what do you guys think of Omaxe Connaught place? I know Omaxe is loosing its reputation but the offer looks temptimg from them with assured return in their commercial.
The adv said 14% assured return for 6 years and 16% in the 7th years,in short money is almost returned in 7 years.Minimun investment is 24 lakhs but not sure about their payment plan or discount offered.

Please advice what you think?Does it look like a good investment with post dates checques from Omaxe.To me return looks quite good.
Read more
Reply
194 Replies
Sort by :Filter by :
  • Zohaib,

    all your points are fully agreeable, at this stage we are all evaluating the prospects which seem lucrative.there are a lot of doubts hence this discussion.

    If a builder give u 72 cheques on day1, it is a serious matter.
    The drawer(builder) of the dishonored cheque is liable to be punished under Section 138 with imprisonment extending from 6 months - two years or with fine upto twice the amount of cheque or both.

    Big issue is how many customers are willing to take the fight to court incase of any default? hence problem is our judicial system more than builders.
    CommentQuote
  • Originally Posted by Munish Malhautra
    Zohaib,

    all your points are fully agreeable, at this stage we are all evaluating the prospects which seem lucrative.there are a lot of doubts hence this discussion.

    If a builder give u 72 cheques on day1, it is a serious matter.
    The drawer(builder) of the dishonored cheque is liable to be punished under Section 138 with imprisonment extending from 6 months - two years or with fine upto twice the amount of cheque or both.

    Big issue is how many customers are willing to take the fight to court incase of any default? hence problem is our judicial system more than builders.




    In full practicality...and knowing that Indian System has no chance of becoming better...i am certain that this project is not safe.

    I agree..the reason is judicial system, politicians, goverment, blah blah...but the fact is that India has passed the "Point of No Return"...we are more corrupt than before...but thats all beyond the discussion.

    Omaxe has never given any penalty money...delayed projects....nearly all its projects are stalled ...some for years...blacklisted by greater noida authority....black listed by consumer forum...Omaxe connaught place is getting launched the Third time....its previous leased brands have moved out...and the ones they are showing on their website have just signed a LOI...no commitment at all...The project is too big to be executed in 18 months....The project is not in an area which ensures it as a big success...There are better competitors in better location...

    what else one needs to discuss....????

    I would have still taken a chance had this project been in noida...but this is in greater noida...the commercial demand is not so much...and it will not be a success...there are malls with better brands..better chances of completion...and better location...about to be finished..

    Even if its completed...there will be a huge supply..and less demand..meaning lease rates coming down...

    Lets assume they are offering you 300 sq.feet for 24 lakhs...
    once complete do you think a brand will give you 28,000 for a 300 sq.feet area ????...that Rs.nearly Rs. 90 per sq.feet....

    Will brands give Rs.90 per sq.feet when so much supply is there...in a city which doesnt need so many malls and doesnt have direct and short access to a very dense city (like sector 18 has to east and south delhi)

    I dont think so

    Here is the supply for Greater noida in terms of malls coming up in next 2 years (more than Noida !!!!!) :

    1. Grand venezia
    2. MSX Mall
    3. Nri city mall
    4. SNG Mall
    5. Habitech crystal mall
    6. Globus mall
    7. Kessel i valley mall
    8. ansal plaza (already there)
    9. Vardhaman mall
    10. globus galleria

    Plus the sector market and the whole of Alpha commercial belt

    All this for a city which will have a population of 3-4 lakhs in 3 years..

    Will the brand pay so much ???????

    But again..this is my personal opinion...
    CommentQuote
  • As of now the point is not the location or commercial supply of other projects...its 14% fixed returns for 7 years what is being offered which makes sense, also selling rights from day 1without any locking period? if these points are true, worth evaluating:)

    their ad definitely hints at damage control:)
    CommentQuote
  • Originally Posted by Munish Malhautra
    As of now the point is not the location or commercial supply of other projects...its 14% fixed returns for 7 years what is being offered which makes sense, also selling rights from day 1without any locking period? if these points are true, worth evaluating:)

    their ad definitely hints at damage control:)



    The returns one "Expects" to get are going to be from the commerical success of the mall...

    First it has to complete...then it has to be leased properly

    I am sure people dont expect the mall to be ready and empty..with Omaxe paying 14% returns from their own pocket ????

    With malls catering to people from greater noida, nioda expressway region mostly (with hardly any visitors from delhi)...and such a surplus supply of commercial shops....dont expect the brands to pay more than 60-70 Per sq. feet...(that too if the mall is running well)

    I expect the lease rate to be around Rs 50-60 per sq. feet for a good mall
    IF THE BRAND IS WILLING...becasue there iwll hige space availabel for them..and they will bargain hard
    CommentQuote
  • So Zohaib,
    1) Its unlikely that Omaxe shall honour 14% assured return for 6 yrs.
    2) See its Gall, and courage to take innocent investors for ride , after luring them with PDC etcquite likely
    3) Or else how they shall continue to give 14 % assured return without defaulting
    4) wont they get permission to launch their scheme from some regulatory authority
    5) Are no watchdogs/watch houses exist which keep an eye on any foul-playing by builder like Omaxe against their promised declarartion
    6) do you have any happy stories to tell about similar schemes lauched by Supertech Previously and other builders

    I appreciate your forthrightness , in this thread
    atleast we know the depth of the well we just want to jump into
    Thanks again , Zohaib
    CommentQuote
  • Originally Posted by Munish Malhautra
    As of now the point is not the location or commercial supply of other projects...its 14% fixed returns for 7 years what is being offered which makes sense, also selling rights from day 1without any locking period? if these points are true, worth evaluating:)

    their ad definitely hints at damage control:)


    Guys, I admit that when I saw the advertisement I too got interested. But reading this thread today, I am not bothered to find any more details about the project. Here are my 2 cents:

    Tell me a reason why a builder would give you a higher return than the prevailing returns in the market? Currently, the best return scheme in Commercial property is 12%. A 14% return is phenomenal. Who has ever assured you this return in the last 10 years? Not the best of the investment products in any class.

    Also, about cheques. As Zohaid said, 72 cheques on Day 1 is a serious issue. Remember, you are not the only buyer. There might be hundred. Look at the number of cheques the builder has to write off. X nos. x 72 cheques. HUGE!!!
    Not possible at all. I have not spoken to the marketing guys of this project, yet I don't buy this theory at the first place.

    My suggestion to you would be to invest in an assured scheme (if you really want to ) where you have some credibility on the builder or an assurance of a bank guarantee. Aaaj ke zamane mein, builder has plenty of options for collecting money then why he has to go to public at the first place? Just that it is easier and they can escape law. Assured return schemes are not supported by law in India.

    Alternate, Munish's Venezia is a novel concept, under construction and a better assured return project. Munish, don't offer me another 500sq ft shop u did to other guy.;-) A bigger showroom would do. :-)
    CommentQuote
  • LOL Amit...
    CommentQuote
  • Originally Posted by Arihant1
    So Zohaib,
    1) Its unlikely that Omaxe shall honour 14% assured return for 6 yrs.
    2) See its Gall, and courage to take innocent investors for ride , after luring them with PDC etcquite likely
    3) Or else how they shall continue to give 14 % assured return without defaulting
    4) wont they get permission to launch their scheme from some regulatory authority
    5) Are no watchdogs/watch houses exist which keep an eye on any foul-playing by builder like Omaxe against their promised declarartion
    6) do you have any happy stories to tell about similar schemes lauched by Supertech Previously and other builders

    I appreciate your forthrightness , in this thread
    atleast we know the depth of the well we just want to jump into
    Thanks again , Zohaib




    Hei friend

    Lets be practical here and analyse the situation:

    1. Govt rules and norms..police..courts..etc etc...NOTHING will change..its getting worse...if someone thinks that their rights will be taken care of by some watchdog, court, etc etc....Please yaar...thats NOT going to happen.
    If shit is piled up on road...then either one can avoid it...or remove it himself. If anyone has the will, time and energy to dedicate in changing the system or taking builders, builder lobby to court...please go ahead...
    Forget Civil court...there are so many cases piled up in Consumer Court...Builders give a hoot to it...
    A recap of what happened a few years back:
    1. Unitech projects stalled in Noida, greater noida..and mind you they were mostly 70% or more sold out..
    2. Parasvnath and Omaxe did the same thing
    3. DLF Commercial projects stalled

    and mind you..these are BIG names...what happened to their buyers ????
    which court has given them relief...which goverment has taken action against them ????

    Such builders should have been blacklisted but guess what...

    These builders have been given govt. tenders...
    Parasvnath, omaxe, alll are making govt. funded projects..
    Unitech is gaian launching projects..has a telecom company...
    but their stalled projects are the same...

    Go on net and find out the mess these builders have created...Projects stalled...Projects lay outs changed...Projects delayed indefinately...No penalty clause...poor construction.. etc etc etc etc....It all a mess..and we have no choice but to play safe...

    2. Lets assume for a moment that Omaxe does pay you 14% till possession..and completed the work in 18 months...after that for the next 4.5 years..who will pay at 14%...Omaxe ??????..NO WAY...These builders dont even pay penalty for late projects..forget about paying from their own pocket .....It has to be the brand which will take the space on Lease.

    3. Now lets see the commercial demand and supply for Greater noida.
    Lets be very clear that its Greater Noida..and NOT Noida...Noida has a a Great advantage of being very close to high density delhi areas like South and East delhi. A lot of people flock to Noida for shopping, etc.

    But please DONOT Expect that to happen for Greater Noida...Once a week or casual visits for long drives..on Taj expressway, etc etc....Donot expect them to drive all the way to Greater Noida every other day....Thats not going to happen.

    So who will but from these malls ???

    - Greater Noida population..expected to be round 3-4 lakhs in next 2-3 years
    - Most of the Projects on Noida expressway...

    Now that will be the demand...and now coming to supply

    - Ansal plaza..a huge mall is already ready
    - Opposite it a small but a Great located mall NRI City centre
    - Grand venezia expected to be ready by 2012..Huge mall
    - MSX Mall behing grand venezia..another big mall...by 2011
    - Full Alpha commercial belt...Ground floors only for commercial
    - SNG Plaza..another small but good located mall
    - Habitech Mall - near sharda university
    - Globus mall - near sharda university
    - Vardhaman mall- near sharda university
    - i valley mall - on yamuna expressway
    - Globus galleria - on yamuna expressway
    - Sector markets of Greater Noida

    Now do your calculation...

    In a area with more supply than demand..do you think that a BRAND will pay high lease ?????

    If Omaxe is selling you 250 sq.feet at 24 lakhs
    and pays you 14% till possession...after that expect the brand to pay close to Rs 50-60 psf only...that would mean around 15,000 per month...

    For Omaxe to continue paying you 14% after possesion...he has to lease your space for more than Rs.100 psf
    CommentQuote
  • Originally Posted by amit2222
    Guys, I admit that when I saw the advertisement I too got interested. But reading this thread today, I am not bothered to find any more details about the project. Here are my 2 cents:

    Tell me a reason why a builder would give you a higher return than the prevailing returns in the market? Currently, the best return scheme in Commercial property is 12%. A 14% return is phenomenal. Who has ever assured you this return in the last 10 years? Not the best of the investment products in any class.

    Also, about cheques. As Zohaid said, 72 cheques on Day 1 is a serious issue. Remember, you are not the only buyer. There might be hundred. Look at the number of cheques the builder has to write off. X nos. x 72 cheques. HUGE!!!
    Not possible at all. I have not spoken to the marketing guys of this project, yet I don't buy this theory at the first place.

    My suggestion to you would be to invest in an assured scheme (if you really want to ) where you have some credibility on the builder or an assurance of a bank guarantee. Aaaj ke zamane mein, builder has plenty of options for collecting money then why he has to go to public at the first place? Just that it is easier and they can escape law. Assured return schemes are not supported by law in India.

    Alternate, Munish's Venezia is a novel concept, under construction and a better assured return project. Munish, don't offer me another 500sq ft shop u did to other guy.;-) A bigger showroom would do. :-)






    In my opinion..keeping the present state in mind...Grand venezia in Greater Noida is by far a very safe project. I will be coming to india and getting oits details myself...my only concern....LEASING...if i am satisfied by their Leasing Plan...I will go for it...

    I donot care even if Donald Trump is leasing the project....I know the ground realities and I will see that if they have in plan is "Realistic" keeping in mind the area whre its being developed...It will be a great place for sure.
    CommentQuote
  • Originally Posted by zohaib
    In my opinion..keeping the present state in mind...Grand venezia in Greater Noida is by far a very safe project. I will be coming to india and getting oits details myself...my only concern....LEASING...if i am satisfied by their Leasing Plan...I will go for it...

    I donot care even if Donald Trump is leasing the project....I know the ground realities and I will see that if they have in plan is "Realistic" keeping in mind the area whre its being developed...It will be a great place for sure.


    Very Valid point for investing in commercial projects.

    Also, if there are so many planned malls in Gr. Noida and the population of Gr. Noida are not at India's so called hindu growth rate then why more malls are being planned there? Why not offices or investing in IT/Non-IT office space with a similar return scheme.

    Tough choice to make in that part of NCR where oversupply hangs both in residential and commercial space.
    CommentQuote
  • my comments in bold
    Originally Posted by zohaib

    2. Lets assume for a moment that Omaxe does pay you 14% till possession..and completed the work in 18 months...after that for the next 4.5 years..who will pay at 14%...Omaxe ??????..NO WAY...These builders dont even pay penalty for late projects..forget about paying from their own pocket .....It has to be the brand which will take the space on Lease.
    Could be possible Omaxe has already signed MOU with some brands hence they are assuring 14% ?

    Now do your calculation...

    In a area with more supply than demand..do you think that a BRAND will pay high lease ?????

    If Omaxe is selling you 250 sq.feet at 24 lakhs
    and pays you 14% till possession...after that expect the brand to pay close to Rs 50-60 psf only...that would mean around 15,000 per month...
    If they are selling 250 sqft space at 24Lacs, he who pays will be an asss, Rs. 10000 psf in Gnida for underconstrution, :bab (3):
    U can get in Noida at 8000/- with AR..
    :D
    For Omaxe to continue paying you 14% after possesion...he has to lease your space for more than Rs.100 psf

    Size has to be around 400-450 spft, then lease wud be at ~60


    Looks like they might be sell the mall space, thats means ownership is going to be with investors...man, time to forget about Omaxe CP:bab (35):
    CommentQuote
  • Originally Posted by zohaib
    Hei friend


    2. Lets assume for a moment that Omaxe does pay you 14% till possession..and completed the work in 18 months...after that for the next 4.5 years..who will pay at 14%...Omaxe ??????..NO WAY...

    What is the sense and meaning of PDC then?
    If builder has predecided that he would default after 18 months , then its better to avoid




    If Omaxe is selling you 250 sq.feet at 24 lakhs
    and pays you 14% till possession...after that expect the brand to pay close to Rs 50-60 psf only...that would mean around 15,000 per month...

    For Omaxe to continue paying you 14% after possesion...he has to lease your space for more than Rs.100 psf


    I am not so money wise but if Omaxe gives me 14 % on my investment of Rs 24 Lacs for 6 years and then (after that ) the 300 to 450 sqft property at Gnoida in a large Mall is mine ( even rent rights) it is a good bargain!

    Do you agree?

    But I have no resources to fight if Builder has pre-decided or pre-programmed to default or choose to default after 18 months or so!!



    Thank you very much that was an eye-opening analysis ,Zohaib
    Thanks for your foresightedness again
    CommentQuote
  • Comaprison with Grand Venezia

    Comparison of Omaxe CP v/s Grand Venezia:
    As I am understanding, for minimum investment of Rs 40 lacs though you can pay 50% at the time of booking and avail AR 12% till possession (say 15 months) in Grand Venezia
    after this you should have the enough cash to deposit rest 50% or exit with 15% return on your deposit in 15 months

    If you now choose to deposit 20 lacs now, assured clause wont apply anymore , but Guidance on further lease shall be provided.

    Assuming, you are lucky enough to getthe lease rent Rs60 psft , on the total floor space of 600 sq ft , you shall be earning rs 36000/ per month
    ( AR was 25000)

    While Omaxe is promising 14% AR for 6 Continous years (rs 28000 pm) and then free property.
    which is better on paper!!
    CommentQuote
  • Originally Posted by Munish Malhautra
    my comments in bold

    Size has to be around 400-450 spft, then lease wud be at ~60


    Looks like they might be sell the mall space, thats means ownership is going to be with investors...man, time to forget about Omaxe CP:bab (35):



    For a 24 Lakhs investment...expect close to 250-300 sq.feet area only
    Omaxe will give you a list of Brands they have signed

    Ask them where are the 150 Brands they signed 2-3 years back..and why new brands.

    Someone mentioned about MOU...I would like to add that its just a letter of interest...No value at all...No brand is so foolish to lease a mall space in Guarantee..wtihout knowing the outcome of the mall in terms of constuction and the footfall it will have.

    They sign a Letter of Interest..and its totall negotiable...a brand may sign for Rs 300 psf in LOI..but when it actually comes to leaseing out..they do their survey and then they negotiate.

    With the kind of supply coming up in next 2-3 years...and not a mad rush like noida sector 18...expect rates of around 50-60 psf only.

    Big brands like Bigbazaar, etc etc go for about 30-40 Rs psf only
    CommentQuote
  • Omaxe CP- Details

    13 Floor Commercial property-
    GF to 3rd floor-Retail space
    4th -13th-Office space
    Price psft from GF , going up.....
    9000-GF
    8000-FF
    7000-SF
    6000-TF
    4200-(FF to 8th floor)
    4000-(9th to 13th Floor)

    14% returns are across the board(retail/office) for 6 years, :bab (50):They will sign lease agreement for 6-years on day 1. 16% return for 7th year.:bab (65):
    Size of shops/offices not yet decided.
    5-star hotel planned in the premise.

    Minimum investment is 18 Lacs for ATMs of 200sf on GF(limited space left).

    Structure is almost ready, all 13 floors in place. Finishing will start shortly.
    They are going to give detailed AD again.

    For curiosity sake, i will check the site as am not sure of the location, but it seems to be very close to parichok.
    CommentQuote