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Pre bid advisory

for development of
GVK skycity
Pre bid advisory for
development of GVK skycity

Prepared for: Bharti Realty Limited 14


7th October 2013
Prepared for: 23rd October 2013

Bharti Realty Limited


Table of Contents

1 Assignment Background
2 Site Analysis/Catchment Overview
3 Development Guidelines
4 Mumbai Real Estate - Overview
5 Catchment Analysis
6 Demand Forecast
7 Recommendations

2
Assignment
objective

3
Background of the study

Assignment Bharti Realty Limited (hereinafter referred as “Client”), seeks pre-bid advisory for undertaking
Objective commercial development activities at the Airport Sites located in zone 3 and zone 6 as Non-Transfer
Assets. These sites form part of the GVK SkyCity.

On the instructions received from the Client, Knight Frank (India) Pvt. Ltd. has been appointed to
conduct the pre-bid advisory study of the aforementioned assets.

The study is expected to cover the following aspects,


 Study of micro market to understand major projects and their performance in terms of occupancy
and achievable rental/capital values
 Achievable rental/ capital value for retail and commercial component and achievable ARR for
hospitality sector
 Demand - supply scenario for retail, commercial and hospitality sector in the micro market
 Suggesting highest and best use development option at the subject property.
a. Highlighting size and mix of development options

4
Site Analysis

5
GVK City
Overview

 GVK SkyCity Master Plan spread over cityside area


of Chhatrapati Shivaji International Airport (CSIA),
encompasses gross site area of approximately 185
Ha (457 acres) excluding aeronautical zone and
area under slums/ encroachment.
 GVK SkyCity Master Plan enhances and draws on
the potential of site in terms of its high visibility,
accessibility and identity, due to its central
location in Mumbai, and close proximity to CSIA’s
Terminal facilities.
 GVK SkyCity Master Plan outlines seven
development zones in the form of Hotel/
hospitality led mixed use clusters, inter connected
physically by roads, utility networks & Metro line-3.
 The principle uses of proposed Land Use Plan
include:
 Hotels, Serviced Apartments/ Hospitality
 Convention Centre, Cultural and Exhibition Spaces
 Hospital and Health Care
 Retail, F&B associated with Hotel
 Offices and commercial spaces associated with Hotel
 Entertainment & Leisure associated with Hotel

6
GVK City
Zones

 GVK SkyCity Zones are a series of connected


largely self-sufficient mixed-use clusters
 Each zone is oriented around a central, open space
and planned to utilize the locational advantage
and potential of its location.
 The proposed GVK SkyCity zones are;
 Zone 1 Terminal-1 Forecourt & Santacruz
 Zone 2 Westgate
 Zone 3 North Sahar
 Zone 4 South Sahar
 Zone 5 Terminal-2 Forecourt
 Zone 6 North Village
 Zone 7 Kalina & Southern Area

7
Subject Sites
location

 The map on the left demonstrates the immediate


surroundings of the subject sites.
 Based on the information shared in RFQ, 3 land
parcels are present in zone 3 while 1 land parcel is
located in zone 6.

 Zone 3 (North Sahar Zone)-


 3.619 acres (Plot NO NS-CO2)
 1.855 acres (Plot NO NS-CO3)
 2.338acres (Plot NO NS-CO4)

 Zone 6 (North Village)-


 0.945 acres (Plot NO NV-CO1)

8
neighborhood

The catchment area of the Subject Site is an active hospitality corridor marked by the presence of high end hotels

9
North sahar zone
overview

 Centrally located in the northern part of the airport


area, the North Sahar Zone is the largest zone of
GVK SkyCity offering world-class Hotel/ hospitality,
and associated retail, entertainment and cultural
facilities along with commercial uses in close
proximity to new Terminal-2, Sahar Road and
proposed Metro Station.

 The entire Zone is planned as a hospitality node


around a large green park with a large pond, with
wide roads, green avenues, pedestrian walkways,
public facility and all required utilities.

 The large, centrally located North Sahar Park


provides an active, pleasant green environment for
visitors and users & shall be a unique features of
this Zone.

10
North sahar zone
Development norms

Indicative Plan - NS-C03


Land Parcel FSI/ Max. Gross Built-Up Area
Parcel Number Development Use (including 15% Additional FSI on net FSI
Size (acre)
for Staircase, lifts, lobbies) (SqFt)

Hotel (First Class) with associated


NS-C02 3.619 770,545.
commercial/ retail
Hotel (Mid Market) with associated
NS-C03 1.855 394,900
retail
Hotel (Mid Market & Budget) with
NS-C04 2.338 497,863
associated retail

Indicative Plan - NS-C02 Indicative Plan - NS-C04

11
North Village Zone
overview

 The parcel is a part of North Village Zone of CSIA,


and is well connected to rest of the city by Metro ,
with ‘Airport Road Metro Station’ on Metro Line-1
located in front of this parcel.

 The parcel is located on the Andheri-Ghatkopar-


Kurla Link Road (AGKLR) beside Hotel Leela, and
has direct access from AGKLR.

 The parcel is located on one of the major arterial


road of the city - AGKLR, having large scale prime
commercial & hospitality establishments like Hotel
Leela, Leela Business Park, Time Square Business
Centre, Hotel VITS, Hotel Kohinoor Continental,
Corporate Centre, Trade Centre, The Mirage Hotel,
Hotel Holiday Inn etc. located on the AGKLR.

 The parcel is envisaged as a Hotel with associated


retail, etc., at 2 minutes drive from International
Terminal of CSIA.

12
North sahar zone
Development norms

Land Parcel FSI/ Max. Gross Built-Up Area


Parcel Number Development Use
Size (acre) (including 15% Additional FSI on net FSI for Staircase, lifts, lobbies) (SqFt)

NV-C01 Hotel (Mid Market) 0.945 141,041

Indicative Plan - NV-C01

13
Real estate
overview

14
City Overview
MUMBAI

 Mumbai, the summer capital of Maharashtra, is the country's financial


powerhouse and its economic nerve center.

 The city contributes almost 5% of India’s GDP and up to 40% of the


GNP.

 Multi-functional city with a vast array of economic opportunities, which


has resulted in it attracting a large migratory population from all over
the country.

 The city is well connected to international nodes by two ports and an


international airport.

 Located on a peninsula extending southwards from the mainland of


Maharashtra it consists of two distinct regions: Mumbai city district
and Mumbai suburban district. The city district region is also
commonly referred to as the island city or South Mumbai.

 The total area of Mumbai is 437 sq. km. with the island city spanning
over 67.79 sq. km. and the suburban district across 370 sq. km.,
administered by the Municipal Corporation of Greater Mumbai.

15
Demand Drivers
Key infrastructure initiatives

Road infrastructure Mumbai Metro

16
hospitality

17
Hospitality Overview

 With its establishment as the financial capital of India, Mumbai has witnessed a continuous inflow of business
travellers, in addition to the leisure travellers. This has led to the growth if the hospitality sector of the city.

 The hospitality market of Mumbai can be classified into four major regions namely, the South Mumbai, North
Mumbai, Central Suburbs and Navi Mumbai micro-markets.

 Mumbai has one of the major international airports in India which brings high of traffic. The same has a significant
component of transit travellers who stay in Mumbai overnight. This has resulted in significant growth in the number
of tourists.

 Mumbai maintained its top position with the highest existing supply of branded rooms in the country in FY 2013,
followed closely by Delhi (excluding Gurgaon, NOIDA and Greater NOIDA) and Bengaluru.

 Mumbai emerged as the third best performing hotel market in terms of occupancy (63.8%) in FY 2013 after Kolkata
(69.50%) and Goa (68.80%).

 Mumbai (including Navi Mumbai) registered the highest average rate (INR 7,646) and RevPAR (INR 4,881) amongst
the major hospitality markets in the country in FY 2013.

18
Hospitality Overview
Current stock

 The cumulative room inventory in Mumbai is currently No. of hotel rooms in Mumbai
12,807 which includes 5 Star Deluxe, 5 Star and 4 Star 14,000 12,807
category hotels in North Mumbai and South Mumbai. 12,052
12,000 11,303
9,877
 North Mumbai comprising of micro-markets such as Vile 10,000
8,454
7,948
Parle, Andheri, Juhu, Malad, Santacruz, Bandra etc. 8,000 7,402
contribute approximately 73% in the total existing inventory
6,000
of hotel room keys. 5 Star deluxe category comprises
~6,500 room keys which nearly contributes to 51% of the 4,000

total existing inventory, followed by 5 star category hotels 2,000


which contribute ~34% of the total existing inventory. 0
2006-07 2007-082008-09 2009-10 2010-11 2011-12 2012-13
 North Mumbai: Primarily characterized by the presence of 5
star deluxe and 5 star hotels contributing to approximately Category-wise split
50% and 41% respectively of the market share. 4 star hotels
contribute only 10% of the total inventory.
15%

 South Mumbai: Significant presence of 5 star deluxe hotels 5 Star Deluxe


contributing to 67% of the market share. 5 star and 4 star 51% 5 Star
hotels contribute ~12% and 21% respectively of the total 34% 4 Star

inventory.

19
Hospitality Overview
key performance parameters

Occupancy
 Mumbai has the highest average rate (INR 7,646) 100%
and RevPar (INR 4,881) amongst the major 80%
hospitality markets in the country. 60%
81%
73% 70% 72%
76% 78% 75%
65% 68% 65% 65% 63% 61% 63% 62% 64% 64%
 The following graphs demonstrate the occupancy 40% 52%

and revenue trends for the hospitality sector in 20%


Mumbai. 0%

1998-99

2010-11
2003-04

2007-08
2008-09
2000-01
2001-02

2004-05

2006-07
1999-00

2009-10

2011-12
2012-13
2002-03

2005-06
1996-97
1995-96

1997-98
 While occupancy has increased marginally over
past 5 years, ARR/ RevPar has witnessed a
decline. This indicates the preference of hoteliers
in terms of opting for higher occupancy at cost of RevPAR
revenue. 12,000 10,932
10,679

10,000 8,428 7,646


8,738
7,923
6,169 8,194
8,000 6,297
6,229 6,041

` (INR)
5,661 5,555 8,155
6,000 5,137 4,932 4,822 6,807
4,184 4,356 6,473
4,000 4,603
5,268 5,113
4,881
4,161 4,547 4,028 4,257 5,050
3,651 3,589 3,472
2,000 2,653
2,565 3,036
0

2000-01
2001-02

2003-04

2008-09
1996-97

1998-99

2004-05

2006-07

2010-11
2011-12
1999-00

2002-03

2005-06

2012-13
2007-08

2009-10
1997-98
1995-96

ARR Rev PAR

20
Proposed stock

 The hotels in Mumbai can be divided in the following Proposed Branded Rooms (2012/13 - 2017/18)
three categories: 4%

 Luxury / Upscale – 5 Star Deluxe, 5 Star 18% 32%


Luxury
 Midscale – 4 Star
Upscale
 Economy / Budget – 3 Star Mid Market
27%
19% Budget
 As indicated in below graph, Mumbai has the highest
Extended Stay
supply of branded rooms in the country.
 The pie chart on right presents the category wise split of
proposed supply.

21
Guest profile

 Mumbai is the financial center of India and also has


Share in Total Occupancy (%)
numerous tourist attractions, there is a constant inflow of Guest Segment
Upscale Midscale Economy
domestic and international travellers, be it for leisure or for
Corporate 35 36 31
work.
Tourism (Travel Agency market) 23 21 24
 In Mumbai, the corporate travellers and tourist inflow
Domestic Free Individual Traveller (DFIT) 11 12 14
through trips organized by travel agencies, constitute a
major share in hotel occupancy for all the three segments.
Foreign Free Individual Traveller (FFIT) 15 14 16

 Corporate travellers contribute the most towards all three Group Individual Traveller (GIT) 8 11 9
segments, ranging between 31-36% of the total occupancy.
Meetings, Incentives, Conventions
8 6 6
 Domestic tourists comprise ~69% of the total travellers. & Expositions (MICE)

However, the upscale segment shows a much clearer


preference towards foreign tourists as the share of Average Stay of Guests
Luxury/Upscale Midscale Budget
domestic and foreign tourists is approximately 24% and (Number of Days)
76% respectively.
Foreign Guests 2.6 2.9 2.4
 Across all segments, 76% of the travellers arrive by air,
14% by road and 10% arrive by rail. This ratio becomes Domestic Guests 2 2.8 3.1

even more one-sided for upscale hotels, with 84% of the Business Guests 2.2 3.4 2.7
travellers arriving by air. Hence, there is a clear preference
for arriving by air. Leisure Guests 1.8 4 2.5

22
Major markets

5 Star 5 Star Deluxe


 The western suburbs of Mumbai house a Number of Sr.
Number
Sr. Hotel Name Location of Room
variety of prominent upscale hotels due to No.
Hotel Name Location Room No.
Keys
Keys
its advantageous location. 1 Ramada Plaza Palm Grove Juhu 114
1 JW Marriott Hotel Juhu 358
Andheri
2 Hyatt regency 401
2 Hotel Sea Princess Juhu 110 (E)
 There are a handful of noteworthy upscale Novotel (Formerly Holiday 3 Grand Hyatt Santacruz 547
3 Juhu 203
hotels in South Mumbai as well since this Inn) 4
Intercontinental The Andheri
368
Lalit (E)
zone offers great connectivity and has well 4 Sun - N – Sand Juhu 120
5
ITC Grand Maratha Andheri
386
developed infrastructure. 5 Grand Sarovar Premiere Goregaon 98 Sheraton (E)
Andheri
Vile Parle 6 Le Royal Meridian 171
6 The Orchid Hotel 330 (E)
(E)
 With respect to midscale hotels, again a 7 Gordon House Hotel Andheri (E) 200
7 Renaissance Hotel Powai 286
Bandra
majority of the prominent hotels are located 8
Palms Hotel (formerly Royal
Goregaon 223
8 Taj Lands End
(W)
368
in the western suburbs. Palms Park Plaza)
9
The Leela Andheri
423
9 Imperial Palace Goregaon 422 Kempinski (E)
Vile Parle ITC Grand Central
 The economy and budget hotels are spread 10 Sahara Star
(E)
223 10
Sheraton
Parel 242

out all across Mumbai and Navi Mumbai, 11 Holiday Inn Andheri (E) 266 11 The Trident
Nariman
550
Point
hence no particular micro-market has a 12 The Courtyard by Marriot Andheri (E) 299 Cuffe
12 Taj President 272
majority of economy hotels. 13 The Trident BKC 436 Parade
Nariman
14 Meluha The Fern Powai 141 13 The Oberoi 222
Point
 The tables on right illustrate the existing 15 Hotel Marine Plaza
Marine
68 14 The Taj Mahal Hotel
Apollo
560
Drive Bunder
room inventory of some of the major hotels
16 Four seasons Worli 202
in Mumbai for the 5 star and 5 star deluxe Marine
17 Inter-Continental 59
categories of hotels. Drive
18 The Resort Malad 94
19 The Retreat Malad 144

23
office

24
Mumbai commercial overview

Business District Micro-markets

Nariman Point, Cuffe Parade, Ballard Estate, Fort,


CBD & Off CBD
Mahalaxmi, Worli

Alternate Business
BKC, Bandra (E), Santacruz (E), Kalina
District (ABD)

Central Mumbai Parel, Lower Parel, Dadar, Prabhadevi

Suburban Business Andheri, Jogeshwari, Goregoan, Western Exp


District (West) Highway, Malad, Borivali

Suburban Business Kurla, Ghatkopar, Vikhroli, Kanjurmarg, Powai ,


District (Central) Bhandup, Chembur

Peripheral Business
Thane, Airoli, Vashi, Ghansoli, Rabale, Belapur
District (PBD)

25
Distribution of Office stock in MMR

 Primarily driven by the Banking, Financial


Services and Insurance (BFSI), followed by the IT
PBD CBD
and trading
17% 16%
 Buoyant leasing demand in Traditional CBD
continues
ADB
SBD Central 11%  Limited supply of Grade-A offices and large
12% contiguous office premises in CBD, led to growth
of the ABD and SBD
Central
Mumbai  The total occupied space in the region is about
9% 77 mn sft.
 The growth rate in the gross occupied space in
SBD West the region has been 14% (average)
35%

26
Annual commercial supply

16,000,000

14,000,000

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

-
2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E

 During the last 5 years approximately 57.2 mn sft of commercial space had been added.

 It is estimated that ~35.4 mn sft would be added in next 5 years (~ 7.1 mn per annum average)

27
Annual commercial absorption

12000000

10000000

8000000

6000000

4000000

2000000

0
Mar-08 Mar-09 Mar-10 Mar-11 Mar-12

 During the last 5 years ~ 36.3 mn sq. ft. of commercial space has been absorbed
 The cumulative absorptions in the last 5 years (FY 2008_12) is ~2.5% higher than the projected cumulative supply
in the next 5 years (FY 2013_17)

28
Distribution of absorption by micro-markets

4,000,000

3,500,000

3,000,000

2,500,000 CBD
2,000,000 ABD
Central Mumbai
1,500,000
SBD West
1,000,000 SBD Central

500,000 PBD

-
Mar-08 Mar-09 Mar-10 Mar-11 Mar-12
(500,000)

(1,000,000)

 Higher rentals and transportation issues in the CBD have increased the outward movement from CBD to SBD West,
Central Mumbai and BKC (ABD).

 During the last five years a cumulative negative absorption in the CBD has been observed which can be attributed
to the increase in absorption levels in other areas.

29
Distribution of Absorption by industry

IT & Non IT Absorption


7,000,000

6,000,000 Others BFSI


26%
30%
5,000,000

4,000,000
IT/ITES
3,000,000 Non IT

2,000,000 IT/ITeS
Manufacturing
19% 25%
1,000,000

0
Mar-10 Mar-11 Mar-12

 The absorption considered are the 3 year moving averages for the sectors

 The absorption for the IT sector has shown a downward trend in the last three years

 The IT and BFSI industries together contribute more than 51% of the total absorption

30
vacancy

40%

35%

30%
Overall
25% CBD
ABD
20%
Central Mumbai
15% SBD West
SBD Central
10%
PBD

5%

0%
Mar-08 Mar-09 Mar-10 Mar-11 Mar-12

 The average vacancy levels were at a range of 4% during 2008 compared to a very high rates during 2012 at 22%

 The high vacancy levels in the recent past were due to the oversupply in the PBD and there has not been
considerable variance in other areas.

31
Vacancy risk

4.5

3.5

3
Year to lease

2.5

1.5

0.5

0
CBD ADB Central Mumbai SBD West SBD Central PBD

 The vacancy risks in the PBD are very high followed by SBD West. These two micro markets have high vacancy
levels and the corresponding supply would take about 4 and 3.5 years to get absorbed respectively

 The absorption in the ADB and Central Mumbai have been low which has increased the risk in these micro markets
in the recent past

32
Capital value range

40000
35000
30000
25000
INR/sq.ft

20000
15000
10000
5000
0

Powai
Lower Parel

Powai-IT
Andheri (E)

Thane
Nariman Point

Malad - Mindspace-IT

Goregaon
Worli - Prabhadevi

Navi Mumbai
Fort/Ballard Estate/Churchgate

BKC

LBS Marg
Malad - Commercial
Worli - Ceejay House

CBD Mumbai Central ABD SBD West SBD Central PBD

 Traditionally the minimum range of the capital values in the CBD areas has been high. However the ABD has
higher capital values compared to some of the parts of Central Mumbai.
 The capital values in other Business districts are comparatively low. However, the occupancies in these areas are
also on the rise.

33
Rental range (inr/sq.ft/month)

450

400

350

300 CBD Occupied


ABD Occupied
250
Central Mumbai Occupied
200 SBD West Occupied
SBD Central Occupied
150
PBD Occupied
100

50

0
Mar-08 Mar-09 Mar-10 Mar-11 Mar-12

 The rentals have shown a downward trend in the last 5 years


 The highest fall in the rentals is in the CBD areas and Central Mumbai Areas
 The fall in rentals was during the 2009 and 2010 and thereafter the rentals have stabilized

34
Projected rentals & capital values

The below table presents Mumbai’s office market outlook for the next 5 years,
Rental Value (INR/sq.ft./month) Capital Value (INR/sq.ft.)
Investor Return per
Business District
2012 2017E 2012 2017E annum

BKC & Off-BKC 200-330 249-411 24,000 - 35,000 33,200-47,800 14%

CBD & Off-CBD 210-280 243-325 25,200 - 33,600 32,500-43,300 12%

Central Mumbai 140-190 206-279 16,800-22,800 27,400-37,200 19%

PBD 40-70 46-81 4,800-8,400 6,200-10,800 12%

SBD Central 70-120 85-146 8,400-14,400 11,400-19,500 13%

SBD West 80-130 102-166 9,600-15,600 13,600-22,100 15%

Source: Knight Frank Research

35
Projected supply absorption & vacancy trend

Supply Absorption Projection


16,000,000
14,000,000
12,000,000
Million sq.ft

10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
-
2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E
New Construction 9,508,175 8,945,890 12,351,10 14,467,77 11,968,44 7,786,000 9,496,000 6,138,000 6,000,000 6,000,000
Total Absorption 8,556,429 4,132,152 9,597,703 8,002,342 6,009,762 6,039,587 6,060,253 6,694,297 7,201,290 7,687,265

30.0%

25.0%

20.0%

15.0%
Vacancy
10.0%

5.0%

0.0%
2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E

36
Annexure - Bandra kurla complex

Alternate Business District (BKC)


New Occupied Total
Year Stock Vacancy
Construction Stock Absorption
2008 2,167,000 6,227,500 2% 6,082,994 2,083,401
2009 285,000 6,512,500 2% 6,368,883 285,889
2010 1,350,000 7,862,500 10% 7,111,250 742,368
2011 832,000 8,694,500 10% 7,823,904 712,654
2012 1,620,000 10,314,500 17% 8,579,652 755,748
2013E 80,000 10,394,500
2014E 1,860,000 12,254,500
2015E 1,600,000 13,854,500
2016E 300,000 14,154,500

Micro- Year of Gross Floor


Project Developer Status
market Completion Area (sq.ft)

One BKC Wadhwa BKC 2,014 U/C


1,500,000
 Bandra Kurla Complex had a total stock of 8 million square K2
Kamala
Bandra (E) 2,014 U/C
feet of office space in 2012. An additional supply of 2.5 Developers 140,000

million square feet supply hit the micro-market in 2012; RNA Bizz RNA Corp Bandra (E) 2,014 U/C
1,70,000
with the completion of The Capital, FIFC and TCG Finance
Godrej Godrej
Centres. The current vacancy level at Bandra Kurla BKC Properties
BKC 2,015 U/C
1,300,000
Complex stands at 17%.
37
retail

38
overview

Prominent Malls and prevailing average ground floor rentals for vanilla retailers– (`/sq.ft./month)

Source: Knight Frank Research


39
Prominent mall rentals

Average Mall Rental in `psqft on


Average Mall Rental in ` psqft
Mall Name Loading Carpet Area*
on Built up Area*

Infiniti Mall, Andheri 153 67% 255


Mega Mall, Oshiwara 125 90% 240
Oberoi Mall, Goregaon 183 66% 305
Inorbit Mall, Malad 216 67% 360
Infiniti Mall, Malad 220 65% 365
Growel’s 101, Kandivali 80 67% 135
R City, Ghatkopar 140 67% 235
Phoenix Market City, Kurla 150 67% 250
Korum Mall, Thane 130 67% 215
Phoenix Mills Lower Parel 200 68% 335
Palladium, Lower Parel 300 70% 510
Inorbit Mall, Vashi 180 67% 300
Centre One Mall, Vashi 80 90% 150

*Rental indicated are for Ground Floor vanilla retailers.

40
rental supply trend

Annual Space Completion in mn.sqft


Gross Leasable Area and Upcoming Malls
4.50
 19.9 million sq.ft of Gross Leasable Area in 4.00
operational malls.
3.50
 The most recent additions to the list of malls in
3.00
Mumbai were Phoenix Market City Kurla and Neptune

Area in mn sq.ft
magnet. Some of the awaited upcoming projects are 2.50

Viva City Thane and Nirmal Life Style phase II. 2.00

1.50

1.00

0.50

0.00
2009 2010 2011 2012 2013

Trends and Outlook


 The well established malls in the city have limited space availability and thus the city faces a scarcity of quality retail
spaces. As a result the demand for standalone properties on high-streets is on the rise. Additionally, luxury retailers
have observed that stores on high-streets perform better as compared to malls.
 Owing to the increasing demand for standalone properties, we expect a slight upward movement in rentals in micro-
markets of Andheri (Lokhandwala ), Bandra (Linking Road) and Colaba.

41
retail rental trend

City Level Average Rental Trend


140
116 115 113
120 103 106 102 100
100 93 90
INR/Sq.ft/Month

80

60

40

20

 Mall rentals although have seen a slight downward trend from the 2011 levels
 Though they have largely remained stable over the last 2 quarters
 However, rentals are expected to witness a marginal increase especially in the successful malls such as
Palladium, Infinity II, Inorbit etc.

42
catchment
analysis

43
hospitality

44
Hotel catchment map

Subject Sites are


located in North
Zone. The maps on
Subject
Micro-market
the left
demonstrate the
overall zones in
Mumbai. The map
North Mumbai Zone has been further
zoomed in to
present the micro
market of the
Subject Property.

South Mumbai Zone

45
Major hospitality developments

Mirage Hotel

Kohinoor Continental

The Mirador Subject Site The Leela


(Zone 4)
Subject Sites The Lalit
(Zone 3)
Hyatt
ITC Regency
Maratha

The Orchid

Sahara Star Hotel

46
Existing Hotels - 3 star
S. No Name Location No of Start year of Occupancy Discounts Rack Rate
rooms operation (%) (%) (INR per night)
Min Max
1 Hotel Transit Off Nehru Road, 400099 Bombay (Mumbai), India Marol Naka 54 1974 50% 10% 5,500 10,000
Nehru Road Ext., Vile Parle (East) Near Domestic Airport,
2
Hotel Transit Hotel Mumbai – 400099 54 1975 70% 25% 5,500 8,000
3 Kumaria Presidency Hotel Andheri East Mumbai, Maharashtra 30 1980 70% 40% 4,100 10,500
4 Hotel Samraj Chakala Road, Andheri East Mumbai, MH 400099 10 1984 70% 0% 3,000 6,500
Hotel Airport Nehru Rd, Chhatrapati Shivaji International Airport Area, Vile
6
International Parle East 49 1993 70% 15% 5,000 6,500
Nehru Road, Chhatrapati Shivaji International Airport Area, Vile
7
Hotel Airlink Parle East Mumbai, Maharashtra 400057 38 1998 40% 25% 4,400 6,500
Sakinaka Junction, Andheri Kurla Road,J B Nagar Mathuradas
8
Metro International Vasanji Road, Andheri East, Mumbai 31 1998 55% 10% 2,500 5,500
Andheri, Mumbai B 11, Midc Central Road, Andheri East,
9
The International Tunga Mumbai 400093 24 2000 60% 25% 7,500 9,250
10 Hotel Ratna Mahal Chakala Rd, Andheri East Mumbai, MH 400099 20 2000 30% 0% 1,640 2,240
11 Hotel Mina International 61, Andheri Kurla Rd, Andheri East MH 54 2002 65% 10% 3,000 6,000
Andheri, Mumbai P 16, Midc Central Road, Andheri East,
12
The Paradise Tunga Mumbai 400093 40 2005 80% 20% 6,500 7,250
13 Shalimar Hotel A Hwadia Mg, Kurla West, Kurla Mumbai, MH 400070 64 2005 60% 50% 9,000 18,000
Opp Minister Naseem Khan Office, Jerry Mery, Andheri-Kurla
14
Hotel Arma Executive Road 12 2006 70% 25% 3,000 4,500
Sahar Road, Opp. APT Colony, New Sanjay Nagar, Chakala,
15
Hotel Solitaire Andheri (East), Mumbai 400099 Maharashtra 45 2007 30% 25% 4,500 7,200
16 The Residency Intercontinental The Grand Airport Rd, Mumbai, MH 400059 96 2007 65% 25% 5,200 6,800
181-184, Basera, Shaheed BhagatSingh Road, New Andheri -
17
7 Flags International Ghatkopar link Road , Andheri (E),mumbai - 400059, 31 2009 60% 5% 2,750 6,000
18 Sai Palace Hotel Chakala Mumbai, MH 400093 48 2010 50% 20% 5,000 6,000
Nehru Rd, Chhatrapati Shivaji International Airport Area, Vile
19
Ibis Mumbai Airport Parle East Mumbai, MH 400099 159 2011 60% 30% 6,000 6,000
Makhwana Road, Off Military Road, Marol, Andheri East,
20
Keys Hotel Nestor Mumbai, Maharashtra 55 2011 80% 15% 5,500 7,000
Near Solitaire Corporate Park, New Chakala Link Road, Chakala,
21
Dragonfly Hotel Andheri East Mumbai, MH 400093 23 2012 40% 25% 6,000 7,500
47
Existing Hotels - 4 star

S. No Name Location No of Start year of Occupancy Discounts Rack Rate


rooms operation (%) (%) (INR per night)
Min Max

Nehru Rd, Chhatrapati Shivaji International Airport Area, Vile


1 Bawa International 74 1985 65% 25% 4,000 6,500
Parle East Mumbai, MH 400099

Andheri Kurla Road, Andheri East, Andheri East Mumbai, MH


2 Hotel Airport Kohinoor 137 1988 40% 35% 9,000 15,000
400059

3 Kohinoor Continental Mathuradas Vasanji Road, Andheri East Mumbai, MH 137 1990 60% 35% 9,000 18,000

131-b, New Link Road Chakala, Andheri- East Mumbai,


4 The Mirador 106 2003 70% 15% 6,500 20,000
Maharashtra 400099

6 Hotel Mirage International Airport Approach Road, Marol, Andheri (E), 126 2008 60% 25% 7,500 12,000

7 Suba International Sahar Rd Mumbai, MH 400099 72 2010 60% 25% 6,900 9,100

48
Existing Hotels - 5 star

S. No Name Location No of Start year of Occupancy Discounts Rack Rate


rooms operation (%) (%) (INR per night)

Min Max
1 The Leela Mumbai Greater Indra Nagar, Andheri East Mumbai, MH 400059 390 1984 65% 40% 17,000 30,000
2 The Orchid Nehru Road, Vile Parle East Adjacent to Domestic Airport 372 1998 60% 10% 1,800 17,000
Mumbai - 400 099
3 Hotel orchid Mumbai Nehru Rd, Chhatrapati Shivaji International Airport Area, Vile 372 1998 50% 60% 18,000 28,000
Parle East Mumbai suburban, MH 400099
4 ITC Maratha Sahar Airport Road Mumbai, MH 400099 380 2000 50% 50% 15,000 50,000
6 Hyatt Regency Mumbai Ascot Centre, Sahar Airport Road, Andheri East, Mumbai, 401 2003 55% 10% 10,000 17,000
Maharashtra 400099
7 The Lalit Hotel Sahara Airport Road, Andheri East Mumbai, MH 400059 360 2003 60% 30% 12,000 18,000
8 Grand Hyatt Western Express Hwy, Anand Nagar, Santacruz East Mumbai, 547 2004 65% 5% 9,500 11,500
MH 400055

9 ITC Grand Central 287, Dr Babasaheb Ambedkar Road, Parel Mumbai, MH 400099 242 2004 65% 30% 15,000 22,000
10 Hotel Sahara Star Chhatrapati Shivaji International Airport Area, Vile Parle East, 223 2006 60% 50% 16,000 25,000
Mumbai, MH 400099
11 The Leela Kempinski Sahar, Andheri East Mumbai, MH 389 2008 60% 60% 1,800 35,000
Mumbai

Item 5 Star 4 Star 3 Star

Average No of rooms 354 101 47

Average Occupancy (%) 59% 58% 59%

Average Rack Rate (INR per night) 12,000 - 25,000 7,700 - 13,500 4,800 - 7,500

49
upcoming Hotels

Developer Brand Location No of Rooms Expected Completion

Royal Orchid Royal Orchid Lokhandwala 77 2014

Royal Orchid Royal Orchid Central Powai 250 2015

Four Points Four Points CSIA 250 2015

Taj GVK Taj CSIA 275 2015

Rajesh Builders Radisson Blu Plaza Kanjurmarg 336 2015

Nirmal Lifestyle Sofitel Mulund 450 2017

Litolier Group Swissotel Grand Andheri Kurla Rd 300 2014

Kanakia NA Andheri 299 N/A

50
Future outlook

 The various micro markets in Mumbai with the exception of the CBD area have all seen continuous additions to office
stock that has continued to fuel demand for hotels.
 Areas such as Bandra Kurla Complex (BKC, now considered the new CBD), Andheri, Malad, Vikhroli and Goregaon
continue to witness the setting up of new offices resulting in most hotels located in these micro markets witnessing
growth in demand.
 Majority of the new supply expected to enter the Mumbai market is also located in the North Mumbai micro markets
of BKC, Andheri, Chembur and Mulund.
 Increase in supply, however, over the short term, is expected to be fairly muted Mumbai (including Navi Mumbai)with
inventory additions to the city primarily being on account of expansions and renovations at various hotels.
 Developments such as the Mumbai International Airport Limited (MIAL) landside development that includes several
new hotels, commercial and retail complexes, hospitals and so on, to change the face of Mumbai at large in the
medium-to-long term.
 Additionally, a proposed convention centre currently being developed near the domestic airport is further expected
to augment large scale MICE demand for the city.
 Going forward, with improvements in infrastructure such as the development of the Metro and Monorail, upgradation
of the existing Airport, opening of the Bombay Port Trust Road and so on, outlook for Mumbai remains bullish.

51
office

52
Location map

 The subject land parcel


marked in this figure as the
red star; the area is known
locally as the old AAI colony.
The nearest development is
Prime Corporate Park.

 We have considered Andheri


(East): including Chakala,
Marol, and Andheri Kurla road
and Kalina as primary
competing micro-markets
within SBD West business
district.

 We have identified the largest


commercial developments;
marked in blue circles are the
upcoming projects.

53
SBD WEST micro market

 SBD West consists of markets like Vile Parle, Andheri, Jogeshwari, Malad and Goregaon. Commercial office space
development in SBD West initially began during 2001-2005 with office projects in Malad primarily focused on the
IT/ITeS industry even as Andheri was already an established office market due to the presence of the international
airport. Connectivity on account of the western expressway and suburban train network was already in place to lend an
office market proposition to this business district.
 Post 2005, as office demand in the city began to increase, a flurry of office developments began along the western
expressway in locations like Andheri, Goregaon and Jogeshwari. The under-construction metro rail network of Versova-
Andheri-Ghatkopar also increased the appeal on account of anticipated improvement in the connectivity of the office
market of Andheri. Besides the IT/ITeS industry that had a presence in the region, a large number of occupiers from the
BFSI industry started relocating their back-end support functions to this business district because of the attraction of
lower rentals.
 The BFSI and IT/ITeS industries together contribute about a third of office demand in SBD West. Mid-size
manufacturing sector companies drive a quarter of the office demand here.
 On the back of heightened construction activity on office projects, the stock in the business district more than doubled
from 15.4 mn.sq.ft. in 2008 to 33 mn.sq.ft. in 2012 resulting in a sharp increase in vacancy level. From 6.8% in 2008,
the vacancy in the market has increased to 26.4% at present. Taking cognizance of the supply led slump in the region
some under-construction projects have either been deferred or converted for alternative development

54
SBD WEST micro market

 Going forward, factors like affordable office rentals and


improving East-West connectivity in the city will attract cost
conscious occupiers to SBD West.
 We estimate new project completions to the tune of 9.6
mn.sq.ft. during the next five years. In comparison, our forecast
for absorption is 10.9 mn.sq.ft. The vacancy rate in the
business district will decline during our forecast horizon, and
come down from the current level of 26.4% to 17.3% in 2017.
 While the business district commands relatively lower rentals
at INR 80-130/sq.ft./month, the proposition of affordable real
estate cost will continue to be the critical factor for office
occupiers in this market. In case of significant rental growth,
occupiers will be open to move to SBD Central.
 Taking note of these factors, we forecast rental values in this
business district to increase from INR 80-130/sq.ft./month to
INR 102-166/sq.ft./month during 2013-2017. The capital values
are estimated to increase from INR 9,600-15,600/sq.ft. to INR
13,600-22,100/sq.ft. This would translate into an investor
return of 15% during the forecast horizon.

55
Existing projects (1/4)

Project Size Capital Values


Builder Project Name Location Rental (Rs/Sft/Month) Status %Sold %Leased Unleased
sft (Rs/Sft)
1 Krishna Developers Aawaz Corporate Point Andheri Kurla Road 200,000 80 100 Sold 100 100 0
2 Avighna Builder Advent Plaza Andheri Kurla Road 25,000 110 120 Sold 100 100 0
3 Orbit Croupy Antariksha Andheri Kurla Road 90,000 120 130 Sold 100 100 0
4 Gajra Group Balaji Business Park Andheri Kurla Road 35,000 Sold 100 NFL
5 Leela Group Business Park Andheri Kurla Road 230,000 100 110 Sold 100 100 0
6 Dipti Group Business Park Andheri Kurla Road 180,000 100 110 Sold 100 100 0
7 Developer not Known Business Square Andheri Kurla Road 150,000 140 160 Sold 100 100 0
8 Mittal Builders Commercia Andheri Kurla Road 180,000 15,000-16,000 110 150 Available 85 85.6 25920
9 The 'Wadhwa Group Corporate Building-A Andheri Kurla Road 125,000 110 120 Sold 100 100 0
10 The Wadhwa Group Corporate Building-B Andheri Kurla Road 25,000 110 120 Sold 100 100 0
11 Developer not Known Dhantak Plaza Andheri Kurla Road 72,000 90 110 Available 100 90 7200
12 Kanakia Dynasty Andheri Kurla Road 130,000 110 130 Sold 100 100 0
13 Developer not Known Everest Chambers Andheri Kurla Road 80,000 80 100 Sold 100 100 0
14 Gundecha Builders Gundecha Onclave Andheri Kurla Road 250,000 90 120 Available 100 76.8 58000
15 Developer not Known Indiana Business Centre Andheri Kurla Road 128,000 80 110 Available 100 57 55040
16 Kalpataru Kalpataru Square Andheri Kurla Road 252,000 13,500-17,000 125 160 Available 100 92.5 18900
17 Developer not Known Key Tech Park Andheri Kurla Road 110,000 90 100 Sold 100 100 0
18 Developer not Known Litolier Chambers Andheri Kurla Road 70,000 110 150 Available 100 0 70000
19 Pantheon Infrastructure Logitech Park Phase-I & II Andheri Kurla Road 100,0000 110 120 Available 100 92.9 71000
20 Sumer Group Sahar Plaza Andheri Kurla Road 350,000 120 150 Available NFS 92.9 24850
21 Skyline Group Skyline Icon Ph-I Andheri Kurla Road 450,000 90 Available NFS 88.9 49950
22 Satellite Group Solitaire Corporate Park Andheri Kurla Road 1,000,000 150 160 Sold 100 100 0
23 Sagar Builders Tech Plaza Andheri Kurla Road 150,000 110 130 Sold 100 100 0
24 Tata Technopolish Knowledge Park Andheri Kurla Road 350,000 110 120 Sold 100 100 0
25 Ajmera Times Square(IT PARK) Andheri Kurla Road 1,100,000 13,500-14,500 125 145 Available 70 70 330000
26 Developer not Known Trade Globe Andheri Kurla Road 61,000 90 105 Sold 100 100 0
27 Kamal Constructions Trade Star Andheri Kurla Road 250,000 100 120 Sold 100 100 0
28 Silver Group Utopia Andheri Kurla Road 325,000 16,500 130 150 Available 61.5 84.6 50050
29 The Wadhwa Group Vedanta Business Park Andheri Kurla Road 150,000 110 140 Available 100 90 15000
30 Shelter Group Wellington Business Park Andheri Kurla Road 160,000 90 110 Available 100 95 8000

56
Existing projects (2/4)

Project Size Capital Values


Builder Project Name Location Rental (Rs/Sft/Month) Status %Sold %Leased Unleased
sft (Rs/Sft)
31 Sky Builder 119 Business Point Andheri(E) 100000 90 120 Available 100 0 100000
32 Kanakia 215 Atrium Andheri(E) 300000 115 125 Sold 100 100 0
33 Kanakia 349 Business Point Andheri(E) 85000 130 170 Sold 100 100 0
34 Shamrock Developers Aar Pee Centre Andheri(E) 45000 90 100 Available 100 95.5 2025
35 Shamrock Developers Aar Pee Chamber Andheri(E) 74000 12000-16000 80 100 Available 0 0 74000
36 Hubtown (Ackruti City) Ackruti Star Andheri(E) 450000 11000-12500 110 120 Available 90 88.9 49950
37 Acme Group Acme Plaza Andheri(E) 120000 125 140 Sold 100 100 0
38 Developer not Known Ahura Centre Andheri(E) 232000 90 110 Sold 100 100 0
39 Hubtown (Ackruti City) Akruti Business Port Andheri(E) 139000 100 120 Sold 100 100 0
40 Hubtown (Ackruti City) Akruti Centre Point Andheri(E) 214000 11000-12500 90 125 Sold 100 100 0
41 Hubtown (Ackruti City) Akruti Softech Park Andheri(E) 126000 100 110 Sold 100 100 0
42 Hubtown (Ackruti City) Akruti Trade Centre Andheri(E) 220000 100 130 Sold 100 100 0
43 Dynamix Balwas Group Ascot Centre Andheri(E) 150000 100 130 Available 100 80 30000
44 Baba Developers Baba House Andheri(E) 70000 100 120 Available 100 90 7000
45 Developer not Known Bahar Cinema(HSBC House) Andheri(E) 70000 100 110 Sold 100 100 0
46 31Ifort Group Boston House Andheri(E) 150000 130 140 Sold 100 100 0
47 Kamla Landmarc Brahans Business Park Andheri(E) 101000 12000 90 100 Available 30 30 70700
48 Wellington Group Business Park-1 Andheri(E) 75000 100 125 Sold 100 100 0
49 Wellington Group Business Park-2 Andheri(E) 75000 14500-16000 100 125 Available 83.3 30 52500
50 Basons Investment Centre Point Andheri(E) 80000 120 135 Sold 100 100 0
Chintamani
51 Chintamani Plaza Andheri(E) 140000 100 120 Sold 100 100 0
Construction
52 The Wadhwa Group Corporate Enclave Andheri(E) 150000 100 110 Sold 100 100 0
53 Ecohomes Eco Space Andheri(E) 90000 100 110 Sold 100 100 0
54 Developer not Known Elbee House Andheri(E) 65000 140 150 Sold 100 100 0
55 Developer not Known Elegant Business Park Andheri(E) 100000 120 130 Sold 100 100 0
56 KSL Group Empress Nucleus Andheri(E) 10000 100 120 Sold 100 100 0
57 Everest Developer Everest Grande Andheri(E) 180000 15000 100 115 Available 80 90 18000
58 Kamla Landmarc Executive Enclave 9 Andheri(E) 78000 12000 90 110 Available 10 0 78000
59 Ekta World Hyde Park Andheri(E) 130000 90 110 Sold 100 100 0
60 ICC Realty ICC Chambers Andheri(E) 50000 90 100 Sold 100 100 0

57
Existing projects (3/4)

Project Size Capital Values


Builder Project Name Location Rental (Rs/Sft/Month) Status %Sold %Leased Unleased
sft (Rs/Sft)
61 Are Imperiurn Andheri(E) 43500 85 200 Available NFS 63.2 16008
62 Rajendra Builders Inizio Andheri(E) 135000 11500-13500 100 110 Available 100 50 67500
63 Acme Group I-Tech Park Andheri(E) 72000 90 110 Sold 100 100 0
64 Developer not Known Jai Singh Business Centre Andheri(E) 30000 100 135 Sold 100 100 0
65 K.S. Construction K.K Square Andheri(E) 90000 140 155 Available 100 94.4 5040
66 HDIL Kaledonia Andheri(E) 610000 120 130 Available NFS 95 30500
67 Kamla Landmarc Kamla Corporate Park Andheri(E) 126000 10000-12500 90 110 Available 38.9 0 126000
68 Kamla Landmarc Kamla Executive Park Andheri(E) 150000 130 145 Sold 100 100 0
69 Developer not Known Krishna Business Park Andheri(E) 100000 90 110 Sold 100 100 0
70 Developer not Known Krislon House Andheri(E) 150000 80 110 Available 100 80 30000
71 Shakti Developer Kushwah Andheri(E) 35000 11000-12000 Available 70 NFL
72 Silver Group LandMark Andheri(E) 150000 110 120 Sold 100 100 0
73 Leela Group Leela Galleria Andheri(E) 50000 110 120 Sold 100 100 0
74 Marwah Developers Marwah Centre Andheri(E) 118000 110 125 Sold 100 100 0
75 Marwah Developers Marwah House Andheri(E) 61000 90 125 Sold 100 100 0
76 Rustomjee Group Natraj Andheri(E) 230000 150 160 Sold 100 100 0
77 Dattani Developers Plaza Andheri(E) 150000 9000-10000 80 110 Available 60 40 90000
78 Aditya Enterprises Pranik Chambers Andheri(E) 150000 80 110 Sold 100 100 0
79 Pride Housing Prime Corporate Park Andheri(E) 112000 110 130 Available NFS 94.6 6048
80 Developer not Known Sahar Classic Andheri(E) 27000 90 110 Sold 100 100 0
15;000-
81 Sumer Group Sahar Plaza Windfall Andheri(E) 352000 110 150 Available 21.6 94.3 20064
16000
82 Satellite Group Satellite Gazebo Andheri(E) 352000 16500-18000 150 175 Available 0 0 352000
83 Satellite Group Satellite Silver Andheri(E) 110000 110 120 Sold 100 100 0
84 Sumer Group Sumer Plaza Andheri(E) 135000 110 120 Available 100 95.2 6480
85 Swaroop Groupy Swaroop Centre Andheri(E) 17000 120 130 Available 100 97.1 493
86 Cresent Realty The Avenue Andheri(E) 70000 90 110 Available 100 88.6 7980
87 Kanakia The Eagles Flight Andheri(E) 85000 100 110 Sold 100 100 0
88 Indrajit Infrastructure The Qube Andheri(E) 267000 110 125 Available 100 85 40050
89 Dudhwala Group Town Centre Andheri(E) 80000 100 130 Sold 100 100 0
90 Dudhwala Group Town Centre II Andheri(E) 98000 95 110 Available 100 90.8 9016

58
Existing projects (4/4)
Capital Values
Builder Project Name Location Project Size sft Rental (Rs/Sft/Month) Status %Sold %Leased Unleased
(Rs/Sft)
91 Atul Projects Trade Avenue Andheri(E) 53000 100 120 Sold 100 100 0
92 Atul Projects Trans Trade Centre Andheri(E) 222000 100 120 Sold 100 100 0
93 Vaman Builder Vaman Techno Centre Andheri(E) 85000 90 110 Sold 100 100 0
94 G.S.Sethi & Sons Central Plaza Kalina 60000 170 232 Sold 100 100 0
95 Gold Coin Builders Diamond Square Kalina 1000000 220 240 Sold 100 100 0
20000-
Grande Palladium Kalina 153000 200 250 Sold 100 100 0
96 GMS Construction 24000
97 KK Krishnan Developers Harbhajan Building Kalina 50000 160 160 Available NFS 80 10000
98 Lotus Group Lotus Mid Town Kalina 340000 100 140 Sold 100 100 0
99 Orbit Corporation Orbit Plaza Kalina 110000 190 210 Sold 100 100 0
100 Oberoi Realty Garden Estates Chandivali 500000 80 100 Sold 100 100 0
101 Hiranandani Light Hall Chandivali 147000 14500-15500 110 150 Available 65 35 95550
102 Hiranandani Light Hall IT Park Chandivali 245000 14500-15500 110 130 Available 0 0 245000
Onyx (Mirchandani Business
Chandivali 65000 80 130 Available 100 78.4 14040
103 Mirchandani Group Park)
104 Srishti Group Srishti Plaza Chandivali 45000 60 80 Sold 100 100 0
105 Mighty Constructions Universal Business Park Chandivali 130000 100 110 Sold 100 100 0

Stock 17,775,500  For evaluating the subject properties we have considered


2,083,264
Andheri Kurla Road, Andheri (East), and Kalina as the competing
Un-leased
micro-market within SBD (West) business district.
Vacancy 12%

Average Rental Range 110-130

Capital Value Range 11000-20000

59
Future supply
Rental
Project Capital Values Unleased/U
Builder Project Name Location (Rs/Sft/M Status %Sold %Leased
Size sft (Rs/Sft) nsold
onth)
1 Kanakia Atrium II Andheri Kurla Road 100000 17500-18000 175 225 Available 90 10 90000
2 Lokhandwala Builders City Park Andheri Kurla Road 150000 9000 Available 0 30 105000
3 Skyline Group Skyline Icon Ph-II Andheri Kurla Road 600000 140 160 Available NFS 0 600000
4 Ajmera Times Square (Wing D) Andheri Kurla Road 90000 13950 Available 0 NFL 90000
5 Shamrock Developers AAR PEE COMPLEX Andheri(E) 55000 10000-13000 Available 0 NFL 55000
6 Dheeraj Group August House Andheri(E) 126000 15800-16500 Available 77.8 NFL 27972
7 KSL Group Business Bay Andheri(E) 100000 12500-13000 90 120 Available 20 0 100000
8 Rustomjee Group Central Park Andheri(E) 200000 14500-16000 Available 25 0 200000
9 Atul Projects Corporate Avenue Andheri(E) 250000 16500-17500 120 180 Available 4 0 250000
10 Crescent Construction Crescent Icono Andheri(E) 190025 12000 Available 60.5 NFL 75059.88
11 Kamla Landmarc Kamla Business Avenue Andheri(E) 115000 16000 Available 90 NFL 11500
12 Krishna Ventures Krishna Corporate Pride Andheri(E) 180000 50 80 Available NFS 61.1 70020
13 N Kumar Developers Poonam Plaza Andheri(E) 100000 17000 110 120 Available 45 0 100000
14 Right Channel Constructions Tandice-69(Mahesh Excellency) Andheri(E) 120000 14000-15000 Available 60 0 120000
15 Omkar Realtors & Developers The Summit (Business Bay) Andheri(E) 500000 13000 Available 52.8 NFL 236000
16 Ajmera Ajmera Summit Kalina 50000 22500-25000 Available 0 NFL 50000
17 Kanakia Bommerang Chandivali 1200000 14500-15000 Available 10 20 1080000

Unsold/Unleased Inventory 3,260,552


Total Upcoming Supply 4,126,025

60
retail

61
Retail catchment map

 The subject site is surrounded by a dense


retail supply.
 Infinity Mall in Andheri (East) is the most
successful established mall in the Primary
Catchment.
 Phoenix Market City in Kurla is the more recent
and the largest retail development in the
primary catchment. R-City mall is the largest
retail development in the secondary
catchment.
 Times Square a mixed use retail & commercial
development and Prime Mall is the nearest
prominent retail development from the subject
sites.
 While Globus is the only mall is Bandra; te
market is underserved and the subject site
has the potential to cater to this demand.
 The primary catchment also has one major
upcoming mixed use retail development,
Hubtown Solaris in Andheri (W)

62
Existing projects (1/2)

Rental
Launched Total Prj Primary Price
Builder Project Type Project Name Location (Rs/sqft/ Status %Sold %Leased
Sqft Sqft (Rs/sqft)
Month)
Ahuja Group Malls Ahuja Link Santacruz(W) 17,000 17,000 150-200 Sold NFS 100

Akshayraj Buildwell Malls Ark Arcade Andheri(W) 210,000 210,000 12000-18000 Available 97.6 NFL

Ajmera Malls Citi Mall Andheri(W) 130,000 130,000 100-150 Sold 100 100

Cosmos Group Offices/Retail Cosmos Plaza Andheri(W) 134,600 134,600 14,500 90-170 Available 75 75

Mukesh Group Malls Crystal Point Andheri(W) 300,000 300,000 100-150 Available NFS 90

DLH Offices/Retail D Mall Andheri(W) 32,000 32,000 15000-20000 150 Available 75 0

Goel Ganga Group Offices/Retail East Point Kurla(E) 118,000 118,000 10500-15000 80-150 Available 30 0

Kishore Bhai Malls G7 Mall Andheri(W) 125,000 125,000 160-280 Available NFS 48

Globus (R Raheja Group) Malls Globus Bandra(W) 400,000 400,000 250-300 Sold 100 100

Hyatt Group Malls Hyatt Plaza Santacruz(E) 107,000 107,000 190-240 Available NFS 97.2

K Raheja Constructions Malls Infinity Andheri(W) 275,000 275,000 140-200 Sold NFS 100

Kamla Landmarc Offices/Retail Kamla Avionee Vile Parle(W) 30,000 30,000 Sold 100 NFL

Kamla Landmarc Offices/Retail Kamla Spaces Santacruz(W) 90,000 90,000 18000-30000 175-240 Available 91.1 27.8

Kohinoor Planet Malls Kohinoor City Mall Kurla(W) 300,000 300,000 10000-16000 80-125 Available 16.7 66.7

Lotus Group Offices/Retail Lotus Neptune Andheri(W) 91,000 91,000 15000-18000 Available 50 NFL

63
Existing projects (2/2)

Rental
Launched Total Prj Primary Price
Builder Project Type Project Name Location (Rs/sqft/ Status %Sold %Leased
Sqft Sqft (Rs/sqft)
Month)
Man Infra Construction Offices/Retail Man Excellenza Vile Parle(W) 90,000 90,000 21000-35000 Available 57,8 NFL

Phoenix Mall Malls Market City Mall Kurla(W) 1,100,000 1,100,000 140-400 Available NFS 95.5

Dudhwala Group Malls Mega Mall Andheri(W) 360,000 360,000 200-300 Sold 100 100

Dynamix Balwas Group Malls Milan Mall Santacruz(W) 175,000 175,000 150-175 Sold 100 100

DLH Offices/Retail New Chandra Andheri(W) 30,000 35,000 17,000 Available 90 NFL

A P Properties Offices/Retail Orion Santacruz(W) 80,000 80,000 30,000 200 Available 45 25

Sagar Builders Malls Pallazio Andheri(E) 60,000 60,000 110-130 Sold 100 100

Satra Group Malls Prime Mall Vile Parle(W) 130,000 130,000 100-200 Sold 100 100

Suvidha Devlopers Offices/Retail S M Square Andheri(W) 80,000 80,000 15500-22000 100-250 Available 0 0
Kamanwala Housing
Offices/Retail Savoy Chambers Santacruz(W) 100,000 100,000 135-250 Sold 100 100
Construction
Hubtown (Ackruti City) Offices/Retail Solaris Andheri(E) 850,000 850,000 15500-20000 150-175 Available 58.8 40
Andheri Kurla
Ajmera Malls Times Square (Retail) 149,000 149,000 21,000 180 Available 50 50
Road
Developer Not Know Offices/Retail Viraj Tower Andheri(E) 120,000 120,000 100-150 Available 100 79.2

Rodium Realty Ltd Offices/Retail X trium Andheri(E) 82,000 82,000 25,000 175-220 Available 86.9 86.9

64
Upcoming projects

Rental
Launched Total Prj Primary Price
Builder Project Type Project Name Location (Rs/sqft/ Status %Sold %Leased
Sqft Sqft (Rs/sqft)
Month)
Lotus Group Offices/Retail Lotus Pride Vile Parle(W) 25,000 25,000 17000-18000 160-175 Available 50 60

Phoenix Mall Offices/Retail Phoenix Bazaar Kurla(W) 420,000 420,000 10,000 Available 36 NFL
Windsor Corporate
Windsor Realty Offices/Retail Andheri(W) 120,000 120,000 18,000 160-180 Available 55.5 0
Park

Stock 5,699,600

Un-leased 1,266,228

Vacancy 2%

Average Rental Range 140-200

Capital Value Range 16,500-21,000

65
Demand
forecast

66
hospitality

67
Hotel demand estimation (1/2)

 The hospitality demand has been estimated on the basis of Market Side Approach. Located close to airport, the hotel
potential of subject sites is highly dependent on the travellers arriving at Mumbai Airport.
 The assumptions for this analysis has been derived as follows,
 Growth Rate is tourist flow has been calculated using the CAGR of air passenger traffic arriving at Mumbai Airport
over past 5 years.
 Hotel potential has been assumed at 25% for domestic and 70% for international travellers. The same has been
arrived considering the traveller profile who arrive at Mumbai Airport
 Catchment Share of 20% has been assumed. This has been derived on the basis of the share of existing/future
hotel supply in the micro market vis-à-vis the entire Mumbai.
 The share of 5 Star, 4 Star and 3 Star guests in domestic and international travellers has been arrived on the basis
of the Guest Analysis survey conducted by FH&RA.
 Overall Share of a tourist segment in a star category = Tourist Potential * Catchment Share * Share of the star
category
 Number of guests staying per room has been assumed at 1.5

68
Hotel demand estimation (2/2)

 Future occupancy in the market has been assumed as follows. The same has been derived based on the proposed
supply in the micro-market. Due to the high future supply, the average occupancy in the micro-market is expected
to dip on account of demand-supply dynamics before it reaches a stable level.

2013P 2014P 2015P 2016P 2017P 2018P 2019P 2020P

59% 60% 55% 50% 50% 55% 60% 65%

 Share of subject development has been arrived based on the existing and future supply of hotels in the micro-
market.

69
Hotel demand estimation
assumptions

Demand Assumptions Value Assumption Domestic International


Growth Rate (Tourist Flow) 5%
Hotel Potential 25% 70%
Hotel Potential
Domestic Catchment Share 20% 20%

5 star 0.75%
4 star 2.00% 5 star 15% 60%
3 star 2.25%
4 star 40% 25%
International
3 star 45% 15%
5 star 8.40%
4 star 3.50% Source: FH&RA Hotel Survey, HVS Hotel Survey, Knight Frank Research

3 star 2.10%
Share of Subject Development
Passenger Traffic Mumbai International Airport
5 star 5%
4 star 5%
(in Millions) 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13*
3 star 3%
Average No. of tourists per Domestic 11.68 14.9 17.88 15.32 17.37 20 21.04 9.6
1.5
room
International 6.73 7.35 7.98 8.12 8.23 9.08 9.7 4.81

Total
18.41 22.25 25.9 23.44 25.6 29.07 30.75 14.41
Passengers

Growth Y-o-Y (%) 17.5 20.9 16.2 -9.4 9.2 13.5 5.8

Source: http://www.apaoindia.com

70
Hotel demand estimation
5 star

Particulars Years

Tourist Flow 2007 2008 2009 2010 2011 2012 2013P 2014P 2015P 2016P 2017P 2018P 2019P 2020P

No of Tourists (mn)

Domestic 17,880,000 15,320,000 17,370,000 20,000,000 21,040,000 22,512,800 23,574,469 24,686,204 25,850,367 27,069,430 28,345,982 29,682,735 31,082,526 32,548,330

International 7,980,000 8,120,000 8,230,000 9,080,000 9,700,000 10,379,000 10,868,458 11,380,997 11,917,707 12,479,728 13,068,252 13,684,531 14,329,872 15,005,646

Share of 5 star

Domestic 134,100 114,900 130,275 150,000 157,800 168,846 176,809 185,147 193,878 203,021 212,595 222,621 233,119 244,112

International 670,320 682,080 691,320 762,720 814,800 871,836 912,950 956,004 1,001,087 1,048,297 1,097,733 1,149,501 1,203,709 1,260,474

Hotel Potential 804,420 796,980 821,595 912,720 972,600 1,040,682 1,089,759 1,141,150 1,194,965 1,251,318 1,310,328 1,372,121 1,436,828 1,504,587

- - - -

Occupancy 72% 69% 56% 58% 58% 59% 59% 60% 55% 50% 50% 55% 60% 65%
No. of Room nights generated
744,428 770,169 977,378 1,052,774 1,123,640 1,177,758 1,231,366 1,267,945 1,448,443 1,668,424 1,747,104 1,663,177 1,596,476 1,543,166
(per annum)
No. of Rooms Required 2,040 2,111 2,678 2,885 3,079 3,227 3,374 3,474 3,969 4,572 4,787 4,557 4,374 4,228

Existing no of rooms 3,510 3,899 3,899 3,899 3,899 3,899

Additional Rooms Required 888

Share of Subject Development 250

There shall be demand of 888 additional 5 star rooms in the micro market. Based on the upcoming
supply we estimate a demand of 250 five star rooms at our site

71
Hotel demand estimation
4 star

Particulars Years

Tourist Flow 2007 2008 2009 2010 2011 2012 2013P 2014P 2015P 2016P 2017P 2018P 2019P 2020P

No of Tourists (mn)

Domestic 17,880,000 15,320,000 17,370,000 20,000,000 21,040,000 22,512,800 23,574,469 24,686,204 25,850,367 27,069,430 28,345,982 29,682,735 31,082,526 32,548,330

International 7,980,000 8,120,000 8,230,000 9,080,000 9,700,000 10,379,000 10,868,458 11,380,997 11,917,707 12,479,728 13,068,252 13,684,531 14,329,872 15,005,646

Share of 5 star

Domestic 357,600 306,400 347,400 400,000 420,800 450,256 471,489 493,724 517,007 541,389 566,920 593,655 621,651 650,967

International 279,300 284,200 288,050 317,800 339,500 363,265 380,396 398,335 417,120 436,790 457,389 478,959 501,546 525,198

Hotel Potential 636,900 590,600 635,450 717,800 760,300 813,521 851,885 892,059 934,127 978,179 1,024,308 1,072,613 1,123,196 1,176,164

- - - -

Occupancy 72% 69% 56% 58% 58% 59% 59% 60% 55% 50% 50% 55% 60% 65%
No. of Room nights generated
991,177 1,132,275 1,300,137
(per annum) 589,401 570,732 755,938 827,944 878,371 920,676 962,582 1,304,239 1,365,745 1,247,996 1,206,322
No. of Rooms Required 1,615 1,564 2,523 2,716 3,103 3,574 3,563 3,420
2,072 2,269 2,407 2,638 3,742 3,305
Existing no of rooms 454 580 580 625
706 706
Additional Rooms Required
3,036
Share of Subject Development 190

There shall be demand of 3,036 additional 4 star rooms in the micro market. Based on the upcoming
supply we estimate a demand of 190 four star rooms at our site

72
Hotel demand estimation
3 star

Particulars Years

Tourist Flow 2007 2008 2009 2010 2011 2012 2013P 2014P 2015P 2016P 2017P 2018P 2019P 2020P

No of Tourists (mn)

Domestic 17,880,000 15,320,000 17,370,000 20,000,000 21,040,000 22,512,800 23,574,469 24,686,204 25,850,367 27,069,430 28,345,982 29,682,735 31,082,526 32,548,330

International 7,980,000 8,120,000 8,230,000 9,080,000 9,700,000 10,379,000 10,868,458 11,380,997 11,917,707 12,479,728 13,068,252 13,684,531 14,329,872 15,005,646

Share of 5 star

Domestic 402,300 344,700 390,825 450,000 473,400 506,538 530,426 555,440 581,633 609,062 637,785 667,862 699,357 732,337

International 167,580 170,520 172,830 190,680 203,700 217,959 228,238 239,001 250,272 262,074 274,433 287,375 300,927 315,119

Hotel Potential 569,880 515,220 563,655 640,680 677,100 724,497 758,663 794,441 831,905 871,136 912,218 955,237 1,000,284 1,047,456

- - - -

Occupancy 72% 69% 56% 58% 58% 59% 59% 60% 55% 50% 50% 55% 60% 65%
No. of Room nights generated
527,380 497,888 670,530 738,990 782,250 819,926 857,246 882,712 1,008,370 1,161,515 1,216,291 1,157,863 1,111,427 1,074,314
(per annum)
No. of Rooms Required 1,445 1,365 1,838 2,025 2,144 2,247 2,349 2,419 2,763 3,183 3,333 3,173 3,046 2,944

Existing no of rooms 621 621 652 700 914 937

Additional Rooms Required 2,396

Share of Subject Development 90

There shall be demand of 2,396 additional 3 star rooms in the micro market. Based on the upcoming
supply we estimate a demand of 90 three star rooms at our site

73
office

74
Office demand estimation

 Demand for office space is dependent upon the requirement of occupiers, whether it is for a new office, expansion of
existing office or relocation. Requirement is in turn driven by the growth in revenue of these occupiers. For the purpose
of this study, we have classified occupiers into four broad industries namely IT/ITeS, manufacturing, BFSI and other
service sectors based on the past absorption trend of office space in India. These industries are referred to as the
driver industries.
 The office demand has been estimated on the basis of "Bottom Up Approach".
 Bottom-up approach
 The business potential is estimated for IT/ITeS and BFSI sector and gross revenue is forecasted.

 Regression analysis has been performed with office space as dependent variable and Size of BFSI industry and size of ITES
industry as dependent variable.

 Net space requirement shall be estimated by deducting the existing supply from the gross required space.

75
Office demand estimation

IT/ITES BFSI New Completion Absorption (mn Occupied stock (mn


Year Stock Vacancy (%)
(INR bn) (INR bn) (mn sq. ft.) sq. ft.) sq. ft.) There shall be
2003 3.4 3.1 10.0% demand of
2004 356 1,651 4.1 0.7 0.6 3.7 10.0%
2005 470 1,711 5.1 1.0 0.9 4.6 10.0% additional
2006 626 2,043 7.1 2.0 1.8 6.4 10.0%
3 million sq. ft.
2007 936 2,561 9.25 2.1 1.9 8.3 10.0%
2008 1,118 3,374 11.5 2.3 2.4 10.7 7.0% office space in
2009 1,322 4,271 13.4 1.9 0.7 11.4 15.0%
2010 1,322 4,580 16.1 2.6 2.2 13.7 15.0% the micro
2011 1,474 5,404 17.9 1.8 0.6 14.3 20.0%
market by 2017
2012 1,651 5,719 19.2 1.4 0.1 14.4 25.0%
2013E 1,816 6,392 20.9 1.7 2.4 16.8 Oversupply
2014E 1,998 7,126 21.3 0.4 1.6 18.5 Oversupply
2015E 2,218 7,925 22.0 0.7 1.9 20.4 Oversupply
2016E 2,484 8,792 22.2 0.2 2.3 22.7 Undersupply
2017E 2,782 9,732 22.2 - 2.5 25.2 Undersupply
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.993815
R Square 0.987667
Adjusted R Square 0.983557
Standard Error 0.065088
Observations 9

ANOVA
df SS MS F Significance F
Regression 2 2.035672 1.017836 240.2577 1.88E-06
Residual 6 0.025419 0.004236
Total 8 2.06109

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -4.49523 0.483279 -9.30152 8.74E-05 -5.67778 -3.31269 -5.6777756 -3.3126919
IT/ITES 0.786503 0.16158 4.867567 0.002801 0.39113 1.181876 0.39113014 1.18187557
BFSI 0.161655 0.180172 0.897226 0.40416 -0.27921 0.60252 -0.2792099 0.60251955

76
retail

77
retail demand estimation

 The retail demand has been estimated on the basis of "Bottom Up Approach".
 Bottom-up approach
 Primary and secondary catchment is identified

 Retail spending levels of consumers in the region are estimated.

 Based on the revenue potential, gross space requirement is estimated based on the rental levels and the market-wide
proportion of the same to gross revenue.

 Net space requirement shall be estimated by deducting the existing supply from the gross required space.

Catchment Target catchment Total retail market Organized retail Average trading
Mall space demand
identification population size market penetration density

78
retail demand estimation

2012 2013 2014 2015 2016 2017 Source


No. of households in the catchment
Primary Catchment resident population 2,676,900 2,676,900 2,676,900 2,676,900 2,676,900 2,676,900 Skyline Data
Secondary Catchment resident population 899,600 899,600 899,600 899,600 899,600 899,600 Skyline Data
Association Of Private
9,600,000 16,320,000 17,462,400 18,684,768 19,992,702 21,392,191
Travellers Airport Operators
Expected footfalls from primary catchment 60% 60% 60% 60% 60% 60% 60% KF Assumption
Expected footfalls from secondary catchment 40% 40% 40% 40% 40% 40% 40% KF Assumption
Expected footfalls from Travellers 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% KF Assumption
Total population from the residences 1,965,980 1,965,980 1,965,980 1,965,980 1,965,980 1,965,980 Derived
No. of residential households 442,406 442,406 442,406 442,406 442,406 442,406 Census 2011

Average annual household expenditure 458,440 481,362 505,430 530,701 557,236 585098 KF Research, Skyline
Spend on retail 90% 412,596 433,226 454,887 477,631 501,513 526,588 KF Assumption
Total demand from residential population in INR mn 182,535 191,662 201,245 211,307 221,872 232966 Derived
Conversion from tourists 40%
Average expenditure per traveller 3,000 3,150 3,308 3,473 3,647 3,829
Total demand from travellers in INR mn 115 206 231 260 292 328 Derived

Average trading density 5,000 5,250 5,513 5,788 6,078 6,381 KF Research
Total retail space required in mn sq.ft 37.13 37.15 37.15 37.15 37.15 37.16 Derived
% share of organized retail space 40% 40% 42% 44% 46% 49% 51% KF Assumption
% share of mall space 50% 50% 50% 50% 50% 50% 50%
Total Organized retail space required 7.4 7.8 8.2 8.6 9.0 9.5 Derived
Existing +Upcoming Mall space 4.56 5.04 5.09 5.09 5.09 5.34 KF Research
Demand (in mn sq.ft) 2.9 2.8 3.1 3.5 3.9 4.1 Derived

There shall be demand of additional 4.1 million sq. ft. retail space in the micro market by 2017

79
recommendations

80
Plot no : Ns-CO2
North sahar zone

Avg room
Proposed Hotel No of Hotel Banquet Hall Office/Retail Commercial/ Remaining
Plot No. FSI/ Max. Gross Built-Up Area (sq. ft.) size
Category Rooms (sq. ft.) (sq. ft.) (sq. ft.) Retail % Area (sq. ft.)
(sq. ft.)

NSCO2 770,545 5 star 300 1000 300,000 10,500 192,636 25% 267,409

Product Area (sq. ft.) % Share For this land parcel the minimum room requirement is in line with our market demand
Hotel 300,000 39% assessment. Based on the numbers presented in the table, the development shall
Banquet Hall 10,500 1% has 0.27 million sq. ft. of excess development potential. The same has been arrived
Office/Retail 192,636 25% after constructing the minimum rooms indicated in RFQ document and maximum
Remaining Area 267,409 35% permissible office/retail component indicated in indicative floor plans. The minimum
770,545 100% rooms and suggested office/retail component are within the market demand
Hotel suggested in previous section.
Category 5 star The excess area can be utilized via two strategies-
No of rooms 300
i. Strategy 1 (High Commercial)- The 267,409 sq. ft. of excess space shall be used
Average Room Size (sq. ft.) 1000
for commercial use as an annexure commercial block with support retail.
Achievable ARR (INR per night) 7,000 - 7,500 However, the same is subject to the grant of requisite approvals from MIAL and
Average Occupancy 60% MMRDA.

Banquet Hall ii. Strategy 2 (Phased Development) - The remaining area can be used for
Capacity (persons) 700
constructing 267 additional 5 star rooms. However, based on our demand
assessment, we understand that there is not so much demand in market at
Average Occupancy 40%
present. Hence, under this strategy we recommend a phased development,
Rate (INR/person) 1200
wherein these additional 267 rooms be constructed after 4-5 years when there
shall be adequate demand in the market.

81
Plot no : Ns-CO3
North sahar zone

Avg room
Proposed Hotel No of Hotel Banquet Hall Office/Retail Commercial/ Remaining
Plot No. FSI/ Max. Gross Built-Up Area (sq. ft.) size
Category Rooms (sq. ft.) (sq. ft.) (sq. ft.) Retail % Area (sq. ft.)
(sq. ft.)

NSCO3 394,900 4 star 300 800 240,000 10,500 98,725 25% 45,675

Product Area (sq. ft.) % Share For this land parcel the minimum room requirement is in line with our market
Hotel 240,000 51% demand assessment. Based on the numbers presented in the table, the
Banquet Hall 10,500 3% development shall has 0.05 million sq. ft. of excess development potential. The
Office/Retail 98,725 25% same has been arrived after constructing the minimum rooms indicated in RFQ
Remaining Area 45,675 22% document and maximum permissible office/retail component indicated in indicative
394,900 100% floor plans. The minimum rooms and suggested office/retail component are within
Hotel the market demand suggested in previous section.
Category 4 star
The excess area can be utilized via two strategies-
No of rooms 300
i. Strategy 1 (High Commercial) - The 45,675 sq. ft. of excess space shall be used
Average Room Size (sq. ft.) 800
for commercial use as an annexure commercial block with support retail.
Achievable ARR (INR per night) 5,500 - 6,000 However, the same is subject to the grant of requisite approvals from MIAL and
Average Occupancy 60% MMRDA.

Banquet Hall ii. Strategy 2 (Phased Development - The remaining area can be used for
Capacity (persons) 700 constructing 57 additional 4 star rooms. However based on our demand
40%
assessment, we understand that there is not so much demand in market at
Average Occupancy
present. Hence, under this strategy we recommend a phased development,
Rate (INR/person) 1000
wherein these additional 107 rooms be constructed after 2-3 years when there
shall be adequate demand in the market.

82
Plot no : Ns-CO4
North sahar zone

Avg room
FSI/ Max. Gross Built-Up Area (sq. Proposed Hotel No of Hotel Banquet Hall Meeting Hall Office/Retail Commercial/ Remaining
Plot No. size
ft.) Category Rooms (sq. ft.) (sq. ft.) (sq. ft.) (sq. ft.) Retail % Area (sq. ft.)
(sq. ft.)

4 star 200 800 200,000 10,500 3,000 124,466 25% 159,897


NSCO4 497,863
3 star 80 500 40,000

Product Area (sq. ft.) % Share For this land parcel, the minimum room requirement for 4 star is in line with our
Hotel 200,000 48%
market demand assessment. However for 3 star rooms, we suggest a maximum of 80
Banquet Hall 10,500 2%
Meeting Hall 3,000 1% room Based on the numbers presented in the table, the development shall has 0.16
Office/Retail 124,466 25% million sq. ft. of excess development potential. The same has been arrived after
Remaining Area 159,897 24% constructing the minimum rooms indicated in RFQ document (4 star)/suggested by
497,863 100% demand assessment (3 star) and maximum permissible office/retail component
Hotel indicated in indicative floor plans. The minimum rooms and suggested office/retail
Category 4 star/3 star component are within the market demand suggested in previous section.
No of rooms 200/80
Average Room Size (sq. ft.) 800/500 The excess area can be utilized via two strategies-
5,500 - 6,000 /
Achievable ARR (INR per night) 4,000 - 4,500 i. Strategy 1 (High Commercial)- The 159,897 sq. ft. of excess space shall be used
Average Occupancy 60% for commercial use as an annexure commercial block with support retail.
However, the same is subject to the grant of requisite approvals from MIAL and
Meeting Room (persons) 200 MMRDA.
Average Occupancy 40%
Rate (INR/person) 1000 ii. Strategy 2 (Phased Development - The remaining area can be used for
constructing 200-320 additional rooms, depending on the category. However
Banquet Hall capacity based on our demand assessment, we understand that there is not so much
700
(persons)
Average Occupancy 40%
demand in market at present. Hence, under this strategy we recommend a
Rate (INR/person) 1000 phased development, wherein these additional rooms be constructed after 4-5
years when there shall be adequate demand in the market. 83
Plot no : NV - CO1
North village zone

Avg room
Proposed Hotel No of Hotel Office/Retail Commercial/
Plot No. FSI/ Max. Gross Built-Up Area (sq. ft.) size
Category Rooms (sq. ft.) (sq. ft.) Retail %
(sq. ft.)

NV-CO1 141,041 4 star 200 700 140,000 1,041 1%

Product Area (sq. ft.) % Share For this land parcel the minimum room requirement is in line with our market
Hotel 140,000 99% demand assessment. Based on the numbers presented in the table, the entire
development can be utilized in a single phase of development.
Office/Retail 1,041 1%
141,041 100%

Hotel
Category 4 star
No of rooms 200
Average Room Size (sq. ft.) 700
Achievable ARR (INR per night) 5,500 - 6,000
Average Occupancy 60%

84
Way forward

 Our recommendations are based on the indicative development guidelines coupled with our market demand
estimation. However based on our assessment of the RFQ document and Development Guidelines, we understand
there are certain points which seek clarity. We would recommend that following queries should be raised to GVK
seeking written confirmation on the same.
 The amount of FSI premium payable in event of seeking this additional FSI of 1?
 Would Fungible FSI of 15% (for Staircase, Lift and Lobbies) be applicable above Net FSI of 5?
 What is the maximum percentage/quantum of the approved BUA; that can be utilized for Non Hospitality activities
like commercial/retail for each of these land parcels?
 Can the land use be modified as per provisions of CSIANA DCR Table-49B?
 The tentative plans state the minimum number of rooms approved from each of these land parcels can the same to
be modified?
 What is allowable ground coverage?
 What is the definition of First Class, Mid-Market and Budget category hotel? Can a four star hotel be classified
under First Class?

85
Annexure

86
Annexure i*

 Following are the intercepts of our conversation with GVK officials.


i. The amount of FSI premium payable in event of seeking this additional FSI of 1?
Would Additional FSI of 15% (for Staircase, Lift and Lobbies) be applicable above FSI of 5?
Fungible FSI of 20% can be additionally availed by the bidder by paying MCGM applicable premium (based on RR rates) on base
FSI of 4. Further 15% additional FSI for (Staircase, Lift and Lobbies) would also be applicable on the Base FSI of 4. The same
amounts a maximum possible FSI of 5.4. An FSI of 4.88 has already been sanctioned for the subject land parcels. However, the
maximum FSI utilization should be within the ambit of the envelope defined by the maximum height and ground coverage.

ii. Can the land use be modified as per provisions of CSIANA DCR Table-49B?

Land use is frozen and cannot be modified at a later date as per provisions of CSIANA DCR Table-49B

iii. What is the definition of First Class, Mid-Market and Budget category hotel? Can we do a four star hotel under First Class?

The hotel category classification referred in RFQ doesn't follow Department of Tourism (GoI) guidelines. The indicative floor plans
drawings and minimum room requirement suggested are based on minimum room size requirement. The only criteria for
differentiating room category is the room size.

*The above clarifications are based on our interaction with GVK officials and same should not be interpreted as official communication.
87
Annexure I* Cont…

iv. What is the maximum percentage/quantum of the approved BUA; that can be utilized for Non Hospitality activities like
commercial/retail for each of these land parcels?
The tentative plans state the minimum number of rooms approved from each of these land parcels can the same to be
modified?
What is allowable ground coverage?
The bidder has complete flexibility to design the building; and optimize utilization of commercial, retail.
While hospitality is a mandatory component; the number of rooms specified in the bid documents is indicative and not
mandatory. However the development should be consolidated block same entry and exit like the Westin and Palladium. The
development timelines in 5 years for 100% of the sanctioned development from date of signing of lease to CoD. MIAL is expected
to release land having potential for 8,000 rooms supply in the next 8 years.
Ground coverage should be arrived at from the applicable setbacks stated in the development guidelines.

*The above clarifications are based on our interaction with GVK officials and same should not be interpreted as official communication.
88
Thank You

89