abhi

Bestech Group - Bestech India Pvt. Ltd

They are coming up with the following Project on Sohna Road.

Park View Business Tower (Office Towers)

Sector 48, Sohna Road, Gurgaon
IT Office Space (STP Licensed)
Completion: 3 - 3.6 years.

Sizes: Minimum Super Area: 2500 sq.ft (Demarcated on single floor plates)
BSP: RS. 4,850
Demarcation Cost: Rs.150
Car parking Bay: 3 (Rs.9,00,000)
EDC/IDC: Rs. 4,80,000
IFMS: Rs. 3,75,000
Total: Rs. 1,42,55,000
Reg Charges: Rs. 7,50,0000
Gross Value: Rs. 1,50,05,000
Gross Value Sq. Feet: Rs. 6,002
Capital Spend on Furnishing: Rs. 21,12,500
Gross Value Sq. Feet: Rs. 6,847 (Furnished)

1. WOULD THIS BE A GOOD INVESTMENT BEARING IN MIND THAT SO MANY COMMERCIAL PROJECTS ARE COMING UP IN GURGAON AND THERE SEEMS TO BE AN OVERSUPPLY.

2. HOW IS THE BUILDER REPUTATION? HAVE THEY DELIVERED ANYTHING IN GURAGON?

Venkytalks

Hi Abhi.

Location and group reputation are good. Surely Sohna road will be very well developed in 3-4 years. People will want to work close to their home.

Does demarcation cost mean they will carve out the office?

For a 1.5Crore ticket cost, Will 2500sf office command rent of at least 1.2 Lakh per month? i.e. 50 Rs psf per month

You need that much to break even with FD.

For profits you need at least 1.5L per month rent and of course the capital appreciation.

For 1.5L rent, business needs 30-40 Lakh profit per annum including salaries etc. Turnover needs to be in 1-2 crores.

Some 10 Lakh per month sale, some 50,000 sale per day in billing.

A lot depends on how many offices are there in the building and how many more buildings there are, and how many businesses the region can support.

coke_indian

Bharti Airtel ? They have created their new office in Udyog Vihar, main NH8 !

They are now creating iT parks however in almost similar rates, u r getting flats on Sohna road, from where already established sectors, established IT parks, IT Hubs, markets and malls are nearby. One Agilent Technology can not beat established IT co's located in DLF secors, Udyog Vihar sector for next few years.

However Manesar is also a futuristic location but it will take more time than Sohna Road and yes for residential purpose, Sohna Road wud be obviously better.

gautam

Sohna Road is the cheapest area as far as rentals are concerned. Many corporate have moved to this location in last one year. The area shall be more buzzing with activity from next one year onwards. Corporate like Etisalat 73000 sft, Telenor 140000 sft, Cardia USA, NDTV, Sab Miller, Kline Research etc, and these are only few names, many more have shifted location in last one year.

The current rentals are in the range of Rs.45-47/- which is expected to reach Rs. 50-55 within the possession time of PARK VIEW BUSINESS TOWERS. The preleased unfurnished /furnished properties at Sohna Road in IT Buildings are being sold at Rs. 7500 – 8500/- psft. With ROI of 7.50% approx.

This product can surely produce capital appreciation and a solid rental income.

You can expect minimum a 25-30% appreciation in this product by possession next year.

Regarding Bestech, they are the oldest in Gurgaon and have delivered the following projects in last 7-8 years

• Park View City -1
• Park View City -2
• Park View Residency
• Park Plaza Hotel – Sold out
• Park View Spa – Under Construction
• Park View Spa Next – Under Construction
• Centre Point - Commercial
• Central Square - Commercial
• Bestech Chambers – Commercial cum Hotel – Radisson Suites
• Bestech City Dharuhera – Under Construction
• Park View Delight Dharuhera – Under Construction
• Bestech Cyber Park – Ready for Possession
• Orient Bestech Business Park – Under Construction
• Park View Business Towers- Under Construction

The group has got solid reputation in market.

capreal26

Interesting discussion.

Venky - the 50/- per sft rental does look a little on the higher side - that might discourage the biggies of the IT/ITeS world who want to add 00's - 000's of seats in any capacity addition decisions. My firm is in Vatika Atrium (Main Golf Course Road) and the deal was negotiated for 5 yrs at Rs. 30-32 psft. The quotes for lease renewal are now 4x

btw, all the commerical space in Sohna road - is it notified under SEZ rule?

Venkytalks

Hi Gautam

I think chance for appreciation in commercial is now capped.

Best timing for entry might be in 2012 or 2013 and not today

adityasareen

Hi Gautam

I spoke to couple of dealers regarding IT Office space, one of the dealers quoted me 4300 psf all inclusive for JMD on 6th floor and other one quoted 6000 psf for SPAZE IT on ground floor, both these projects are on sohna road and nearing completion

The JMD dealer quoted me Rs 50 psf as rental income. Not sure how much does it make sense

cheers

Venkytalks

Recent rent for commercial space is around 50Rs psf when you get a tenant