Hello all,

I am getting this option in Vatika Business Park in Sohna road.

Virtual space 1000 sqft. Price is around 1 Cr. Budget is max 1.4 Cr.

rent is 55 psf. Rented to a big MNC which has taken 1 lakh sq ft on lease. 12 year lease.

My main aim is rental income plus capital appreciation.

Is this a good deal? Any issue in virtual space? Will the rent be given to me directly by tenant or builder.

I am too wary of these builders and want my investment safe.

Thanks.
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  • Originally Posted by kumar678
    Hello all,

    I am getting this option in Vatika Business Park in Sohna road.

    Virtual space 1000sqft. Price is around 1cr. Budget is max 1.4cr.

    rent is 55psf. Rented to a big mnc which has taken 1lakh sqft on lease. 12yr lease.

    My main aim is rental income plus capital appreciation.

    Is this a good deal? Any issue in virtual space? Will the rent be given to me directly by tenant or builder.

    I am too wary of these builders and want my investment safe.

    Thanks.


    wat exactly do you mean by virtual space?? my office is in Vatika business park and the place is buzzing..starbucks/opentap...Mckinsey has big presence here ;)...

    spnding 1 CR and getting 660000 Inr in rent is a good rental yield...and the way companies are shifting to sohna road -- rentals will only go up...
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  • Originally Posted by tyler_durden
    wat exactly do you mean by virtual space?? my office is in Vatika business park and the place is buzzing..starbucks/opentap...Mckinsey has big presence here ;)...

    spnding 1 CR and getting 660000 Inr in rent is a good rental yield...and the way companies are shifting to sohna road -- rentals will only go up...


    Virtual space means the person who buys such a space does not get an independent lockable space rather he is allocated a part of a large unit. The tenant in this vatika business park has taken more than 1lakh sqft of space. I am offered space of 1000sq ft out of this 1lakh sqft at 1cr with monthly rental of 55000.
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  • Originally Posted by kumar678
    Virtual space means the person who buys such a space does not get an independent lockable space rather he is allocated a part of a large unit. The tenant in this vatika business park has taken more than 1lakh sqft of space. I am offered space of 1000sq ft out of this 1lakh sqft at 1cr with monthly rental of 55000.


    thats a bit tricky...do u know which block/tower?? and floor?? i have seen that there are 1000 sqft cubicles which re vacant bcos they re badly located on the floor....the company will buy 1 lac square feet and ur space cud be just left out in corner..
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  • Originally Posted by tyler_durden
    thats a bit tricky...do u know which block/tower?? and floor?? i have seen that there are 1000 sqft cubicles which re vacant bcos they re badly located on the floor....the company will buy 1 lac square feet and ur space cud be just left out in corner..


    Actual space is not allotted. Only part of a large space is allotted. that does not mean a person is allotted any corner or center of the floor. understood? And the tenant happens to be Mckinsey.
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  • Originally Posted by kumar678
    Actual space is not allotted. Only part of a large space is allotted. that does not mean a person is allotted any corner or center of the floor. understood? And the tenant happens to be Mckinsey.


    Purely on financial basis:
    I presume this income is going to be white and taxed too. What will you make post tax?

    Why not put the 1 Cr. in liquid funds which will give you 8-9 Lakhs per year tax free?
    In future as interest rates fall, this income will come down for sure but your 1 Cr. remains liquid and you can redeem it any time. Press the sell button and money comes to your account in 24 hours. Meanwhile study other options.

    Non-financial part:
    When you become a part-owner, do you get it registered in your name? I guess not.
    Next question then is, is it legal?
    If you are not getting part ownership in the building, what you are getting is some sort of structured financial product which is unapproved by any authority (Sahara-SEBI case). Where do you go in case of any dispute?
    How easy is it to buy-sell this later? I presume you will have to find another buyer like yourself because in govt. papers, you own nothing.

    These are just questions. Don't consider them as encouragement or discouragement. Do your own research before taking a decision.

    One more thing - look at REITs. They are similar instruments and approved by govt. so safer.
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  • Originally Posted by Catbert
    Purely on financial basis:
    I presume this income is going to be white and taxed too. What will you make post tax?

    Why not put the 1 Cr. in liquid funds which will give you 8-9 Lakhs per year tax free?
    In future as interest rates fall, this income will come down for sure but your 1 Cr. remains liquid and you can redeem it any time. Press the sell button and money comes to your account in 24 hours. Meanwhile study other options.

    Non-financial part:
    When you become a part-owner, do you get it registered in your name? I guess not.
    Next question then is, is it legal?
    If you are not getting part ownership in the building, what you are getting is some sort of structured financial product which is unapproved by any authority (Sahara-SEBI case). Where do you go in case of any dispute?
    How easy is it to buy-sell this later? I presume you will have to find another buyer like yourself because in govt. papers, you own nothing.

    These are just questions. Don't consider them as encouragement or discouragement. Do your own research before taking a decision.

    One more thing - look at REITs. They are similar instruments and approved by govt. so safer.


    Catbert - can u pls elaborate which liquid asset is giving 8-9 % tax free return? I am not mocking you but genuinely asking for guidance :)
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  • @Catbert

    I too like to know which liquid funds gives 8-9 Lakhs of tax free return] on an investment of 1 Cr??
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  • Even if the lease is for 12 years, tenant may still vacate the property by giving adequate notice as defined in agreement, say a few months. Without tenant, this property will be worth a lot less and getting a tenant for a commercial property takes time even for a builder of good size and standing in market. This is the biggest risk attached with buying rented properties.

    I have some experience of buying rented property in Delhi (shop with ATM). IMHO, if someone is buying a rented property, he should look for lockable units only, say a small shop in an arcade rented to a bank for ATM will be a better bet.
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  • Who deleted my last post?
    I was invested in liquid funds some 15-18 months back and they were giving 8-9% then. Since rates haven't fallen much since then, returns should still be similar. Please do some research yourself - all data is easily available online. I was invested in HDFC ones.
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  • Vatika Business Park, Gurgaon- Termination of lease by ADM Agro

    Has anybody received a notice from Vatika demanding refund of security deposit as ADM Agro has decided to move out from the property?
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  • Is anybody invested in this? what does the documentation look like? what are the rental terms?
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  • Originally Posted by kumar678
    Hello all,

    I am getting this option in Vatika Business Park in Sohna road.

    Virtual space 1000 sqft. Price is around 1 Cr. Budget is max 1.4 Cr.

    rent is 55 psf. Rented to a big MNC which has taken 1 lakh sq ft on lease. 12 year lease.

    My main aim is rental income plus capital appreciation.

    Is this a good deal? Any issue in virtual space? Will the rent be given to me directly by tenant or builder.

    I am too wary of these builders and want my investment safe.

    Thanks.


    Kumar did you end up buying the unit ? From what I have been told there are lots of buyers with colored money who invest in these virtual units and get regular returns. I have a broker who wants to sell me another rented unit in same complex. Did you end up buying ?
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  • Why people still even consider such questionable investments is beyond me. With so many scams, and failures happening all around, is it not better to Invest in schemes which are approved by SEBI? GREED is the Reason for such schemes to BREED!
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  • Originally Posted by rishabh2u


    Kumar did you end up buying the unit ? From what I have been told there are lots of buyers with colored money who invest in these virtual units and get regular returns. I have a broker who wants to sell me another rented unit in same complex. Did you end up buying ?


    Which tenant are you getting? I heard Mcenzie was last sold at 6.5% and the sales frozen by vatika. The rent will escalate in January 2017 and then vatika will sell at 6%
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