Draft Valuation Report - Indiabulls - Vizag_Aug 2014
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Transcript of Draft Valuation Report - Indiabulls - Vizag_Aug 2014
Valuation Report of a
Residential Project
Located in Visakhapatnam, Andhra Pradesh
Prepared on behalf of –
Indiabulls Real Estate Limited
August 2014
Contact Details:
Indiabulls Real Estate Limited
Indiabulls Finance Center, Tower 1, 14th Floor,
Senapati Bapat Marg, Elphinestone (West), Mumbai – 400013
Knight Frank India Private Limited
Paville House, Near Twin Towers,
Off Veer Savarkar Marg, Prabhadevi,
Mumbai – 400025
Pradeep Gandhi: [email protected]
KF Ref. No. MVL/924
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 1Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Executive Summary
The executive summary below is to be used in conjunction with the valuation report
of which it forms a part and is subject to the assumptions, caveats and bases of
valuation stated herein and should not be read in isolation.
Client Name Indiabulls Real Estate Limited
Subject property and
Address
Indiabulls Sierra: Underconstruction Residential
project located in Visakhapatnam,Andhra Pradesh
Purpose of Valuation Fund raising through listing of bonds
Areas Saleable Area: 786,137 sq.ft
Valuation Discounted Cash Flow Method – Income Approach
Valuation Date 30th August 2014
Market Value ` 827 mn / US $ 14 Mn
Valuer’s Details Sampuran Das
Consultant – Research & Advisory Services
In preparing our Valuation reports, no allowances are made for any liability which
may arise for payment of Corporation Tax or Capital Gains Tax, or any other property
related tax, whether existing or which may arise on development or disposal,
deemed or otherwise. No allowances are made in our valuations for any expenses of
realization, or to reflect the balance of any outstanding mortgages, either in respect
of capital or interest accrued thereon. All Valuations are given without any
adjustment for capital based Government grants received or potentially receivable on
the date of the valuation.
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 2Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Abbreviations & Measurements
AbbreviationsABD Alternate Business District BFSI Banking, Financial Services and
InsuranceBPCL Bharat Petroleum Corporation
LimitedCBD Central Business District
CBD Central Business District CPI Consumer Price IndexCRR Cash Reserve Ratio DIPP Department of Industrial Policy and
PromotionFDI Foreign Direct Investment FSI Floor Space IndexFY Financial Year GS Government SecuritiesGDP Gross Domestic Product GNP Gross National Product` Indian Rupee `/sq.
ft.Indian Rupees per square feet
IT/ITeS Information Technology / Information Technology Enabled Services
MSL Mean Sea Level
MSRDC
Maharashtra State Road Development Corporation
MOSPI Ministry of Statistics and Programme Implementation
MIDC Maharashtra Industrial Development Corporation
Mn Million
NA Not Applicable Nos. NumbersPBD Peripheral Business District Q1 Quarter OnePMT Pune Municipal Transport PMC Pune Municipal CorporationQ2 Quarter Two Q3 Quarter ThreeQ4 Quarter Four RBI Reserve Bank of IndiaRICS Royal Institute of Chartered
ServicesSBD Suburban Business District
SEC Socio-Economic Classification Sq. km.
Square Kilometre
Sq. ft. Square Feet SLR Statutory Liquidity RatioSq. mt.
Square Metre USD United States Dollar
Measurements1 acre 43,560 sq. ft.
1 mn 10 Lakh
1 sq. km. 100 Ha
1 sq. mt. 10.764 sq. ft.
1 hectare 2.47 Acre
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 3Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Table of Contents
Executive Summary....................................................................................................2
Abbreviations & Measurements..................................................................................3
Table of Contents....................................................................................................4
1.0 Instructions....................................................................................6
1.1 Engagement of Knight Frank India Pvt. Ltd......................................6
1.1.1 Instructions....................................................................................6
1.1.2 Valuation Standard.........................................................................6
1.1.3 Purpose of Valuation.......................................................................6
1.1.4 Conflict of Interest..........................................................................6
1.1.5 Currency and Measurement.............................................................6
1.1.6 Responsibility to Third Parties.........................................................6
1.1.7 Disclosure and Publication..............................................................6
1.1.8 Limitations on Liability....................................................................7
1.1.9 Vetting...........................................................................................7
1.2 Scope of enquiries and investigations..............................................7
1.2.1 Inspection......................................................................................7
1.2.2 Enquiries........................................................................................7
1.2.3 Legal Parameters of Property..........................................................7
1.2.4 Environmental Aspects....................................................................8
1.2.5 Information Provided......................................................................8
1.3 Basis of Valuation...........................................................................8
1.3.1 Market Value..................................................................................8
1.3.2 Date of Valuation............................................................................9
2.0 Economic Snapshot: INDIA.............................................................10
2.1 Economic Indicators (August 2014)................................................10
2.2 Real Estate Indicators...................................................................10
3.0 City Overview – Visakhapatnam.....................................................11
3.1 Salient Features – Visakhapatnam.................................................11
3.2 Geographical Location and Climate................................................12
3.3 Demographic Pattern and Growth..................................................12
3.4 Economic Overview.......................................................................13
3.5 SEZ..............................................................................................14
3.6 Infrastructure...............................................................................14
3.7 Visakhapatnam Master Plan..........................................................17
4.0 Commercial real estate overview...................................................18
5.0 The Property.................................................................................20
5.1 Location.......................................................................................20
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 4Prepared on behalf of Indiabulls Real Estate Limited � August 2014
5.2 Property Description.....................................................................20
5.3 Legal and Regulatory Aspects........................................................21
5.4 Site Inspection and Observations...................................................22
5.5 Connectivity and Neighbourhood...................................................23
6.0 Valuation Analysis........................................................................24
6.1 Methodology.................................................................................24
6.2 Valuation Bases............................................................................25
6.3 Valuation Assumptions..................................................................25
6.4 Valuation Analysis........................................................................25
7.0 Summary......................................................................................28
Disclaimer..............................................................................................29
Annexure I: General Principles and Limiting Conditions............................30
Annexure II: General Assumptions...........................................................34
Annexure III: Photographs......................................................................36
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 5Prepared on behalf of Indiabulls Real Estate Limited � August 2014
1.0 Instructions
1.1 Engagement of Knight Frank India Pvt. Ltd.
1.1.1 Instructions
On the instructions received from Indiabulls Real Estate Limited (The Client), our
subsequent engagement letter dated 4th August 2014 and our subsequent
discussions thereon, Knight Frank (India) Pvt. Ltd. has been appointed to carry out
the pre-tax valuation of an under-construction Residentialproject known as Indiabulls
Mega Mall, located in Visakhapatnam, Rajasthan.
1.1.2 Valuation Standard
The exercise has been carried out in accordance with the International Valuation
Standards vide Red Book as published by Royal Institute of Chartered Surveyors
(RICS).
1.1.3 Purpose of Valuation
The client has confirmed that the valuation report is required for the purpose of fund
raising through listing of bonds.
1.1.4 Conflict of Interest
We confirm that we have no conflict of interest in providing this report to the client,
and that we are acting as external valuers for the exercise.
1.1.5 Currency and Measurement
The currency used in the report for the analysis of the subject property is Indian
Rupees (`). This is the currency normally used for property transactions in India. All
measurements are in sq. ft. (1 sq.mt. = 10.764 sq.ft.) as this is the prevailing market
practice in India.
1.1.6 Responsibility to Third Parties
Our valuation report is only for the use of our client and no responsibility is accepted
to any third party for the whole or any part of its contents.
1.1.7 Disclosure and Publication
Neither the whole nor any part of this valuation nor any reference thereto may be
included in any published document, circular or statement, nor published in anyway,
without our prior written approval of the form or context in which it may appear. If
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 6Prepared on behalf of Indiabulls Real Estate Limited � August 2014
our opinion of values is disclosed to persons other than the addressee of this report,
the basis of the valuation should be stated.
1.1.8 Limitations on Liability
No claim arising out of or in connection with this valuation report may be brought
against any member, employee, partner, or consultant of Knight Frank India Pvt. Ltd.
Knight Frank India Pvt. Ltd.’s total liability to any direct loss or damage caused by the
negligence or breach of contract in relation to this instruction and valuation report is
limited to the amount specified in the terms of the engagement letter (if any). We do
not accept any liability for any indirect or consequential loss (such as loss of profit).
1.1.9 Vetting
The report has been vetted as per Knight Frank India Pvt. Ltd. quality assurance
procedures.
1.2 Scope of enquiries and investigations
1.2.1 Inspection
We were instructed to carry out an internal inspection of the property. Our inspection
of the property was undertaken on 25th August 2014 by valuer - Ms. Binita Patel.
1.2.2 Enquiries
In carrying out these instructions we have undertaken verbal / web based enquiries
referred to in relevant sections of the report. We have relied upon this information as
being accurate and complete.
1.2.3 Legal Parameters of Property
We have been provided with area details and location plan of the subject property.
We have relied on the area details provided by the client for the purpose of this
valuation exercise. It is recommended that the documents are subjected to formal
legal inspection in order to ensure that there are no elements, restriction or charges
contained which are likely to have detrimental effect upon the valuation provided.
1.2.4 Environmental Aspects
For the purpose of this report we have assumed that the property is not subject to
environmental contamination. However, it is recommended that an appropriate
consultant may be engaged to confirm our assumptions. If the subsequent
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 7Prepared on behalf of Indiabulls Real Estate Limited � August 2014
investigation identifies any environmental contamination on the site our report may
require revision.
1.2.5 Information Provided
In this report we have been provided with information by the client, its advisors and
other third parties. We have relied upon this information being materially correct in
all respects and have not physically measured or verified the same from any legal
documents or government authorities. All valuation calculations have been based on
the following details provided by the client:
Project DetailsProject: Indiabulls Sierra Visakhapatn
amLand Area 5 acresSaleable Area (Sq.ft.) 786,137Sold Area (Sq.ft.) 1623Sale Value (INR Mn.) 600Amount Collected (INR Mn.) 0Const. Cost incurred (INR Mn.) (as on 31st March 2014)
20
Const. Cost to be incurred (INR Mn.) (as on 31st March 2014)
1340
1.3 Basis of Valuation
In accordance with your instructions, we have provided opinions on valuation of the
project on the following basis:
1.3.1 Market Value
The Market Value of the freehold interest in the property in its current physical
condition is the basis of valuation.
Valuation has been made on the assumption that the property is sold in the open
market without the benefit of a deferred term contract, leaseback, joint venture,
management agreement or any similar arrangement which would serve to alter the
cash flow from the Property.
No allowance has been made in our analysis for any charges, mortgages or amounts
owing on the Property or for any expenses or taxation, which may be incurred in
effecting a sale. Unless otherwise stated, it is assumed that the Property is free from
encumbrances, restrictions and outgoings of an onerous nature, which could affect
the analysis.
For the purpose of the valuation exercise, as per the terms of engagement, we have
considered the residential units as completed and vacant.
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 8Prepared on behalf of Indiabulls Real Estate Limited � August 2014
1.3.2 Date of Valuation
The date of valuation is 30th August 2014, as mandated by the client.
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 9Prepared on behalf of Indiabulls Real Estate Limited � August 2014
2.0 Economic Snapshot: INDIA
2.1 Economic Indicators (August 2014)
Parameter Value
GDP Growth Rate (2013–14) 4.70%
Per Capita Income 2013-2014 (projected) ` 74,920
Inflation – CPI – July 2014 7.96%
CRR and SLR 4.00% and 22.00%
Repo Rate 8.00%
Bank Rate 9.00%
Base Rate 10.00%–10.25%
`/$1 60.4745
Risk Free Rate on Government Securities: 6.90 GS
20198.0907%
Risk Free Rate on 364 day Government T Bill 8.6840%
Source: MOSPI, RBI
2.2 Real Estate Indicators
Parameter Value (`mn)
FDI Inflow in Construction Development: Townships,
Housing, Built-up Infrastructure (April 2014 – June
2014)
16,760
FDI Inflow in Construction Development: Townships,
Housing, Built-up Infrastructure (April 2013 – March
2014)
75,080
FDI Inflow in Construction Development: Townships,
Housing, Built-up Infrastructure (April 2012 – March
2013)
72,480
FDI Inflow in Construction Development: Townships,
Housing, Built-up Infrastructure (April 2011 – March
2012)
152,360
Source: http://dipp.nic.in
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 10Prepared on behalf of Indiabulls Real Estate Limited � August 2014
3.0 City Overview – Visakhapatnam
3.1 Salient Features – Visakhapatnam
Visakhapatnam is the second largest city in Andhra Pradesh after Hyderabad. The
city offers breath taking sceneries and pleasant environment with an expanding
industrial and education sector. India’s primer IT companies like Wipro, Infosys, TCS
has operating campus in the city.
The state government is playing a pivotal role in the development of the city. Key
infrastructure projects are pressed into action, major road widening projects and
flyovers at almost all major junctions are being constructed.
Source: Knight Frank
3.2 Geographical Location and Climate
Visakhapatnam city stretches between 26.00º N & 27.037º N latitude and 72.55º E &
73.52º E longitude. It lies at 250-300 m above mean sea level and forms a part of
district Visakhapatnam. The average annual rainfall in the district is 450 mm. The
maximum and minimum temperatures are about 42°C and 9.5°C respectively.
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 11Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Visakhapatnam district comes under arid zone of the Rajasthan state. It covers
11.60% of total area of arid zone of the state. Some of the area of Great Indian
Desert Thar also lies in the district. The climate in Visakhapatnam is extremely hot
and semi-arid, with a rainy season from June to September. Despite its arid climate,
Visakhapatnam is blessed with a variety of flora and fauna. A survey conducted by
district administration with the help of forest officials shows 162 flora and 144 fauna.
Soil of the district is classified mainly as sandy and loamy.
3.3 Demographic Pattern and Growth
Demography
Total Population (Census 2011) 17.30 Lakh
Population Density (2011) 3,240 per sq.km.
Population Growth Rate (2001-2011) 44%
Literacy Rate 82.66% (2011)
Total number of Households 1,749,845
Income Classification of Households
Primary sector 20.24%
Household industry 4.04%
Manufacturing 13.38%
Electricity, gas and water supply 1.11%
Construction 5.88%
Transport, storage and communication 12.73%
Banking insurance 0.20%
Trade and business 12.94%
Services 29.48%
Sex Ratio 977
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 12Prepared on behalf of Indiabulls Real Estate Limited � August 2014
3.4 Economic Overview
Visakhapatnam has 73 large & medium industries in the field of mining, explosives,
power, cement & agro based industries such as sugar, rice & jute mills. Prominent
companies include Vizag Steel, Hindustan Shipyard, Hindustan Petroleum
Corporation, Coromandal Fertilizers, LG Polymers
Vizag Port: Vizag port is a deep water natural harbor strategically located midway
of Kolkatta and Chennai facing the Bay of Bengal coast. It provides excellent marine
access to the existing hinterlands through good connectivity from road and rail. The
port provides cost effective transit to major destination located in the East
(Bangladesh, Nepal, China, Japan etc). Further the port serves the requirements of
major steel plants located in and around Visakhapanam (Bilai, Bokaro, Rourkela,
Durgapur and TISCO)
Iron and Steel: Vizag steel plant is the oldest and the most prominent industrial
establishment in the city. The plant has registered a turnover of 14,457 Crore in
2011 – 12. Further the plant had recently expanded its production capacity from 3.1
to 6.3 MT.
Shipyard: Hindustan Shipyard Ltd. is a premier ship building company located in
vizag. It is spread over 46.2 hectares of land. The company has built around 150
ships and has repaired almost 1,800 ships Other prominent industries include
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 13Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Hindustan Zinc Smelter, Hindustan Zinc Limited, Rain Calcines Limited, Coromandel
Fertilizers, Bharat Heavy Plate and Vessels Limited (B.H.P.V.). The construction of the
outer harbor and Steel Plant has given the city a distinct makeover.
These industries provide employment to a significant number of people. Besides,
these industries have strengthened the state's economy. Apart from these industries,
the Indian Navy established has established its Naval Dockyard in the East. Apart
from the above industries Information Technology, Information Technology Enabled
Services, Pharmaceuticals & Biotechnology and Tourism are emerging as a prominent
industries in the city.
A slew of new projects across various areas, both in the public and private sector, are
coming up in in Visakhapatnam. AP government is planning to set up a ceramic
specific industrial estate, called ‘ceramic city’, in Visakhapatnam on the lines of
‘Ceramic Clusters’ in Gujarat. The city will utilize existing industrial infrastructure
facilities and make use of available raw materials like clay, bauxite, quartz, feldspar,
calcite, beach sand and zirconium
Visakhapatnam Steel Plant The city also has a good exposure to steel plants. The
area approaching the steel plant to Elamanchili will be the hub of industrial activity.
The Jawaharlal Nehru Pharma City at Visakhapatnam spread over an area of 2,200
acres of land, will be developed by Ramky Pharmacity Ltd. Pharma City will have
facilities like effluent plant and hazardous waste disposal.
Visakhapatnam Special Economic zone (VSEZ) is a multi-product SEZ that offers state
of the art infrastructure and support services for hassle free business environment.
The infrastructure facilities available are in manifold and state government is
extending their support in all respect to finance and aid small scale industries and
facilitate realtors to develop the city.
Vizag is also known as the port city with a very good coast line across the place
which is ideal for harboring cargo ships and hence a very busy port is in place
handling large tonnage of cargos every day. Visakhapatnam Port Trust has
established an EXIM Park in 750 acres of land for the allotment of Port based
industries with an objective to promote industrialization of the hinterland and to
facilitate handling of export / import cargoes of various industries at this Port, and to
attract more cargo. The port activities also opened up new vitas of opportunities like
ship building industry, cement industry and a slew of major steel industries which
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 14Prepared on behalf of Indiabulls Real Estate Limited � August 2014
sprawled across the port city creating endless job openings. Similarly heavy
engineering services also cropped up to aid the big manufacturing units.
From the ancient port city with a modest population to a rapidly industrialized hub,
the city of Visakhapatnam has truly emerged as one of the fastest growing city of our
country. IT and software parks have found a new destination in this city, adding
another feather in its cap.
3.5 Infrastructure
Key StatsWater Availability
Installed capacity 37 mgd
Source of water supply
50-100 sq.km.
Water coverage Population covered by public water supply 30 %per capita supply : 62 lpcdSupply of duration : 0.45 hrs
Wastewater Disposal
Wastewater generated daily: 67.5 mldDisposal (underground sewerage) Capacity: 25 mldPresent operating capacity: 10 mldHouseholds connected to underground sewerage: 6 %
Solid waste Waste generation daily : 650 tones/dayCollection daily: 650 tones/day
Storm water Drainage
Annual rainfall 1080 cmLength of storm water drains 1400 km
Roads and Road Transport
Municipal Roads – 1120 km
C.C.Roads – 150 km B.T.Roads – 750 km Kutcha Roads – 220 km
State-level roads - 100 km
Public transportBuses – 1500Bus capacity/passengers : A capacity of 60,000 seats with moving 3.9 lakh people daily @ 6032 trips/day covering 1.37 lakh km daily
Private registered vehicles – 3,50,000Source: City Development Plan
Education
Visakhapatnam is an emerging education hub; institutions catering to disciplines like
engineering, medicine, law, design, management are present in the city.
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 15Prepared on behalf of Indiabulls Real Estate Limited � August 2014
The Indian Maritime University was established as a central university by the
government of India by an act of Parliament (the Indian Maritime University
Act 2008).
Established in 1878, A.V.N. College is one of the city's oldest educational
institutions.
Visakhapatnam is also home to Andhra University (AU), established in 1926.
The AU College of Pharmacy is the second-oldest pharmacy college in India.
Andhra Medical College, established in 1902, is the home of several teaching
hospitals.
The GITAM University (the first private university in Andhra Pradesh) and the
Gayatri Vidya Parishad College of Engineering are other technical-education
institutions in the city.
Integral Institute of Advanced Management (IIAM)
National Institute of Oceanography
Damodaram Sanjivayya National Law University
There are more than 50 engineering colleges in Visakhapatnam.
Visakhapatnam is an established school education hub for coastal Andhra Pradesh.
St. Aloysius Anglo-Indian High School is the oldest high school in the district and one
of the oldest schools in the country. It was established in 1847, and is in the old town.
St. Joseph's Girls' High School was established in 1893 in Waltair and is an ICSE
school. The city has about 10 Kendriya Vidyalayas.Other notable schools are
Visvodaya High School, Naval Children's School, Kotak Salesian School, D.A.V.
Centenary Public School, Delhi Public School, S.F.S. School, St. Anthony's High
School, Bethany School, Sri Sathya Sai Vidya Vihar, Visakha Valley School and
Timpany School. Apart from these there are many other schools.
Roads
Visakhapatnam is well connected by road to rest of India. The major highways which
connect Visakhapatnam include the following: NH- 5 and NH – 43 of the National
Highway (NH) network and the State Highways connect the city area to the vast
hinterland. Around 7.88 % of the total area is covered by roads, 2.13% by railways
and 0.85% by the Port authorities.
The city has radial form of road network development. The major road network in the
city area extends over a length of 126 Km. The total road length is 1007 kms. In
addition to these major roads, the reaches of three major R & B roads, which are
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 16Prepared on behalf of Indiabulls Real Estate Limited � August 2014
state highways passing through have also been taken up for development in addition
to this network, nine new roads have been opened and nine master plan roads have
been taken up for widening.
Railways
The city is well connected with major Indian cities like Kolkata, Hyderabad and
Chennai.
Air
Visakhapatnam airport is one of the prominent airports of Andhra Pradesh. It is also
air force base given the city acts as the Eastern Naval Command. Domestic flights
connect the city with Delhi, Kolkata, Chennai and Mumbai.
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 17Prepared on behalf of Indiabulls Real Estate Limited � August 2014
4.0 Residential real estate overview
As per the survey conducted by the International Environmental Development
Organisation, UK; eleven cities in India were amongst the fastest growing 100 world
cities, wherein Visakhapatnam stood in 5th place within India.
The old central zone consists of port area, regions near old post office and localities
around Town Main Road, Raja Ram Mohan Rai Road, AVN college road, etc. The
population here comprises mainly of workers and fishermen and these localities do
not offer any scope for good quality real estate development.
Established Residential Corridors -
Beach road - R.K Beach road, Pandurangapuram, East Point Colony, and MVP
Colony.
The prime suburb localities along NH-5 are Seetamadhara, Maddilapalem, TPT
Colony, H.B colony, Doctor’s Colony, Akireddipalam, and Madhavdhara.
Emerging Residential Corridors -
Micro-markets along NH- 5- emerging as mid to high end residential corridors
which include Madhurawada and Rushikonda
Due to non-availability of large land parcel in the core city area, real estate
developers have preferred to launch projects in the city outskirts. At present,
peripheral areas like Gajuwaka, Pendurthy, Tagarapuvalasa, Simhachalam,
Madhurawada, Muralinagar, Madhavadhara and Bheemili are some of the real estate
hotspots around the city where large residential developments are being
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 18Prepared on behalf of Indiabulls Real Estate Limited � August 2014
North–Emerging residential and IT/
South –Characterized by presence of heavy
CBD
SUBJECT SITE -2
SUBJECT SITE -1
constructed. While flats are available for about Rs 2,000-Rs 3,000 per sft in these
areas, the prices of flats in the core city ranges between Rs 3,500 and Rs 6,000 per
sft. The cost of plots is around Rs 6000-Rs 10,000 per sq yard in the core city and
about Rs 2000-Rs 6500 per sq yard in the outskirts. The prices have remained stable
for the past one year.
VUDA (Visakhapatnam Urban Development Authority), extended its jurisdiction from
Tuni on NH5 to Amudalavalasa in Srikakulam. It’s the biggest Urban Development
Authority in India in terms of area with three districts viz., Visakhapatnam,
Vizianagaram and Srikakulam. Visakhapatnam Urban Development Authority (VUDA)
initiated allocation of fresh layouts; and many residential layouts (plotted
developments) are being developed up to 5km even after Yalamanchili (75km from
Maddilapalem bus stand) on Chennai highway (NH-5) and up to 5km after Denkada
Junction(80km from Maddilapalem bus stand) on NH-5 towards Srikakulam and up to
5km after S.kota (55km from Maddilapalem bus stand) on Araku highway. Major
corridors witnessing significant growth include micro-markets along NH- 5
(Madhurwada and Rushikonda, Beach Road). Further, Anakapalli-Anandapuram and
Bhimli-Visakha is being developed as knowledge corridor. In Anakapalli-
Anandapuram micro-market about 5000 acres are to be developed as knowledge
corridor. Further Tech Mahindra operates a campus on 50 acre land allotted to it at
Rishikonda. Government has allotted another 100 acres at Rishikonda for the IT
companies; of which 50 acres of this land has been given to 13 IT companies.
Residential Price range in Visakhapatnam in INR/sq.ft
2,6003,100
3,500
2,200
3,000
2,200
4,6754,500 4,000
3,0003,400
3,500
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
MVP Colony East Point Colony
Seethamadara Gajuwaka Rushikonda Madhurwada
Apartment Capital Values across Visakhapatnam
INR/ sq. ft. Min INR/ sq. ft. Max
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 19Prepared on behalf of Indiabulls Real Estate Limited � August 2014
4.1 Micro-market Overview: Madhurwada
Primary demand drivers include end users working the industrial sector, employees
in the IT/ ITeS sector and NRI’s looking for investments in the city. Small scale
apartment developments within 50 units are dominant in the market. Some of the
prominent residential developments contributing to the supply in the micro-market
include Shirram Panorama Hills, Reign Forest and India Bulls Sierra. Further NCC
Urban has planned to launch large scale project near Madhurwada IT/ ITeS SEZ.The
micro-market has witnessed a healthy absorption with 67% of the supply in the
micro-market. In between 2012_14 major quantum of the supply has been
contributed by Reign Forest, India Bulls Sierra and Sunray villas. Total completed
supply is estimated to be 3,016 units by the end of 2014. The micro-market has
witnessed a healthy absorption with about 70% of the total supply.
Project Name Location No of Units
Rate in INR/sq.ft
Sold till data
Maruti ParadiseMadhurdawa to Palam ( Cricket
Stadium) on NH-550 2850-3000 80%
NRK LegacyMadhurdawa to Palam ( Cricket
Stadium) on NH-510 2750-3000 70%
Tirumala EstateMadhurdawa to Palam ( Cricket
Stadium) on NH-525 2700-2800 100%
Jayaprabha Residency
Madhurdawa towards Subject Property
25 2500 100%
Rao & Murti Residency
Madhurdawa towards Subject Property
8 2200 100%
V FortuneMadhurdawa towards Subject
Property50 2400 100%
Sri Ganesh castle
Madhurdawa towards Subject Property
20 2200 100%
PRS Rama Towers
Madhurdawa towards Subject Property 25 2500 100%
Given below is the price trend the micro-market; it has witnessed about 8% YoY
increase in prices:
FY 2011 FY 2012 FY 2013 FY 20140
500
1000
1500
2000
2500
3000
3500
Capital Values of Residential Appartments in Madhurwada
Pri
ce IN
R/s
q.f
t
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 20Prepared on behalf of Indiabulls Real Estate Limited � August 2014
5.0 The Property
5.1 Location
The subject property is an under residential project called as Indiabulls Sierra. The
subject property is being constructed on the Plot no. 11; survey. no. 355/7c p, 355/8b
p 130/1a p & 130/2a p at Madhurwada, Chinnagadilli Mandal, Visakhapatnam, Andhra
Pradesh. The location is upcoming residential corridor, and is close to GITAM
University. Prominent ongoing developments include Shriram Panaroma Hills, Reign
Forest, India Bulls Sierra.
Location Map of the Subject Property
Source: Knight Frank Research, Google Maps
5.2 Property Description
The subject property is known as Indiabulls Sierra in Vizag, it is a residential project
located at a Madhurawada, near Rushikonda. The project is being constructed on a
land area of about 5 acres. The project comprises of well-designed complex of 16
storey towers with a choice of 1.5, 2, 2.5 and 3 BHK apartment offers an area ranging
from 891 sqft to 1623 sqft. The homes are equipped with essential facilities like
round the clock security, multi level parking and water harvesting as well as modern
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 21Prepared on behalf of Indiabulls Real Estate Limited � August 2014
day amenities like club house, swimming pool, community hall, indoor & outdoor
games facility and children’s play areas among others. Surrounded by green
landscapes each home enjoys beautiful views, abundant natural light and ventilation
and with beach being just 4 kms away from the project.
Amenities & Specifications:
Club house
Swimming Pool
Community Hall
Children’s Play area
Cycling & Jogging tracks
Indoor & Outdoor games facility
Integrated, round-the-clock security
Water harvesting
Multi-level parking
Landscaping of the garden areas
Underground drainage
Storage sump and water supply lines
Electrical (3 phase electricity) and sewage system
Master Plan
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 22Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Floor Plans
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 23Prepared on behalf of Indiabulls Real Estate Limited � August 2014
5.3 Legal and Regulatory Aspects
Legal Title
As stated in general terms of business, we do not undertake searches or
inspections of any kind (including web based searches for title information,
searches in any publicly available land registers or land revenue cards).
We have not been provided by any land registry entries, title documents or
reports on title.
In our report, we have assumed a clear and marketable title and that all
documentation is satisfactorily drawn.
We have assumed that the property is not subject to any unusual or onerous
covenants, restrictions, encumbrances or outgoings.
We have received clarification / confirmation from the client regarding the
ownership of the subject land parcel. For the purpose of this report, we have
assumed that the title of the property is freehold.
It is recommended that the documents are subjected to formal legal
inspection in order to ensure that there are no elements, restriction or
charges contained which are likely to have detrimental effect upon the
valuation provided.
If any matters come to light as a result of your legal advisors’ review, we
recommend that these matters are refereed back to us, as this information
may have an important bearing on the values.
5.4 Site Inspection and Observations
As stated in the general terms of business, we have not undertaken a building
or site survey of the property.
During our limited site inspection, we did not inspect any inaccessible areas.
We have not been provided with a copy of the ground condition report for the
site. We have assumed that there are no adverse ground or soil conditions
and that the load bearing capacity of the site is sufficient for the buildings
constructed / being constructed / proposed to be constructed.
Our site observation did not bring out any significant flood risk to the site and
hence for the purpose of the valuation we have considered the site to be
under low flood risk.
Knight Frank is not qualified to undertake scientific investigations of sites or
buildings to establish the existence or otherwise of any environmental
contamination, nor do we undertake searches of public archives to seek
evidence of past activities which might identify potential for contamination.
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 24Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Subject to above, while carrying out our valuation inspection, we have not
been made aware of any uses conducted at the subject property that would
give cause for concern as to possible environmental contamination. Our
valuation based on an assumption that the subject property is unaffected.
Valuation of the subject property is based on the observations during site
inspection, information conveyed through verbal conversation and the
architectural drawings provided by the client.
5.5 Connectivity and Neighbourhood
The immediate neighbourhood of the subject property constitutes upcoming
residential and plotted developments. Further Rushikonda Beach 4 km from the
project; is an important tourist corridor. Distances of the property from the nearest
civic amenities and transport nodes have been given below:
Railway
Station
Visakhapatnam Junction –
18 Km
Airport Visakhapatnam Airport – 25
Km
Bus Depot Bus Depot – 1 to 2 km
Andhra
University
13 km
GITAM
University
1 Km
Rushikonda
Beach
4 Km
Port 20 Km
Source: Google Maps
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 25Prepared on behalf of Indiabulls Real Estate Limited � August 2014
6.0 Valuation Analysis
6.1 Methodology
There are three approaches used in real estate property valuation:
Market Approach – Comparison Method
Income Approach – Rent Capitalisation Method, Discounted Cash Flow Method
Cost Approach – Land & Building Method, Summation Method
Considering the characteristics of the property and the market dynamics, we have
used the following method for this valuation exercise:
Discounted Cash Flow (DCF) Method – Income Approach
DCF method/analysis is a financial modelling technique based on explicit
assumptions regarding the prospective income arising out of the development to be
carried out on the subject land parcel. In case of a valuation of a large land parcel
like the subject property, where the development potential is realized over a period
of time (i.e. time value of money comes into the picture) and also where there are no
or few immediate similar properties (i.e. comparables) available for comparison, DCF
method considering relevant potential developments of the project is used.
The DCF method requires the entire development cash flows to be drawn up and
assumptions made about the market performance over the entire project time frame.
This requires an in-depth understanding of
- the demand / supply dynamics,
- transaction values and quantum,
- construction costs, quality and infrastructure requirements/constraints,
- time frame of the project,
- profit / returns,
and other analysis. All of this market data has to be compiled (as relevant to the
subject site) in order to create a financial model that captures all market drivers and
value impacting parameters.
6.2 Valuation Bases
The valuation base for the report is Market Value. Market Value is defined within RICS
Valuation Standards as:
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 26Prepared on behalf of Indiabulls Real Estate Limited � August 2014
"The estimated amount for which an asset or liability should exchange on the date of
valuation between a willing buyer and a willing seller in an arm's length transaction
after proper marketing wherein parties had each acted knowledgeably, prudently and
without compulsion."
6.3 Valuation Assumptions
Our valuation is based on a number of assumptions which have been drawn to your
attention in general principals and limited conditions (Annexure I), General
assumptions (Annexure II), and within this report.
6.4 Valuation Analysis
Area Statement
We have used the following area details received from the client:
Area Statement sq.mt. sq.ft.
Saleable Area 73,061 786,137
Cost Assumptions
The construction costs of a project depend on a variety of factors like grade of
proposed development, positioning in the market, target buyers, pricing,
architectural elevation, premium finishing & furnishing and superior interior decor
and amenities offered. Moreover, factors like labour cost, material cost and nature &
location of the property also affect the construction cost.
The cost estimate as provided by the client ` 1340 Mn. or about ` 1730 per sq.ft on
saleable area. As instructed by the client, the construction contract is a fixed sum
contract; hence we have considered a constant cost in our assumption. Cost for
approvals and contingencies, consultants’ fees, corporate expenses, marketing costs
and overheads have been considered in the total construction cost mentioned above.
The client had spent ` 20 Mn. till date, towards constructions.
Revenue Assumptions
We have arrived at the capital value for the proposed development by adopting the
market approach. Considering the market dynamics, capital values in the commercial
projects, location and characteristics of the subject property, we have considered a
capital value of ` 3,300 per sq.ft. Currently, about 1623 Sq.ft area is sold, while a
total revenue from the project is expected to be about `2925 Mn.
Discount Rate
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 27Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Discount rate is a risk weighted factor used to calculate the net present value of the
future cash flows to the firm from the project till the time of exit. It is a measure of
the risk involved in the project and it is determined by the market. The discounting
rate is determined by factors like security and regularity of income, security of
capital, ease of liquidity of the asset, ease of management and transfer with a
minimum cost, divisibility of holding, etc.
Considering various factors like location, project development and asset class,
project marketability, demand-supply dynamics in the micro-market, ease of
liquidation of the product in the market and legal aspects the discount rate has been
thus considered as 20%.
Valuation Workings
Area Statement sq.ft.
Saleable Area 786,137
Area Sold Till Date 1623
Amount collected till date INR 0 Mn.
ASSUMPTIONS
Construction Cost (INR / sq.ft.)(1,73
0)
Additional CostMarketing & Publicity, Administration Cost,Contingency expenses, etc. (% of Cost of Construction) 0%
Escalation in Cost of Construction
Yearly 0%
Escalation in Revenue
Yearly 5.0%
Brokerage - Sale 1%
Sales through Brokers 50%
Capital Value (INR per sq.ft.) 3,300Residential (including base price, floor rise,car parking and other charges)
Discount Rate (%)20.0
%
Cost Structure Y0 Y1 Y2 Y3 Y4
Aug-14Aug-15
Aug-16
Aug-17
Aug-18
Construction Phasing (%)Residential 1% 30% 30% 30% 9%
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 28Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Construction Phasing (sq.ft.)
Residential11,561
235,841
235,841
235,841 67,053
Construction Phasing (INR per sq.ft.)
Residential(1,730)
(1,730)
(1,730)
(1,730)
(1,730)
Cost of Construction (INR mn)Residential (20) (408) (408) (408) (116)
Additonal Cost (INR mn)
Marketing & Publicity, Consultancy fees, Administration Cost, Municipal App./Govt Dept., Contingency expences, etc (% of Development Cost)
0 0 0 0Brokerage (INR mn) (0) (3) (4) (5) (2)
Total Cost (INR mn) (20) (411) (412) (413) (118)
Revenue Structure Y0 Y1 Y2 Y3 Y4Aug-14
Aug-15
Aug-16
Aug-17
Aug-18
Sales (%)Residential 0% 20% 30% 35% 15%
Sales (Sq. ft.)
Residential1,623
157,227
235,841
275,148
116,298
Sales (INR per sq. ft)Residential 3,300 3,465 3,638 3,820 4,011
Sales (INR Mn)Residential 5 545 858 1,051 466Amount Collected Till Date 0Amount to be Collected 5Collection ScheduleResidential 0% 31% 30% 30% 9%Y0 0 1 1 1 0Y1 171 163 163 46Y2 527 257 73Y3 961 90Y4 466Y5Y6Y7Y8Y9Y10Y11Y12Y13
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 29Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Total Revenue (INR Mn) 0 173 692 1,384 676
NPV Calculation Y0 Y1 Y2 Y3 Y4Aug-14
Aug-15
Aug-16
Aug-17
Aug-18
Total Revenue (INR mn) 0 173 692 1,384 676Cost (INR mn)
(20)(411
)(412
)(413
)(118
)Net Cash Flow (INR mn) 0
(238) 280 970 558
Discount Rate (%) 20.0%
NPV (INR mn) 827
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 30Prepared on behalf of Indiabulls Real Estate Limited � August 2014
7.0 Summary
On the basis of assumptions, methodology of valuation and on the belief that there
are no onerous restrictions, covenants or unusual outgoings, we are of the opinion
that the achievable market value of the subject property (on as-is-where-is basis is )
as ` 827 mn (Indian Rupees Eight Hundred & Twenty Seven Million Only) /*
US $ 14 Mn. (United States Dollar Fourteen Million only) is fair and
reasonable.
*US $ : INR = 60.4745 (source: www.rbi.org.in)
Note:
Our analysis is only for use of the party to whom it is addressed and no responsibility
is accepted to any third party for the whole or any part of its content
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 31Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Disclaimer
“The statements, information and opinions expressed or provided in this publication
are intended only as a guide to some of the important considerations that relate to
property investment. Although we believe they are correct and not misleading, with
every effort having been made to ensure that they are free from error, they should
not be taken to represent, nor are they intended to represent, investment advice or
specific proposals, which must always be reviewed in isolation due to the degree of
uniqueness that will attach thereto”.
Neither Knight Frank nor any persons involved in the preparations of this publication
give any warranties as to the contents nor accept any contractual, tortuous or other
form of liability for any consequences, loss or damage which may arise as a result of
any person acting upon or using the statements, information or opinions in the
publication. This publication is confidential to the addressee and is not to be the
subject of communication or reproduction wholly or in part.”
Knight Frank (India) Private Limited
1st and 2nd Floor, Paville House
Off Veer Savarkar Road
Prabhadevi
Mumbai 25
Tel: (022) 67450101
Fax: (022) 67450202
www.knightfrank.com
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 32Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Annexure I: General Principles and Limiting Conditions
General Principles Adopted and Limiting Conditions in the Preparation of
Valuations and Reports
These are the general principles and limiting conditions upon which our analysis and
reports are normally prepared; they apply unless we have specifically mentioned
otherwise in the body of the report.
1) Confidentiality
Our analysis and reports are confidential to the client or to whom they are
addressed for the specific purpose to which they refer. They may be disclosed to
other professional advisors assisting the client in respect of that purpose, but the
client shall not disclose the report to any other party. No responsibility is
accepted to any other party and neither the whole, nor any part, nor reference
thereto may be included in any published document, statement or circular, or
published in any way, nor in any communication with third parties, without our
prior written approval of the form and context in which it will appear.
2) Use of Report
The opinion on estimated cash flows expressed in this Report shall be used for
the purpose stated in this Report only. We are not responsible for any
consequences arising from the estimated cash flows being quoted out of context.
3) Source of Information
Where it is stated in the Report that information has been supplied by the sources
listed, this information is believed to be reliable and no responsibility is accepted
should it prove not to be so. All other information stated without being attributed
directly to another party is obtained from our searches of records, examination of
documents or enquiries with the relevant authorities. This Report has been
prepared on the basis that full disclosure of all information and facts which may
affect the cash flow have been made known to ourselves and we cannot accept
any liability or responsibility in any event, unless such full disclosure has been
made.
4) Legal Title
Whilst we may have inspected the title of the property as recorded in the Register
Document of Title, we cannot accept any responsibility for its legal validity.
5) Town Planning and other Statutory Regulations
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 33Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Whilst we may make verbal enquiries or gather information on Town Planning, we
do not normally carry out requisitions with the various public authorities to
confirm that the property is not adversely affected by any public schemes such as
road and drainage improvements. If reassurance is required, we recommend that
verification be obtained from your lawyers or other professional advisors.
Our analysis are prepared on the basis that the premises and any improvements
thereon comply with all relevant statutory regulations. It is assumed that they
have been, or will be issued with a Certificate of Fitness for Occupation by the
competent authority.
6) Leases and Tenancies
Enquiries as to the financial standing of actual or prospective lessees or tenants
are not normally made unless specifically requested. Where properties are
valued with the benefit of lettings, it is therefore assumed that the lessees or
tenants are capable of meeting their obligations under the lease or tenancy and
that there are no arrears of rent or undisclosed breaches of covenant.
7) Development Agreements
Unless otherwise stated, no allowances are made in our analysis for any joint
venture agreement, development right agreement or other similar contracts.
8) Site Surveys
We have not conducted any boundary checks; however, we assume that the
dimensions correspond with those shown in the title document, certified plan or
any relevant agreement.
9) Structural Surveys
We have neither carried out a building survey nor any testing of services, nor
have we inspected those parts of the property which are inaccessible. We cannot
express an opinion about or advice upon the condition of uninspected parts and
this Report should not be taken as making any implied representation or
statement about such parts. Whilst any defects or items of disrepair are noted
during the course of inspection, we are not able to give any assurance in respect
of rot, termite or pest infestation or other hidden defects.
10) Site Conditions
We do not normally carry out investigations on the property or neighbouring land
(including the past and present uses) in order to determine the suitability of the
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 34Prepared on behalf of Indiabulls Real Estate Limited � August 2014
ground conditions (including contamination or potential for contamination) and
services for the existing or any new development, nor have we undertaken any
archaeological, ecological or environmental surveys. Unless we are otherwise
informed, our analysis is on the basis that these aspects are satisfactory and that,
where development is proposed, no extraordinary expenses or delays will be
incurred during the construction period.
11) Deleterious or Hazardous Materials
No investigation was carried out to determine whether or not any deleterious or
hazardous materials have been used in the construction of the properties, or have
since been incorporated and we are therefore unable to account or report for
such in our report.
12) Diseases and Infestations
Whilst due care is taken to note the presence of any disease or infestation, we
have not carried out any test to ascertain possible latent infestations or diseases
affecting crops or stock. We are therefore unable to account for such in our
Report.
13) Outstanding Debts
In the case of buildings where works are in hand or have recently been
completed, we do not normally make allowance for any liability already incurred,
but not yet discharged, in respect of completed works, or obligations in favour of
contractors, sub-contractors or any members of the professional or design team.
14) Taxation, Encumbrances, Statutory Notices and Outgoings
Unless otherwise stated, no allowances are made in our analysis for any expense
of realization or for taxation which might arise in the event of a disposal, deemed
or otherwise. We have considered the property as if free and clear of all charges,
lien and all other encumbrances which may be secured thereon. We also
assumed the property is free of statutory notices and outgoings.
15) Attendance
The instruction and the estimation of cash flow assignment does not automatically
bind us to attendance in court or to appear in any enquiry before any government
or statutory bodies in connection with the analysis unless agreed when the
instruction is given.
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 35Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 36Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Annexure II: General Assumptions
We assume that information provided by client or its representative for this
analysis for all relevant projects is true and accurate. It includes details of
measurements of land and built up area, etc.
We have not gone through the legal aspects like documents of title deed,
lease deed, revenue records, court matters (if any), and documentation like
joint development with other companies. We also assume for this analysis
that the title and development rights of all the properties lies with the
Company and is clear, marketable and free of all encumbrances, restrictions,
easements or charges which may have detrimental effect upon the cash flows
of the property. It is also assumed that company has paid all property related
taxes.
We have neither carried out any soil testing nor structural surveys nor are we
experts in the field of structural survey. Therefore, we do not give any
assurance that properties are free from structural defect. If any investigation
identifies any structural defect in the property our report may require revision.
Neither are we the experts in the town planning to factor the town planning
aspects in the project. Sewers, main services and the roads giving access to
the property have been provided.
We assumed that all the constructed structures and proposed construction
is/will be free from harmful materials and/or techniques. Our analysis is on
the basis that no such materials or techniques have been used.
Unless advised by the company or representative of the company, we do not
normally make allowance for any liability already incurred, but not yet
discharged, in respect of balance land cost, completed works, or obligations in
favour of contractors, subcontractors or any other professional.
We have assumed that demand; supply, pricing, fiscal and monetary policies
of Government, taste of public will remain same as on date of analysis over
the period of time of development. All of these factors are in strong relation
with the cash flow estimation of property. Any radical change in any of the
factor may affect estimation at large.
Unless advised by the company or representative of the company, no
allowance is made for any expense of realization or for taxation, which may
arise in the event of a disposal. The property is considered as if free and
clears of all mortgages or other charges that may be secured thereon.
For the purpose of this report we have assumed that the property is not
subject to environmental contamination. However, as we are not experts in
this field, we recommend that an appropriate consultant may be engaged to
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 37Prepared on behalf of Indiabulls Real Estate Limited � August 2014
confirm our assumptions. If the subsequent investigation identifies any
environmental contamination on the site, our report may require revision.
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 38Prepared on behalf of Indiabulls Real Estate Limited � August 2014
Annexure III: Photographs
Valuation Report � Residential project located in Visakhapatnam, Andhra Pradesh 39Prepared on behalf of Indiabulls Real Estate Limited � August 2014