6[2].Knight Frank Report

Final Report for A.�. buildwell Pvt. Ltd.

Consultancy Services – Knight Frank 1

FINAL REPORT

Feasibility Study for an IT Park at CP – 4, Sector-8, IMT Manesar Undertaken for - A. N. Buildwell Pvt. Ltd. APRIL 2008

KNIGHT FRANK (INDIA) PVT. LTD Advisory Services 201-202, Tower ‘A’, Signature Towers, South City – 1, Gurgaon 122001, Haryana www.knightfrank.com



CONTENTS 1. SITE ANALYSIS .................................................................................................................................. 3

2. IT-ITES SECTOR IN NCR REGION ................................................................................................. 5

3. GURGAON REAL ESTATE OVERVIEW ........................................................................................ 8

4. IMT MA�ESAR – A BRIEF OVERVIEW ...................................................................................... 13

5. SECTOR 8 – DEMOGRAPHIC ANALYSIS .................................................................................. 16

6. CURRENT REAL ESTATE TRANSACTIONS ............................................................................. 18

7. COMPETITIVE HUBS BY UNITECH & DLF ................................................................................ 20

8. PRODUCT MIX: ................................................................................................................................. 41

9. PRIMARY RESEARCH .................................................................................................................... 42

10. COMPETITION FROM IT SEZs.................................................................................................... 52

11. EXIT STRATEGIES......................................................................................................................... 54



1. SITE ANALYSIS The property is a freehold land located in Sector – 8 of IMT Manesar, Gurgaon. Property Description Location The property is a vacant land parcel. It was allotted to M/s A. N. Buildwell Pvt. Ltd.; on 18

th April’2006. The

address of the property is; CP – 4, IMT Manesar, Gurgaon.

Entrance to the site Site Area

Neighborhood The property is located in an industrial area of Sector 8, IMT Manesar, Gurgaon. In this sector approximately 141 acres of land has been allocated for IT parks only. The plots have been allotted to developers and promoters for their development as IT parks. There are total of 10 developers who have been allotted these plots, with approximate area of 10 acres, each.

BL Kashyap group is doing construction on plot no. CP 5 for Airtel

The IMT Manesar has a total extent of approx. 1736 acres, divided into various sectors. The IMT Manesar in itself is a self sustainable industrial township with specific areas meant for industrial, institutional, commercial, residential etc activities.



Construction is on the full swing on some of the other nearby plots

The industrial plots here are of varied sizes; generally vary from 1,000 sq.mt to 12,000 sq.mt. It is still not fully developed with only Phase-1 of its development complete, with Phase-2 still going on and Phase-3 is yet to begin. The marketability of Manesar is very good due to its location. It is located on Delhi-Jaipur Highway known as NH-8 and 32Kms away from the domestic and International Airport It is well connected with the metropolitan’s viz. Delhi, Jaipur, Ahmedabad and Bombay by roads and a proposed expressway on NH-8 from Delhi to Jaipur through IMT site is already in progress and is likely to be completed by year 2008. Railway head is available at Gurgaon and Garhi Harsaru (10 Kms away from IMT).



2. IT-ITES SECTOR IN NCR REGION NCR has the largest number of ITeS companies in India and second highest number of employees in IT-ITeS segment. IT-ITeS sector in NCR is divided between Gurgaon, Noida and to lesser extent to Delhi. The growth of IT sector in the region has promoted the development of other IT hubs at Manesar and Greater Noida, benefiting from the activities in the suburban markets. IT-ITeS is one of the key employment sectors for the region. Governments in Haryana, Delhi, Uttar Pradesh and Rajasthan have separate IT Policies which promote the sector and have announced many incentives for IT-ITeS based developments. This has promoted many companies, especially BPOs/KPOs to set up offices here to avail the various benefits. The growth of ITeS jobs in NCR region has been significantly higher than most cities in India, registering 13% growth rate in up to Q2 2007. The rate of job creation in IT segment though has fallen by 2% up to Q2 2007. This is due to the fact that most IT companies prefer to expand operations regarding software and R&D in South India while BPOs, KPOs prefer to be located in NCR due to higher social acceptability and larger skill specific talent pool. However, it is to be noted that many MNCs have their corporate offices in NOIDA indicating that the above trend is observed based mostly on internal company policies. The following is inferred by analyzing the market dynamics and the research data:

• The share of IT-ITeS employees for the metro cities is 93.33% of the total employed in the sector. • The share of NCR region of the IT-ITeS professionals in metro city is 20.32% in 2006-07. • The overall ratio of no. of jobs to no. of graduates in IT-ITeS sector in India is 0.92: 1, indicating that the

rate of job growth is just enough to fulfill the no. of graduates passing out every year. • The ratio of no. of jobs to no. of graduates in IT-ITeS sector in NCR region is 2.5:1. This indicates that the

rate of job creation is higher than the no. of graduates available to take up the jobs every year.

• NCR region has the third highest no. of opportunities per person in IT-ITeS sector after Bangalore and Mumbai.

• The overall IT to ITeS companies ratio in India is 2:1, with 25.71% of the IT companies located in

Northern India, 45.35% of IT companies located in Southern India, 20.89% located in Western India and 17.79% located in Eastern India.

• The ratio of IT and ITeS companies in NCR region is 1:1.5, indicating that both software development and

outsourcing industry have strong presence in the region.

The above indicates that BPO, KPO and back office operation related activities are concentrated in NCR region. The National Capital Region (NCR) has witnessed overall office space absorption of 6.36 million sq. ft. in the first three quarters of 2006. The total absorption for NCR is estimated to be 8 million sq. ft. by year end, nearly 3.5 times of the absorption in the entire year of 2005 (2.36 million sq. ft.).



Office Space Demand created by IT/ITes sector

5.57.6

12.411.1

16.6

2.2 3.5 5.5

25.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2005-06 2007-08 2009-10

year

area in m

illion sq ft Delhi Gurgaon Noida

NCR Commercial Property – a snapshot

Demand of Office space in Delhi NCR region:

o A consistent growth was observed in the demand for office spaces within NCR created by the IT/ITes industry for the past few years.

o Noida has had the highest contribution in creating demand for IT/ITes office spaces followed by Gurgaon, then Delhi in the NCR.

Prevailing rentals of office space in NCR:

o The rentals depicted above are in the units of Rs/sq ft/month

o Red colour indicates rentals for A grade**, new buildings.

o Black colour indicates rentals for old buildings with low quality infrastructure.

** The buildings are categorized into different grades (A,B,C) based upon the factors like: Location, connectivity, construction quality, facilities, maintenance, security, parking and supporting infrastructure like essential retail and entertainment space for a proposed office space.

320

220

110

100

80

60

450

320

250

210

150

110

0 100 200 300 400 500

Connaught Place

Nehru Place

Bikaji Gama Place

Gurgaon

NOIDA

G NOIDA



-

50

100

150

200

250

300

350

Oct '05 Jan '06 May '06 July'06 Oct'06 Dec '06 March '07 June '07

time

rentals in Rs/sq ft/month

Connaught Place Nehru Place Okhla Industrial Area Mohan Cooperative Area

Gurgaon Noida Bhikaji Camaji Place

Sep '07

� The variations in capital and rental values of the commercial real estate within the NCR region for the past few years has shown tremendous hikes as observed from the above representations

Variation in rental values of office space within �CR

Sept '07 Oct'06 Dec '06 March '07 June '07July'06 Oct '05 Jan '06 May '06

Variation in capital values of office space within �CR

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Capital Value in Rs per sq ft

Connaught Place Nehru PlaceOkhla Industrial Area Mohan Cooperative AreaGurgaon Noida



•v•v

3. GURGAON REAL ESTATE OVERVIEW Gurgaon has emerged as a large commercial and industrial centre near Delhi, especially for software and hi-tech companies. Gurgaon is one of India's main outsourcing hubs, housing multinational firms such as Sapient, Agilent, TCS, Polaris, IBM, Microsoft, Google, Oracle, ITC, Ranbaxy, Adidas, Nokia, Pepsi, RBS, Alcatel, American Express, British Airways, Convergys, eFunds, Ericsson, Fidelity Investments etc. Most of the commercial development in Gurgaon has developed along NH-8, Sohna Road and Golf Course Road. NH-8: Projects on this main transport arterial connecting Gurgaon to Delhi and Jaipur, include Signature Towers (functioning); DLF Cyber City (this includes projects such as Building Nos. 8; Building Nos. 9; Infinity Towers and Cyber Greens). Golf Course Road: Grade ‘A’ projects on this road include Centrum Plaza (ready for fit outs); Technopolis (functioning), Masterpiece (functioning), Golf View (functioning), Narsi’s Cityscape; Baani’s Statement (ready for fit outs), Vatika Towers (1 tower functional), DLF Center Court (functioning) and Vipul Builders have constructed a built-to-suit structure for Dell. Sohna Road - Projects on Sohna road include Universal Trade Tower and Vatika Technology Park. Other projects include Unitech’s Info Space on Old Gurgaon Road (first phase – 4,60,000 sq.ft.); H-H Towers (formerly called Acropolis – ready for fit-outs), Enkay Center (functional) and Cosmo City (functional) in Udyog Vihar. Capital Fortune is a premium office space on Mehrauli Gurgaon road. Pace City in Udyog Vihar Phase VI (Industrial Phase) has built to suit IT/ITeS developments.

Office spaces in Developed Sectors

Office spaces in emerging areas



S.No Project Status EfficiencyQuoted Rental

Rs./sq.ft/month

Maintenance

Charges

1 Orchid Centre Bareshell 79% 115 14

2 Orchid Global Arcade Furnished 70% 140 18

3 Global Business Park Furnished 70% 140 15

4 Unitech Cyber Park Bareshell 70% 140 14

5 JMD Regent Square Furnished 67% 115 15

6 Baani Statement Bareshell 55% 130 15

7 Vatika Towers Bareshell 75% 100

8 BPTP Towers Bareshell 75% 85

Rs.45-60/sq.ft/month














Rental Rate Analysis Details of rentals/outright values in prominent commercial projects:

Due to the sealing drive in Delhi, many companies are shifting their offices and R&D centers to Gurgaon, resulting in a spike in prices – (rentals in the past few months have shot up by 15-20% in prominent projects such as Technopolis and Capital Fortune). IT/ITES companies continued to be the major space occupiers in Gurgaon. In general the rentals on NH-8 are in the range of Rs.80 –Rs.140/sq.ft./mth, on Sohna road the rentals vary from Rs.70 to Rs. 90 per sq.ft. per month and those in Udyog Vihar range from Rs.50 to Rs.65 per sq.ft. per month (However projects physically on Udyog Vihar, but abutting NH-8 like Enkay Center charge rentals in the range of Rs.60 to Rs. 65 per sq.ft.)

Map showing IT clusters in Gurgaon



Demand Driver:

IT/ITES is the key demand driver for office space in NCR region. Gurgaon and NOIDA are the IT hubs in NCR region while Greater NOIDA and Manesar are emerging centers. Gurgaon is the largest IT hub in NCR region and has highest concentration of BPO companies in India while NOIDA is characterized by corporate offices of MNC and Indian IT majors. Preference for Gurgaon to set up operation by the IT majors has resulted in 9 notified IT/ITeS SEZs in the region by real estate majors like DLF, Unitech, Uppals and others. Most these notified SEZs are expected to release the supply in phased manner with DLF IT SEZ at sector 24A and Unitech IT SEZ on old Jaipur -Gurgaon-Delhi Road to be operational by early 2008. A total of 35.57 million sq.ft of commercial area will be available of which, 22.00 million sq.ft is earmarked for IT-ITeS. It is expected that the total supply of space from the notified IT-ITeS SEZs will be 56.38 million sq.ft when they are fully operational.

Supply:

Gurgaon is expected to have 35.57 mn.sq.ft. of supply of commercial space in the next 3 years, the bulk of which will be made available in the numerous SEZ projects coming up here. The notified SEZs and formally approved SEZs whose construction is under way will contribute to 48.99 mn sq.ft in the next 5 years. The commercial projects targeting the IT-ITeS segment will contribute 13.08 mn sq.ft by 2012. Gurgaon will continue to lead the office space supply in NCR by having 45% of the total market share. IMT Manesar, 11 kms south of Gurgaon, will be offering approximately 15.00 mn.sq.ft. of space by 2010-11 through various IT parks located in HSIIDC complex off NH 8. IT-ITeS clusters are located mostly on NH-8, MG Road and Gurgaon-Sohna Road where the rentals are Rs.130/sq.ft/month, Rs.145/sq.ft/month and Rs.60/sqft/month respectively. Golf Course Road caters primarily to corporate office space with rental rates at Rs.140/sq.ft/nmonth.

Some important transactions done by IT/ITes companies in NCR in the past few years, indicating their space requirements:

- Tech Mahindra leased 150,000 sq ft in Sector-58 Noida on a bare-shell basis at Rs.18 per sq ft.

- EXL and Energizer leased 125,000 sq ft each in Sector-64 Noida at Rs.26 per sq ft (warm-shell).

- Nokia and Siemens leased 50,000 sq ft each in DLF Cyber Park, Gurgaon between Rs.45-47 per sq ft (warm-shell)

- Cisco leased 3,800 sq ft in Connaught Place for Rs.310 per sq ft (warm-shell)

- ICICI Bank and Boeing each leased 14,050 sq ft in Nehru Place at Rs.155 per sq ft (warm-shell)



S.Nos. Tenant

Leased Area

(sq.ft) Building Developer Location

Rental

(Rs./sq.ft/month) Floor Bldg Status

Transaction

Date

1 Apollo DKV 21,000 Masterpiece AIPL DLF Phase V 150 (Furnished) na Completed Q1 2007

2 Glaxo Smith Kline 15,000 Vatika Towers Vatika Group DLF Phase V 90 13th floor Completed Q4 2006

3 Audi 22,000 Orchid Centre Orchid Petals Golf Course Road 150 (Furnished) GF Completed Q1 2007

4 Aviva 81,000 Statement Baani Golf Course Road 100 na Completed Q3 2006

5 Okuma 3,305 Times Square Ansal API Sector 41 85 GF Completed Q3 2006

6 Logica 6,500 Vatika Towers Vatika Group DLF Phase V 90 na Completed Q4 2006

7 Bank of Scotland 100,000 DLF Bldg 7A DLF DLF Cyber City 35 BTS

Under

construction Q4 2006

8 American Express 200,000 DLF DLF Cyber City 30 BTS Completed Q3 2006

9 Genpact 70,000 DLF Bldg 7B DLF Cyber City 30 BTSUnder

construction Q3 2006

10 Metlife 12,000 Orchid Centre Orchid Petals Golf Course Road 85 - 90 Completed Q3 2006

BTS - built to suit; Q - Quarter

MAJOR TRANSACTIONS in 2005-06 in GURGAON by IT/ITes companies: S.No. Development Corporate (lessee) Area leased

(sq.ft.)

Average lease rate (Rs./sq.ft. per

month)

1. DLF Cyber Greens Microsoft 50,000 32 2. Independent building,

opposite Golf Course American Express 70,000 30

3. Star Mall IBM 170,000 28 4. Global Business Park Hewlett Packard 26,000 36 5. Independent Building,

Udyog Vihar Agilent Technologies

100,000 16

6. DLF Square E-Value Serve 44,000 38 7. Vatika Atrium HDFC 60,000 Purchased 8. Independent building,

Udyog Vihar Daksh 100,000 16

9. Ascent Towers Bata 30,000 23 10. Unitech Trade Centre Keane Systems 200,000 35 11. Unitech Trade Centre UOP 20,000 38 12. Business Park Fidelity 40,000 38

Source: Knight Frank India Research Recently Unitech Infospace (IT SEZ) in Dhundahera have leased at the following rates:

S.No. Area (sqft) Rent/sf/month Transaction held

1 97526.00 51 March'08

2 1852.82 61 January'08

3 714.72 68 December'07

4 1100.61 70 November'07

The average rentals for other commercial office space made available by converting independent industrial units in Udyog Vihar are in the range of Rs.16/sq.ft.per month in 2005. Developments in Udyog Vihar range around 100,000 sq.ft. and above.

More IT/ITES corporates are expected in future to opt for built-to-suit facilities being offered by developers like DLF Universal, Unitech Ltd., Vatika, etc.

Infrastructure is still a major concern for developers in Manesar and Gurgaon. Though power availability problems are being taken care of by providing D.G. sets, major concerns are being raised over the ever-increasing water problem in this region. Some of the key transactions already had taken place in Gurgaon Micro Market.



No.of employees hired in Tier I 296,840 Increase in employment in Metro Cities 13.00%

Total Employment in Tier I cities 335,430 % share of IT employment 95.64%

Share of NCR @ 30% for IT employee 48,056 Share of NCR @ 30% for ITeS employee 40,997

IT share for NCR region 47,095 ITeS share for NCR region 46,327

Actual Share od NCR in IT sector 26.64%

estimated demand for office space by IT/ITes industry in Manesar

2.93

2.44

2.03

1.691.41

1.180.98

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2007 2008 2009 2010 2011 2012 2013time

area (million sq ft)

The number of actual jobs created both in IT and ITeS segment in NCR and the percentage share of the job market is as follows: Source: Knight Frank Research It is expected that the job market share for NCR will stabilize at 26.64% while the share of Gurgaon, NOIDA and Manesar will be in the ratio of 5:4:1 and is not expected to change much due to coming supply of office space in all the three regions in proportional magnitudes. The projections of the job demand have been done using the overall CAGR for sector at 19.33%. From the above table it can be deduced that a demand of 2.0 to 2.25 mn sq ft of office space will be created by the IT/ITes industry in Manesar by the end of the year 2010. These figures assume that the IT/ITes industry in NCR will continue with its current cumulative averaged growth rate.



4. IMT MANESAR – A BRIEF OVERVIEW Haryana State Industrial & Infrastructure Development Corporation Ltd popularly known as HSIDC is developing Manesar in four phases. In Phase I, 1736 acres of land has been developed while work is in progress in Phase II(180 acres) and Phase IV (650 acres). HSIDC has allotted Phase III (600 acres) to Maruti Udyog Ltd for their expansion project. The township is set up based on a Japanese model and is quite well planned as compared to the other industrial settlements. In fact, it is the only one of its kind in the country and was designed specifically to put the state on the global map of industrial competitiveness.

Manesar is ideally on the NH-8 linking Delhi and Jaipur, 17 km from Gurgaon. The Indira Gandhi International Airport is 32 km from here. According to the master plan 2006, the settlement is divided into 8 sectors and majority of them are industrial sectors. The total area of IMT Manesar is 1,749 acre of which 1,300 acre has been allotted for Industrial activities. For commercial/institutional 256 acre has been allotted. The rest 193 acre has been demarcated for the residential zone. Given below is a list of the sectors along with their land use.

Sector Type

Sector 1 Residential

Sector 2 Commercial

Sector 3 Industrial

Sector 4 Industrial

Sector 5 Industrial

Sector 6 Industrial & Commercial

D E L H I

SONEPAT

PANIPAT

GURGAON

IMT MANESAR FARIDABAD

NOIDA

GHAZIABAD

IT/ITES & INDUSTRIAL HUB

INDUSTRIAL HUB

MANESAR



Sector 7 Industrial & Commercial

Sector 8 Institutional

SECTOR 1 Sector 1 is completely a residential zone with absolutely no commercial activity. It lies on the left hand side of the highway while going from Delhi to Jaipur. HSIDC had demarcated plots of 250 sq mtr, 312.5 sq mtr and 450 sq mtr and sold it out at a rate of Rs 2460 per sq mtr in the year 2003-2004. A group housing project by SIDCO and HSIDC is also underway. The rate at which it was launched in mid 2006 was Rs 1,080 per sq ft. The entire project has been sold out and the present rates there are approx Rs 2,000 per sq feet. Apart from this, the sector also has sites allocated for schools, shopping arcades, and other public utilities. This sector is separated from the industrial sectors by the national highway. There is also a 50-mtr wide green belt on either side of the highway, which maintains healthy environment. The residential sector is planned to be connected to the rest of the sectors lying on the other side of the highway, by a flyover.

SECTOR 2

This sector is marked for the commercial activities of Manesar. It has HSIDC’s office, housing for all the industry related government departments, trade towers, provision for the financial market and the other commercial and institutional facilities. At present there is just one completely functional commercial building by the name of Raheja Square. However the occupancy of the complex is quite low.

Raheja Square

Raheja Square is the only operational commercial establishment in Manaser, developed by the Raheja group in plot ‘A’ of sector 2.The total built up area of the building is approximately 75,000 sq ft. There are a total of seven floors in the building. On the ground floor there are couple of banks currently operational along with their ATM - IDBI, ICICI, HDFC, ING Vysya, Bank of Baroda, Indian Overseas Bank.

The other similar projects under construction are Eros Corporate Mall, Element 9 and Amrapali Corporate Mall. Tabulated below are the project details of all the commercial projects coming up in the region. Raheja Square Eros

Corporate Park

Amrapali Corporate Mall

Element 9

Developer Raheja Group Eros Group Ultra Home Constructions Pvt Ltd

Uppal Group

Type Retail cum Office

Retail cum Office

Retail cum Office Retail cum Office

Location A-Block, Sector-2

J-Block, Sector-2

K-Block, Sector-2 L-Block, Sector-2

Plot Area 6,967 sq mtr 5,832 sq mtr 6,804 sq mtr 6,804 sq mtr No. of Floors 7 7 7 6 Project Status Operational Mid 2009 Mid 2008 Dec 2008 Rate of G-Floor (/sq ft)

Rs 12,500 Rs 12,100 Rs 12,000 Rs 12,500

Rate of 1st floor upwards(/sqft)(avg)

Rs 8,100 Rs 6,700 Rs 7,000 Rs 6,500



SECTOR 3,4,5,6 & 7 These are the Industrial sectors of IMT Manesar. These sectors constitute a total of around 1300 acres and are developing at a fast pace. Around 500 industrial units are already functional here and 600 odd are under construction. Some of the big names who have set up their operations here are Honda Motorcycles, Scooters India Limited, Denso Haryana, Maruti Suzuki, Mitsubishi Electrical, Frego Glass, Baxter, Johnson Malthey, NHK Jai Suspension, TSK Nippon and Munjal Showa. As can be noticed, most of the companies belong to the auto/auto ancillaries or light engineering sector. Maruti Udyog has setup a manufacturing unit as a part of the Phase III of the HSIDC plan for development of IMT Manesar. The area of this site is 600 acres. Presently, only the Maruti Suzuki Swift model is being manufactured here. By mid-2008, Maruti Udyog is planning to increase their production capacity to 300,000 units per annum. Samsung has also started commercial manufacturing of its mobile sets in Manesar.



5. SECTOR 8 – DEMOGRAPHIC ANALYSIS

Area Description The IT Park at Manesar is coming up on 140 acres of land, and twelve companies have been allotted 10 acres each for campus development. They are allowed to construct not only institutional buildings but also commercial, residential and recreational facilities on the same campus. According to sources from the HSIDC office, there would be an investment of more than Rs 3,600 crore in the technology park and 50,000 persons would get employment directly or indirectly in these companies. The 12 companies which have been allotted the plots are Agilent Technologies, Giallilio, T-3 Infra Track, HCL, Sofer, Prime Rose Bharti, Vigneshwara, Anantraj, AN Buildwell, Rishi Raj Realtors, Shapoorji Palanji and Arora Udyog. In the ten acres allotted to the companies, they will be allowed to construct 84 per cent for technology centre, 10 per cent for housing flats, 4 per cent for commercial use and 2 per cent for recreational use. The HSIDC would develop public facilities on the remaining 20 acre land in the technology park.

Infrastructure The government has constructed a very well planned infrastructure that is necessary for a good industrial township. There has been a provisions for a helipad, trade tower, office buildings, fire station, skill development centre, police station, shopping malls, health facilities, school sites, sites for post office/banks, conference centre, warehousing & cargo facilities and HSIDC office complex housing all industry related government departments. The work on the 135 km long Kundli-Manesar-Palwal expressway is in full swing. This expressway will connect NH-1, NH-2, NH-8 and NH-10 reducing the travel time to almost half. The estimated cost for the project is Rs 1800 crore. It is expected to match international standards of quality infrastructure and would have facilities like a trauma centre, helipad, parking lots, refilling stations, refreshment centres, police stations, car wash, besides recreational facilities Besides HSIDC has also planned to develop 3 star and 5 star hotels and also a hospital with 100 beds. The electricity supply is taken from a 220 KV sub station in Badshahpur. Education HSIDC has reserved quite a few sites for the setting up of schools at IMT Manesar. In fact recently a school site of 5 acres was auctioned. Other than schools there is also a plan of establishing a Biotechnology Park on an area of 50 acres through partnership of a private organisation with the Department of Biotechnology, Government of India. A Rs 400 crore auto research project is also coming up in Manesar. It will be aided by the Central Government and will be called the National Automotive Testing and Research & Development infrastructure project. The project will occupy an area of 40 acres. Further, CPWD has completed a survey for recognizing the site for establishing a National Law University here in IMT Manesar.The university is a centrally sponsored project and will be spread on an area of 25 acres.



SITE SWOT ANALYSIS

Strengths

� Situated in IMT Manesar the future IT/ITES hub within the NCR.

� Just 17 Km from Gurgaon on the

National Highway 8.

� Close Proximity to International & Domestic Airport.

� The region caters to both built to suit

demand and also offers large floor plates.

� The site is round the corner and has

accessibility from 3 sides. � The roads leading to the site are broad

and well constructed.

Weakness

� Not too many developments taking place near the site.

� Lack of Public Transport.

� Inadequate and inconsistent electricity

supply from government

Opportunities � The current developments in Gurgaon

are charging higher rents due to scarcity of space for IT/ITES companies.

Threats

• The entire region comprises of plots allocated for IT companies.

• Many IT-SEZs are proposed to come

up in Gurgaon – Manaser.

• Per STPI norms the tax incentives enjoyed by IT/ITES companies in the IT parks are discontinuing from 2009-10.



6. CURRENT REAL ESTATE TRANSACTIONS As IMT Manaser is not currently a fully developed commercial space, we need to take Gurgaon market as our base and extrapolate our data with reference to this assignment. In Sector 8 per HSIIDC there has been an allotment to 12 IT Parks. CP no. Owner Status

1 AnantRaj under construction

2 Vighneswara under construction

3 HCL bare land

4 AN Buildwell bare land

5 Prime Rose Bharti under construction

6 Arora Udyog bare land

7 Shapoorji Palanji bare land

8 Rishi Raj Realtors bare land

9 Sofer bare land

10 T-3 Infra Tech bare land

11 Agilent Technologies under construction

12 Giallilio bare land Out of these plots two of them have started constructing with the aim to provide space to IT/ITES companies. Anant Raj Technology Park Manesar The proposed site measuring precisely 38,212 Sq. Mt. will be a state-of-the-art technology towers. The building is a grade A structure featuring a luxurious, fully-furnished housing complex, full-fledged shopping area, and sophisticated leisure and recreational facilities. The entire ground floor (Approximately 40,000 Sq. Ft area) in the technology related halls will be used for common amenities and recreation, like cafeterias, gymnasiums, conference halls, travel desks, business centres, spas, meditation and yoga centres, libraries, shopping and sports facilities like the stadium and the amphitheatre to hold events. The project will be having 5 separate towers. The number of floors will vary will be from 9 to 15 with each floor having a maximum of 85,000 – 90,000 sqft of combined IT space. In all they are expected to come up with 8 Lakh sqft It space in the project. Other Details- Maintenance charges: Rs. 15/- sq.ft. Locking period: 3 years Advance: One Month Project start date: Nov 2006 Project completion date: April 2008 for Fit outs Built up area: 1.8 Million sq.ft. Floor plates: 18,000 sq.ft. Min. and 100,000 sq.ft Max. Escalation: 25% Parking charges – both for open & covered at Rs. 3000/- p.m. The project is only on leasehold model and currently the group is under negotiations with certain banks for leasing their Commercial space at a rate of Rs. 65 psf. They are expecting to lease out their IT space at a rate of Rs. 40 – Rs 45 psf. Amenities offered by them are: • 24 hours reliable power supply through dedicated substation - 100% back-up through DG sets • Earth station with high bandwidth providing direct connectivity with destinations across the IT City for rapid data Transfer • Optical fibers backbone for internet and large volume

Block A & E

G+ 9

Block B & D

G+12

Block C

G+15

Floor plan for towers



• Data processing, ISDN and video conferencing with unlimited bandwidth and internet access • 2000 line net-based digital telephone exchange expandable to 6000 lines - connected to the central exchange with fiber optical cables • Electronic monitoring system for vigil over fire, air conditioning, water supply, power, elevator and security. • Comprehensive security system, fire alarm, fire fighting system, guard patrols, CCTV surveillance and door alarms. • Efficient shuttle bus service - to Delhi and other major towns. • A multi-purpose 1000 seats capacity modem convention center, boardroom for meetings and conferences • Parking bays Vigneshwara Group - Project Ivalley The group is coming up with a 10 acre technology corridor in Manesar. They are developing an IT space of 1.8 million square feet of ultra modern Building & infrastructure Office, Retail Mall, Club and Recreation, Residential Service Apartments. The project is coming up with the International standard IT offices covered in 1 million Square feet area and with a total of 5 towers. They are planning to have service apartments of 80 rooms, Retail malls & Recreation clubs of 50,000 Sq.ft area, a Helipad facility and approximately 21 acres of parking space – 7 acres each of 3 tier parking. The company is planning to give the final product in the market by 2013 on both Lease and sale model. The project started at a year and a half back at Rs 5,500 psf graduating to Rs 6,500 psf with current selling rate at Rs 7,500 psf. They are offering a 12% assured returns for 5 years and a buy back plan after 2.5 years at 61.5% appreciation.



7. SUCCESSFUL PROJECTS BY UNITECH & DLF

Building Plans - Unitech Business Park



Building Plans – Unitech Trade Center



Building Plans: Unitech Cyber Park

FirstFirstFirstFirst floor plan floor plan floor plan floor plan

GroundGroundGroundGround floor plan floor plan floor plan floor plan

Seventh Seventh Seventh Seventh floor planfloor planfloor planfloor plan

TypicaTypicaTypicaTypical l l l floor planfloor planfloor planfloor plan



Facilities surveyed of Unitech

Detailed Building analysis of Unitech: 1 Unitech Cyber Park 2 Unitech Business Park 3 Unitech Trade Center 4 Unitech Global Business Park

Unitech Cyber Park

Company Mix: Unitech Cyber park

percentages indicate ratio of facilities in the building

IT/ITes

68%

Recreational / Retail

/ Eatery

9%

A TM

3%

Other companies

20%



Building Name Unitech Cyber Park Name area (sq ft) Floor

Tower : A Pizza Hut 4842 G.F

G.F - Brocade Ford India Pvt. Ltd Costa Coffee 3766 G.FG.F - City Bank ATM Masala Twist 2690 G.F

G.F - Standard=Chartered ATM

F.F- Hewitt Associates India Pvt.Ltd

2th.F- Evalueserve Private Limited 3th .F- Bharti Aritel Limited

4th F- Bharti Aritel Limited

5th F- Vertex Customer Services India Pvt.Ltd

6th F- Hewitt Associates India Pvt.Ltd

7th F- Hewitt Associates India Pvt.Ltd

Number of Lifts 8

Number of Floors G+7

Current Rental (Rs/sq ft/month) 120-150

Maintenance charges (Rs/sq ft/month) 17.5Advance 6 months rent

Lease Model & Locking Period 3+3+3 model & after every three

years an escalation of 15% Tower : B

G.F- Bharti AXA Life Insurance F.F- Hexaware Technologies Ltd

F.F-Kuoni Group - Shared Services F.F - Optima Technology partners 2th F- DLF Laing O' Rourk India Ltd

3th F- Evalueserve Pvt.Ltd 4th F- Evalueserve Pvt. Ltd 5th F- Bharti Airtel Limited 6th F - Bharti Airtel Limited

7th F- Bharti Airtel Limited 8th F- Bharti Airtel Limited 9th F- IBM Daksh

10th F- IBM Daksh 11th F- IBM Daksh 11th F- Intercontinental Hotels Group

12th F- Unitedhealth Group 14th F- Unitedhealth Group 15th F- Firstrain Inc 16th F- Eicher Engineering Solutions

16th F- Belend India Pvt.Ltd Number of Lifts 6Number of Floors G+16

Current Rental (Rs/sq ft/month) 120-150Maintenance charges (Rs/sq ft/month) 17.5Advance 6 months rent


years an escalation of 15%



Tower : C

G.F- Pizza Hut

G.F- Costa Coffee

G.F- Masala Twist

G.F- Atlas Copco India Ltd G.F- Devyani International Ltd G.F- Kendle India Pvt.Ltd F.F- Unitedhealth Group

2th F- Unitedhealth Group 3th F- Unitedhealth Group 4th F- Unitedhealth Group 5th F- IBM Daksh 6th F- IBM Daksh 7th F- IBM Daksh 8th F- IBM Daksh 9th F- IBM India Pvt. Ltd 10th F- IBM India Pvt. Ltd 11th F- Sun Life India Services Centre Pvt. Ltd 14th F-Bharti Tele shop 15th F- Bank of America

Number of Lifts 6

Number of Floors G+16Current Rental (Rs/sq ft/month) 120-150Maintenance charges (Rs/sq ft/month) 17.5Advance 6 months rent


years an escalation of 15% Tower : D

G.F- Fidelity TM India

F.F- Fidelity TM India 2th.F- Fidelity TM India

3th.F- Fidelity TM India 4th.F- Fidelity TM India 5th.F- Fidelity TM India

6th.F- Fidelity TM India 7th.F- Fidelity TM India

8th.F- Fidelity TM India 9th.F- Fidelity TM India 10th.F- Fidelity TM India

11th F- Fidelity TM India Number of Lifts 8

Number of Floors G+11Current Rental (Rs/sq ft/month) 120-150Maintenance charges (Rs/sq ft/month) 17.5

Advance 6 months rent





Unitech Business park

Company Mix: Unitech Business park


IT/ITes

47%Other co mpanies

53%

Building Name Unitech Business Park

Tower : A

G.F- Everest

G.F- Degremont F.F- Perfexa2th F- Degremont 3th F- Royal Bank of Scotland Group

4th F- Royal Bank of Scotland Group 5th F- Royal Bank of Scotland Group

Number of Lifts 4Number of Floors G+5

Current Rental (Rs/sq ft/month)160-200

0% vacancy



years an escalation of 15%Tower : B

G.F- Colt

F.F- Colt F.F- New Times 2th F- Colt 3th .F- Colt

4th .F- Colt 5th F- Colt



0% vacancy






Unitech Trade Center

Company Mix: Unitech Trade center

percentages indicate ratio of facilit ies in the building

Other co mpanies

9%

A TM

0%

Recreational / Retail

/ Eatery

9%

IT/ITes

82%

Building Name Unitech Trade Centre Name area (sq ft) Floor

G.F- Amsoft Systems Unicafe 3228 G.FG.F- UOP A Honey Well Company ICICI Bank 19368 G.FF.F- Green Field online S.B.I. Bank 3766 G.F

2th F- Convergys

3th F- Keane Enabling Transformation

4th F- Keane Enabling Transformation 5th F- Keane Enabling Transformation

6th F- Keane Enabling Transformation

Number of Lifts 6

Number of Floors G+6


0% vacancy






Unitech Global Business Park

Company Mix: Unitech Global Business Park


Other co mpanies

64%ATM

2%

Recreatio nal / Retail

/ Eatery

11%

IT/ITes

23%

Building Name Unitech Global Business Park Name area (sq ft) Tower Floor

Tower : A East 101 Cafe& Bar 10222 B G.FG.F- Quest Venture Coordinators Pvt Ltd Barista 1614 B G.FG.F- Lord Krishna Bank Limited Sola Toppe 2690 C G.FG.F- Manpower Services India Pvt.Ltd China Club 10760 C G.F

F.F- Perfetti Van Melle2th F- ZTE Telecom India Pvt. Ltd3th F- Electrolux 4th F- Pepsico India Holdings Pvt Ltd 5th F- Pernod ricard India

6th F- Ogilvy & Mather Pvt. Ltd 7th F- Ogilvy & Mather Pvt.Ltd 8th F- Ogilvy & Mather Pvt.Ltd 9th F- Jones Lang Lasalle Meghraj



0% vacancy






Tower : B

G.F- Food Court

G.F- HDFC Bank ATMG.F- Citi Bank ATM

G.F- East -101 Café & BarG.F- East - 101 Oriental Bistro G.F- Green Avenues G.F- Colgate Palmolive India Limited

F.F- INOX Global Services Limited 2th F- INOX Global Services Limited 2th F- HBE Group 3th F- Davix

3th F- Davix 3th F- STR India Pvt. Ltd 3th F- Tewari Enterprises India 3th F- Capital IQ

3th .F- MTV3th F- Capital IQ3th F- Lexsphere

4th F- Auchan Intornational S.A4th F- Capital IQ4th F- AES India 5th F- AIS Asahi India Glass Limited

6th F- Nitous Chemicals India Limited 6th F- Sonosite 6th F- Dimen Sions 6th F- Dimen Sions

6th F- Caritor India Pvt Ltd 7th F- Amrop International 7th F- DUA Associates Advocates 7th F- DUA Associates Advocates

7th F- Pernod Ricard India 8th F- English India Clays Ltd 8th F- Quest Venture Coordinators Pvt.Ltd 9th F- Blair INTL

9th F- BTI Consultants 9th F- SAB Miller India 9th F- Equis 9th F- AIS

9th F- Capital IQ 9th F- AIS

Number of Lifts 4

Number of Floors G+9Current Rental (Rs/sq ft/month) 180-200Maintenance charges (Rs/sq ft/month) 17.5Advance 6 months rent


years an escalation of 15% Tower : C

G.F- Restaurant

GF- China Club

G.F- Sola Topi F.F- Indiago Airlines 2th .F- Indiago Airlines 3th.F- Indiago Airlines

4th F- Avon beauty Produces 5th F- Tetra Pack

Number of Lifts 1Number of Floors G+5Current Rental (Rs/sq ft/month) 180-200Maintenance charges (Rs/sq ft/month) 17.5

Advance 6 months rent





Tower : D

GF- EGL - Eagle Global Logistics India Pvt. Ltd G.F- Suresh Chand Jain & Sons F.F- Bharat Construction Co. F.F - Peral INTL & Travels F.F- Boston Consulting Group 2th F- One Stop Airline2th F- MRO Supprot Pvt.Ltd 2th F- Lufthansa Systems India Liaison office

2th F- SPAZE2th F- SVS Propmart Pvt. Ltd 3th F- Continental Engines central Park 4th F- Capital IQ A division of Standard & Poor

5th F- Giesecke & Devrient 6th F- Hewlett- Packard India sales Pvt. Ltd 7th F- Hewlett- Packard India sales Pvt. Ltd 8th F- Hewlett- Packard India sales Pvt. Ltd 9th F- Hewlett- Packard India sales Pvt. Ltd

10th F- S.A.S Servizio Ltd 11th F- Key Safety Systems 11th F- Egonzchnder Informations Research Services 11th F- Master card International 12th F- Yum Restaurants International 12th F- ICIC Lombard General Insurance co.Ltd 14th F- A T Kearney 15th F- Emerson 15th F- Vyas Giannetti Creative

15th F- VGC15th F- HT Honda Trading Corporation India 16th F- UGS SDRC

No. of Lift 4No of Floor G+16



Company Mix: DLF Cyber Greens


Other co mpanies

6%

ATM

2%

Recreational / Retail /

Eatery

26%

IT/ITes

66%

Detailed Building analysis of DLF:

DLF Cyber Greens

Building Name Cyber Greens

Tower : A

G. F - Pizza Hut

G. F -Dude Papa Johns

G.F - Mobile Store

F. F- Canon India Pvt. Ltd

2th . F- Canon India Pvt. Ltd

3th F- Crompton Greaves Ltd

4th F- Nokia India Pvt.Ltd



7th F- Microsoft corporation India Pvt Ltd



10th F- I B M Daksh

Number of Lifts 4

Number of Floors G +10

Current Rental (Rs/sq ft/month) 100-150

2005 Rental (Rs/sq ft/month) 33-40

Maintenance charges (Rs/sq ft/month) 12.5

Security charges 6

Advance 3

Lease Model & Locking Period 3+3+3 model & after every three years an

escalation of 25%

Parking charges 1 ECS per 1000 sq.ft.@ Rs- 3000 per month



Tower : C

G F- Food Court : McDonalds, Not Just Parathas, Snaskriti

F.F- Food court & Mojo blue bar shop & Salon

2th F- ISS Software Devolopment centre Pvt.Ltd

2th F- STIC Travels Pvt.Ltd

3th F- IBM Daksh Business Process Services Pvt.Ltd



6th F- E.I Dupont India Pvt. Ltd



9th F- ABN Amro Bank




14th F- Alcatel Lucent India Limited

15th F- Alcatel Lucent India Limited

16th F- DLF Homes Developer Limited

18th F- DLF Hotel Holdinngs Limited

19th F- WSP Engineering Services Pvt.Ltd

No. of Lift 12

No of Floor G+12 Current Rantail 100-150

2005 rantail 33-40 Maintenance charges 12.5

Security charges 6Advance 3


escalation of 25%


Tower : B

G.F- Western Union

F.F- May Department Store International INC

2th F- Canon India Pvt. Ltd

3th F- Nokia India Pvt. Ltd




7th F - Microsoft corporation India Pvt. Ltd

8th F- Microsoft corporation India Pvt.Ltd

9th F- I B M Daksh

10th F - Redcats Asia Ltd

11th - F I B M Daksh




Number of Lifts 5

Number of Floors G +14Current Rental (Rs/sq ft/month) 100-150

2005 Rental (Rs/sq ft/month) 33-40Maintenance charges (Rs/sq ft/month) 12.5



escalation of 25%




Tower : D

G.F - Food court - Vera pizza

G.F - T & T Motor

F.F- to 15 th F- Sapient

Number of Lifts 9

Number of Floors G+15Current Rental (Rs/sq ft/month) 100-150




escalation of 25%


Tower : E

G.F - Food court - Vera pizza

G.F - T & T Motor

F.F- to 15 th F- Sapient

Number of Lifts 9





escalation of 25%




Company Mix: DLF Building Number 9


Other co mpanies

48%

Recreatio nal / Retail

/ Eatery

9%

IT/ITes

43%

DLF Building No 9

Building Name : Building No - 9

G.F - Food court Pind Baluchi

G.F - Main Land china

G F - Barrique.

F.F - Hutch

F.F - Kec International Pvt.Ltd

F.F - Gen worth Financial Mortgage Guaranty Pvt. Ltd

2th F - Kamdhenu Ispat Limited

2th F - Elcrle Ingles

2th F - MaFoi

2th F - Life Tree

2th F - Kalindee

3th F - The Boston Consulting Group

3th F - Gisil Designs Ltd

3th F- Indepay Networks Pvt. Ltd

4th F- PVR

4th F- PVR

4th F - OOH Media

4th F- Sidel

4th F - Wonderman

5th F- APL APL

5th F- IMG

5th F Sport entertainment Media

5th F - Connecture

6th F - Marsk

6th F - Group m

7th F- Nokia service Centre Network

7th F - Foot court

8th F- Desk

8th F- Nokia service centre

9th F - Seal India

9th F - CEC International

10th - Ericcson

11th F- Reed Exhibition india pvt ltd

11th F- CSAV Group India pvt. Ltd

11th F- Egon Zehnderton International Pvt. Ltd

12th F Daikin Airconditioning India pvt.ltd

12th F Smart Analyst

13th F- Staff Room

14th F - Cargill India pvt ltd

14th F- HWL Cargo Service india pvt. Ltd

15th F- Bussines Octane Solutions Pvt.Ltd

15th F- Fujitsu India Ltd

15th F- I T X

15th F - Tempe

16th F - Hilton

16th F - Next



Number of Lifts 10

Number of Floors G+16Current Rental (Rs/sq ft/month) 115




escalation of 25%




Company Mix: DLF Infinity Towers


Other companies

23%

A TM

3%

Recreatio nal / Retail /

Eatery

24%

IT/ITes

50%

DLF Infinity Towers Building Name Infinity Towers

Tower : A

G. F.- Costa Coffee Food court

G F - Brushman India Ltd

G.F - M\s Devyani Internnational Ltd

G.F - Deutsche Bank AG

F.F- Exel India Pvt. Ltd

2th F - Sahara Global & Sahara Care House

2th F - Prometric Testing Pvt.Ltd

2th F- Comverse network Systems India Pvt.Ltd

3th F - Equinox Global Services Pvt ltd

4th F- I B M india Pvt.Ltd

5th F- I B M india Pvt.Ltd

6th F- WNS Global Services Pvt. Ltd

7th F- Mercer Human Resource Consulting Pvt Ltd

7th F- Planet Retail Holding Pvt. Ltd

7th F - Kernel Ferry International Pvt.Ltd

7th F- Benetton India Pvt.Ltd

7th F- ICI India Pvt. Ltd

8th F- Ikea Trading India Pvt.Ltd

9th F- Baring Privatecq Equity Partners India Ltd

9th F- Gerson Lchrman Group India Pvt Ltd

9th F- DSM ANTI - Infectives India Pvt Ltd

Number of Lifts 12





escalation of 25%




Tower : B

G.F - Food Court cofe deia Mojo

G.F- Wonderful Developers Pvt. Ltd

F.F - Kring Tellabs India Pvt. Ltd

2th F- Springmdia International INC

2th F- G.E. Capital Business Procerss management Services Pvt Ltd

2th F- ABB Lummus Heat Tranesfer B.V

3th F - B A Continuum Solutions Pvt. Ltd

4th F - B A Continuum Solutions Pvt. Ltd

4th F - I B M Daksh Business Process Services Pvt Ltd

5th F - I B M Daksh Business Process Services Pvt Ltd

6th F - WNS Global Services Pvt Ltd

7th F- R P G Transmission Ltd


8th F- Equant Solutions India Pvt. Ltd

Number of Lifts 12





escalation of 25%


Tower : C

G.F- Food Court Punjabi nechor

G F- Reliance Industries Ltd.

G.F - A.R. Fisheries Pvt.ltd

G.F- Deutsche Bank A G

G. F- Indo rama retail Holdings Pvt.Ltd

G. F- Active Fitness centres Pvt.Ltd

F.F A B N Amro Central enterprises services Pvt. Ltd

2th .F A B N Amro Central enterprises services Pvt. Ltd

3th F- B A Continuum Solutions pvt.Ltd

4th F- B A Continuum Solutions pvt.Ltd

4th F- I B M Daksh Business process Services pvt.Ltd

5th F- I B M Daksh Business process Services pvt.Ltd

6th F - WNS Global Services Pvt.Ltd

6th F - Trinity Business Process management Pvt. Ltd

7th F - ESPN software India pvt. Ltd

7th F - Equant software India Pvt. Ltd

7th F- Global one India Pvt.Ltd

8th F - Equant Solutions Pvt Ltd

9th F- Acmetele Power Pvt. Ltd

9th F - G.E Capital business Process management Services Pvt. Ltd

9th F- Mysore Cement s Limited \Heidelberg Cement group





Number of Lifts 12





escalation of 25%




Nathus

N J P Food Court

D T D Diner Food Court

Santushti

Isabella

Fashan Gift

O Tik Food Plaza

Salad Chef

FogSubway

Barista

Citi Bank ATM

Moti Mahal Delux

Choto Miya Restaurant

VLCC Activenergy food court

Mojo Blue Bar shop

Kenzo Unisex Salon

Cream Bell

Costa Coffee

Keune The salon Buddys Broasted

Office 1 Super store

Fog

Alimunsh Gym

Dejavus Food Court

Kakori House

Mom's Kitchen Work n roll

Heading South

Mixing bowl

Sweet Tooth

List of Retail mix not mentioned above: 1 At Cyber Greens 2 At Infinity Towers

Features that can be incorporated as value adders to the development after analysis the amenities being offered by the buildings surveyed and the data collected by the secondary research are: 1 Amenities:

� Sufficient parking space

� Exterior terraces and gardens with quality landscaping

� Ample public transportation services nearby for employee

� Professional property management by the owner

� 24-hour manual security and Building Management System

2 Systems:

� Intelligent and efficient energy management

� 100% power backup � Provision for fiber optic telecommunications for high speed communication

� Fire protection system including sprinklers, fire and smoke detectors

� Central air conditioning system, AHU located on each floor for tenant's distribution system for

convenience

� Separate passenger and service lifts to each tower so as to keep hallways and passageways clear of congestion, which will further enhance the usefulness of the building and will keep it prepared for any emergency situations.

� Provision for public address voice communication system

� Provision for built-in conduits for tenant's power, data and voice distribution



3 Design:

� Distinguished architectural design,

� An environmentally friendly building benefits in two ways, firstly in terms of lower energy cost and secondly provides better ambiance at the work place. In the current market scenario the developers are making an edge in marketing their projects as an environmental friendly structure in terms of energy efficiency. The architect for the current project is Mr. Yeang, who is best known for developing environmental design solutions for high-rise buildings in the tropics. Therefore it is recommended to use his name for the branding of our project to be environment friendly with state of the art structure.

� Premium building finishes, a combination of heat reflective glass, stone and metal panels makes the

building more of energy efficient and relatively easily managed. � A suitable landscaping plan according to and in sync with the building design in order to make the

overall real estate development aesthetically more appealing to the end users.



REMARKS on OBSERVATIONS:

� The client can target end-users from the following industry segments, according to the HSIDC IT/ITes policy:

� Robotics, Nano Technology, Mobile Computing, Mobile Communications, other frontier technologies,

� Chip Manufacturing, � Bio-Technology including Genetics, � Research and Development facilities. � Or any other units notified from time to time by IT Department.

• The point of approval from the ministry of environment and forest is a requirements when developing an IT-SEZ and not mandatory for development of IT parks.

• Correction in the Residential Real Estate Market has taken liquidity out of the economy and left

consumers with a lack of confidence. This reason can contribute towards a growth in the number of investors interested in the commercial/retail/ IT real estate market.

• The portfolio of investors and the very nature of these markets (commercial/retail/IT real estate market

and residential real estate market) is different and are used in combination at times for value- generation, exact combination specifics being dependent on the mechanism of the combination, existing market conditions and the objectives of the investment.



8. PRODUCT MIX OPTIONS – NON IT SPACE: After analysing the data collected by conducting, � Primary research on a sample set of twenty IT/ITes companies, � Survey of successful commercial real estate office space developments at Gurgaon (primarily by Unitech and

DLF) and office space developments proposed and underway at Manaser, � Secondary research on developments proposed or underway in the commercial real estate segment for

IT/ITes companies as IT parks, SEZs or otherwise in and around Gurgaon. We understand the following product mix list to be the most relevant for higher value generation out of the IT park development at the proposed site. Maximum allowable retail, recreational and residential space can be constructed in line with the following real estate options which are currently running successfully in the existing IT parks: Commercial

• Retail Mix on the ground floor • Stationary Store • Book Shops • Grocery and Daily utility outlet • Food court • Restaurant • Doctor Clinic • Medical Store • Corner Café’s • Music Stores – Planet M • Automobile Display Store • Car Wash • Fitness and recreational Centre • Gaming Centre – Bowling alley, Computer Games, a corner bar facility • Hotels • ATMs

Recreational

• Health Club • Gym • Spas • Swimming Pools • Indoor Sports Club • Tennis courts • Basket ball courts • Amphitheatre • Auditorium

Residential

• Service Apartments • Guest Houses • Dormitories Analysis of data collected by Primary Research will provide further insights into the subject



Company Mix: percentage of IT/ Ites companies in the

sample set for primary research

ITes

35%

IT

65%

1 2 3 4 5 6 7 8 9 10

Technova Aspire Aequor Aircom Caneum Alcatel - Lucent HCL Genpact Yatra.com Prologic First

LocationPh - IV, Udyog

Vihar, Gurgaon

Sector - 43,

Gurgaon

Sector-34,

Gurgaon

Sector - 14,

Gurgaon

Super mart I, DLF

Phase-V, Gurgaon

Sector - 43,

Gurgaon

Sector -3

Noida

Sector-53, Phase V,

Gurgaon

Infocity,

Sector 34,

Gurgaon

Ph - V, Udyog

Vihar,

Gurgaon

Rental 45.0 60.0 50.0 70.0 105.0 60.0 50.0 120.0 40.0 55.0

CAM 3.0 5.0 7.0 7.0 7.0 5.0 5.0 15.0 4.0 4.0

area 15,000.0 3,000.0 5,500.0 5,500.0 23,800.0 3,500.0 96,000.0 110,000.0 30,000.0 4,500.0

Company

9. PRIMARY RESEARCH With reference to the survey conducted following are the primary requirements of IT/ITES companies for an office space:

• 100% power backup • Vicinity Security with BMS • Multiple entrance/exit options • Ample employee car/bike or cab/bus parking space • Quality Maintenance services • Ample space availability: generally IT/ITes companies go for an area quantum of more than 10,000 sq ft,

except the companies which are in their nascent stages of growth. • Prefer LEED certified place (Leadership in Energy and Environmental Design Green building system) • High speed internet connection with consistent and reliable telecommunication connectivity • Connectivity to other parts in NCR and to important railway stations, airports is of paramount importance. • Retail/Recreational/Residential developments within close proximity of the office space • Overall perceived comfort factor of end user’s employees in the facility is one of the most important

parameters

To get a detailed outlook concerning supportive infrastructure and other facilities for a typical IT/ITes company we conducted a primary research on twenty IT/ITes companies. The list of all the companies surveyed is given below: s.no. Company Name Type

1 Technova IT

2 Aspire IT3 Aequor IT4 Aircom ITes5 Caneum IT6 Alcatel - Lucent ITes7 HCL IT8 Genpact IT9 Yatra.com ITes

10 Prologic First IT11 ACPL systems pvt ltd IT12 Summit Information Technologies Ltd IT13 Quadrant Infotech IT14 Brainbuzz infomedia IT15 Initiative Technologies IT16 Teleperformance ITes17 Quatrio ITes18 TVS net IT19 Sparsh ITes20 IBM Daksh ITes



11 12 13 14 15 16 17 18 19 20

ACPL systems pvt

ltd

Summit Information

Technologies Ltd

Quadrant

Infotech

Brainbuzz

infomedia

Initiative

TechnologiesTeleperformance Quatrio TVS net Sparsh IBM Daksh

LocationSpaze IT, Sohna

Road, Gurgaon

Phase V, Udyog Vihar,

Gurgaon

Electronic City,

Sector -18,

Gurgaon

DLF City, Phase -

V, Gurgaon

Old DLF Colony,

Sector-14, Gurgaon

Phase II, Udyog

Vihar, Gurgaon

Phase II,

Udyog Vihar,

Gurgaon

Phase V,

Udyog Vihar,

Gurgaon

Phase III,

Udyog Vihar,

Gurgaon

Phase I, Udyog

Vihar, Gurgaon

Rental 70.0 70.0 75.0 90.0 65.0 45.0 60.0 75.0 55.0 30.0

CAM 10.0 7.0 10.0 12.0 4.5 4.0 5.0 4.0 4.0 2.5

area 3,000.0 3,000.0 3,000.0 500.0 2,000.0 160,000.0 95,000.0 4,000.0 70,000.0 115,000.0

Company

� Shown above in tabular form is the variation in rentals, CAM charges and area taken with location of the companies surveyed. It is worth noting that CAM charges varies from Rs 2.5 PSF to Rs. 15 PSF, however generally it revolves around Rs 8 PSF.

� The CAM rate was found to be dependent on the following factors:

I. The quality of the infrastructure provided to the end user II. The quality of the services that are being provided to the tenant in order to maintain the infrastructure

provided III. The quantum of area leased IV. Expenses incurred by the maintenance service provider towards providing the facilities.

Graphical representation of variation in rentals and CAM charges with location of the companies surveyed.

3.0 5.0 7.0 7.0 7.0 5.0 5.0

15.0

4.0 4.010.0 7.0 10.0 12.0

4.5 4.0 5.0 4.0 4.0 2.5

45.0

60.0

50.0

70.0

105.0

60.0

50.0

120.0

40.0

55.0

70.0 70.075.0

90.0

65.0

45.0

60.0

75.0

55.0

30.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Ph - IV,

Udyog

Vihar,

Gurgaon

Sector -

43,

Gurgaon

Sector-

34,

Gurgaon

Sector -

14,

Gurgaon

Super

mart I,

DLF

Phase-V,

Gurgaon

Sector -

43,

Gurgaon

Sector -3

Noida

Sector-

53, Phase

V,

Gurgaon

Infocity,

Sector 34,

Gurgaon

Ph - V,

Udyog

Vihar,

Gurgaon

Spaze IT,

Sohna

Road,

Gurgaon

Phase V,

Udyog

Vihar,

Gurgaon

Electronic

City,

Sector -

18,

Gurgaon

DLF City,

Phase -

V,

Gurgaon

Old DLF

Colony,

Sector-

14,

Gurgaon

Phase II,

Udyog

Vihar,

Gurgaon

Phase II,

Udyog

Vihar,

Gurgaon

Phase V,

Udyog

Vihar,

Gurgaon

Phase III,

Udyog

Vihar,

Gurgaon

Phase I,

Udyog

Vihar,

Gurgaon

CAM charges (Rs./sq ft/month)

Rent (Rs./sq ft/month)



Results of the primary research conducted are as follows:

Questions: Output Comments and Explanations

1.Kind of office space preferred by organizations:

warm shell 20.0%

cold shell 80.0%

Furnished 10.0%

non-furnished 90.0%

2. Requirements of power back up:

DG set/inverter/24 hrs elec. Requirement 100.0%100% power backup i.e. a reliable and consistent supply of electricity is a must when providing office space to IT companies

3 Type of security organization prefers:

Only Building Management System 0.0%

Manual with guards 30.0%

or a combination of both 70.0%

4. Operation & Maintenance costs (excluding

CAM and rental charges )?

(in rupees per month the average of all the

companies surveyed) 343,894

On an average IT companies spend Rs. 1,500 to Rs. 2,000 per month per employee as operating and maintenece costs.

5. Your requirements of satellite connectivity? 30.0%Only about 30% of the companies require satellite connectivety quite frequently

Most of the IT companies take up a cold shell, non-

furnished space then modify and furnish the space according to their own needs and specifications

Most IT companies prefer a combination of manual security and BMS to other arrangements

Percentages indicate the number of affirmative responses

Recommendations and Comments:

• Generally warm shell is where the owner does the basic civil works of the premises such as Flooring, False Ceiling and Rest Rooms. However, in some cases Air Conditioning and Light Fittings are also provided in this said category.

• This is a solution that is reached when a company cannot commit to a lock in period and needs furnished premises. This way the company's cost of furnishing is substantially reduced as well as the interests of owner are taken care of as the value of their investment will not get nullified after the end user moves out of the premises.

• Cold shell is a typical un-furnished office (also sometimes referred to as "Bare Shell Premises") means a basic floor plate without any civil works or flooring of any nature. This kind of space needs to be designed from scratch to suit the end user’s needs. Electrical cabling and flooring need to be planned and in a few cases even positioning of toilet blocks and AHU rooms can be changed.

• Companies planning to lease premises for a Long term usually go in for this kind of office space. The advantage of bare shell premises is that the architect can efficiently plan the premises taking every minute details into consideration.

• An approximate amount of Rs.750/- to Rs.1100/- per Sq.Ft. of super build up area is required to furnish the entire premises to International Standards and it takes anywhere between 30 to 60 days for the office premises to be in a ready to move in condition from cold shell stage.



• As new technologies are introduced in the construction industry, builders are increasingly opting for "Flat Slab" construction method. Some Builders also provide under floor ducting's for Electrical, Data and Telephone Cablings. The benefit of such type of construction is that there are no beams in the structure, which makes the job of an Architect easier and adds an aesthetic value to the office and this option can very much be exercised.

• Construction up to the stage of cold shell is more suitable for companies taking up larger spaces of the order of 150,000 sq ft or more whereas companies taking up lesser amount of spaces up to 50,000-100,000 sq ft generally prefer a warm shell.

• The client can go for construction up to cold shell in its landmark building, whereas a percentage of construction activity can further be taken towards a warm shell stage in the other towers being constructed as it will help in increasing initial absorption rates at the start of end-user market phasing.

• 100% power back-up must be provided

• BMS is also helpful for IT companies as it helps them in keeping records of their employees quite easily, which other wise would be a higher man-hour demanding job, hence can be installed and provided in the building but physical presence of guards too is necessary to instill confidence of the end user in the security arrangements.

• Satellite connectivity is not a very frequent requirement as only 30% of the companies require it, but high speed internet and telecommunication connectivity provided should be consistent and reliable.

Bare Shell Premises with "Flat Slab" construction

Bare Shell Premises without "Flat Slab" construction



6. Is the current location LEED certified?

0.0%

Are you as an organisation willing to pay higher

rentals for a LEED certified building?

50.0%

7. Specifications of the office space :

Rentals (rupees per sq ft per month): 65

CAM charges (rupees per sq ft per month):

6

area (sq ft) 39,465

8. Percentage of employees coming to the office

premises by cab?44.3%

9. Percentage of employees coming to the office

premises by car/bike?55.7%

10. Current parking space available(ECS per

hundred employees)?6

Satisfied with the quantum of parking space

provided?

45.0%

11. Employees reside at?

Gurgaon 38.9%

Delhi 46.4%

Faridabad 3.1%

�oida 7.6%

Ghaziabad 3.2%

Other 0.8%

12. The total number of employees in current office

571on an average of all the companies surveyed

On an average 30% of the employees come by four wheelers, another 30% come by two-wheelers and the

remaining 40% are provided cabs.

On an average about 40-45% of the employees come by company sponsered cabs

Most of the employees working with IT companies in Gurgaon reside either in Gurgaon or Delhi

Half of the companies surveyed are comfortable in taking

up LEED certified spaces at around a maximum of 10-15 % higher rentals than the neighboring non-LEED certified spaces. This helps in reducing the CAM charges by upto

20% and adds as a USP while pitching for new business

Rental charges, CAM charges and area taken on rent are

the average of all the companies surveyed


• Energy Conservation Concept: The companies are preferring LEED certified buildings and are ready to pay higher rentals for the same. They set off the same by saving on energy conversation which is the prime objective of an energy efficient structure.

• Green Building Concept will decrease the environmental footprint of the end user making the organisation more environmentally responsible. 30% of the companies surveyed are interested in taking up such certified office spaces at a higher rental, which they understand includes an extra cost incurred by the developer.



Percentage of employees coming to office by:

30.0%

30.0%

40.0%

Cars

Bikes

Cabs

Percentage-wise break up of location of

residence of employees of the companies

surveyed

Delhi, 46.4%

Ghaziabad,

3.2%

Noida, 7.6%

Faridabad,

3.1%

Other, 0.8%

Gurgaon,

38.9%Gurgaon

Delhi

Faridabad

Noida

Ghaziabad

Other

• 50% of the companies surveyed considered that a LEED certified office space can be taken up at 10-15% higher rentals.

• Vaastu Compliance and Rain water harvesting are among other amenities being offered at some of the coming up IT parks for instance by Spaze at their IT park on Sohna Road.

• Another benefit offered by them is that the structure of their facility has been designed for “the highest seismic considerations”. These features hold importance in the commercial real estate market as there is a considerable presence of end users sensitive to such amenities and can be incorporated. The offering of such amenities does not add up to the overall costs in a very significant way and can be recovered by asking for a premium over the existing market rentals.

• On an average 30-35% of the employees come by four wheelers, another 30-35% come by two-wheelers and the remaining 30-40% are provided cabs. One car space is equivalent to two bike spaces.

� Assuming that four employees move on one cab, and forty in every hundred employees are provided the facility, the requirement of cab parking space comes out to be twelve, which takes into account two extra cab parking spaces. - Thus in all a company requires 42 car spaces per 100 head count assuming 4 ECSs for cab parking at

any point of time and that 14 % of the employees are on-site i.e. off-office.

- Adding to it another deduction of 2-3% accounting for employees living near their office premises the number goes down to 41 ECSs per 100 employees.

- IT/ITes industry requirements are 80-100 sq ft space per employee as per secondary research. Primary

Research suggests it to be at 70 sq ft

- That translates to a requirement of 4.4 to 6.3 ECS per 100 sq m, only for IT/ITes space

- HSIDC policy states 2 ECS per 100 sq m of IT/ITes office space development.

- According to the secondary research done the competitors of the developer at Manesar are coming up

with on an average of about 2.2 ECS per 100 sq m of total space development.



- Primary research puts the number to 4.1 ECS per 100 sq m of IT/ITes office space development.

- Constraints such as the size of the sample set of primary research and high covariance in parameters of

the research viz. number of employees, their areas of residence, over all turn-over and other factors within the set amplify parking requirements of 4.1 ECS per 100 sq m of IT/ITes office space development.

- A minimum of 2.6 ECS per 100 sq m of the total lettable area development is hence a safe benchmark

as per the understanding inferred from research. This figure is arrived at after the normalization which requires to be done to contain the effect of high variation in deciding factors, within the acceptable limits of sigma.

- Construction of a three-tier basement parking area is the most cost effective and efficient space usage

option available with the developers to accommodate parking requirements.

- Construction of a three-tier basement parking area is the most cost and space effective option available with the developers to accommodate parking requirements.

• On an average the employee strength of the companies surveyed was about 570 of which more than 85% employees reside either in Delhi or Gurgaon.

- Residential developments in and around Manesar do not have the capacity nor the nature to cater to the

demand of the employees of companies at Manesar today or in the short to medium term. The situation is unlikely to change in the near future as the demand levels too will witness rises as the new supply enters the market.

- On the other hand the road and rail connectivity of Manesar with the rest of the NCR is getting better with time but still conveyance through road is going to be the preferred option in the short and medium term.

- Thus it is important to consider parking requirements as a demand driving factor for the commercial real estate development at Manesar.



13. Percentage of your total number of employees

on site ? 14%about 14% of the employees are on site i.e. off-office

14. The company’s expansion plans for the near

future(in terms of growth expected in the coming

financial year)?108.0%

companies are expecting about 100% growth in the

coming financial year

15. Building specifications:

total bua(sq ft): 48,555.6

floor plate(sq ft): 14,107.0

module size of office design (sq ft area per person):31

free of cost available parking (number of ECS

available):7

presence of retail space: food courts, etc 10.0%

presence of recreational space: gym, etc 10.0%

16. the facility manager of the building

OwnerOwner of the building or the company itself is the facility manager in all cases surveyed except Genpact where

Knight Frank manages the facility

17. Efficiency of the building percentage

space usage: 75.6%

18. Importance of architectural aesthetics when

looking for office space?85.0%

85% of the companies surveyed also consider the aesthetic features of buildings when looking for office

space

average of all the company locations surveyed

all figures are the averages of all the company locations

surveyed

The survey shows only 10% of the companies have

recreatinoal or retail space near their facility. However the

developers strongly believe that the presence of retail and recreational facilities near office space attracts

companiesand employees


• On an average all the companies surveyed are targeting a growth of over 100%, which is equivalent to opening another facility within NCR as the small IT companies (based in NCR) surveyed have plans to expand in NCR first, as business and talented workforce both are available here. Whereas, the medium/large sized IT/ITes still don’t consider NCR to be exhausted of business and resources, but aim for a national/international presence and presence of talented workforce outside the NCR too, only adds up to their existing opportunities.

• The primary research suggest that IT/ITes companies take up about 70 sq ft per employee and the average module size of an employee in IT/ITes industry is 31 sq ft.

• Quality retail and recreational facilities are within close proximity (walking distance) of only 10 % of the companies surveyed hence should be viewed as an opportunity to create more value out of commercial real estate developments

According to HSIDC rules:

- Maximum 4% of the total site is allowed for Commercial use with175% FAR, - Maximum 2% of the total site is allowed for Recreational use with FAR of 150%,



- Maximum 10% of the total site is allowed for group housing with FAR 175 for the workers employed within the Campus,

- The balance FAR of commercial, recreational and group housing to be used for the Technology

related activities.

Opportunities available for real estate developments in retail, recreational and residential segments can be exploited to their maximum limits as market for all these segments exists at Manesar.

• The owner of the building is responsible for quality and reliable maintenance of the office space. CAM charges are based on actuals in each case with at least a 20% premium.

• Space usage efficiency of the facilities surveyed on an average is 75%

• Aesthetic appeal of the Architectural design of the building, higher efficiency of the design in terms of space usage, energy conservation and human and environmental safety are all very important features and only add to the value of the office space as commercial real estate market is sensitive to all the issues that these features help negotiate.

These features thus can be incorporated.



19. Individual employee module size (sq ft)

31

on an average 31 sq ft is the individual employee module size

20. The number of times company's office was

changed in the last ten years?2

on an average companies have changed office space twice in the last ten years due to exponential growth rates

in the IT sector

21. Would you prefer locating your office at

Manesar?

75.0%

75% of the companies companies surveyed are interested in taking up office spaces at Manesar due to:

state-of- the-art infrastructre coming up, good connectivity, proposed residential blocks, government

support and tax sops. However they are reluctant on travel time, distance of Manesar from Gurgaon and

absence of any current neighboring development and competition from IT-SEZs

22. Are you satisfied with your current location(s)

60.0%

40% of the companies surveyed are not satisfied with their current locations and are willing to or looking for

alternative office locations

23.What parameters/facilities /factors do you have

in mind and look for while taking up an office

space?

Factors :

Ample Parking Space: according to the number

of employees

Good Maintenance

Sufficient Area

Easy and Multiple Entrances/Exits

Security

Electricity and Water supply

Good Infrastructure

Accomodation for employees/students

Good connectivity via road, rail, air

Supporting Infrastrucutre like retail, recreation


• Short and Medium sized companies in the IT/ITes industry outgrow office spaces at faster rates and on an average have changed office spaces twice in the last ten years.

• This along with the factors mentioned above as absence of retail/recreational space, lack of ample

parking space, poor infrastructure and connectivity, low quality maintenance are among the reasons contributing to the trend, which tends to grow the gap between the requirements of an IT/ITes company from an office space and availability of these amenities, facilities, features and characteristics of the office space.



10. COMPETITION FROM IT SEZs Benefit derived from SEZs is evident from the investment, employment, exports and infrastructural developments additionally generated. Investment of the order of Rs.100, 000 crores including FDI of US $ 5 – 6 billion is expected by the end of December 2007. 500,000 direct jobs were expected to be created by December 2007. The benefits derived from multiplier effect of the investments and additional economic activity in the SEZs and the employment generated thus will far outweigh the tax exemptions and the losses on account of land acquisition. Stability in fiscal concession can be achieved in SEZs.

• Exports from the functioning SEZs pan India during the last three years are as under:

Year

Value (Rs. Crore)

Growth Rate (over previous year )

2003-2004 13,854 39 %

2004-2005 18,314 32 %

2005-2006 22 840 24.7 %

2006-07 34,787 52.3 %

2007-08 67,088 92.8 %

Incentives and facilities offered to the SEZs

The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment include:-

• Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units.

• 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.

• Exemption from minimum alternate tax under section 115JB of the Income Tax Act. • External commercial borrowing by SEZ units upto US $ 500 million in a year without any maturity

restriction through recognized banking channels. • Exemption from Central Sales Tax. • Exemption from Service Tax. • Single window clearance for Central and State level approvals. • Exemption from State sales tax and other levies as extended by the respective State Governments.

The major incentives and facilities available to SEZ developers include:-

• Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA.

• Income Tax exemption on export income for a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act.

• Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act.

• Exemption from dividend distribution tax under Section 115O of the Income Tax Act.

• Exemption from Central Sales Tax (CST).

• Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ Act).



Tax benefits on export of software, STP and EHTP

There are various tax provisions under the Income Tax Act 1961 on the income from export of software: a) Income Tax Act U/S 10A: provides for special provision in respect of newly established undertakings in Free Trade Zones ("FTZs") etc. Under this section, profits and gains derived from the export of articles or things or computer software by an undertaking set up in any of the Free Trade Zone, Software Technology Park areas (STP) and electronic hardware technology park ("EHTP") areas are fully exempt for a period till 31st March 2010. b) Income Tax Act U/S 10B: special provision in respect of newly established hundred percent export oriented undertakings (EOU). Under this section, profits and gains derived from the export of articles or things or computer software by a hundred percent export oriented undertakings (EOU) are fully exempt for a period till 31st March 2010. c) Section 35 of the Income Tax Act provides for tax deduction of any expenditure incurred on scientific research. Any expenditure laid out on scientific research related to the business of a taxpayer is allowed as a deduction while computing taxable income. Sub-section (2AB) of section 35 of the Income Tax Act provides for a deduction of 125% of any expenditure incurred by a company engaged in the business of manufacture or production of any drugs, pharmaceuticals, electronic equipments, computers, telecom equipments, chemicals or any other notified article, on scientific research (not towards cost of land or building) on in-house research and development facility as approved by the prescribed authority. d) Section 80 HHE of the INCOME Tax Act: deals with the deduction in respect of profits from export of computer software, etc.

Under this section if a company or a person is engaged in the business of --

(i) export out of India of computer software or its transmission from India to a place outside India by any means;

(ii) providing technical services outside India in connection with the development or production of computer software;

(iii) The profits derived from his business would be deductible from its taxable income .The extent of the deduction shall be an amount equal to 80% for assessment year beginning on 1st April 2001, 60% for 2002, 40% for 2003, 20% for 2004 and then no deduction will be allowed there after. This deduction will be available provided the consideration in respect of the export of computer software is received in, or brought into India in convertible foreign exchange within a period of six months from the end of that financial year. This benefit is available only to Indian companies or Indian residents. This benefit is also available to supporting software developer selling computer software to exporting company. U/S 10 A

(iv) "electronic hardware technology park" means any park set up in accordance with the Electronic Hardware Technology Park (EHTP) Scheme notified by the Government of India in the Ministry of Commerce;

(v) "Software Technology Park" means any park set up in accordance with The Software Technology Park Scheme notified by the Government of India in the Ministry of Commerce.

Outlook: The said project is currently under STPI norms, benefits of which are expected to expire on 31 March, 2010. Also, a great supply of notified SEZs is proposed to come up in the adjoining area, which will act as a direct competition to the site. However, as IT/ITes sector contributes a great proportion to the national GDP, we are hopeful that the government will take some pro-active steps for refining he above said benefits.



11. EXIT STRATEGIES Per Knight Frank analysis of the IT/ITes space demand and supply in the Gurgaon Market, the selling phasing of the said project is estimated as:

Market Phasing

0%

20%

40%

60%

80%

100%

120%

2008 2009 2010 2011 2012 2013 2014 2015

Years

Percentage

Office Residential Commercial Technological activities

A. N. Buildwell Pvt. Ltd. has provided us the construction phasing of the project as below:

Construction Phasing

0%

50%

100%

150%

2008 2009 2010 2011 2012 2013 2014 2015

Years

Percentage

Office Residential

Commercial Technological activities

Land Development Landscaping

6[2].Knight Frank Report

Documents

Transcript of 6[2].Knight Frank Report