PROJECT PERFORMANCE

EVALUATION FOR RESIDENTIAL

PROJECTS LOCATED AT PUNE
Pune: XXXXXXXXXX by XXXXXXXXX

Connection Name: XXXXXXXXXXXX

Connection ID: 13
FINAL REPORT
SUBMITTED TO : XXXXXXXXXXXXXXXXXXXX.
1
Project Background
- Our Understanding
Our Understanding
Sr.
 XXXXXXXXXXXXXXXXXXXXXXXXXX (herein No.
Project Developer Location
referred as Client) intends to take over the Punawale, Hinjewadi,
1 Puneville Pharande Spaces
portfolio of XXXXXXX. XXXXXXXhas invested in Pune
2 Vaarivana Pharande Spaces Urse, Pune
various residential projects across multiple cities in
Amethyst, Zircon
India. 3
& Turquoise
Nirmal Lifestyle Mulund West, Mumbai

4 One Edition Nirmal Lifestyle Mulund West, Mumbai

 The Client is in process of undertaking various due
Palava City -
diligences including Legal Due Diligence, Cost to 5
Sectors M & N
Lodha Developers Dombivli East, Mumbai
Complete Assessment and Commercial Due 6 Halcyon Phoenix Group
Jubilee Hills,
Hyderabad
Diligence of the identified projects in order to
7 Raj Altezza Rajesh LifeSpaces Mulund West, Mumbai
proceed with this acquisition process. Assetz Properties Ashram Road,
8 Marq
Group Whitefield, Bangalore
 The Client has approached ANAROCK in to carry Assetz Properties TC Palya, KR Puram,
9 Sun & Sanctum
out the assessment of the achievable pricing and Group Bangalore
Assetz Properties Shettigere Main Road,
projection of sales velocity for the identified 10 Atmos & Aura
Group Doddajala, Bangalore
projects under XXXXXXXX portfolio. 11 Greens Panchsheel Greater Noida
12 Tranquil Heights Vatika India Next Sector 82A, Gurgaon
 The projects identified under XXXXXX portfolio are
13 Eureka Park Tata Value Homes Sector 150, Noida
located in Mumbai, Pune, Bangalore, Hyderabad
14 Nest Godrej Properties Sector 150, Noida
and NCR (hereinafter referred to as ‘Subject Live by the
15 Eldeco Sector 150, Noida
Properties’). Greens

Subject property of this report

2
Site Analysis
- Site Location & Connectivity Assessment
- Site/Project Analysis
- Catchment Overview
- SCOT Analysis
Locational Assessment

Punawale

xxxxx is a xxxxx acres township project located at Punawale,

in north-west Pune administered under the Pimpri-Chinchwad
Municipal Corporation (PCMC).

Major Growth Drivers

 Proximity to Hinjewadi IT Establishment, PCMC, Talegaon &
Talawade Industrial areas.
 Saturation of core areas of Pune
 Availability of large land parcels in this micro market is giving Maan- Mahalunge
impetus to development of large township projects Hi-Tech City
 Affordable micro market for end users along with easy
accessibility to Pune and Mumbai via NH4.

Source: Google Imagery 2019 Subject Site Major road Subject Key Key
network Micro Industrial Residential
market Nodes Nodes
 Connectivity Assessment
 Xxxxx is accessible from the
NH4 (Mumbai-Bengaluru
highway); located 5 mins
away from the Pune-Mumbai
expressway bypass.
Pune- Mumbai
 The proposed 23 km Expressway Exit
Hinjewadi- Shivajinagar
metro corridor-3 is expected
to further boost connectivity
and reduce travel time to
the central areas of the city.

 Nearest metro station –

Wakad (proposed)
Distance from Subject
Landmark Time to reach
Site (in approx. km)
Akurdi Railway Station 5.7 15 min
Pune Railway Station 21.4 40 min
Proposed Metro Station (Wakad) 6.9 14 min
Punawale BRTS bus Stop 2.6 7 min
Pune Airport 26 50 min
JSPM Institute 2.3 5 min
MCA Stadium 8 15 min Map showing key Infrastructure interventions impacting growth of the Subject Site
Navi Mumbai (Vashi) 115 1 hr 50 min #The Hyperloop proposal which is at a conceptual stage, will further reduce
Mumbai (Dadar) 133 2 hrs 20 min travel time to Mumbai & boost connectivity to the Project Site.

Source: Google Map

Note : Time travels are of the non peak hours on weekdays
Micro Market Overview
 The establishment of Hinjewadi IT Park fueled the growth
of the micro market & resulted in surge of housing
demand.
 Currently, Hinjewadi houses >4 lakh employees working in
companies such as Accenture, Infosys, Wipro, TCS,
Cognizant, Persistent, IBM, Capgemini, etc.
 Development of Punawale micro market has been
significantly boosted by relatively higher prices of
residential units in Hinjewadi, traffic congestions faced by
commuters and proximity to Mumbai-Pune highway.

Other business districts contributing to residential demand in

Punewale:
 Pimpri- Chinchwad MIDC (Finolex, Thermax, Atlas Copco,
Sandvik, Tata Motors)
 Talegaon MIDC (General Motors, L&T, JCB, Posco,
Volkswagen, Bajaj Auto)
 Talawade & Chakan MIDC (Mahindra, General Electric,
Hyundai, Mercedes Benz )
Other residential micro markets in West Pune
Hinjewadi Wakad
Map showing the location of the subject site along with other key commercial, industrial, Tathawade Ravet
residential, healthcare and hospitality developments Maan- Mahalunge Balewadi

Source: Wikipedia.org.in
xxxxx – Project Fact Sheet
Key Plan  Brownfield residential project with total saleable area of ~2.5 mn sq. ft.
located in PCMC area, Pune. Project is being developed jointly with the
landowner – Developer’s share of saleable area being 2.32 mn sq.ft.
 The project is proposed to house 18 towers to be developed in 3 phases, of
which Developer has launched 2 phases and construction is at an advanced
stage
 Land has been acquired for development of Phase 4. Developer is planning
to come up with affordable housing. Currently most of the approvals are in
place and excavation has commenced for 2 towers.
Phase I & II : Product Configuration
Typology 2 BHK 2.5 BHK 3 BHK 4.5 BHK
Carpet Area (in sq. ft.) 700-712 922- 929 1159-1167 1941- 1959
Saleable Area (in sq. ft.) @
910- 926 1199- 1208 1507- 1517 2523- 2547
30% loading
Master Plan
- Phase III – 8 towers – TDR procured and applied for approvals for incremental saleable area upto
~1.75 mm sq.ft., expected to be obtained soon.
- Overall saleable area has increased from 2 mn sq.ft. to 2.5 mn sq.ft. on account of change in
configuration in Phase 3 as planned by the developer.

Phase IV: Kairosa Building C & D : Product Configuration

Typology 1 BHK 2 BHK
Carpet Area (in sq. ft.) 440 583- 591
Saleable Area (in sq. ft.) @ 30% loading 572 758- 768
- Phase IV has been registered with RERA and construction works for two towers have commenced
- Developer has launched Phase IV recently and no sales has been recorded as on the date of site
visit
Source: Puneville Marketing Brochure

All facts & figures related to the subject property have been collated based on the data provided by Client
Puneville – Project Fact Sheet
Puneville Kairosa
Phase III (Includes Phase- Phase IV (Includes Tower A1,
Projects Phase I Phase II II Tower K not yet launched B1 tower not yet launched
Inventory; ) inventory)
Proposal Stage Approvals in Place ( Tower
Nearing Completion Nearing Completion
Present Construction Status (Approvals in progress) C1 & D1 Construction at
(Finishing Stage) (Finishing Stage)
foundation level)
Tower K, and other
A1,B1 (Not yet launched)
Tower-Wise details A,B,C,D,E,F G,H,I,J Towers in approval
C1,D1 (Launched)
process
Launch Year 2014 2015 N.A. 2019
Total Saleable Area (sq ft) 6,51,200 3,53,508 9,59,870 3,38,364
Sold Area (sq ft) 4,49,930 2,02,491 N.A. N.A
Unsold Area (sq ft) 2,01,270 1,51,017 9,59,870 3,38,364
Configurations* 2,3,4.5 BHK 2, 2.5 BHK 2,2.5,3 BHK 1, 2 BHK
Total Units 404 313 836 488
Units Sold ~ 325 ~ 194 None None
Derived Unit Sizes of Unsold
Inventory in sq ft (Saleable 2547 1269 1148 693
Area)
Unsold Units* 79 119 836 488
Total Unsold Inventory* 1522
All facts & figures related to the subject property have been collated based on the data provided by Client
Subject Property Images
Project Sales Office along the Entrance driveway Approach Road to the Site Podium Level View of Pool Area & Phase-II Buildings

Building A,B,C,D,E,F View from Podium Level Podium Level connectivity to Buildings Podium Level Club House & Pool area
Site’s SCOT Analysis

 Proximity to IT/ITeS node of Hinjewadi & industrial

belts of PCMC & Talegaon
 Directly accessible from Mumbai-Pune highway  Absorption of larger sized units (4.5
 Located in proximity to established nodes such as BHKs) has been slow as compared to
Hinjewadi, Baner, Wakad, Balewadi and Aundh other typologies (1/2/2.5/3 BHKs) given
 Owing to the strategic location, this micro market is the current preference is towards
witnessing the spill over demand from Hinjewadi. compact units and resultant ticket size.
 Characterized by good quality physical and social  Lack of attractive financial schemes
infrastructure. and aggressive marketing strategies

 Gradually evolving as a preferred residential  Delay in project completion timeline

destination among young working professionals  Given the customer preference and
looking for affordable rental accommodations. price sensitivity, developer may need to
 Housing demand is primarily driven by the first- revisit the project positioning for
time homebuyers followed by investor upcoming phases.
communities.  Completion of the proposed
 Upcoming metro corridor between Shivajinagar infrastructure initiatives including Metro
and Hinjewadi is expected to improve Line 3 and Ring Road would be critical
connectivity and reduce travel time from the overall success of the project.
 Property values have recorded 15 percent
appreciation in the last five years.
Project Performance Analysis
Sold Vs Unsold Inventory Current Pricing (Quoted)
Puneville Phase I & II Current Pricing Sheet (Quoted as on Dec 2019)
Typology 2 BHK 2.5 BHK 3 BHK 4.5 BHK
% Sold/ % Sold/ % Sold/
% Sold 1941-
Developer Inventory Unsold Unsold Unsold Carpet area (in Sft.) 700-712 922- 929 1159-1167
2BHK (Till 2.5 BHK 3 BHK 4.5 BHK 1959
Inventory (in Nos.) (Till (Till (Till
date) Saleable area (in Sft.) @ 1199- 1507- 2523-
date) date) date) 910- 926
30% loading 1208 1517 2547
Total 717 438 71 136 72 Total ticket size (INR
Sold 519 337 76.94 53 74.65 112 82.35 17 23.61 59 - 60 76 - 77 94 - 95 218- 220
Lakhs)
Unsold 198 101 23.06 18 25.35 24 17.65 55 76.39 Total Avg. Pricing (INR/
- Phase III details are not included 6,347
Psft. On Saleable Area)
- Expected launch date for Phase III is June-Sept 2020
- Landowner’s inventory has not been considered for evaluation as the developer is not marketing - Product pricing excludes other charges such as floor rise, PLC, car parking,
LO’s share, basis information received during site visit etc., stamp duty, registration charges and applicable taxes

Kairosa – Phase IV (Building C & D)

Key observations
Total Inventory  2, 2.5 & 3 BHK units have witnessed reasonable sales
Launch Date (as per RERA 1 BHK (Building 2 BHK (Building with 75% of the inventory has been absorbed till June
Q3 2019 (in Nos.) - Wing
Reg.) C) D) 2019.
C&D
Expected Completion Q2 2023 244 136 108  4.5 BHK (available only in Tower A) units have
- Building A & B are yet to be launched. Inventory details not available. underperformed with 24% absorption
- We understand that Building C & D are launched however no sale has been recorded as on date
of site visit
 Re-sizing of product in xxxxx (Phase IV) is evident of
the fact that customer preference is towards
Total Unsold Inventory (including Phase I, II and IV compact housing.
xxxxx Units
– Building C & D)
All Facts & Figures related to the Subject Property have been collated based on the data provided by Client
Project Performance Analysis
ABSORPTION TRENDS Vs PRICE MOVEMENT ( Q1 2013- Q3 2019 ) Booked Vs Realization (Values in INR Cr)
200 5400.00 Total Sales Value till Q3 2019 xxxx
175
180 5200.00 Collected Till Q3 2019 xxxx
160
5000.00 Balance receivables as on Q3 2019 xxxx
140
120 109 4800.00
100 4600.00 Key observations
80
80 4400.00
60 51 53  The project has performed reasonably well
39 4200.00
40 despite the slowdown in market over last 2
20 12 4000.00 years and has progressed well in terms of
0 3800.00 construction and sales
2013 2014 2015 2016 2017 2018 2019  Sales & collections have improved significantly
No. of Booked Units Price Movement over the last 2 quarters and are expected to
increase further going forward, due to positive
Sales have more than doubled over the last 2 quarters averaging 36 units per sentiments in the Realty Sector
quarter as against 13 units per quarter during the previous 3 years  Initiating campaigns & schemes to sell larger
4.5 BHK units in Tower A & C through attractive
Total Launched Units (Phase I & II) in 2013 xxxx Pricing strategies
Total Sold Inventory xxxx  Launch of Phase-IV & higher Sales absorption
Average no of Booked Units (YOY) xxx nos. will help bring the Project back on-track
 Upcoming Phase Launches needs major
Total Absorption (till date) Xxx % Product reconfigurations for Project success

* All Facts & Figures related to the Subject Property have been collated based on the data provided by Client
Key Project Facts & its performance influencers
1. Project construction status – Civil construction of the towers in Phase I and Phase II are completed and finishing works
are in progress.
2. Project & developer’s brand perception among the buyers – Fairly good brand image
3. Prevalent demand for the apartment sizes and typologies – Sales momentum has been slow owing to relatively larger
unit sizes resulting into higher ticket sizes (especially in case of 3 & 4.5 BHK)
4. Project amenities – Swimming Pool, Health Club, Advanced Security, Jogging Track, etc.
5. Project visibility – Currently the site has good visibility from the highway. However launch of new projects in the
adjoining land parcels may impact the visibility in future.
6. Future upcoming supply – The project is surrounded by many recent launches in Tathawade micro market which may
pose strong competition w.r.t. budget segment homes
7. Construction risk – Completion and delivery of the project is crucial in order to enjoy the buyer confidence and
maintain the performance in terms of sales and price appreciation.
8. Present market performance – Overall lull in the macro economic indicators, NBFC crisis, slowed down construction
activity has impacted the overall sales performance.

Considering the above mentioned aspects,

 The project has been performing fairly well in terms of sales and construction activities
 Developer should focus on completing the construction and sales of Phase I and II (launched inventories)
 Sales of xxxxxxx (Phase IV), being positioned as budget units, are expected to boost the overall sales velocity of the
project.
 Developer should launch Phase III only upon absorption of 65-70% of launched inventory
3
Subject Site Micro-Market Overview
- Subject Site Micro-market Overview
- Key Developments in the micro-market
- Micro-market Performance
Site Micro Market Delineation
To
Mumbai
Forest Grove Catchment Overview
Parvatara
Lodha Belmondho
 Once a rural locality in the outskirts of the city,
Celestial City
Punawale has metamorphosed into a buzzing
Runal Gateway Kohinoor Grandeur residential destination.
 The establishment of Rajiv Gandhi Infotech Park, also
Ravet, Punawale,
known as Hinjewadi IT Park, initiated the growth of
Tathawade
Sirocco Grande Wakad, Pimpri, Hinjewadi & nearby micro market. Hinjewadi is one of
Chinchwad, the major IT-ITeS hubs of Pune with more than four lakh
Pune Ville Pimple Saudagar, employees working in various companies such as
Pimple Gurav Infosys, Wipro, Satyam, TCS, Cognizant, IBM,
Life Republic Capgemini, etc.
 The gradual rise of IT-ITeS companies in Hinjewadi has
resulted in a surge of housing demand in the
surrounding residential micro markets.
Western Avenue
Rohan Ananta Elite 27

Avon Vista
Old Pune-
Competing Residential Micro Markets
Joy Ville
Baner- Balewadi, Mumbai Hinjewadi, Baner- Balewadi, Aundh, Pashan, Pimpri-
Highway
Pashan, Aundh Chinchwad, Ravet
Godrej 24

Hinjewadi, Marunji, Buyer profile

Aundh- Ravet
Maan- Mahalunge, BRTS Road HNI/ NRI Investors, IT Professionals, Service Professionals
Nande from nearby Manufacturing Industries
Baner Road
To Chandni Chowk

Subject Site Completed/ Ready Key Source: Anarock Research, 2019

Possession Residential
Nodes
Micro Market Overview | Demand Supply Dynamics
Y-o-Y Launches & Sales
5000 4451
4000 3552 3428
3148
2867
3000 2290
1984 1950 2062
2000 1300
1000
0
2015 2016 2017 2018 2019 ( Uptil Q3 )
Supply Absorption

Key Takeaway

 Over the last five years, Punawale has registered launch of around 15000+ units, amongst Grade A & B Projects, of which
~30% inventory has been added in 2016
 Owing to drop in sales in 2016, new launches in 2017 were impacted
 In the last two years, launches have been more in this micro market as compared to the y-o-y sales.
 The total unsold inventory in this micro market stands at 9,271 units.
 Developer’s reputation is one of the key factors attributing towards sales of projects in this micro-market.

Source: Anarock Research, 2019

Micro Market Overview | Price Movement
Micro Market Price Movement
5700
INR/ psft on Saleable Area.

5600

5500

5400

5300

5200

5100
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

Key Takeaway

 While the new launches has been erratic since Q1 2015, the prices in this micro market continued to grow until Q4 2016,
post which the prices dipped marginally due to declining demand amidst the impact of the triple tsunami – De
monetization, RERA and GST.
 The average price per sq. ft. by the end of 2017 was INR 5,540 per sq. ft. However, there has been a meager 2-3% rise in
the average price per sq. ft. since Q1 2015, owing to effect of demonetization.
 Q3 2018 observed a rise in demand & limited supply of Grade A units in the micro market resulting in upward price
movement which subsequently remained steady till date.

Source: Anarock Research, 2019

Micro Market Overview | Budget Segmentation

Key Takeaway
2,500
 Nearly 90% of the projects launched post 2015 are in
2,000 the mid segment (< ₹80 lakh).
 Punawale is one of the preference residential
No. of Units

1,500 destination among IT/ITeS professionals working in

Hinjewadi and employees working in the nearby
1,000
industrial belts of PCMC & Talegaon.
 Momentum continues in affordable segment.
500
Developers continue to shrink apartment sizes to keep
ticket sizes attractive in a largely end-user driven
market. As locations like Baner, Balewadi, Wakad are
0
gradually getting saturated, Punawale, Gahunje &
Q1-2015
Q2-2015
Q3-2015
Q4-2015
Q1-2016
Q2-2016
Q3-2016
Q4-2016
Q1-2017
Q2-2017
Q3-2017
Q4-2017
Q1-2018
Q2-2018
Q3-2018
Q4-2018
Q1-2019
Q2-2019
Q3-2019
Mamurdi along NH4 Bypass are coming up as
affordable to mid segment housing destinations.
 Rather than a price reduction, developers continue to
Budget Segment ( in INR)
offer a host of discounts to customers such as GST
<40 lakh 40 lakh - 80 lakh 80 lakh - 1.5 Cr. >1.5 Cr. waiver, rental assurance and other freebies to dispose
their unsold inventory.

Source: Anarock Research, 2019

Performance Assessment (for top 10 selected projects)
 Punawale is a developing micro market; hence adequate Grade  Approx. 72% of the inventory within the top 10 selected projects are sold
A developments are not available. Hence, we have considered out
top 10 selected projects from nearby micro markets for  As of Q3 2019, approx. 95% of the units are under construction , that is
evaluation purpose in this section. approx. 11,000 units.
 Projects considered for evaluation are the ones which are either  The NH4 Bypass sub-market accounted for a 61% share of the quarterly
launched after 2011 or which has available inventory in the launches with locations like Hinjewadi, Mahalunge, Punawale and Wakad
market by Jan 2019. witnessing a major share. Healthy commercial infrastructure along with the
 Buyers are primarily looking for ready to move in projects and excellent connectivity to Hinjewadi IT Park and the prominent business
those nearing completion, however newly launched projects are parks at Baner and Balewadi are major drivers for increased project
also witnessing reasonable response. launches in this corridor.

Construction Status of Units (top 10 projects) Construction Status of Unsold Absorption Status of Units (top 10 projects)
12,000 11,357 Inventory 10000
10,000
8000 1968
8,000 16% 20%
6,000 6000
4,000 4000
2,000 18% 373 6715
658 Ready to Move-In
<1 Year 2000
0 25% 2959
1 - 2 Years
No. of Units 2 - 3 Years 0
21% >3 Years units available Units sold
Completed
Under Construction & Pre Launched Grade A Grade B
Micro Market Trends (Qualitative Aspects)
Micro-market Snapshot
Salient Features

Micro-Market Perception & Positioning

Prevalent Typology  With Hinjewadi Tech Park’s phase I, II and III developed and functional, Phase IV
1 BHK, 2BHK, 3BHK will be constructed as planned.
 The construction activity in these localities is going at full swing and other
Prevalent Capital Value infrastructure upgrades might enhance the property prices in Hinjewadi,
INR 5,000-INR 6,500 per sq. ft. Punawale & nearby Micro markets.
 Punawale’s strategic location, connectivity, significant employment opportunities
Key developers and robust physical infrastructure surely makes it an attractive real estate
destination.
 Godrej Properties  Site micro-market is positioned as mid-premium segment market because of its
 Kolte Patil Developers location, connectivity, infrastructure initiatives.
 Rohan Developers  Developer’s past performance, quality of construction, amenities and size of units
 Naiknavare Developers are the key factors that buyers are considering while buying in this micro-market
 Pharande Group
 Runal Group Customer Preference and sales driving factors
 Kohinoor Group  There is a preference of mid-sized unit sizes for 1 & 2BHK typologies
 Large club house with state-of-the-art amenities and integrated shopping
complexes are also the key components that are driving sales in the projects
 Large integrated projects are preferred more than smaller projects

Source: Anarock Research, 2019

4
Benchmark Case Studies
- Case studies
- ANAROCK’s commentaries on achievable pricing and sales
velocity
Benchmark Projects
To
Mumbai Case 01. Celestial City
Lodha Belmondho
Celestial City Study
02. Life Republic
Ravet, Punawale,
Tathawade
Wakad, Pimpri,
Chinchwad,
03. Western Avenue
Pune Ville Pimple Saudagar,
Pimple Gurav
Life Republic 04. Rohan Ananta

05. Runal Gateway

Western Avenue
Rohan Ananta

Joy Ville
Avon Vista
Old Pune-
06. Godrej 24
Baner- Balewadi, Mumbai
Pashan, Aundh Highway
Godrej 24
07. Joyville
Hinjewadi, Marunji,
Aundh- Ravet
Maan- Mahalunge, BRTS Road
Nande
08. Lodha Belmondo
Baner Road
To Chandni Chowk

Source: Anarock Research, 2019

Subject Site Benchmark Completed/ Ready Key
Project Possession Residential
Nodes
Case Study 1: Celestial City, Ravet
Developer Name Pharande Spaces & Rama Group
Site Area 25 acres
Project Status Ongoing
Micro Market Ravet
Launch Period Q1 2010
Estimated Completion Timeline March 2022
Key Takeaways & Success Factors for the Project
Total Units 1085
 First mover advantage as one of the first launched
Configuration Type & No. of
Units
1, 2, 3 BHK Apartments Integrated Project with state of art amenities in the
Ravet Micro market
Average Size (Saleable Area) 674 – 1152 Sq. ft.  Attractive Pre- launch Offers & effective Marketing
strategies
Sales Velocity (annual) 108 Units annually
 Product configurations were thoughtfully launched &
Sold % 90 % very well accepted by first home Buyers/ Investors
 Well Planned Unit Plans with international standard
Launch Price (INR on Saleable) 4400 per Sq. Ft.
Specifications
Current Price (INR on Saleable) 5300 per Sq. Ft.  Strategic location with upcoming & developing
social infrastructure
Price Movement (Yearly Basis) 2 % YOY
 Resale Prices have observed good appreciation

Source: Anarock Research, 2019

Case Study 2: Life Republic, Tathawade

Developer Name Kolte Patil Developers

Site Area 9 acres (Phase-I)

Project Status Ongoing

Micro Market Hinjewadi

Launch Period Q1 2011

Estimated Completion Timeline Dec 2023

Key Takeaways & Success Factors for the Project
Total Units 2914
 Grade A Developer Group
Configuration Type & No. of Units 2, 3 BHK Apartments  Attractive Pricing movement
Average Size (Saleable Area) 868 – 1039 Sq. ft.
 Variations in Product configurations, leading to
varied options fitting the Customer’s Budget
Sales Velocity (annual) 328 Units annually  Thoughtfully planned apartments offering ample
Carpet Space
Sold % 90 %
 Sustainable & Eco- friendly strategies incorporated in
Launch Price (INR on Saleable) 5200 per Sq. Ft. the Township
 Strategically located and accessible to Hinjewadi IT
Current Price (INR on Saleable) 6410 per Sq. Ft. Establishment
Price Movement (Yearly Basis) 2 % YOY
 township being built of proposed hundreds of acres
of undulating greens

Source: Anarock Research, 2019

Case Study 3: Western Avenue, Wakad

Developer Name Kolte- Patil Developers

Site Area 13.39 acres

Project Status Ongoing

Micro Market Wakad

Launch Period Q1 2016

Estimated Completion Timeline Dec 2021

Total Units 936

Key Takeaways & Success Factors for the Project

Configuration Type & No. of Units 2, 3 BHK Apartments  Grade A Developer Group
Average Size (Saleable Area)
 Attractive Pricing movement
731- 1126 Sq. ft.
 Thoughtfully planned apartments offering ample
Sales Velocity 211 Units annually Carpet Space
 Resale Prices have observed good appreciation
Sold % 80.3 %
 Strategically located and accessible to Hinjewadi IT
Launch Price (INR on Saleable) 7300 per Sq. Ft. Establishment
 Centrally located along the Micro market, easily
Current Price (INR on Saleable) 8700 per Sq. Ft. accessible from the NH4 highway
Price Movement (Quarterly Basis) 2-3 % annually

Source: Anarock Research, 2019

Case Study 4: Rohan Ananta, Tathawade

Developer Name Rohan Developers

Site Area 7.56 acres

Project Status Ongoing

Micro Market Tathawade

Launch Period Q1 2019

Estimated Completion Timeline March 2024

Total Units 499 Key Takeaways & Success Factors for the Project

Configuration Type & No. of Units 1, 2 BHK Apartments  Grade A Developer Group
Average Size (Saleable Area) 340- 987 Sq. ft.  Attractive Pricing Offers & effective Marketing
strategies
Sales Velocity 90 Units quarterly  Attractive Product Prices
Sold % 58 %  Strategically located and accessible to Hinjewadi IT
Establishment
Launch Price (INR on Saleable) 4,900 per Sq. Ft.  State of Art Amenities within the Township
Current Price (INR on Saleable) 4,900 per Sq. Ft.

Price Movement (Quarterly Basis) N.A. (Short Term Outlook)

Source: Anarock Research, 2019

Case Study 5: Runal Gateway, Ravet

Developer Name Runal Developers

Site Area 7.46 acres

Project Status Ongoing

Micro Market Ravet

Launch Period Q2 2017

Estimated Completion Timeline Dec 2019

Key Takeaways & Success Factors for the Project
Total Units 347

Configuration Type & No. of Units 1,2, 3,4 BHK Apartments

 Grade B Developer Group
Average Size (Saleable Area) 514- 2406 Sq. ft.  Attractive Pricing movement
 Thoughtfully planned apartments offering ample
Sales Velocity 116 Units annually Carpet Space
Sold % 67 %  Strategically located and accessible to Hinjewadi IT
Establishment & PCMC , Talegaon Industrial areas
Launch Price (INR on Saleable) 7900 per Sq. Ft.  Centrally located along the Micro market, easily
accessible from the NH4 highway
Current Price (INR on Saleable) 8340 per Sq. Ft.

Price Movement (Quarterly Basis) 2-3 % annually

Source: Anarock Research, 2019

Case Study 6: Godrej 24, Hinjewadi

Developer Name Godrej Properties

Site Area 10 acres

Project Status Ongoing

Micro Market Hinjewadi

Launch Period Q2 2017

Estimated Completion Timeline Sept 2021

Total Units 815 (Phase-I) Key Takeaways & Success Factors for the Project

Configuration Type & No. of Units 2, 3 BHK Apartments  Grade A Developer Group with 120 year legacy &
prominent developments
Average Size (Saleable Area) 739 – 1152 Sq. ft.  Customization Options for Interior Specifications
offered to Buyers
Sales Velocity (annual) 380 Units annually  Attractive Pre- launch Offers & effective Marketing
Sold % 93.5 % strategies
 Product configurations were thoughtfully launched &
Launch Price (INR on Saleable) 5100 per Sq. Ft. very well accepted by first home Buyers/ Investors
 Thoughtfully planned apartments offering ample
Current Price (INR on Saleable)# 6000 per Sq. Ft.
Carpet Space
Price Movement (Yearly Basis) 2-3 % YOY  Semi-Furnished Apartments offered at the right prices

Source: Anarock Research, 2019

Case Study 7: Joyville, Hinjewadi

Developer Name Shapoorji Pallonji

Site Area 8.16 acres

Project Status Ongoing

Micro Market Hinjewadi

Launch Period Q2 2018

Estimated Completion Timeline Sept 2022

Total Units 1026 Key Takeaways & Success Factors for the Project

Configuration Type & No. of Units 1, 2, 3 BHK Apartments  Grade A Developer Group
 Attractive Pricing Offers & effective Marketing
Average Size (Saleable Area) 525– 831 Sq. ft. strategies
Sales Velocity (annual) 374 Units annually  Variations in Product configurations, leading to
varied options fitting the Customer’s Budget
Sold % 73.2 %  Flats in project designed skillfully and dominant over
master architect’s planning.
Launch Price (INR on Saleable) 6900 per Sq. Ft.
 Value for Money Products launched as per demand
Current Price (INR on Saleable)# 7000 per Sq. Ft. dynamics in the Micro market
 Strategically located and accessible to Hinjewadi IT
Price Movement (Yearly Basis) 1-2 % YOY
Establishment

Source: Anarock Research, 2019

Case Study 8: Lodha Belmondo
Developer Name Lodha Group
Site Area 100 acres
Project Status Ongoing
Micro Market Gahunje
Launch Period Q4 2012
Estimated Completion Timeline March 2021
Total Units 2076
Key Takeaways & Success Factors for the Project
Configuration Type & No. of
1BHK, 2BHK, 3BHK, 4BHK
Units  Attractive Pre- launch Offers & effective Marketing
Average Size (Saleable Area) 504- 4037 Sq. ft.
strategies
 Product configurations were thoughtfully launched &
Sales Velocity 116 Units annually very well accepted by first home Buyers/ Investors
Sold % 59.0%  Well Planned Unit Plans with international standard
Specifications
Launch Price (INR on Saleable) 6500 per Sq. Ft.  Strategic location with upcoming & developing
Current Price (INR on Saleable) 8000 per Sq. Ft. social infrastructure
 Well connected to Hinjewadi & nearby cities like Navi
Price Movement (Quarterly
2-3 % annually Mumbai & Mumbai
Basis)

Source: Anarock Research, 2019

 Comparable Project Performance Snapshot
Avg Capital
Prices INR
Typologies Launched Sales Velocity
Sr.No. Project Name Developer Unsold Units Sold % Psft/
Offered Units per year
Saleable
Area
Pharande Spaces &
1 Celestial City 1085 109 90.0% 5,300 109
Rama Group 1BHK, 2BHK, 3BHK
2 Life Republic Kolte-Patil Developers 2BHK,3BHK 2914 291 90.0% 6,410 328
3 Western Avenue Kolte-Patil Developers 2BHK, 3BHK 792 158 80.3% 8,700 211
4 Rohan Ananta Rohan Developers 1BHK, 2BHK 499 309 58.0% 4,900 190
1BHK, 2BHK, 3BHK,
5 Runal Gateway Runal Developers 347 115 67.0% 8,340 116
4BHK
6 Godrej 24 Godrej Properties 2BHK,3BHK 815 53 93.5% 6,000 381

7 Joyville Shapoorji Pallonji 1BHK, 2BHK, 3BHK 1026 277 73.2% 7,000 374
1BHK, 2BHK, 3BHK,
8 Lodha Belmondo Lodha Developers 2076 1266 59.0% 8,000 116
4BHK

Average Capital Values in INR per sq. ft, xxxxxx Average Sales Velocity/ Project xxxx Units/Year
of Saleable Area
Market Feedback & Key Recommendations
Market Feedback The Way Forward

Proposed SWMP Plant( Solid Waste Management Plant)

Educate the Customers with the right information on the Proposal
1 in Sr. No. 24 & 25)
Status, actual location of the SWMP, and the approach & access
Source: https://www.pcmcindia.gov.in/pdf/pdfvillage/Punawale.pdf
to the SWMP

Tathawade is evolving as the most competitive Micro market

Phase-1 & 2 Launches witnessed 2, 3 BHK Product
2 with 2,3 BHK Residences priced between 40- 80 Lakhs; which are
Configurations priced between 60 Lakhs – 95 Lakhs
performing extremely well
Phase-1 & 2 Launches witnessed 4.5 BHK Product 4 BHK could be a niche target audience; with an attractive
3
Configurations priced at ~ 2Cr pricing of ~1.1 Cr

1,2, 3 BHK Configurations Predominantly of the Ticket size

60 % of Walk-in Enquiries were looking for Budget &
4 priced between 35-80 Lakhs will be the ideal size for the
Compact Homes priced between 35- 80 Lakhs
majority of Target Buyers

Attractive Financial Schemes & discounted per sq. feet pricing

Increase in per Sq. ft. pricing has further increased the
5 strategies to be adopted to compete with the nearby growing
Product prices & slowed down Sales Velocity
Micro Markets

Source: Anarock Research, 2019

Achievable Capital Values
Sr.No Attributes Project Site Celestial City P/D Life Republic P/D
The property is located in West Zone of Pune The property is located in North West Pune
1 Location/Micromarket 2.50% The property is located at Tathawade -2.50%
at Punawale at Ravet
Accessible through > 18 m wide Punawale Accessible through > 24 m wide road Accessible through 18 m wide
3 Accessibility 2.50% -2.50%
Road (Aundh- Ravet BRTS Road) Tathawade Road
4 Visibility & Frontage Fairly good Visibility from Highway Fair Visibility from Access Road 0.00% Excellent Visibility from main access road 2.50%
Infrastructure in the site
2 Under Construction Well Developed -5.00% Well Developed -5.00%
Developer Profile / Market
5 Pharande Spaces Pharande Spaces & Rama Group 0.00% Kolte Patil Developers -2.50%
Penetration
On-Going development for ~ 25 acres of
On-Going development for ~ 25 acres of 9 acres (current phase) of development
6 Size of Development land with approx 1085 Units launched till 0.00% -2.50%
land with approx 717 Units launched till date with ~ 2914 Units
date
Facilities and Amenities
7 Proposed Modern Amenities Modern 0.00% Modern & International Standards -2.50%
within the project site
8 Type of Development High Rise Apartments High Rise Apartments 0.00% Integrated Township Development -2.50%
Project Status: Under Construction with ~70% absorption till Under Consruction (expected Completion: Under Construction (Expected
9 -2.50% -2.50%
Construction/ Absorption date 2021) with ~ 90% absorption Completion: 2023)- 90% Absorbed
Beneficiery to the proposed Good Connectivity via Proposed Metro Good Connectivity via Proposed Metro
10 No Connectivity 2.50% 0.00%
Metro Connectivity Station at Wakad Station at Megapolis
Opportunity to benchmark and provide
518 – 886 Sq. ft. (C/A) 668 – 799 Sq. ft (C/A)
11 Unit Sizes competitive basis in planning stage for next 2.50% 2.50%
2 & 3 BHK Apartment Units ( 2 & 3BHK Apartments )
phases of Development
12 Margin of Negotiation N.A. Transacted 0.00% Transacted 0.00%
Benchmark Price (INR. per sq. ft./ Saleable Area) 5,300 6,410
Total Adjustment 2.50% -17.50%
Adjusted Sale Price (INR. per sq. ft.) 5,288
5,433
Weightage 50% 50%
Achievable Sale Price (INR. per sq. ft.) 2716 2,644
Say Achievable Pricing for the Project Site (INR per sq. ft. on
xxxx xxxx
Saleable Area)
Outlook on Capital Price Movement
• On an average, for the past four years, the submarket has witnessed 2% – 3% y-o-y price appreciation
• At present, keeping in mind the current market conditions, last four quarters have witnessed annual price appreciation of
just 1% - 2%
• We anticipate the expected achievable sales price to be INR xxxxx per sq ft with a slight appreciation of 2%-3% for next
few years.
Year 2020E 2021E 2022E
Capital Value in INR per sq ft on
Saleable Basis and appreciation xxxx xxxx xxxx
Y-o-Y

• The achievable pricing is derived from • We anticipate, post delivery of Phase I & II, & sales  With the completion of Phase I, II &
the comparable method. The loading is momentum xxxxxx, confidence amongst the IV, the project would regain the
considered at ~30%. buyers will be restored. The project may anticipate customer confidence and achieve
• Various parameters are considered such an annual appreciation of 2% to 3% on the capital higher price appreciation.
as current market conditions, future value given the product positioning/offering and  Completion of proposed
competition, various risks and xxxxxxx & timely completion of construction at site. infrastructure projects would further
its project’s brand perception are • CY 2021 is expected to witness the launch of boost the pricing dynamics of the
considered Phase-III which would focus on the affordable project and the micro market, as a
segment whole.
Summary (Unsold Inventory)
Phase-I Phase-II Phase-III * Phase-IV xxxxx
A, B - Not yet
Tower Details A,B,C G,H,I,J At Conceptual Stage * C,D
launched*
Towe-wise Split Up A B C G H I J
Typology 4.5 3 BHK 3 BHK 2 BHK 2 BHK 2 BHK 2.5 BHK 2 BHK 2 BHK* 2.5 BHK * 3 BHK * 1 BHK 2 BHK Proposed*
Unsold Inventory (in
55 2 22 5 6 12 18 78 167 418 251 136 108 244
Nos.)
Total Unsold
79 119 836 244 244
Inventory (in Nos.)

Existing Unsold
Existing Unsold Inventory 442 Inventory 1080
(Proposal Stage)

Key Highlights
Ready to move units/ units in finishing stages (Phase I & II) in nos. : xxxxx (45% of unsold units which is already launched)
Launched units xxxxx in nos. : xxxx (55% of unsold units which is already launched)

Design approval stage (Phase III) in nos. : xxxx (77% of yet to be launched units)
Concept Stage (xxxxxx) in nos. : xxxx (33% of yet to be launched units)

Legends Launched Units Yet to be Launched Units

Outlook on Sales Velocity (Launched Unsold Inventory)
• On an average, for the past four years, the submarket has witnessed ~xxxx units/year/ key project as the sales velocity
• At present in Current market conditions, last four quarters have seen sales velocity at ~xxxxx Units/Year/ key project.
• We anticipate the expected sales velocity as below mentioned to sell remaining ~xxxxxx units in Phase I,II, IV
3 - Year Projections (On-going Phases)
Phases I, II & IV(C & D)
Year 2020E 2021E 2022E
Projected sales velocity (annually) for 1, 2, 2.5, 3 BHK units 110 132 145
Projected sales velocity (annually) for 4.5 BHK units 15 18 22
Total sales velocity for on-going phases (YoY) 125 150 167
Total absorption (in no. of units) xxxxxx
 Key Project Launches by developers like xxxxxx are expected to hit the Micro Market, with ticket prices ranging between 35-
45 Lakh with good Inventory size. Such Projects would possess a direct Competition to the Product offerings by xxxxxx, hence
an improved Velocity has not been considered in- specific. However, a Spill over Demand would be visible due to a
prominent Developer entering the Micro- Market.
 In order to boost sales in the project, the Developer should undertake aggressive marketing activities and tie up with
brokers/channel partners.
 The Developer should target to maintain the current ticket size for 4.5BHK units (between INR xxx and INR xxxx) with
limited/no price appreciation for next 2-3 years in order to complete sale of these units by 2022.

Avg. sales velocity (1, 2, 2.5, 3 BHK units) : xxxxxx units YoY

Avg. sales velocity (4.5 BHK units) : xxxxxx units YoY

Legends Launched Units Yet to be Launched Units

Outlook on Sales Velocity (Yet to be launched Inventory)
• We anticipate the expected sales velocity as below mentioned to sell remaining xxxxxx units

7- Year Projections (Proposed Phases)

Phase- III & Phase-IV (Yet to be Launched)
Year 2023 2024 2025 2026 2027 2028 2028
Projected sales velocity
(annually) for 1, 2, 2.5, 3BHK 180 165 145 125 125 165 175
units*
Total Absorption (in no. of
units)
xxxxx
 Project timeline envisaged: 7-8 Years
 With steady sales and timely completion of construction, these phases of the project is expected to achieve an absorption of
35-40% of the total inventory in a period of 3 years from the date of launch
 In order to boost sales in the project, the Developer should undertake aggressive marketing activities and tie up with
brokers/channel partners.
*The proposed configurations/sizing need to be relooked as per customer preferences and necessary modifications need to
made in order to achieve higher sales velocity

Avg. sales velocity (Year 01 - 03) : xxxxxx units YoY

Avg. sales velocity (Year 04 - 07) : xxxxxx units YoY

Legends Launched Units Yet to be Launched Units

Recommendations (Yet to be launched Phases)
Basis our interactions with market intermediaries and Anarock’s marketing team, following are the product configuration that
may be suitable for the proposed phases:
Recommended Product Configurations ( Phase III & IV- yet to be launched Units )
Product Type Saleable Area (in Sq. ft. ) Product Mix Product Price (INR Lakhs)
1 BHK 700-730 20% XXXX
2 BHK 1000-1050 50% XXXX
3 BHK 1500-1550 30% XXXX
Product mix & indicative ticket sizes have been presented basis the inputs received from broker interactions and market feedback

Sales Velocity Key Highlights (Yet to be launched Inventory)

• Average annual sales velocity in the micro market is guided majorly by competitive pricing, type of development, micro
market growth drivers and developer’s profile.
• Average annual sales velocity in case of integrated townships are observed to be higher (XXXX) as compared to stand
alone or small-scale projects (XXXXX units).
• Average annual sales velocity across various unit configuration is observed to be highest for 2 BHK units (XXX units) followed
by 1 & 3 BHK units (XXXX units) and minimum in case of 4 BHK units (XXX Units).

Though the achievable sales velocity is anticipated to be XXXX Units YoY, re-sizing and right pricing as per the
above recommendations and proper marketing could improve/increase the sales velocity for the subject
project

Legends Launched Units Yet to be Launched Units

Open for Discussion