average Price INR 19,460 25%
2021 Q4 Our Transaction Price 17,816 INR 15,617
Source: CBRE India & PropStack
25. Lease Comparable
Source: CBRE India & PropStack
Our rental is ~10% lower than the market average,
increasing the stickiness of the tenant to the premises.
Registration
Date
Building Name Tenant name
Area
(SF)
Rent per SF per
month
(Leasable Area)
Discount
2021 Q3
Times Square
Interactive Brokers 40,000 INR 105 -1%
2021 Q1 Seven Island Shipping 6,243 INR 135 27%
2021 Q3 Llyod Healthcare 8,795 INR 100 -6%
2021 Q3 Abreco Frieght 3,415 INR 123 16%
Weighted Average Rent INR 108 2%
2020 Q3 Our Rental 17,647 INR 106
Registration
Date
Building Name Tenant name
Area
(SF)
Rent per SF per
month
(Leasable Area)
Discount
2021 Q3 Leela Business Park Mirae Asset 17,400 INR 110 4%
2021 Q3 The Qube Geodis India 7,950 INR 108 2%
2021 Q3 Kalpataru Square Magma Fincorp 12,350 INR 136 28%
2020 Q1 Kanakia Wallstreet GS Caltex 10,500 INR 130 23%
Weighted Average Price INR 117 10%
2020 Q3 Our Rental 17,647 INR 106
29. Exit Projection
KEY ASSUMPTION
PERFORMANCE METRICS
Exit Year
~5Years
Capital Appreciation
6.5%
We anticipate the
optimal time to exit
the asset is after
the 2nd rental
escalation.
Considering our under-
market rental and
historical market rental
growth rate, we have
taken a conservative
CAGR for our projection.
Exit Cap Rate
7.1%
Inline with today's cap
rate expectations.
Though we expect
further cap rate
compression, we have
taken a conservative
outlook.
Lock-In Remaining
3Years
Strong proposition for
new buyer in 2026, with
a 3-year lock-in and an
additional 5-year
renewal term remaining.
IRR
13.6%
MOIC
1.7X
30. Investment Terms
Management Fee
1%
Performance Fee
20%
Over hurdle rate of 12% IRR
Prebook Offer*
2.60 %
*Cumulative across 5 years. Applicable on investments that are confirmed prior 21st October
32. All the information in this document (“presentation”) is published in good faith and for general information purpose only. MYRE TECH LLP (“MYRE”) does not make any warranties about the completeness, reliability and accuracy of this
information. Any action you take upon the information you find in this presentation, is strictly at your own risk. MYRE will not be liable for any losses and/or damages in connection with the use of this presentation.
MYRE TECH LLP’s research team, software, algorithms and analytical processes used have, to the best of its ability, taken into account various factors –both quantitative measures and qualitative assessments, in an unbiased manner,
while designing a suitable investment model. However, such assessments carry inherent unknown risks and uncertainties linked to broad markets as well as analysts’ expectations about future events. The material in the presentation
herein has been prepared by MYRE Capital and is a general overview of the commercial activities and proposed commercial activities of MYRE Capital. That the information supplied vide this presentation has been obtained/deduced from
sources which are reliable as per the best knowledge and belief of MYRE Capital and should not be construed as legal, business or tax advice or recommendation or Offer/Invitation to offer, to potential investors/purchasers. MYRE Capital
makes no warranty or representation nor assume any legal liability or responsibility for the accuracy, correctness, completeness or consequences from use of any such information. Any projections, opinions, assumptions or estimates do
not represent the current or future performance of the property and any reliance on the material of this presentation shall be at the exclusive risk, costs, expenses and liability of the Investor/Purchaser. Before acting on any information
contained herein Investor/Purchaser should consider the appropriateness of the information and should seek specific advice from qualified professionals.
It is further clarified in explicit terms that nothing in this presentation shall be construed as Direct or Indirect Offer to Invest/Buy/Fund in any of Investment Schemes/Real Estate Schemes/Real Estate Properties/ Financial Schemes,
launched by MYRE TECH LLP or it’s associate entities. That nothing in this presentation is for solicitation or invitation to any individual/firm/ company/Association Of Persons/ entity for any Investment schemes pertaining to Real Estate or
otherwise, and it is further clarified that any scheme listed in this presentation involves standard market risks and is neither insured by MYRE TECH LLP, nor we can be held liable for any monetary or other losses the investor may occur due
to the same.
The past performance of any opportunity listed in this presentation is not necessarily indicative of its future performance. MYRE TECH LLP is not guaranteeing or assuring any return under any of the opportunities listed. You are requested
to exercise prudent discretion (including by obtaining expert professional advice with regard to specific legal, tax and financial implications) prior investing in any opportunity listed in this presentation. You agree and acknowledge that
information/projections provided by MYRE Capital are not and are not intended to be an offer/invitation or solicitation/recommendation and in case of investing into the said scheme you are acting on own your knowledge and
understanding.
Disclaimer and Risk Disclosure
Statement by MYRE Capital
