Feasibility

Study for a
land parcel in
Gurugram

THE
DOMINANT
October 2020
 Assignment Background

S1 Location Assessment

S2 Site Assessment

S3 Project Assessment

S4 Regulatory Assessment

S5 Office Market Analysis

S6 Benchmarking Analysis

S7 Impact of Covid 19

Financial Analysis &

S8 Recommendations

GRA LLP DevCaveats

e opment Pvt. Ltd. | Cushman & Wakefield
& Limitations
Assignment Background Introduction

Assignment Background
Introduction

GRA ESTATES LLP . and its Partners (herein referred a or is currently assessing the
feasibility of a commercial property admeasuring 5.4 acres (herein referred a s or opposite Candor IT
SEZ in Sector 19 in Gurugram (Haryana) for its internal evaluation purposes.

The Client is developing a commercial development on the subject site. In this regard, the client has instructed Cushman and
Wakefield India Pvt. Ltd. (herein referred as to undertake the commercial market study to assess the product mix
that is legally permissible, marketable and can maximize the revenue generation potential of the entire development.

The key terms of reference are as below:

• Site and Location Assessment: Site, and l o c a t i o n appraisal, to assess the location suitability for t h e p r o p o s e d commercial
development

• Office Market Analysis: Assessment of market opportunity gap based on the review of Supply -Demand dynamics of key
commercial/ IT -ITeS projects in the subject micro -market / region

• Benchmarking Analysis: Detailed case reviews of key (2-3) comparable products in the subject region to identify
success and practice that will help shape the subject development

• Development and Product Strategy: The focus of this section would be to propose the potential development and product
strategy that could integrate with the site and market suitability and achieve the stated objective of being responsive to
market needs and opportunities across the anticipated life cycle of the project

• Financial Analysis & Recommendations : Financial analysis to arrive at an estimate of investments and returns over a
project horizon and comment on the financial viability of the proposed development option(s) . Based on all sections
covered a final recommendation on the way forward to be provided to the client
GRA ESTATES LLP. | Cushman & Wakefield 3
Location Assessment Haryana State Overview

Assignment Background

S1 Location Assessment

S2 Site Assessment

S3 Project Assessment

S4 Regulatory Assessment

S5 Office Market Analysis

S6 Benchmarking Analysis

S7 Impact of Covid 19

Financial Analysis &

S8
Recommendations

Caveats & Limitations

Haryana State Overview

Characteristics of the State
Location Assessment Haryana State Overview

 The state is bordered by Rajasthan to the south

west, Punjab to the northwest, Himachal Pradesh
to the north, Uttarakhand and Uttar Pradesh to
the east and Madhya Pradesh to the south .

 Is the eighteenth largest Indian state by area.

GRA ESTATES LLP. | Cushman & Wakefield 5

Source: Census 2011
Location Assessment Haryana State Overview

Gurugram: Demographic and Economic Profile

Characteristics of Urban Populace

 Gurugram has a total population of 2,770 ,450 . Based on population, Gurugram

isranked 6th in Haryana .
Gurugram
 Gurugram is situated 32 km southwest of New Delhi on National Highway 48 and
268 km south of Chandigarh, the state capital . Other important cities/ towns
inthe region around Gurugram are Sohna (25 km), Bahadurgarh (37 km),
Jhajjar (43 km), Palwal (55 km), Nuh (46 km), Rewari (57 km), Faridabad (42
km) and Noida (52 km) .
Delhi
 Factors like locational advantage, economic edge and political factors have led
to advantageous situation of Gurugram and thus, contributing to the Gurugram
phenomenalgrowth of population and cultural experience of the city .

 The Millennium dynamics has led to a sharp spurt in terms of Map Not to Scale (For Representation Purposes Only)

thedemographics as well as spatial spread . GRA ESTATES LLP. | Cushman & Wakefield
Gurugram Population (2019 - 20 )*
 Drastic increase in population size over last seventeen years has also brought 2,770,450
with it a cultural turn in the population of the city rendering it a new urban
personality .

 Gurugram is marked with a highly heterogenous population and a much more

cosmopolitan and global population which has altered the landscape over
theyears.

 Other than real estate, automobiles, retail and banking, Gurugram has become
an outsourcing and off -shoring hub . It is now a Global Hub for more than half
of Global Fortune 500 companies .
Location Assessment Haryana State Overview

Gurugram: Demographic and Economic Profile

Key Statistics for Gurugram

Male 54%
Female 46%

□ of Sec A and B Households 41%

Average Household Size 4.5

Source: http:// [Link]/ population/ gurgaon -[Link] and C&W Research
6
Location Assessment Haryana State Overview

Gurugram: Demographic and Economic Profile

Age and Income Distribution
 Gurugram has 38 % of its population
inthe age bracket of 25 - 44 years. Annual household
 About 41% of the households in income of
Gurugram are classified as SEC A & Gurugram wqs INR
B,with a higher purchasing power .
707,633 in
 40 % of households (HH) have a Annual 2015- 2016
household income of INR 10,00 ,000 &
above . Source: Gurugram The Journey by Dr. Narhari Banger, Additional Commissioner, MCG

Gender Split Age Group

Upto 14 years
Socio Economic Classification of Households
15 to 24 years
A (White Collar)
8% 25 to 34 years 19% 16%
12% 24%
15% B ( SSC Quaified Jobs)
18% 35-44 years 25%
23% 45 - 59 years 40% C (Skilled Jobs)

46% 54% 60 years and D & E (Unskilled / Labour)

above

□ INR 75,000
HH Annual Income

INR 75,001 - 150,000

INR 150,001 - 300,000
11 10 15 10 14 40
% % % % % % INR 300,001 - 500,000
INR 500,001 - 10,00,000
> IN R 10,00,000
0% 20% 40% 60% 80% 100%
GRA ESTATES LLP. | Cushman & Wakefield 7
Source: Indicus data 2015 -16
Location Assessment Haryana State Overview

Urban Sprawl of Gurugram

Gurugram Manesar Urban Complex 2031 A.D.

Land Use Gurugram - Manesar Urban Complex- Master Plan 2031

Land Area in Hectares Land Use (%)
Residential 16,010 47.47%
Commercial 1,616 4.79%
Industrial 4,613 13.68%
Transport and communication 4,420 13.11%
Public utilities 626 1.86%
Public and semi public use(Institutional) 2,035 6.03%
Open spaces 2,775 8.23%
Special zone 114 0.34%
Defence land 633 1.88%
Total land 32,842 97.38%
Existing town 406 1.20%
Village Abadies 478 1.42%
Grand Total 33,726 100 .00 % Subject Site
Source: Draft Development Plan 2031 AD for the Controlled Areas of Gurugram-Manesar Urban Complex, Haryana Government, Town and Country Planning
Department Notification, 4th September, 2012

 In order to cater the future demand of Gurugram -Manesar Urban Complex, an additional area of 22,957 hectares was added in the urbanisable
area to accommodate 20 .50 lacs (current 22 lacs) additional population ; thus, the Gurugram -Manesar Urban Complex would accommodate 42.50 lacs of
population by 2031 AD .

 An area of 16,010 hectares ( 47 %) has been reserved for residential purpose whereas area of 1,616 hectares ( 4 .79 %) land has been reserved for commercial
purpose .

 To meet the increasing demand of hi-tech industries, 13.68 % of land is reserved for industrial use. For easy inter -city & intra -city connectivity, new road
links
with Delhi Metropolitan City are proposed & to cater the institutional demand of population, an area of 2,035 hectares is proposed for public & semi public
uses. Source: C&W Research
Location Assessment Haryana State Overview

Urban Sprawl of Gurugram

GRA ESTATES LLP. | Cushman & Wakefield 8

Source: C&W Research

Location Assessment Haryana State Overview

Urban Sprawl of Gurugram

Gurugram Regional Segmentation

Northern Peripheral Road Gurugram MANESAR MG Road

URBAN COMPLEX 2031 AD This is the established mixed use corridor
18 km Long stretch and 150 meters wide10
lane Expressway, also known as Dwarka with residential, organized retail and ofice
Expressway, will run parallel to NH-48 space in place . Corridor has
,thereby decongesting the traffic on Northern excellent connectivity with Delhi via road
NationalHighway . Due to its world class Peripheral and metro .
infrastructure in the making & close Expressway
proximity to Dwarka,some of the most
premium developments wiltake shape Golf Course Road
alongside the expressway in the next 3-4
years. Over the last few years, this corridor has
New Gurugram emerged as preferred location for corporate
set ups (with the completion of two marquee
New Gurugram NH- 48 office buildings in last 2 years) and high e
d
n
Gurugram residential condominiums
Another emerging corridor within Gurugram
specially catering to affordable housing
clubbed with retail & corporate developments
NH 48
Dominated by the largest Office
Southern Peripheral Road
Cluster of NCR (DLF Cyber City)
Golf Course and one of the oldest Industrial
This 5 km stretch will connect Sohna Road Road Cluster of Gurugram (Udyog
to NH-48 and thereby complete the Subject Site Vihar) on either sides of the
Gurugram circuit . This location has
Southern Peripheral highway ; Stretch from Gurugram
been witnessing some good
Road Toll to Rajeev Chowk (~10 Km) is
residential and commercial projects Gurugram primarily dotted by few
due to its easy accessibility to NH-48 Faridabad Road investment grade office buildings,
while the stretch from Rajiv
Chowk to Manesar is witnessing
Sohna Road Golf Course new residential activity on either
Extension Road sides
This corridor is the furthermost (in terms Sohna Road
of existing investment grade office
activity) from Delhi and comprises the
stretch from NH-48 to
Badshapur , now extending upto Sohna the maintown center
Town, located approximately 9 Kms from
Source: C&W Research
Location Assessment Haryana State Overview

Urban Sprawl of Gurugram Golf Course Extension Road

Rapidly emerging corridor which is extension
of the golf course road and the next
GRA ESTATES LLP. | Cushman & Wakefield
best
investment destination 9

Source: C&W Research

Location Assessment Gurugram Overview

Urban Sprawl of Gurugram

Subject Micro Market in Context of Key Gurugram Micro Markets

Gurugram Manesar
Urban Complex 2031 AD

DELHI

NH 8 Non
Prime AIRPORT
Jaipu
r Udyog
Vihar
Region Key Micro - markets of Gurugram
NH 48
Cyber City
Southern DLF
Peripheral Sohna MG Road Cyber Golf Course Road
Road Road City
MG Road
NH 48 -Prime
NH 48 -Non Prime
Golf Course Sohna Road
Extension
Golf Course Extension Road
Gurugram -Faridabad Road
Southern Periphery Road
Sohna Subject Site
Udyog Vihar
GRA ESTATES LLP. | Cushman & Wakefield 10
Source: C&W Research
Location Assessment Infrastructure Overview

Gurugram Key Connectivity and Infrastructure Initiatives

Connectivity

To Badli State Boundary

Expressway
Delhi
National Highway
Shankar
Chowk
Gurugram Major Sector Roads
Railway Station
iifco DLF Cyber Alternate route to Gurugram - Manesar
Gurugram Chowk City Expressway
Bus
Stand HUDA Proposed Road under construction
City
Basai Road Gurugram Center
Railway Line

Rapid Metro Route

Rajiv
Hero Honda Chowk DMRC Metro Route
Chowk Netaji
Subhash Proposed Extension of MP Metro Route*
Chowk
Proposed Extension of Metro Route 1**

Proposed Delhi - Gurugram - Alwar RRTS Corridor**

Kherki Badshahpur
Dhaula Chowk
Major Chowks
Toll Plaza
Toll Plaza
IMT Alternative Route to
Gurugram Manesar U- Turn Flyover
Manesar
expressway
Major Underpass

To Railway Station
To
To Sohna Damdma
Jaipur Map Not to Scale (For Representation Purposes Only) N Bus Stand
*Proposed under Gurgaon Manesar Urban Complex 2031.
GRA ESTATES LLP. | Cushman & Wakefield **Decision on route required as it is under Govt. approval. Subject Site 11
Source: C&W Research
 Present Site Photographs
Location Assessment Infrastructure Overview

Key Infrastructure Developments

Source: C&W Research, News Article as updated on Nov 2018, [Link]

 Assignment Background

S1 Location Assessment

S2 Site Assessment

S3 Project Assessment

S4 Regulatory Assessment

S5 Office Market Analysis

S6 Benchmarking Analysis

S7 Impact of Covid 19

Financial Analysis &

S8 Recommendations

Caveats & Limitations

GRA LLP Dev e opment Pvt. Ltd. | Cushman & Wakefield 17

Site Assessment Location of Subject Site

Placement of Subject Site in Context of Delhi NCR

Subject Site is located in South -West of NCR & North -West of Gurugram

Bahadurgarh
New
Nearest Transit Hubs In Km
Delhi Ghaziabad
ISBT Kashmere
Gate Railway
Station
Delhi CBD ISBT Anand Vihar Gurugram Railway Station 7.5
Jhajjar Delhi

Noida
IGI IGI Airport 12
Airport
Subject
Site
Gurugram CBD
Gurugram Railway
Sikanderpur Gurugram Bus Stand 6
Station
Gurugram Bus Stand NH 2
Huda City Greater Noida
Gurugram Centre
Pod Rapid Metro HUDA City Centre 7
St ati o n Sector 55/ 56
B ad sh apur Faridabad
Chowk
IMT Rapid Metro, IndusInd Bank Cyber City 4.5
Faridabad
IMT
Manesar
Nearest CBD In Km

Rewari
Railway
Gurugram Cyber City 4.5
Station
Bhiwadi
Rewari
Nearest Industrial Model Township In Km
IMT Sohna
Bhiwadi Palwal
Industrial
Area IMT Manesar 28
Nuh

N LLP Development Pvt. Ltd. | Cushman & Wakefield Subject Site

GRA 18
C&W Research
Site Assessment Location of Subject Site

Overview
5.4 acres site is well placed on a 30 mtr wide Old Delhi - Gurgaon Road
To Delhi To Delhi Particulars Details

Kapashera Village The subject site is located in Plot No . 22A, Sector 19, Udyog
Vihar in Gurugram .
The area is well connected with major locations in Gurugram
Location allowing easier movement of talented work force
from different parts of NCR. Due to small and
Sector 21
medium -size industrial and commercial establishments
and great connectivity it attracts both medium
Sector 23 Sector 20 entrepreneurs and corporate .
5.48 acres. The site has an under -construction office
Plot Area
buildingof ~4 .5 lakh sf.
Sector 22 Topography and The subject site is almost rectangular shape and levelled
Subject Site Shape intopography .
Sector 19 Subject site falls under Industrial Landuse as per the
Current Use
Development Plan of Gurugram Manesar Urban Complex2031
Premises
Shankar AD .
Chowk
The site is approved for IT/ ITES Development Grade -
Proposed Use
AOffice Project .
Maruti Suzuki India DLF
Limited Cyber Sector 24 Primary Access The subject site has access from 30 m wide Old Delhi
City Road Width (m) -Gurugram Road which connects to NH - 48 .
To Sector 18 • Road : Old Delhi Gurugram Road
Ol
d • Railway : Gurugram Railway Station 8 km (approx .)
Accessibility
Gurugra • Airport : Delhi International Airport - 12 km (approx .)
m
• Metro : IndusInd Bank Cyber City Rapid Metro (5 km)
Sector 25 DLF Phase II
To Jaipur N Proximity to Civic
Good
Map Not to Scale (For Representation Purposes Only) Amenities
GRA ESTATES LLP. | Cushman & Wakefield 19
C&W Research
Site Assessment Location of Subject Site

Office Ecosystem in the proximity

The subject site is well placed in between the existing strong commercial ecosystem
To To
Rental
Delhi Delhi Leasable Distance
Value
Kapashera Village [Link]. Office Projects Area
(INR/
from site
([Link]) (in km)
sq. ft.)*

16 1 Modelama Platinum Towers 350,000 53 2.1

17
Sector 21 19 2 Rolta Corporate Tower 450,000 53 2.5

1 3 Ecstasy IT Park 115,000 58 2.7

2
9 4 Infotech Center 370,000 55 1.2
Sector 23 14 4 Sect1o5r 20 5 Plot 13 Nagarro 307,595 55 3.5

8 6 Nimai Tower 285,000 45 1.2

7 Sewa Tower 1,2,3 392,048 55 2.8

Sector 22 3 8 Suncity Trade Tower 176,773 55 1

Subject Site 9
Candor Techspace Building No.
3,666,057 79 1.1
Sector 19 1(A,B),2(A,B),3(A,B,C),5,6(A,B),7,8(A,B),9,11

12 Shankar 10 Concept Cyber Park 281,000 55 2.2

Chowk
6 11 ASF Tower 148,646 60 1.9
10 12 ASF Center 344,262 60 1.1
20
11 13 Novus Tower 275,000 48 2.8
Maruti Suzuki India DLF Cyber
14 Candor TechSpace MLCP 98,000 79 1.1
Limited City Sector 24
7 15 Gulf Adiba 140,000 55 2.5

5 18 16 Nimitaya 108 253,441 62 2.3

Sector 18
To 13 17 Nimitaya 183 309,077 62 2.3
Old Gurugram
18 Arc of Gurgaon 108,000 60 2.6

19 SP Infocity 1&2 670,000 70 2.7

To Jaipur Sector 25 DLF Phase N 20 DLF Cyber City 10,218,125 120 4.5
Map Not to Scale (FoIrIRepresentation Purposes Only)

GRA ESTATES LLP. | Cushman & Wakefield 20

C&W Research
Site Assessment Location of Subject Site

Site Photographs
The subject site of 5.4 acres has an ongoing under construction building - Tower 1

1 To Delhi
5
Sector 22

Sector 20

Jawa 2
Textiles 3
4 7
1 5
Subject Site
6
2
6
Sector 19

Sector 18
N
Accessibility, Frontage and Visibility
Map Not to Scale (For Representation Purposes Only)

4 7
3

GRA ESTATES LLP. | Cushman & Wakefield 21

C&W Research
Site Assessment Location of Subject Site

SWOT Analysis
The site offers lot of strengthens and opportunities which over power challenge of traffic congestion

Strengths Weakness
 Subject property is strategically located in a prominent office micro  The subject site has primary access from Old Delhi - Gurugram Road
ma
rk
e
t of Gurugram . which is prone to high traffic congestion as a stretch of this road near
Dundahera has turned into a bottleneck due to damaged
 Subject site has primary access from 30 m wide Old Delhi - Gurugram
road condition and numerous encroachments . Apart from the
Road which connects to NH 48 . The advantages offered to this
encroachments, the road has other issues such as wrong -side
m icro- market due to connectivity through Rapid Metro Link, National
driving and illegal parking
Highway and railway station has made this area an exciting and
profitable place for business activities  Although the subject micro market is a major employment vector
of Gurugram but it is dotted mostly with Grade B office buildings
 The site has levelled terrain and is free from encumbrances
having very low rentals compared to other prominent micro -
markets of Gurugram like
DLF Cyber City and Golf Course Road
 Subject site is surrounded by industrial and commercial developments
 The subject site has less road frontage on Old Delhi - Gurugram
and is situated within a walkable distance from schools, hospitals,
Roadwhich will affect its visibility from the approach road
banks, supermarket, car parking, commercial complex and hotels

Opportunities Threats
 Proposed TOD regulations in the subject region will provide  Significant supply pressures from several upcoming and planned
additonalFAR opportunities for a compact development commercial office projects from the alternate micro -markets such
asCandor IT SEZ, DLF Cyber Park, DLF Cyber City and Golf Course
 Proposed infrastructure improvements such as foot over -bridges,
Road could possibly hamper leasing activity and ability to
service lanes, cycle and pedestrian track at four junctions Hanuman
command premium rentals
Chowk, Jwala Mill tri-junction, Sector 18 tri-junction and Sector 21 tri-
junction shall significantly improve connectivity and public transport
with adjoining micro -markets
 Social infrastructure and public utilities are fully developed, providing
aself sufficient neighborhood
Site Assessment Location of Subject Site
 Assignment Background

S1 Location Assessment

S2 Site Assessment

S3 Project Assessment

S4 Regulatory Assessment

S5 Office Market Analysis

S6 Benchmarking Analysis

S7 Impact of Covid 19

Financial Analysis &

S8 Recommendations

Caveats & Limitations

GRA LLP Dev e opment Pvt. Ltd. | Cushman & Wakefield 23

Development and Product Strategy Project Assessment

Project Assessment
Site Observation

Site Observation

• The 5.4 acre subject site in sector 19, Gurugram has an

ongoing under construction building Tower 1.
• The proposed development has a total built -up of 4.57
[Link] .
• The subject site has primary access to 30 m wide Master
Plan road - old Delhi-Gurugram road as the main entry
tothe site
• The land parcel has few existing built up structures
(abandoned factories) which are to be demolished
afterwards .
• There is availability of vacant land portion in the subject
site
which is to be developed as Tower 2 & 3 in upcoming years.
• Visual continuity and connectivity is to be created in sp ace
s
to give the public a sense of direction within the site
• Subject site to address better air pollution filtration
toensure better air quality inside the office premises
and more oxygen outside spaces
• Natural Light, green and views to be a core design element
• Emphasis to laid on creating more green spaces
bo
thhorizontally and vertically
• Landscape to give due importance . Trees to be
N providedalong pedestrian and roads, Green pockets
betweenbuildings

GRA ESTATES LLP Pvt. Ltd. | Cushman & Wakefield 24

Development and Product Strategy Project Assessment

Project Assessment
Amenities as being proposed in the development by GRA LLP

Gymnasium Creche Incubation Center

Common Cafeteria Exhibition Hall Auditorium for small audience

Area for sports facilities like

Open Amphitheater for
Common Meeting Rooms basketball, table tennis,
Outdoor Events
badminton etc.

Shuttle Transport for Visitor Management System

Free Wi - Fi
employees through Mobile App

GRA ESTATES LLP Pvt. Ltd. | Cushman & Wakefield 25

 Assignment Background

S1 Location Assessment

S2 Site Assessment

S3 Project Assessment

S4 Regulatory Assessment

S5 Office Market Analysis

S6 Benchmarking Analysis

S7 Impact of Covid 19

Financial Analysis &

S8 Recommendations

Caveats & Limitations

GRA LLP Dev e opment Pvt. Ltd. | Cushman & Wakefield 26

Regulatory Assessment Existing and Proposed Land use

Regulatory Assessment
Existing and Proposed Land use for Subject site: Gurgaon - Manesar Urban Complex 2031 AD Development
Plan
Gurugram Manesar Urban Complex
2031 • The Subject Site falls under Industrial Landuse as per the
Development Plan of Gurgaon Manesar Urban Complex
2031 AD . It is an approved site for IT/ ITEs development

• Surrounding land use consists of primarily Industrial area

& Residential area at the opposite, commercial area
located at a distant from the subject site. All
sorts of social infrastructure like transportation
facilities, educational institutes, hospital, markets,
banks, cultural amenities etc. already exist in the
surroundings

• No ecologically sensitive area falls within the project site

Residential (Group
Housing/ Plotted) Industrial

Public and
Commercial
Semi- Public Use

Municipal
Open Corporation
Spaces Boundary

Subject Site

GRA ESTATES LLP. | Cushman & Wakefield Map Not to Scale (For Representation Purposes Only) 27
Source: Draft Development Plan Gurgaon Manesar Urban Complex 2031, Town And Country Planning Department Notification, Haryana
Regulatory Assessment Development Control Regulations

Regulatory Assessment
Development Control Regulations for Information Technology Units
Development Control Regulations for Information Technology units Miscellaneous Regulations for Information Technology units

• Permissible FAR 2.50 Parking :

• Permissible Ground Coverage 40 % a) 1 equivalent car space for every 40 sq.m of floor area shall be provided
• Maximum Height Unrestricted forparking in cyber park/ Information Technology Park, Information

Location : Technologyindustrial unit and cyber city ;

a) Information Technology industrial units will be located in industrial b) Four tier basement for information technology industry for meeting

areas/ industrial zones only . The location of the site should be on a sector the requirement of parking shall be allowed subject to clearance from

peripheral road in residential or industrial sector in the Development public health

Plan. requirement .
In case of residential sectors the permissible area for IT Park/ Cyber
Park Other activities :
will not exceed 5% of the sector area. a) Incidental commercial activities like banks, restaurants, insurance offices etc.
b) Cyber Parks/ Information Technology parks will be located shall be permitted subject to restriction of 4 % of the total area of the
either in
cyberpark/ information technology park;
industrial areas or industrial zones abutting on minimum 60 metres
right b) The Government may impose any other condition as deemed necessary
from
of way (ROW) sector roads in the form of integrated

Sl. No. Type Size

1 Information Technology industrial unit 1 to 5 acres

2 Cyber Park / Information Technology Park 5 to 15 acres

3 Cyber City Min. 50 acres

28
Source: Explanatory note on the Draft Development Plan 2031 AD of Gurgaon - Manesar Urban Complex, Town And Country Planning Department Notification, Haryana
Regulatory Assessment IT & ESDM Policy 2017

Regulatory Assessment
Incentives for IT/ ITEs as per IT & ESDM Policy 2017, Department of Electronics and Information Technology, Government of
Haryana

Fiscal Incentives Simplified Regulatory Regime Infrastructure Augmentation

o Dedicated Single Roof for clearances to companies willing o Development of IT / Cyber Parks for
o Stamp Duty : to invest in the State self - use:
Eligible for 100 % reimbursement of stamp duty o International Desk : To enable an investor friendly experience  Three level basement is permissible
paid on sale / lease deeds paid on the to the foreign investors, the State government shall be for parking and service . No storage
first transaction for setting up units in seting up International Desks for focus countries to
isto be allowed .
facilitate globalinvestors
Parks, IT cities, Technology Parks for IT
industry . o Policy Implementation Unit (PIU) : A PIU headed by the  In the area designated for IT
activities, no other use is permissible
Additional Chief Secretary (Information Technology)
o Electricity Duty Exemption : along with sector experts and industry professionals for  In case of Cyber Park, the colonizer
targeted implementation of the IT & ESDM policy isrequired to complete at least 30
100 % exemption for a period of 7 years from
commercial operations . o No CLU/ Auto CLU: % of the IT area within three years
of grant of licence
 100 % exemption of CLU charges to IT / ITeS units
o Power Subsidy :
setingup in notified land / IT Parks o Iconic buildings shall be free from FAR
Eligible for getting power @ INR 5.49 per  Government notified land / IT Parks shall be pre-cleared / FSI subject to fulfillment of provisions
unit provided the investor signs MoU with all the necessary approvals such as NOC of byelaws of common building code .
with Government of Haryana for fromPollution, Power, Land Use, Forest, Industries etc.
o An iconic building is a building that has
investments in the State . o Time bound clearance a unique architecture with
o Property Tax at industrial rates : o Online single return for various Acts pertaining to Department innovative design . A Competent
of Labour Authority
level shall at
bestate
constituted and a detailed
Property Tax on IT / ITeS units shall be atpar list of parameters will be defined as
with the industrial rates. o Relaxation in Inspection from various Departments for
IT/ ITeS units required .
o SGST Reimbursement : o Exemption from Pollution NOC o Assistance in Business Development :
The Govt . shall promote and encourage
100 % reimbursement (net tax) for a period of o Allowing three shifts and night shifts for Women
participation from various national and
10 years subject to maximum of 100 % of Fixed o Essential Service : The Government will be declaring IT/ international MICE activities
Capital Investment ITeSIndustry and non-hazardous hardware manufacturing

29
Source: IT & ESDM Policy 2017, Department of Electronics and Information Technology, Government of Haryana
Regulatory Assessment Haryana TOD Policy

Regulatory Assessment
Transit Oriented Development Regulations applicable on Subject Site

Haryana TOD Policy Height Restrictions

• The Transit Oriented Policy of the government of Haryana aims as a means The height restriction shall be subject to the regulation of the Airport
of densification of the transit corridors identified along the MRTS projects and also Authority of India and structural stability/ fire safety compliances as per the
as a source of generating revenue for financing the MRTS projects itself to some applicable laws.
extent
• The methods to densify the corridor along these MRTS projects is by increasing the
densityand FAR, which shall require specific infrastructure augmentation to support the
enhanced development potential created by revised development norms
• The subject site falls under Intense Zone of TOD Corridor under Delhi - Gurugram - Alwar
RRTS corridor . So as per the IT & ESDM Policy 2017 Units setting up in areas up

Demarcation of TOD Zones

The TOD zone shall be designated upto 800 metres

depthon both sides from the boundaries of the Right
of Way (ROW) of the road, on which MRTS corridor is
existing/ proposed to be provided including a semi-
circle with a radius of 800 meters at the terminating
points of such MRTS corridors . This 800 meters
proposed TOD Zone has been bifurcated as under, for
the purpose of the
development proposed to be carried out :-
Depth (In Meters from
[Link]. Zone Allowed FAR
ROW)
1 Intense TOD Zone First 500 5 Map Not to Scale (For Representation Purposes Only)
Subject Site
2 Transition TOD Zone Between 500 to 800 3.5

GRA ESTATES LLP| Cushman & Wakefield Proposed Delhi - Gurugram - Alwar RRTS Corridor 30
Regulatory Assessment Haryana TOD Policy

Regulatory Assessment Source: TOD Policy notification dated 5th September 2014 9th February, 2016, Town And Country Planning Department Notification, Haryana
Regulatory Assessment Key Takeaways

Regulatory Assessment
Summary of Key Takeaways for the Subject Site

The Subject Site falls under Industrial Landuse as per the Development Plan of Gurugram Manesar Urban Complex 2031 AD. It
Landuse
is an approved site for IT/ ITEs development . Cyber Parks/ Information Technology parks will be located either in
Permissibility industrial areas or industrial zones abutting on minimum 60 metres right of way (ROW) sector roads in the form of
integrated development .

• The proposed development of IT/Cyber Park, at the subject site, is for self-use*. Thus, the applicable norms for this sitewil
be under IT & ESDM Policy 2017, Department of Electronics and Information Technology, Government of Haryana
Applicable
• The permissible ground coverage is 40 % and FAR is 250 (which could increase to 500 as site comes under intense TOD zone)
DCR
• The location of the site should be on a sector peripheral road in residential or industrial sector in the Development Plan
• In Cyber Parks only 4% of the area can be utilized towards commercial uses. In the area designated for IT activities, no
other use is permissible

Incentives As per the IT & ESDM Policy 2017 by Department of Electronics and Information Technology, Government of Haryana the
for IT/ ITEs subject site will be offered various fiscal, regulatory, infrastructure and human capital development incentives and will be
encouraging greener measure of production .

*Development of IT / Cyber Parks for self -use means where Capital Subsidy for developers are not obtained from Govt. The ownershi p of the IT Park lies with the developer and he needs
to develop theparkunder norms defined by Department of Town and Country Planning
GRA ESTATES LLP. | Cushman & Wakefield 31
 Assignment Background

S1 Location Assessment

S2 Site Assessment

S3 Project Assessment

S4 Regulatory Assessment

S5 Office Market Analysis

S6 Benchmarking Analysis

S7 Impact of Covid 19

Financial Analysis &

S8 Recommendations

Caveats & Limitations

GRA LLP Dev e opment Pvt. Ltd. | Cushman & Wakefield 32

Office Market Analysis Approach & Flow

Approach & Flow

Road map for feasibility study of the subject site

To find the current market snapshot of IT/ ITES market and Following is the step by step approach used for testing the feasibility
its feasibility in Udyog Vihar ofthe proposed market (Udyog Vihar ) for project development :

1 A study of the current overall investment grade market in GURUGRAM

and its analysis was done

Analysis of Overall Gurugram Office

Market 2 The overall IT Market of Gurugram was analyzed to find the trends
inthe
Analysis of overall IT overall sector
Market of Gurugram

Analysis of 3 The IT market of the subject site (Udyog Vihar ) was studied
analyzed tofind the feasibility of the market.
Market of Udyog
Vihar

4 Impact of Covid 19

Impact of Covid - 19

Key learnings of the above steps have been highlighted in the

Detailed analysis of main location along with future
subsequent slides
prospects and growth projections
GRA ESTATES LLP. | Cushman & Wakefield 33
Overview of
Investment Grade
Office Market -
Gurugram
GRA ESTATES LLP. | Cushman & Wakefield 34
Present Market
Snapshot -
Gurugram

GRA ESTATES LLP. | Cushman & Wakefield 35

Office Market Analysis Office Market of Gurugram Market Snapshot

Segregation of Investment Grade office market in Gurugram

Cyber City & NH - 48 Prime are the biggest markets followed by Sohna Road & Golf Course Extension

NON SEZ
TOTAL IT/ ITES
IT/ ITES STOCK
To Dwarka STOCK* STOCK
STOCK
76.6 32.7 15.1
Mn Sft.
28.8 Mn Sft.
Mn Sft.
Subject Mn Sft.
Micro market
48 4
Micro market Classification
86 14
58% Building 10, Cyber Greens, Epitome (Building 5), Building7A
67 8
Cyber City & 7B, Innov 8 (Building 8), Ericsson Forum, Building 9 A &
16% Subject
B, iQ SEZ (Building 14), Infinity Tower, Trio SEZ (Building
12% Site
Developments in close proximity to Golf Course Road placed
NH 48 Golf Course Road
in the sectors of 27, 42, 43, 53, 54 , 55 & 56

To 58 11 NH 48 - Prime MG Road
Developments placed in close proximity to Mehrauli
To Delhi Gurugram Road in the sectors of 24, 25, 26 & 28
Jaipur Rajiv Chowk
30% Cyber City
Netaji Developments placed in proximity to NH 48 from
Subhash 117 3 Delhi- Gurugram Border till Kherki Daula Toll. This micro
NH 48 - Prime
55 4 Chowk market comprise Dhundahera , Sector -15, 18, 30 , 32, 34
, 74 A and other standalone developments along NH 48
25% 120 13.05
59%
118 14 Developments placed in proximity to NH 48 beyond
101 6
0.5% NH 48 - Non Prime theKherki Dhaula Toll till Manesar. Primarily includes
the commercial sectors of 81A, 82A & 83A
8%
8%
Developments placed in proximity to Sohna Road
Sohna Road
primarilyin sectors of 33, 47, 48 , 49 and parts of sector 66 -
69

Golf Course Extension Developments placed in proximity to sector 49 , 50 , 55,

61 10
56 2 Road 56,
57, 61, 62, 65 & 66
45% Gurugram - Faridabad
INVENTORY (MILLION sf) 35% Road
Gurugram -Faridabad Road have proximity to Sector 26, 26
A
VACANCY (%) Southern Periphery Road
Vicinity area of Southern Periphery Road includes sectors
Map Not to Scale (For Representation Purposes Only) AVERAGE RENTS (INR/ sf/ month) 69,
70 , 70 A, 71, 72, 73, 74 & 75
Proximity to developments of Udyog Vihar along
GRA ESTATES LLP. | Cushman & Wakefield *All estimates are as end of Q2 2020 Udyog Vihar
Subject Micro market withSector 19, 20 , 21,23, 37 36
OfficeMarket
Office Market Analysis
Analysis Office Market of Gurugram Market Snapshot

Supply & distribution of overall Investment Grade office stock, Gurugram 2014 - 2020 *
The growth trend for IT/ ITES between 2014 - 2020 (H1)* remained strong
Stock (In Mn 49.5 57.5 60 .4 63.0 66.3 75.2 76.6
Sft .)

Vacancy % 22 27 25 23 22 23 25

Rentals/ [Link] 77 82 78 79 79 80 81

Sector wise distribution of existing stock

100.M
Area In Million [Link]

IT Non IT SEZ
14.9M 15.1M
12.8M 13.6M 14.5M
50.M 11.7M 28.8M
10.2M 28.M
21.4M 22.3M 23.1M 24.9M
15.5M
23.8M 24.4M 25.3M 26.3M 27.M 32.3M 32.7M
.M
2014 2015 2016 2017 2018 2019 2020

Stock till 2013 : 49.5 Mn Sft . New Supply between 2014-2020* : Present Stock: 76.6 Mn Sft.
25.7Mn Sq .ft
Percentage wise distribution of stock Percentage wise segmentation Percentage wise segmentation of Current
- 2013 ofadditional stock Stock

21% 18% 20.13%

43.47%
33%
48%

31 38.29%
49
GRA ESTATES LLP. | Cushman & Wakefield IT Non IT SEZ
37
*All estimates are as end of Q2 2020 Source: C&W Research
Office Market Analysis
Office Market Analysis Office Market of Gurugram Market Snapshot

Y- o-Y Annual supply from 2014 - 2020 (H1)* of Investment Grade office segment
Average Annual Addition in Supply during 2014 - 2019 reported at ~ 4.28 Mn sft
Y-o-Y Annual supply from 2014-2020* of Investment Grade office segment
90.M
49.5 58.2 60.4 63.0 66.3 75.2 76.6
80.M

70.M 15.15M
14.95M

60.M 14.47M
13.64M
Area In Mn Sft.

11.71M 12.85M
50.M
28.M 28.8M
10.22M
40.M 24.9M
22.3M 23.1M
22.1M
15.5M
30.M

20.M
32.3M 32.7M
24.4M 25.3M 26.3M 27.M
23.8M
10.M

.M
2014 2015 2016 2017 2018 2019 Q2 2020
Asset wise share of Supply during 2014 -Q2 2020 IT Non IT SEZ

IT NON IT SEZ
Supply
33% 49% 18%

GRA ESTATES LLP. | Cushman & Wakefield 38

*All estimates are as end of Q2 2020 Source: C&W Research
Office Market Analysis
Office Market Analysis Office Market of Gurugram Market Snapshot

Micro market wise distribution of existing stock

Southern Peripheral Road & Golf Course Ext. road have seen significant growth in IT space in recent years
INVENTORY – TILL Q2, 2020 (MN SFT.)
Micro Market & Format Wise Share of Stock (in Mn Sft.)

15000000

10000000 SEZ
5000000 Non IT
IT
0
DLF Cyber City Golf Course Golf Course Road Gurgaon-Faridabad MG Road NH8 - Non Prime NH8 - Prime Sohna Road Southern Periphery Udyog Vihar
Extension Road Road Road

NON
125 60 100 50 115 51 89 52 51. 55 Format Wise
IT/ ITES Quoted
Rentals
IT/ ITES 118. 56 - - - 43 72 51 65 55 (INR / Sq. ft
□ Month)
SEZ 98. 58 - 57 - - 72. 71. - 77

Distribution of Non IT Stock Distribution of IT/ ITES Stock Distribution of SEZ Stock
1%
DLF Cyber City
3
13 12 19% Golf Course Extension Road
1% 24%
19
Golf Course Road
32 9
Gurgaon-Faridabad Road
6%
14
MG Road

17 NH8 - Non Prime

15%
21
23% NH8 - Prime
6 12
22
7 Sohna Road
13%
10
Southern Periphery Road
GRA ESTATES LLP. | Cushman & Wakefield Udyog Vihar 39
*Vacancy represents vacancy at micro-market level Source: C&W Research
Office Market Analysis Office Market of Gurugram Market Snapshot

Gurugram Market Absorption Trends : 2014 - 20 (H1)*

Average Annual Absorption from 2014 -19 has been ~3.7 Mn sft with ~6.5 Mn sft happening in 2018 -19

Gross 38.3 42.3 42.7 47.5 50.4 56.9 57.7

Absorption
70.00 m
Absorption Trends : Gurugram Market (2014 -Q2 2020)
60.00 m

50.00 m 12.1M 12.5M

11.7M
40.00 m 11.8M
9.6 11.M
8.3M 18.6M 19.6M
30.00 m 17.1M
15.1M
10.7M 12.8M 11.5M
20.00 m

26.3 25.5M
10.00 m 19.3M 20. 20.3 20.7 21.7M

0.00 m
2014 2015 2016 2017 2018 2019 2020

IT Non-IT SEZ

Asset wise share of Gross Leasing during the period between 2014 -Q2 2020

IT NON IT SEZ
38% 42% 20

GRA ESTATES LLP. | Cushman & Wakefield 40

*All estimates are as end of Q2 2020
Office Market Analysis
Office Market Analysis Office Market of Gurugram Market Snapshot

Micro market wise area and vacancy

Cyber City (CBD) has the lowest vacancy percentage followed by Udyog Vihar

12.M
STOCK AS OF Q2 2020 (MN SFT.)
Micro Market wise Absorption & Vacancy Trends as per Q2 2020
VACANCY AS OF Q2 2020(MN SFT.)

10.M

8.M

6.M

4.M

2.M

.M
DLF Cyber City Golf Course Extension Road Golf Course Road Gurgaon- MG NH8 - Non NH8 - Sohna Road Southern Periphery Road Udyog
Faridabad Road Road Prime Prime Vihar

Absorption IT Absorption Non IT Absorption SEZ Vacancy

• The Buildings in Cybercity have the lowest vacancy even though it is the biggest IT/ ITES micro market of Gurugram.
• The overall office market of Gurugram has a vacancy of 25%

GRA ESTATES LLP. | Cushman & Wakefield 41

Source: C&W Research
Office Market Analysis
Office Market Analysis Office Market of Gurugram Market Snapshot

Gross leasing in Gurgaon

Gross Leasing in Gurugram has grown strongly over the last 5 years
Maximum Achieved Transacted Rentals basis Product Type: Gurugram
250
Ma
rk
et
Maximum Achieved Transacted
Rentals (INR per sft./ month

192 Average
200 Transacted Rental
till Q2 2020
172
146 138
150 124 IT INR 72
115 110 130
117 110
115 105 130 NON-IT INR 66
100 120
100 100 108 101 SEZ INR 83
83 82
50 68

0
2014 2015 2016 2017 2018 2019 2020 *

IT Non IT SEZ

2014 2015 2016 2017 2018 2019 Till Q2 - 2020

Gross Leased Key Gross Leased Gross Leased Gross Leased Key Gross Leased Key
Key Transactions Key Transactions Gross Leased Area Key Transactions Gross Leased Area Key Transactions
Area Transactions Area Area Area Transactions Area Transactions
Bank of
Snapdeal
Fluor Daniel Home Credit America WeWork Oyo Rooms IGT Solutions
Size : 142,045sq. ft. Size : 344,262 sq. ft. Size : 171,834 sq. ft. Size : 444,900 sq. ft. Size : 280,000 sq. ft. Size : 200,000 sq. ft. Size : 40,000 sq. ft.
IT/ ITES

Rent: INR 82 Rent: INR 55 Rent: INR 50 Rent: IN R 108 Rent: INR 112 Rent: INR 45 Rent: INR 50 -55
DLF Cyber Park
1M DLF Infinity Tower 2.9M ASF Centre, Gurgaon
1.8M Sewa Tower 2 3.6 Tower 1 2.9M DLF Cyber Park Tower 3 4.1M Capital
1
Cyberscape Tower .7M InfoTech Centre
A Oxigen Snapdeal Boston Scientific Genpact WPP Huawei Globiva
Size : 60,000 sq. ft. Size : 148,646 sq. ft. Size : 80,000 sq. ft. Size : 388,447 sq. ft. Size : 200,000 sq. ft. Size : 145,714 sq. ft. Size : 40,000 sq. ft.
Rent: - INR 56 Rent: - INR 65 Rent: - INR 48 Rent: INR 45 Rent: INR 118 Rent: INR 45 Rent: INR 50 -55
JMD Megapolis IT Kore Tech Park Tower
ASF Centre , Gurgaon
Park Bestech Business Tower 4 DLF Cyber Park Tower 2 Capital Cyberscape Tower 1 InfoTech Centre
Sun Life
HDFC Bank Pepsi
Non - IT

Google Google Financial Google IBM

Size : 176,000 sq. ft. Size : 210,000 sq. ft. Size : 145,000 sq. ft. Size : 160,000 sq. ft. Size : 156,300 sq. ft. Size : 646,000 sq. Size : 120,000 sq. ft.
Rent: - IN R 108 Rent: - INR 124 Rent: INR 45 Rent: INR 60 Rent: - INR 70 [Link]: - INR 110 Rent: INR 129 -130
Signature TowerII Signature Tower II Tower Ambience Corporate
1.5 M Tower A 3.0 B 1.5 M Tower 1.4M Pioneer Square
1.8M Pioneer Square 3.5M Vatika One on One 1.2 M DLF Downtown
Nestle NTT Data Markit Samsung WeWork Simpliwork [Link]
Size : 107,482 sq. ft. Size : 200,000 sq. ft. Size : 100,000 sq. ft. Size : 96,000 sq. ft. Size : 110,000 sq. ft. Size : 450,000 sq. ft. Size : 104,000 sq. ft.
Rent: INR 115 Rent: INR 80 Rent: INR 92 Rent: INR 150 Rent: -INR 148 Rent: -INR 60 Rent: INR 56 -58
Ambience Corporate TRIL Commercial Centre
Two Horizon Center
Nestle House Splendor Trade Tower Tower II Two Horizon Center Tower B Spaze Forum
SEZ

Concentrix ZS Associates XL Catlin Evalueserve UHG Optum Amdocs EXL

GRA LLP Developme
Size: 284,000 sq. feet t Pvt. Ltd. | C
ushman & feet
Size: 70,000 sq. Wa kefiel Size: 150,000 sq. feet Size: 116,000 sq. feet Size: 475,000 sq. feet Size: 238,347 sq. feet 42
Size : 60,000 sq feet
1.9 M Rent: INR 52 0.6 M Rent: INR 70
DLF World Tech Park
.9M Rent: INR 70
DLF World Tech Park
.8M Rent: INR 75
Candor TechSpace
1.6M Rent: INR 50
International Tech Park
.6M Rent: INR 82 .6M Rent 52 -56
Candor TechSpace ASF Infra
DLF Building 14C Tower A4 Tower B2 Building No.6 1B Source: C &W Research
Total 4.4M 7.5 M 4.2M 5.8M 6.3M 8.3M 2.5M
Future Growth

GRA LLP Development Pvt. Ltd. 43

| Cushman & Wakefield
OfficeMarket
Office Market Analysis
Analysis Office Market of Gurugram Future Growth

Supply & distribution of overall Investment Grade office stock, Gurugram

In strong upcoming supply of investment grade office buildings only 26% is IT space.
Stock (In Mn 66.3 82.2 86.0 98.9
75.2 90 .2
Sft .)
Vacancy % 22 23 25

Rentals/ [Link] 79 80 81

120.M Supply & distribution of overall Investment Grade office

100.M stock
Area In Million [Link]

19.1M
80.M 17.6M 19.1M
14.9M 17.4M
60.M 13.6M 14.5M 41.3M SEZ
30.6 34.2 36.2
40.M 28.M
23.1M 24.9M Non IT
20.M 32.3M 34.3 34.3 35.M 38.5
26.3M 27.M IT
.M
2017 2018 2019 202 2021 202 202

Present Stock : 76.6 Mn Sft. Potential New Supply : 22.3 Mn Sq .ft Cumulative Future Stock : 98.9 Mn Sft .

Percentage wise segmentation of Current Percentage wise segmentation Percentage wise segmentation
Stock ofadditional supply ofCumulative Stock
20 % 26%
17%
19 39%
43 %

37%
56
42
GRA ESTATES LLP. | Cushman & Wakefield IT Non IT SEZ 44
Source: C&W Research
Office Market Analysis
Office Market Analysis Office Market of Gurugram Future Growth

Distribution of Office market supply of Gurugram in micro markets

DLF Cyber City, Golf Course Road & Udyog Vihar are key existing markets whereas Golf Course Ext. is an
upcoming market
Stock (In Mn 75.2 82.2 86.0 98.9
120.M 63.0 66.3 90 .2
Sft .)
Area in Million Sq Ft.

100.M
Micro Market wise Time movement of
80.M stock
60.M

40.M

20.M

.M
2017 2018 2019 202 2021 202 202
DLF Cyber City Golf Course Extension Road Golf Course Road Gurgaon-Faridabad Road MG Road
NH8 - Non Prime NH8 - Prime Sohna Road Southern Periphery Road Udyog Vihar

Present Stock : 76.6 Mn Sft. Potential New Supply : 22.3 Mn Sq .ft Cumulative Future Stock : 98.9 Mn Sft.
Micro Market Wise Distribution of Existing Stock Micro Market Wise : Addition of Stock Micro Market Wise Distribution of Future Stock
2%

11% 9% 9%
19% 16%
5% 12% 7%
9%

14% 13%
13%
10% 20%
39%

8% 7% 16%
18%
7%
6%
5% 2% 5% 4%
3%
DLF Cyber City Golf Course Extension Road Golf Course Road
Gurgaon-Faridabad Road MG Road NH8 - Non Prime
GRA ESTATES LLP| Cushman & Wakefiel dNH8 - Prime Sohn4a%Road Southern Periphery Road 45
Source: C&W Research
Udyog Vihar
Office Market Analysis
Office Market Analysis Office Market of Gurugram Future Growth

Distribution of Office market supply of Gurugram in micro markets

Majority of the upcoming IT supply is concentrated at Golf course Ext. Road and Sohna road

IT/ ITES (stock as of) NON IT (stock as of) SEZ (stock as of) 2023 (E)
Q2 Q2
Micro Market 2017 2023 Micro Market 2017 Q2 2020 2023 Micro Market 2017 2023 TOTAL
2020 2020
DLF Cyber City 10.2M 10.2M 10.22M DLF Cyber City .87M .97M 3.07M DLF Cyber City 2.79M 2.79M 2.79M 16.09
Golf Course Golf Course Golf Course
1.0M 4.1M 7.04M 3.88M 5.36M 9.85M - .95M 2.59M M
Extension Road Extension Road Extension Road
Golf Course Road - - - Golf Course Road 5.79M 5.79M 6.63M Golf Course Road - - - 19.48M
Gurugram - Gurugram - Gurugram - Faridabad
- - - .28M .28M .28M 2.16M 2.16M 3.66M 6.63M
Faridabad Road Faridabad Road Road
MG Road - - - MG Road 2.31M 3.03M 3.33M MG Road - - - 3.94M

NH 48 - Non Prime 1.7M 1.7M 1.79M NH 48 - Non Prime 1.67M 2.15M 3.48M NH 48 - Non Prime - - - 3.33M

NH 48 - Prime 4.7M 7.2M 7.71M NH 48 - Prime 3.71M 4.76M 6.64M NH 48 - Prime 1.95M 1.95M 1.95M 5.27M

Sohna Road 4.6M 4.7M 6.02M Sohna Road 2.01M 2.51M 2.51M Sohna Road 3.13M 3.48M 4.31M 16.3M
Southern Periphery Southern Southern Periphery
- .39M 1.29M 2.41M 3.80M 5.36M - - - 12.85M
Road Periphery Road Road
Udyog Vihar 3.8M 4.3M 4.47M Udyog Vihar .18M .18M .18M Udyog Vihar 3.6M 3.78M 3.79M 6.65M

TOTAL 26M 32.7M 38.54 TOTAL 23.11M 28.80M 41.33M TOTAL 13.64M 15.10M 19.1M 98.97M
M

GRA ESTATES LLP. | Cushman & Wakefield 46

IT / ITES Market of
Gurugram

GRA LLP Development Pvt. Ltd. | Cushman & Wakefield 47

 Office
Office Market Market Analysis
Analysis IT/ITES Market of Gurugram

Supply of Investment Grade IT/ ITES office market

The IT/ ITES market of Gurugram has grown strong over years till 2019. Although, it has a limited supply
over the next years.
Stock is expected to increase by ~ 6 M
n
Sft . by 2023

45
40
Y-o-Y Increase in IT/ ITES Supply and Absorption 38.5
Area in Million Sq Ft. (In MN)

33.3 34.3
35 32.2 32.7
30 25.9 26.2 25.53
25.2
25 20.7 21.55
20
15
10
5
0
2017 2018 2019 Q2 2020 2021 2022 2023

Stock Absorption Linear (Stock)

 Gurugram reported an average annual supply addition of approx . 2 mn sq ft for the period between 2017-19.
 The supply is expected to be steadily increasing at the same rate.
 The Absorption of IT Market lies between ~80 % of total stock for the years 2017-2019. Hence, a high absorption rate is expected in
the future too, despite limited supply.

GRA ESTATES LLP. | Cushman & Wakefield 48

Office Market Analysis IT/ ITES Market of Gurugram

Absorption & Rentals of Investment Grade IT/ ITES office market, DLF Cyber City
Cyber City (CBD) has not witnessed new supply in IT/ ITES in last few years owning to space limitations
Y-o-Y IT Stock & Absorption
Stock has not increased from 2014 to 2019 & vacancy
10.2 9.7 10.2 9.7 10.2 10.2 10.2 9.9 10.2 10 10.2 levelshave remained stable
Area in Million Sq Ft.

9.5 9.5 9.5

10

5  No supply addition in the last four years, resulting in

lowvacancy levels

0  Gross Absorption, reported at approx. 9.5 Mn during

2014 2015 2016 2017 2018 2019 Q2 2020 theperiod between shows the strong demand in

Stock Absorption CBD Cybercity

Y-o-Y Upcoming Supply - DLF

DLF Cybercity Rental Trends Cyber City
140 120.4 120.9 3.5M
111.2 115.9 3.M
120 104.7
In INR/ Sq. Ft/ Month

90.9 96.7 3.M

100

Area in Mn. Sft.

2.5M
80
60 2.M
40 1.4M
1.5M
20
1.M .7M
0
2014 2015 2016 2017 2018 2019 Q2 2020 .5M

.M
DLF Cyber City 2020 2021 2022 2023

IT Non IT SEZ
GRA ESTATES LLP. | Cushman & Wakefield 49
Office Market Analysis IT/ ITES Market of Gurugram

Investment Grade IT/ ITES office market, Golf Course Extension Road
This has been a significant amount of supply in recent years and more supply is planned in near fture

Stock has increased by ~3.1 Mn Sft . & net Absorption of ~2.1 Mn Sft . has been
5.M
Y-o-Y Stock & Absorption reported over the last 5 years as the majority of the buildings are new and in
4.1M phase of increasing the occupancy
4.M 3.8M
Area in Million Sq Ft.

 Vacancy levels due to significant supply addition in last few

3.M
2.17M y
ea
rsand limited transaction activity
1.7M 1.89M
2.M  Upcoming Supply of 8.91 Million constituted by Commercial 4
(3
%),
1.M 1.11M
1.M
IT/ ITES(39%) and SEZ (18%) in the pipeline

.M
.M
2017 2018 201 Q2 2020
9 Y-o-Y Upcoming Supply - Golf
Stoc
k Absorption Course Extension Road
4.M 3.7M
Golf Course Extension Rental Trends 3.5M

Area in Million Sq. Ft.

60 3.M
56.7 56.0 55.8 55.5 2.5M
In INR/ Sq. Ft/ Month

2.1M
2.M 1.6M
1.5M
.9M
1.M .6M .5M
.5M .3M

40 .M
2014 2015 2016 2017 2018 2019 Q2 2020 2020 2021 2022 2023

Golf Course Extension Road IT Non IT SEZ

GRA ESTATES LLP. | Cushman & Wakefield 50
Office Market Analysis IT/ ITES Market of Gurugram

Investment Grade IT/ ITES office market, Sohna Road

The market has not witnessed any IT supply over the last few years additional 2 Mn sft is expected to
ready this year

Y-o-Y Stock & Absorption There has been no addition to the IT supply of Sohna road
5. 4.6M 4.6M 4.6M 4.6M 4.6M 4.6M 4.6M for last few years. Although, a decent supply of more than
Area in Million Sq Ft.

M 2 mn is under construction
4.5M 3.7M 3.7M 3.7M 3.6M
4.
M
3.2 M 3.3 M
3.5M
2.9  Availability of all formats of office supply has led to
3.M M
2.5M ajudicious mix of occupiers along the stretch
2.M including professional service firms, IT/ ITES,
1.5M
Manufacturing players amongst others
1.M
.5M
.M
2015 201 2017 2018 2019 Q2 2020 Y-o-Y Upcoming Supply - Sohna
2014 6

Area Supply - IT Absorption

Deman
1.6M Road
1.4 M

Area in Million Sq. Ft.

1.4M
Sohna Road Rental Trends 1.2M

60 1.M
.8M
In INR/ Sq. Ft/ Month

.8M
50.2 50.7 50.4 50.8 50.9 50.9 50.9
.6M

.4M

.2M

40 .M

GRA ESTATES LLP. | Cushman & Wakefield 51

Office Market Analysis IT/ ITES Market of Gurugram

2014 2015 2016 2017 2018 2019 Q2 2020 2020 2021 2022 2023
Sohna Road IT Non IT SEZ

GRA ESTATES LLP. | Cushman & Wakefield 52

Office Market Analysis IT/ ITES Market of Gurugram

Investment Grade IT/ ITES office market, NH 48 Prime

The NH 48 prime market has recently witnessed an addition of ~2.4 mn of IT supply. Even after that the market has

8.M Stock has increased by ~2.4 Mn Sft. & net Absorption of

7.2M 7.2M
Y-o-Y Stock & Absorption 6.7M ~1.8Mn Sft. has been reported over the last 5 years
7.M 6.5M

6.M
Area in Million Sq Ft.

4.8 4.8M • The developments in this micro -market are sporadicaly

4.7M 4.8M 4.8M 4.8M
5.M 4.6 spread along NH 48 (now NH 48 ) and interspersed
M 4.3 4.3 4.1M
between the mix of all formats
4.M
• In recent years, the market has witnessed some of
3.M the large format commercial office additions from the
house of Ambience, DLF, Hines, Unitech
2.M
• The market has also reported large commercial office
1.M ta
ke ups from marquee players like Google, TCS,
.M
Panasonic, Cairn Energy etc. for setting their regional
2014 2015 2016 2017 2018 2019 Q2 2020 / corporate HQ
Area Supply - IT Absorption

NH 48 Prime Rental Trends Y-o-Y Upcoming Supply - NH-

48 Prime
100 1.2
84.0 84.0
In INR/ Sq. Ft/ Month

80 69. 70. 72.7 71.7 72.4 1

60 0.8
No upcoming supply
40 0.6

20 0.4

0 0.2
2014 2015 2016 2017 2018 2019 Q2 2020
0
NH48 - Prime
2020 2021 2022 2023
GRA ESTATES LLP. | Cushman & Wakefield 52
IT Non IT SEZ
Office Market Analysis IT/ ITES Market of Gurugram

Investment Grade IT/ ITES office market, NH - 8 Non Prime

The market has traditionally seen majority of Non - IT supply and the trend is expected to continue

Y-o-Y Stock & Absorption Stock has increased by ~0 .6 Mn Sft. & net Absorption of ~0 .3 Mn
[Link] been reported over the last 5 years
2.M 1.8M 1.8M 1.8M 1.8M 1.8M 1.8M
Area in Million Sq Ft.

1.5 M  Manufacturing firms including consumer goods, electronics,

1.2M
p
o
we
rcompanies etc. are dominant occupiers on this stretch
1.M
.5M .5M .5M .5M
 Micro market has reported significant infrastructure improvements,
.4M .4M
.5M
metro connectivity and no new supply addition in last 2-3 years
.1M
.M  Steady Absorption from other traditional commercial occupiers
2014 2015 2016 2017 2018 2019 Q2 2020
hasreduced the vacancy levels
Area Supply - IT Absorpton

Y-o-Y Upcoming Supply - NH- 8 Non

NH 48 Non Prime Rental Trends Prime
1.6 M 1.5 M

60 1.4 M

Area in Million Sft.

In INR/ Sq. Ft/ Month

1.2M
45.0 43.1 43.7 43.7
42.1 41.1 42.3 1.M
40 .8M
.6M .5M

.4M .3M
20 .2M
2014 2015 2016 2017 2018 2019 Q2 2020
.M
NH48 - Non Prime 2020 2021 2022 2023

IT Non IT SEZ
GRA ESTATES LLP. | Cushman & Wakefield 53
Office Market Analysis IT/ ITES Market of Gurugram

Investment Grade IT/ ITES office market, Southern Peripheral Road

The recently emerged IT market has shown strong occupancy trends from inception and has strong
pipeline of office buildings to come up

Y-o-Y Stock & Absorption

.45M
.39M
.4M .39M .39M .39M The Southern Peripheral Road is a newer market
with recent infusion of IT supply . There is an
.35M
Area in Million Sq Ft.

expected increase in Non IT & IT stock over the next 4

.3M years.
.25M
.2M
.15M
.1M
.05M
.M .M .M .M .M .M .M .M .M .M Y-o-Y Upcoming Supply -
.M
2014 2015 2016 2017 2018 2019 Q2 2020
Southern Peripheral
1
Road
0.9 0.9
Area Supply - IT Absorpti
Absorption 0.9
0.8 0.

Area in Million Sq. Ft.

0.7
Southern Periphery Road Rental Trends
0.6
80 0.5
65.0 65.0
In INR/ Sq. Ft/ Month

0.4
60 0.
0.3
40 0.2
0.1
20
0
0
GRA ESTATES LLP. | Cushman & Wakefield
2014 2015 2016 2017 2018 2019 Q2 2020
Office Market Analysis IT/ ITES Market of Gurugram

2020 2021 2022 2023

IT Non IT SEZ
54
Overall Market of
Udyog Vihar
(Subject Micromarket )

GRA ESTATES LLP. | Cushman & Wakefield 55

Office Market Analysis Market of Udyog Vihar

Investment Grade office market Udyog Vihar

Overall Ecosystem of Investment

To To Micro market Classification

Delh Kapashera Village Delhi
Udyog Vihar Proximity to developments of Sector 19, 20 , 21, 23, 37

16 Leasable
Rental
Distance
17 Value
19 [Link]. Office Projects Area from site
(INR/ sq.
Sector 21 1 ([Link])
ft.)*
(in km)

9 2
1 Modelama Platinum Towers 350,000 53 2.1
Sector 14 4 15
Se cto r 20 2 Rolta Corporate Tower 450,000 53 2.5
23
8 3 Ecstasy IT/ ITES Park 115,0 0 0 58 2.7

4 Infotech Center 370,000 55 1.2

Sector 3 5 Plot 13 Nagarro 307,595 55 3.5
22
Subject Site 6 Nimai Tower 285,000 45 1.2
Sector 19
7 Sewa Tower 1,2,3 392,048 55 2.8
12 Shankar 8 Suncity Trade Tower 176,773 55 1
6 Chowk
Candor Techspace Building No.
10 9
1(A,B),2(A,B),3(A,B,C),5,6(A,B),7,8(A,B),9,11
3,666,057 79 1.1
DLF
11 10 Concept Cyber Park 281,0 00 55 2.2
Maruti Suzuki Cyber
11 ASF Tower 148,646 60 1.9
India Limited City Sector
7 12 ASF Center 344,262 60 1.1
5 18 24
To 13 Novus Tower 275,000 48 2.8
Old Gurugram
Sector 18 13 14 Candor TechSpace MLCP 98,000 79 1.1

15 Gulf Adiba 140,0 0 0 55 2.5

Sector DLF Phase 16 Nimitaya 10 8 253,441 62 2.3

To Jaipur 25 II N 17 Nimitaya 183 309,077 62 2.3

18 Arc of Gurugram 10 8,0 0 0 60 2.6

IT/ ITES NON - IT
TOTAL STOCK* SEZ STOCK 19 SP Infocity 1&2 670,000 70 2.7
STOCK STOCK
8.3 Mn Sft. 4.3 Mn Sft. 0 .2 Mn Sft . 3.8 Mn Sft. Highlighted buildings are the Major Contributors towards high vacancy levels in
*All estimates are as end of Q2 2020

Udyog Vihar (reasons are elaborated further on slides )

GRA ESTATES LLP. | Cushman & Wakefield 56
Office Market Analysis Market of Udyog Vihar

Vacancy Analysis : Udyog Vihar Market (as of 2019)

Major Contributors towards vacancy (Around 1/ 2 of the total vacancy)

To Delhi To Delhi
Kapashera Village

Sector 21

Sector 23 Sector 20

Sector 22
1. Nimai Tower (IT) 237.5K sq. ft. 2. Suncity Trade Centre (Non -IT) ~ 99.6 K sq.
Subject Site
Sector 19
Large minimum area quoted for lease ft.
Small Unit size not matching the latest requirements
1
3
Shankar
Chowk of occupiers
Maruti Suzuki India Limited DLF Cyber
City
Sector 24

To
Old Gurugram Sector 18

Sector 25
DLF Phase II
To Jaipur
N

3. ASF Centre (IT) ~ 180.3K sq. f.t

Relatively old fit outs

Total Vacancy for Udyog Vihar 13.9% Vacancy of up listed 3 buildings 9.4% Revised vacancy for Udyog Vihar 4.5%

el
Office Market Analysis Market of Udyog Vihar

GRA ESTATES LLP. | Cushman & Wakefi 57

Office Market Analysis Market of Udyog Vihar

Supply & distribution of overall Investment Grade office stock, Udyog Vihar
The micro market has limited upcoming supply
Stock (In Mn 7.6 7.6 8.0 8.4 8.5 8.6 8.7
Sft .)

Vacancy % 19.3 14.6 13.9

Rentals / sq ft 64 64.5 65
10.M Sector wise Distribution of Current Stock
8.M
3.6M 3.8M 3.8M 3.8M 4.M
6.M 3.6M 3.6M
.2M .2M .2M
4.M .2M .2M .2M .2M

2.M 3.8M 3.8M 4.3M 4.4M 4.4M 4.6M 4.6M

.M
2017 2018 2019 202 2021 202 202

IT Non IT SEZ

Present Stock : 8.3 Mn Sft. Potential New Supply : 0.4 Mn. Sf t Cumulative Future Stock : 8.7 Mn Sft.
Current Stock Additional Supply from 2020 Total Cumulative Stock Distribution
-2023

45%
45% 46%
53% 53%
54%

2
IT Non IT SEZ
0
GRA ESTATES LLP. | Cushman & Wakefield
Office Market Analysis Market of Udyog Vihar

2%
58
Source: C&W Research
 Office Market Analysis Market of Udyog Vihar

Udyog Vihar Investment Grade Office Market

Stock has increased by 2.4 Mn Sft. & while average net Absorption of 0.4 Mn Sft. has been reported over
the last 6 years

Udyog Vihar - Stock and Absorption from 2014 -2019

12

10
Area in Million Sq Ft.

8 8.3
8 7.5 7.6 7.6 7.3
6.7 6.9
6.5
5.9 5.8 6.1
6
4.6 4.8

0
2014 2015 2016 2017 2018 2019 Q2 2020

Stock Absorption
 Udyog Vihar has reported an average annual supply addition of approx . 0 .4 Mn sft for the period between 2014-19, with significant
suppy
l rationalization reported during the period between 2016 and 2017
 During the period (2014-2019), annual average net Absorption is estimated at approx . 0 .4 mn sq ft ; number of consolidation and, relocation
deals, involving size rationalization or, optimization have been reported to optimize costs
 Approximately more than 2/ 3rd of the vacancy in Udyog Vihar IT Market is due to these 4 projects Nimai
Tower, ASF Centre, SEWA Tower and Concept Cyber Park.
They occupy around 24 .3% of the available IT Stock in Udyog Vihar.
 The IT Market of Udyog Vihar shows an absorption of ~92%, excluding these projects .
GRA ESTATES LLP. | Cushman & Wakefield 59
Office Market Analysis Market of Udyog Vihar

Distribution of YOY supply of investment grade office supply in Udyog Vihar

Significant infusion of office supply of IT/ SEZ has been witnessed in 2016. Average Annual Supply during
2014 - 2019 reported at ~ 0.5 Mn Sft .

0.5 0.7 0.8 0.1 0 0.4 0.3

Annual Supply from 2014 -2019

.9M
.8M
Area in Million Sft.

.7M
.6M
.5M
.4M .6M .8M
.2M
.3M
.2M .4M
.3M .2M
.1M
.1M .1M .1M
.M
2014 2015 2016 2017 2018 2019 Q2 2020
Years

IT Non IT SEZ

Asset wise share of Supply during 2014 -Q2 2020

IT NON IT SEZ
64% 7% 29%

IT NON IT SEZ
GRA ESTATES LLP. | Cushman & Wakefield 60
Source: C&W Research
Office Market Analysis Market of Udyog Vihar

Investment Grade IT/ ITES office market, Udyog Vihar

The Market Absorption has increased by 1.5 Mn over the past 6 years with an average annual supply
addition of 0.3 Mn

Rental wise distribution of Existing Stock

Y-o-Y IT Stock & Absorption
2.5M
6 2.M
Area in Million Sq Ft.

4.25 4.33 2.M

Stock in Million [Link]

4.1 4.1 4.1 .7M
4 3.6 3.43
2.9 3.2 3 3.2 1.5M
2.3 2.5
1.9 1.M .9M .9M
2 .5M .5M
.5M .3M .3M.3M
.1M .1M .M .1M .1M
0 .M
2014 2015 2016 2017 2018 2019 Q2 2020 Below 40-45 45-50 50-55 55-60 60-65 Above
40 65
Stock Absorption Rental
Area Absorption
Deman

Udyog Vihar Rental Trends Y-o-Y Upcoming Supply Udyog Vihar

60 .2M .19M
55.4 55.6 55.6 55.6 55.6
54.6
In INR/ Sq. Ft/ Month

Area in Million Sft.

53.1 .15M .13M

.1M .09

.05M

40
2014 2015 2016 2017 2018 2019 Q2 2020 .M
2020 2021 2022 2023
Udyog Vihar
IT Non IT SEZ
GRA ESTATES LLP. | Cushman & Wakefield 61
Office Market Analysis
Office Market Analysis Market of Udyog Vihar

Leasing and Transacted Rentals

Leasing & Transacted rentals have remained strong over the past 5 years

Maximum Achieved Transacted Rentals basis Product Type: Udyog Vihar

Rental (INR per sft. per month
Maximum Achieved Transacted

120
100 100 Average
100 8 Transacted
8 78 82
Rental for
80 7 Q22020
6
55
60 75 INR 83
62 7 7
40 INR 55
46
20
0
2014 2015 2016 2017 2018 2019 Q2 2020

IT SEZ

2014 2015 2016 2017 2018 2019 Q2 2020

Gross Gross Gross Gross Gross
Gross Key
Key Transactions Leased Key Transactions Leased Key Transactions Leased Key Transactions Leased Key Transactions Gross Leased Area Key Transactions
Leased Area Leased Area Transactions
Area Area Area Area
Sahara Snapdeal Home Credit Google Jacobs Cairn Energy IGT Solutions
Size : 40,000 sq. ft. Size : 4,92,908 sq. ft. Size : 171834 sq. ft. Size : 140000 sq. ft. Size : 93,000 sq. ft. Size : 130,000 sq. ft. Size : 40,000 sq. ft.
IT/ ITES

Rent: INR 64 Rent: INR 65 Rent: INR 50 Rent: INR 70 Rent: INR 43 Rent: INR 45 -48 Rent: INR 50 -55
Modelama Platinum Towers ASF Centre Sewa Tower 2 Rolta Corporate Towers ASF Centre ASF Centre B K Developers
.1 M ATOS .6 M CPA Global .3 M Urban Clap .5 M SITA .4 M Bajaj Group .2 M Bajaj Group .2 M Cairn Energy
Size : 22,000 sq. ft. Size : 11,000 sq. ft. Size : 25000 sq. ft. Size : 75,000 sq. ft. Size : 27,000 sq. ft. Size : 27,000 sq. ft. Size : 23,125 sq. ft.
Rent: - 62 Rent: - 75 Rent: - 40 Rent: - 65 Rent: INR 46 Rent: INR 46 Rent: INR 45 -48
Modelama Platinum Towers Modelama Platinum Towers Nimai Developers ASF Towers Novus Towers Novus Towers ASF Infrastructure
Accenture Accenture EY Accenture Saxo Bank Amdocs RBS
Size : 1,85,198 sq. ft. Size : 264212 sq. ft. Size : 60,000 sq. ft. Size : 150,000 sq. ft. Size : 98,000 sq. ft. Size : 2,38,347 sq. ft. Size : 26,250 sq. ft.
Rent: - 64 Rent: - 64 Rent: INR 62 Rent: INR Rent: - 78 Rent: - 82 Rent: - 83
Candor TechSpace Building Candor TechSpace Candor TechSpace Building Brookfield Asset
.4 M .4 M Candor TechSpace
.2 M .1 M .4 M Candor Techspace MLCP
.3 M Candor TechSpace
.3 M
SEZ

No. 6,8 Building No.9 -A No.9 Management

Amdocs Admiral EY Accenture Xceedance Accenture
Size : 1,16000 sq. ft. Size : 27,000 sq. ft. Size : 14,000 sq. ft. Size : 54,500 sq. ft. Size : 23076 sq. ft. Size : 76,339 sq. ft.
Rent: INR 68 Rent: INR 75 Rent: INR 80 Rent: - Rent: -78 Rent: -83
Candor Techspace Building No. Candor TechSpace Building Candor TechSpace Building No.8, Brookfield Asset
Candor TechSpace Candor TechSpace
2& 3 No.3, Tower -B Tower -B Management
Total .5M 1M .5M .6M .8M .5M .5M
GRA ESTATES LLP. | Cushman & Wakefield 62
Source: C&W Research
 Assignment Background

S1 Location Assessment

S2 Site Assessment

S3 Project Assessment

S4 Regulatory Assessment

S5 Office Market Analysis

S6 Benchmarking Analysis

S7 Impact of Covid 19

Financial Analysis &

S8 Recommendations

Caveats & Limitations

GRA LLP Dev e opment Pvt. Ltd. | Cushman & Wakefield 63

Benchmarking Analysis Benchmarked Studies

Benchmarked buildings
Introduction

To Delhi To Delhi
DLF Infinity Tower
1 Kapashera Village
A LEED Platinum certified building, designed by Hafeez
Contractor constituting of three interconnected towes,rscaling
between 9-12 storeys . 2
Sector 21
3

2 SP Infocity
Sector 23 Sector 20
SP Infocity is an eight storey IT/ ITeS building in an
Industrial Sector in Udyog Vihar that hosts corporate
ofice space as well as manufacturing centres . Sector 22
Subject Site 4

Sector 19
Rolta Corporate Tower
3
Built in 2009 and spread across an area of 4.5 lakh sq. Shankar
Chowk
feet,this is a seven storey IT/ ITES building in Udyog 1
Vihar, Gurugram built by Rolta India Pvt . Ltd .
Maruti Suzuki India
Limited DLF Cyber Sector 24
DLF Cyber Park City
4 To Sector 18
Located on NH-48 Road and spread across a 12 acre Ol
d
complex, DLF Cyber Park offers a world -
classcontemporary structure and a new age work space.
Sector 25 DLF Phase II
To Jaipur N
GRA ESTATES LLP. | Cushman & Wakefield 64
DLF Infinity Tower

GRA LLP Development Pvt. 65

Ltd. | Cushman & Wakefield
Benchmarking Analysis DLF Infinity Tower

DLF Infinity Tower

DLF Cyber City

General Overview DLF Infinity Tower

Location DLF Cyber City (Phase 2) Sector 24
Tower A & B : 2005
Completion Year
Tower C : 2006

Developer DLF Limited

Architect Hafeez Contractor

1,272,500
Gross Leasable Area Tower A: 310,500
(sq. ft.) Tower B: 380,000
Tower C: 582,000
Building Type IT

A: 32,492
Floor Plate
B: 42,486
(sq. ft.)
C: 45,395
Key Tenants
A: G+9
No. of Floors B: G+8
C: G+12 82,338 sq. ft.
Efficiency (%) 75%

Revenue Format Lease

Parking Ratio 1:1000 sq. ft.

79,006 sq. ft.

Parking Capacity 1,732

LEED Certification Yes

62,871 sq. ft.
Proximity to Metro Station 0.4 km (IndusInd Bank Cybercity Metro Station)

GRA ESTATES LLP. | Cushman & Wakefield 66

Source: C&W Research
Benchmarking Analysis DLF Infinity Tower

DLF Infinity Tower

Concept of Building Layout: Project by Hafeez Contractor

There would be minor variation in the floor layout of other floors in the building

Layout Assessment

Tower A : 2.5
Average No. of Office Tower B : 1.7
Spaces/ Floor Tower C : 1.7

A: 32,492 Tower A Tower B Tower C

Floor Plate
(sq. ft.)
B: 42,486
C: 45,395
Average Office
Space Size 35,50
(sq. ft.)

Shaft
# Shafts 40 42
Shaft Shaft
Shaft
18 for each tower
No. of Lifts
(54 overall) Shaft

Shafts placed in a way as so cater to emergency situations

GRA ESTATES LLP. | Cushman & Wakefield 67

Source: C&W Research
Benchmarking Analysis DLF Infinity Tower

DLF Infinity Tower

Tenants

Tower A Tower B Tower C

GE CAPITAL BUSINESS PROCESS
Baring Pvt. Equity Partners (I) P Ltd 8 Orange Business Services India Solutions 12 MANAGEMENT LTD
Ikea India Private
CENTRIENT Limited
PHARMACEUTICALS INDIA SBI CARDS AND PAYMENT SERVICES
9
8 Orange Business Services India Solutions
Pvt.
Ikea Ltd.
Services India Private Limited 11 GE CAPITAL BUSINESS PROCESS
Gerson Lehrman Group India Pvt Ltd 7 Orange Business Services India Solutions
10 GE CA PITAL BUSIN ESS PROCESS
PACIFIC BUSINESS CENTRE PRIVATE
AECOM India Private Limited
LIMITED
CB&I INDIA PRIVATE LIMITED
6 FLUOR DANIEL INDIA PVT. LTD. 9
E.Z. Bioxcel Solutions Pvt Ltd HEIDELBERG CEMENT (I) LIMITED
Mercer Consulting (India) Private Limited 5 CONCENTRIX DAKSH SERVICES M/ s KPMG Global Services Pvt Ltd
7 New Metal Vision Private Limited 8 Orange Business Services India
CB&I INDIA PRIVATE LIMITED
Quest Retail Pvt. Ltd. 4 Orange Business Services India
7
Sidel India Private Limited CONCENTRIX DAKSH SERVICES INDIA PENGUIN RANDOM HOUSE INDIA
6 Fluor Daniel India Pvt. Ltd. CB&I INDIA PRIVATE LIMITED 6 FLUOR DANIEL INDIA PVT. LTD.
3
5 Ibm India Private Ltd CONCENTRIX DAKSH SERVICES
GE CAPITAL BUSINESS 5
4 Ibm India Private Ltd IBM INDIA PRIVATE LTD
2 Lummus Technology Heat Transfer FLUOR DANIEL INDIA PVT. LTD.
3 Oracle ( Ofss ) Bpo Services Limited 4
[Link] CARDS AND PAYMENT IBM INDIA PRIVATE LTD
Prometric Testing [Link]
2 Skootr Global Private Limited 3 HOME CREDIT INDIA FINANCE
1 SBI CARDS AND PAYMENT 2 RBS Services India Private Limited
1 DHL Logistics Private Limited BLUE SAPPHIRE RESIDENCY 1
Image Hospitality RBS Services India Private Limited
GF Satvik Salon & Spa Pvt. Ltd. GF GUARDIAN HEALTHCARE SERVICES CB&I INDIA PRIVATE LIMITED
GF Elemention Health and Sport Pvt. Ltd
Sunshine Teahouse Private Limited
GUERRILLA INFRA SOLUTIONS MARKS AND SPENCER RELIANCE INDIA

GRA ESTATES LLP. | Cushman & Wakefield 68

Source: C&W Research
Benchmarking Analysis DLF Infinity Tower

DLF Infinity Tower

Tenant Bifurcation

Rentals & Absorption levels: DLF Infinity Tower

Commercial Terms
1.31 160
1.31 1.31
1.31 130 140
Security Deposit 6 months

Occupied Area (million sq.

120 135
1.31 110 120
1.31 100
9
CAM Charges INR 22 per sq. ft. per month 5 112 115 117 100
1.30 107

INR
1.30 9 80
Parking Charges INR 7,000 per slot per month
91
6
1.30 60
1.30 1.30 1.30
1.30
40
Lease Rental (Q2 2020) INR 130 per sq. ft. per month 1.30
1.30

1.29 20

ft.)
Capital Value (Transacted) Lease Only 1.29 0
2014 2015 2016 2017 2018 Q2 2020
Healthcare & Pharma Absorption (million sq. ft.)
Flexible Workspace 1% Travel & Hospitality
2% 0.1%
Professional Services
4%
Others Average Size of Transactions: DLF Infinity Tower
11%

Travel & Hospitality 70

IT-BPM 2
40% Other 10,810

BFSI s Professional 12,363

14%
Services 14,294

Flexible Workspace 17,763

Healthcare & Pharma 19,152

BFSI 28,384

IT-BPM 29,158

Manufacturing GRA ESTATES LLP. | Cushman & Wakefield

& Industrial
28%

Source: C&W Research

Benchmarking Analysis DLF Infinity Tower

DLF Infinity
Manufacturing Tower
& Industrial

69

Source: C&W Research

Benchmarking Analysis DLF Infinity Tower

DLF Infinity Tower

Technical Details

Technical Details
Floor Height (Above Ground) 3.8 m

Floor Height (Below Ground) 3.5 m

Structure RCC Structure

Façade Single glazed heat and noise resistant glass

Atrium & Other Facilities Triple Height Ceiling

Possibility for Interconnections Yes

Amenities
Elevators 18 per tower, 54 in total

CCTV / Intercom Yes

Creche / Day Care No

Gym / Fitness Centre Yes (3rd Party)

Healthcare Facilities Yes (3rd Party)

Food Court / Café Yes

Power Back - up 100 %

Driver Room & Resting Area Yes

Sewage Treatment Yes (Common for all of Cyber City)

GRA ESTATES LLP. | Cushman & Wakefield 70

Source: C&W Research

Benchmarking Analysis DLF Infinity Tower

DLF Infinity Tower

Photographs

GRA ESTATES LLP| Cushman & Wakefield 71

Source: C&W Research
SP Infocity

GRA LLP Development Pvt. Ltd. | Cushman & Wakefield 72

Benchmarking Analysis SP Infocity

SP Infocity
Udyog Vihar

General Overview
Location Plot No 243, Udyog Vihar
2008
Completion Year
Tower 1 & 2

Developer Shapoorji Pallonji

Architect Spazio Design

670,000 sqft
Gross Leasable Area Tower 1 - ~360,000 sqft
(sq. ft.) Tower 2 - ~300,000 sqft
Support Retail ~10,000 sqft

Building Type IT

Floor Plate
~80,000 sqft (Typical floor area)
(sq. ft.)

No. of Floors 3B+G+7

Key Tenants
No. of Lifts 8 (Passenger Lifts)+2 (service lifts)

Efficiency (%) 70%(+/ - 2%)

43,697 [Link].
Revenue Format Lease

Parking Ratio 1:1000

Parking Capacity 850 ECS 72,000 [Link].

LEED Certification NA

Proximity to Metro Station 2.4km ( Moulsari Avenue Metro Station) 225,614 [Link].

GRA ESTATES LLP. | Cushman & Wakefield 73

Source: C&W Research
Benchmarking Analysis SP Infocity

SP Infocity
Tenants

SP Infocity Tower 1 SP Infocity Tower 2

Floor Tenants Area ( [Link] ) Floor Tenants Area ( [Link] )

7 Midlan Credi Management 39,746 7 Li & Fung 42,085

d t
6 CITI Corp. 46,650
6 Li & Fung 42,347
5 CITI Corp. 46,650
5 Convergys ~36,000
4 Convergys 50,000
4 Accenture solutions ~36,000
Sunlife Financials 25,000
3 3 Accenture solutions ~36,000
Convergys 25,000
2 Convergys ~36,000
2 AECOM 43,697

1 Convergys ~44,000 1 Virtusa Polaris 35,559

GF Webhelp 37,706 GF Convergys 34,614

GRA ESTATES LLP. | Cushman & Wakefield 74

Source: C&W Research
Benchmarking Analysis SP Infocity

SP Infocity
Tenant Bifurcation

Commercial Terms Amenities

Security Deposit 6 months Elevator Yes
CCTV / Intercom Yes
CAM Charges IN R 21-23sqft/ month
Creche / Day Care Yes
Parking Charges 4000/ ECS
Gym / Fitness Centre No
Lease Rental ( Q2 2020) Average rent INR 70 per sq. ft. per month
Healthcare Facilities No
Capital Value (Transacted) Lease Only
Food Court / Café Yes
Technical Details Power Back -up 100%
Floor Height (Above Ground) 3.75 Driver Room & Resting Area Yes

Structure RCC Sewage Treatment Yes

Rentals & Absorption levels

3.50 75 75 80
7 7 75
0 0 70
3.00
Occupied Area (million sq.

3.0
6 7
6 60
2.50 8 0
5 2.6
2.5 2.4 50
2.00 55

INR
2.0 40
1.50
30
1.00
20
0.50 10
ft.)

- 0
2015 2016 2017 2018 Q2 2020
Absorption (million sq. ft.)
Quoted Rent (INR per sq. ft. per month)
Transacted Rent (INR per sq. ft. per month)

GRA ESTATES LLP. | Cushman & Wakefield 75

Source: C&W Research
Rolta Corporate
Tower

GRA LLP Development Pvt. Ltd. | Cushman & Wakefield 76

Benchmarking Analysis Rolta Corporate Towers

Rolta Corporate Towers

Udyog Vihar

General Overview

Locatio Plot No 187, Udyog Vihar -1, gurugram

Completion Year Pre-2008

Developer Rolta India Private Limited

Gross Leasable Area 4,50,000 sq. feet

Building Type IT

Floor Plate ( [Link] .) 70,000 sq. feet

No. of Floors 2B + G +6 Floors

Efficiency (%) 75%

Revenue Format Lease

Key Tenants
Parking Ratio 1:1000 sq feet

Proximity to Metro Station 1.9 km (IndusInd Cyber Station) 1,40,000 sq. ft.

30,000 sq. ft.

GRA ESTATES LLP. | Cushman & Wakefield 77
Source: C&W Research
Benchmarking Analysis Rolta Corporate Towers

Rolta Corporate Towers

Commercial Terms & Amenities

Commercial Terms Amenities

Security Deposit 6 months Centralized AC Yes
CAM Charges INR 15 per sq feet per month 24 Hours Water Supply Yes
Typical Floor Area 70,000 sq. feet Power Backup Yes

Capital Value (Transacted) Leased only CCTV Yes

Lease Rental ( Q2 2020) INR 85 per sq feet per month Food Court No
Escalation 15% every 3 years Visitor Parking Yes
Lock -In period 3 years Sewage Treatment Yes
Lease Term 3 years Gym No

GRA 78
Source: C&W Research
Benchmarking Analysis Rolta Corporate Towers

Rolta Corporate Towers

Absorption & Rental Trends

Rentals & Absorption Data

5 90
85
4.5 80
75
4
70 70 70

3.5
Absorbed Area (in millio sq.

60 60 60

INR per sq. feet per

3 55 55 55
52 53 53 50
2.5
4. 4. 40
2 5 5

month
3. 3. 30
3. 8 8
1.5 3.
feet)

4
1
20
1

0.5 10

0 0
2014 2015 2016 2017 2018 2019
Years

Absorption (in million sq. feet) Transactable Rent (per sq feet per
month) Quoted Rent (per sq feet per month)

GRA 79
Source: C&W Research
DLF Cyber Park

GRA LLP Development Pvt. Ltd. | Cushman & Wakefield 80

Benchmarking Analysis DLF Cyber Park

DLF Cyber Park

Udyog Vihar

General Overview
Phase II, Udyog Vihar, Sector 20 , Gurugram,
Location
Haryana
Completion Year 2020
Architect Hafeez Contractor
Developer DLF Cyber City Developers Ltd.
Gross Leasable Area 2578938
(sq. ft.) Tower A: 8,35,975
Tower B: 8,31,272
Tower C: 9,11,691
Building Type IT/ ITes
Floor Plate A: 69,664
(sq. ft.) B: 64,273
C: 70 ,130
A: 4B+G+11

No. of Floors B: 4B+G+12

C: 4B+G+12
Efficiency (%) 80 %
Revenue Format Lease
Parking Ratio 1:1000 sq. ft.
LEED Certification Yes
0 .7 km (IndusInd Bank Cybercity Metro
Proximity to Metro Station
Station)

GRA 81
Source: C&W Research
Benchmarking Analysis DLF Cyber Park

DLF Cyber Park

Site Plan Layout

A B C
Layout Assessment

Floor Plate A : 69,664

N
(sq. feet) B : 64,273

C : 70 ,130
H
No. of elevators
16 (Passenger) + 2
(Service) for each
4
Tower (54 Overall) 8

GRA 82
Source: C&W Research
Benchmarking Analysis DLF Cyber Park

DLF Cyber Park, Gurugram

Commercial Terms of Lease

Commercial Terms Year Absorption (in sq. feet)

Security Deposit 6 months
Maintenance Charges (excluding 2019 22,03,000
INR 15 per sq. ft. per month
schiller)

Parking Charges INR 6,000 per slot per month

Lease Rental (2020 ) INR 150 per sq. ft. per month

Rental Escalation 15% every 3 years

Capital Value (Transacted) Lease Only

Quoted Rent Vs Transacted Rent (2019)

Quoted Rent & Transacted

Transacted Rent 14
0

Quoted Rent 150

Rent

100 110 120 130 140 150 160

Rent in INR per sq. feet per month

GRA 83
Source: C&W Research
Benchmarking Analysis DLF Cyber Park

DLF Cyber Park, Gurugram

Technical Details

Technical Details Technical Details

Gymnasium Yes
225 mm flat slab with 450 mm
Slab thickness
capital thickness Bank/ ATMs Yes

Typical / Flooring Load Live load of 400 Kg / [Link]. Food Court Yes (on the ground floor)

Cab Pickup and Drop Points Yes

Screed depth on floor 55 mm
Power Backup Yes
Typical column grid 10 .8 m X 10 .8 M approx
Yes (with conferencing & banquet
Roof Terraces
opportunities)
Floor to floor height 4.2 metres Creche & Convenience
Yes
Stores

Fire exits per block 5 Yes ( 24x7 Vivo Ambulance with

Hospital & Medical Support
trained paramedics)

Staircase Width 2 metres Centralized STP in basement using

Sewage Treatment
MBR method

GRA 84
Source: C&W Research
Retail Space in IT /
ITES Setup

GRA LLP Development Pvt. Ltd. | Cushman & Wakefield 85

Office Market Analysis Retail Space in IT / ITES Setup

Case Study: Cyber Hub

Tenancy Mix Cyber Hub
Entertainment F&B F&B F&B
Tenant Name Type Tenant Name Type
Tenant Name Type
Tenant Name Type Count of Tenant mix in Cyber Hub
Smash A AM PM Cafe Insta Pizza
The Drunken Botanist I hop Krispy Creame 0 50 100
BFSI Yum Yum cha Underdogs Bombakery
Pra Pra Prank Resturant Viet:Nom Pita Pit Pizza F&B 69
Tenant Name Type The Wine Co. Theobroma Supermarket
Quaff Microbrewery 1
HDFC Bank A Cicchetti by Mr beans Dunkin's & Donuts Creche 1
Subway
Nando's Kings Kulfi
Health & Beauty Hard Rock Café
Nooba
Angels In My Kitchens Accessories 3
Tenant Name Type Cyber Hub Social The Big Chill cafe Keventers (Milk Shake) Health & Beauty 2
Looks Unisex Foxtrot Café coffee day Stick House
B BFSI 1
Salon Sutra Pub Panchwati Gaurav Chaipoint C
Entertainment 1
Bodyshop C Raasta The Caribbean Lounge Oh So Stoned Bread Talk
Soi 7 Pub & Brewery Punjab Grill B Chokola Apparels 2
Apparels
Imperfecto Pub Circus McDonald Electronics 2
Tenant Name Type A
Starbucks Café The China Kitchen KFC Others 7
Marks & Spencer
A Beercafe Café Delhi Heights Vaango
Uniqlo
Taco Bell Oh Calcutta Pizza Hut
Electronics Burma Burma
Farzi Café
Biryani Blues
[Link] WOW momos
Yet to Open
Tenant Name Type Made In Punjab
Olly Dominoz Tenant Name
Samsung Smart Robo gear
Café B United Coffee House Soda Bottle Openerwala
Pier 38 Doner & Gyros
UNI Apple Cold Stone Creamery Type Area (in [Link].) Fat Tiger
Not Just Paranthas
Doughunts & Coffees House of Cocoichi
Accessories Italino Pizza
O Red Mango
A > 2000
Theos
Tenant Name Type Sagar Ratna
Dhaba B 1000 2000 Blue Tokai
Chumbak B
Cafeteria & Co
Kiosk Beast Craft
Gifts of Love C < 1000 Akkus
C Haldiram Tenant Name Type
MiniZmo
Others Chai Gram
Creche Tenant Name Type Other Insights
SBI Credit Card Outlet
Tenant Name Type Crossword
Klay Pre School A Dayal Optical Waffle Wallah Number of Operational Stores ~89
Hamster London B Coffee Cart
Supermarket Y Axis C
JBL Number of Vacant Stores ~3
Tenant Name Type Beat 360 - KIA Amazon Pickup
Modern Bazar A Decathlon A Banars Pan Total Leasable Area ~200,000 [Link]
Minisou 86
GRA LLP Develop ment Pvt. Ltd. | Cushm an & Wakefield Madras Coffee House

Source: C&W Research

Office Market Analysis Retail Space in IT / ITES Setup

Case Study: Cyber Hub

Retail establishments under office buildings witness no thumb rule for rental agreements

Minimum Guarantee + Revenue

Revenue Share Fixed Rental
Share
Lease Trends over Product

Agreements in Initial Years Agreements over the Short Term Agreements over the Medium Term
Life Cycle

• It is typically witnessed that during the nascent stages of such developments rental agreements for the retail component have takenplaceon a
revenue share model . The revenue share in this case has typically ranged between 10% - 12%
• However, over the short term, reducing vacancy levels have shifted rental agreements to a Minimum Guarantee plus revenue share
• In the medium term however, often determined by the success of the property, transactions typically take place on the fixed
rental. This additionally provides the developer with more control over the tenancy mix

Cyber Hub Rental Trends Key Additional Insights

Most transactions with International brands took place in
2014
the revenue share format

Minimum guarantee has ranged between INR 100 120 • Additionally , most rent agreements in such retail components have
2017 - 2018
with the additional component of revenue share also varied significantly depending upon the brand strength

Quoted Rentals range between INR 300 INR 350 / [Link] /

2018 - 2019
Month

GRA ESTATES LLP. | Cushman & Wakefield 87

Source: C&W Research

Office Market Analysis Retail Space in IT / ITES Setup

Learnings from Case Studies

Key takeaways post benchmarking

Gyms (in DLF Infinity Tower & DLF Cyber Park), Creche, Centralized AC, Food Courts & 100% Power backup are importantbuilding
amenities

All the benchmarks are in close proximity to metro stations (0.4 -2.4 km), hence connectivity is a major
positive fortheoccupiers

-80,000 sq. feet)

With low vacancy percentages of largely sub 15% for Grade A IT operational assets in Udyog Vihar market have witnessedrobust
demand, which is a positive for the subject development

GRA ESTATES LLP. | Cushman & Wakefield 88

Source: C&W Research
 Assignment Background

S1 Location Assessment

S2 Site Assessment

S3 Project Assessment

S4 Regulatory Assessment

S5 Office Market Analysis

S6 Benchmarking Analysis

S7 Impact of Covid 19

Financial Analysis &

S8 Recommendations

Caveats & Limitations

GRA LLP Dev e opment Pvt. Ltd. | Cushman & Wakefield 89

Impact Assessment
on Commercial
Sector

GRA ESTATES LLP. | Cushman & Wakefield 90

Impact of Covid - Occupiers & Developers
19

Impact of Covid -19

Office Demand Impacted in Immediate Term Due To Change In Working Style & Workplace Design over a short to medium term

Demand to return strongly in

h
o
t markets, momentum in 2021-22
could signal a medium recovery

Focus on recovery readiness and

making workspace new
normal -
ready & staggered office opening
. Work From Home /
Rotational shifts to be the norm

On Short term Small to mid -scale

demand to reduce significantly
especially from start -ups
and
medium sized enterprises . New
market entrants to be • Since the crisis is bio -sociological, with recovery based on scientific -
more solutioning,we expect the rebound to be a strong V.
watchful and delay decision
making • 12-24 Months : SHOCK could be Moderate to Severe . Similarly, the REBOUND
could be Moderate to Strong (estimated % shown) .
New design standards with
Source: Industry Reports ; Transforming Workplaces
increased per person space to
bethe new norm
Impact of Covid - Occupiers & Developers
19

Impact of Covid -19

GRA ESTATES LLP. | Cushman & Wakefield 91
Impact of Covid - Occupiers & Developers
19

Impact of Covid -19

Strategies of Key Large Scale Occupiers in India*



Portfolio Growth  RE Strategy


Estimated
Pre- Post  Likely Outlook Mid Term
Company Presence in City Current Foot Pre- Covid Post Covid
Covid Covid  (2021-22)
Print (msf) 

 • Stable in Gurgaon
US-based • Gurgaon • Rapid Growth in Gurgaon (pre- • Continued Growth in Gurgaon • Move to BTS facility in short term,
Multinational • Bangalore >4   commitment of 1msf in 2019) & • No activity in Bangalore. 1.4 msf BTS might explore further expansion
Technology Company • Mumbai Bangalore facility construction underway opportunities

 • Cautious Growth in Mumbai • Conservative in Mumbai

US-based • Gurgaon • Rapid Growth in Delhi NCR (0.2 msf last • Long Term Campus Strategy under
Multinational Software
Company
•
•
Noida
Bangalore >1  
 year, additional 0.1 msf this year) &
Bangalore
•
•
Continued Growth in Delhi NCR
Stable growth in Mumbai
•
evaluation in Noida
Expansion opportunities in Bangalore
• Mumbai
 • Cautious Growth in Mumbai

US-based •
•
Gurgaon
Noida
 • Rapid Growth in Gurgaon (Signed Term • Continued Growth in Gurgaon
• Stable in Gurgaon & Bangalore
Multinational Social
Networking Company • Bangalore ~0.4   sheet with DLF) & Mumbai •
•
Rapid growth in Mumbai
Stable portfolio in Bangalore
• Conservative in Mumbai
• Mumbai

Global Financial
• Gurgaon  • Expansion upto 0.2 msf in Gurgaon,
•
•
Cautious Growth in Gurgaon
Continued Growth in Pune
• Long Term Campus Strategy under
evaluation in Gurgaon
Services Corporation
•
•
Pune
Mumbai
~0.5  
 •
long term consolidation underway
Rapid growth in Pune
• Relocation in Mumbai • Growing in Pune
• Optimizing in Mumbai

Global Professional
•
•
•
Delhi NCR
Bangalore
Pune
 •
•
Growth in Delhi NCR, Mumbai, Pune
Pre leased BTS facility of 1.2 msf in
• Surrendered 0.4 msf of pre-leased space
in Bangalore
•
•
Expansion in Pune
May reduce space in Kolkata
Services Corporation
• Mumbai >10   •
Bangalore Suburban market
Stable in Kolkata
•
•
Cautious Growth in Mumbai and Pune
Stable in Gurgaon and Kolkata
• Stable in other markets
• Kolkata

GRA ESTATES LLP. | Cushman & Wakefield * The information above is based on C&W’s market intelligence. Client names have 92
been withheld to maintain confidentiality
Medium - Long
Term Impact
Assessment on
Commercial
Sector
GRA ESTATES LLP. | Cushman & Wakefield 93
Impact of Covid - Occupiers & Developers
19

Impact of Covid -19

Impact of Covid -19 in Medium - Long Term

Physical Structure Financial Implications

Work From Home is there to Stay which will
Expansive Common Spaces Needed lead to Reimagining Workplaces of
the Future

Increase in Avg Area per Employee Rentals to remain under downward

sticky in next 18- 24 months

Occupiers to enter into customized

Higher Focus on Health & Safety
dealsto Increase Rent free period

Security Deposits & Lock in periods to

Requirement of More Private Spaces
bepersonalised as per contracts

Employee Experience will be key going

Touch free Technologies Integration
forward

GRA ESTATES LLP. | Cushman & Wakefield 94

*The information above is based on CW’s market intelligence
Impact of Covid - NCR
19

Pre and Post Covid Scenario of Delhi NCR

Expected Scenario *

Pre- Covid Post Covid (Expected Scenario )

Micro market Cyber City Sohna Road Aero City Noida Cyber City Sohna Road Aero City Noida
Prevailing Quoted
Rent IN R 125 130 INR 60 65 IN R 190 -200 INR 50 55 IN R 120 125 INR 50 55 IN R 180 -200 INR 50 55
(INR per sf per mth)

Rental Trend        
Current Vacancy 5.2% 29% 29% 23.5%
Vacancy Trend
       
Probability
Rent Reduction Low Medium Low Low Low Medium Medium Medium
Lease Restructure Low Medium Low Low High High High High
Cam Reduction Low Low Low Low High High High High

Deposits
Low Low Low Low Low Low Low Low
Reduction
Rent Free Period/
Deferment / Low Low Low Low Medium Medium Medium Medium
Abatement Etc.

Low Mediu High

m
*The above mentioned scenario is considered applicable when vaccine/ normalcy is expected to be achieved in some form/ shape by Q1 20 21. The
above outlined market trends could change if the aforementioned vaccine development expectations/ timelines gets changed.

Source: C&W Research 95

Impact of Covid - Udyog Vihar
19

Pre and Post Covid Scenario of Udyog Vihar (Subject Micro - market)
Expected Scenario *

Pre- Covid Post - Covid

Rental expected to
Micro market Udyog Vihar Udyog Vihar Temporary Decrease remain range -bound
Prevailing Rent
in Demand for 2021- for a couple of years
(INR per sf per mth)
INR 65 - 70 INR 60 65 2022 for good
productsat strategic
Rental Trend   locations
Current Vacancy 11%
Vacancy Trend   Vacancy Levels to
Construction
Slippages &
Probability remain stable post
deferment of
Covid -19
Rent Reduction Medium Medium projects
could happen
Lease Restructure Medium High
Cam Reduction Low High
IT/ ITeS market to
Deposits Reduction
High
Low Low have a bigger impact
on space requirement
Rent Free Period/ than Non IT
Deferment / Abatement Low Medium
Etc.

Low Mediu High

m
*The above mentioned scenario is considered applicable when vaccine/ normalcy is expected to be achieved in some form/ shape by Q1 20 21. The above outlined
market trends could change if the aforementioned vaccine development expectations/ timelines gets changed.
GRA Source: C&W Research 96
 Assignment Background

S1 Location Assessment

S2 Site Assessment

S3 Project Assessment

S4 Regulatory Assessment

S5 Office Market Analysis

S6 Benchmarking Analysis

S7 Impact of Covid 19

Financial Analysis &

S8 Recommendations

Caveats & Limitations

GRA LLP Dev e opment Pvt. Ltd. | Cushman & Wakefield 97

OPPORTUNITY,
GAP, PROJECT
AND PRICING
ASSESSMENT
GRA ESTATES LLP. | Cushman & Wakefield 98
Opportunity, Gap, Project and Pricing Assessment Opportunity & Gap Assessment

Opportunity Assessment
Stable demand amidst limited supply provides an opportunity for a right sized and right priced development

1 2 3

• IT/ ITeS market in the Subject • IT/ ITeS market rental trends
• Currently, IT/ ITeS market
site has a vacancy of 5 -8% if have remained stable in the
isthe largest office
weexclude the 3 major projects past 5 years, whereas the
market category space
which occupy for more than 1/2 maximum achievable
with occupying more
of the existing vacancy transacted rentals for the
than 40% of the total
• Low vacancy levels coupled subject micro market have
existing stock
with limited upcoming supply seen upward pulls owingto
• It will continue to occupy
augur wells from an stable demand levels for
more than 52% stock in
opportunity standpoint limited quality assets
thesubject micro market

Expected Annual Average IT/ ITeS Net Office

Expected Annual Average IT/ ITeS Office Supply Supply - Absorption (basis past performance) over next 4
over next 4 years
~1 1.5 Mn. Sft . (Gurugram) Absorption years
~1.5 1.75 Mn. Sft . (Gurugram)
~0.0 1- 0.05 Mn. Sft . (Udyog Vihar ) Dynamics ~0.3- 0.35 Mn. Sft . (Udyog Vihar )
Supply
GRA LLP Development Pvt. Ltd. | Cushman & Wakefield Absorpti 99
on
PROJECT
ASSESSMENT

GRA LLP Development Pvt. Ltd. | Cushman & Wakefield 100

Opportunity, Gap, Project and Pricing Assessment Project Assessment

Project Assessment (1/ 2)

On Site Observations and Data Received

PROJECTED OUTCOME OF EXISTING DESIGN Site Observation

• The 5.4 acre subject site
in sector 19, Gurugram
has an ongoing under
construction building
Tower 1

• The proposed
development has a total
built -up of 4.57 lakh sft
.
LAYOUT OF THE PROJECT
• The subject site has
FACILITIES PROPOSED IN THE PROJECT primary access to 30
mwide Master Plan
road -old Delhi -
Incubation
Gymnasium Creche Gurugram road as the
Center
main entry to the site

• The land parcel has few

existing built up
Common Auditorium for
Exhibition Hall structures (abandoned
Cafeteria small audience
factories) which are to
be demolished
afterwards
sports facilities like Open
Common Meeting
basketball, table Amphitheater for • There is availability of
Rooms
tennis, etc. Outdoor Events
vacant land portion in
the subject site which
isto be developed as
Visitor
Shuttle Transport Management Tower 2 & 3 in
Free Wi - Fi
for employees System through upcoming years.
Mobile App
Source: Client Receivables, C&W Research 101
Opportunity, Gap, Project and Pricing Assessment Project Assessment

Project Assessment (2/ 2)

Value Levers

Existing/ Planned
Closer vicinity to the flyover Gym, Creche, Food Court , etc. are Development of retail ecosystem wil Most of the leased office
and highways adds to the some of the amenities that are marked give the subject site an edge over other spaces demand a range of
strategic strengths of our as important facilities in our developments and make it more holistic 30,000 -40,000 sft . and thus
project. benchmarks and can lead to for individualsOccupiers the floor plate at the subject
commanding hire rentals. site fits the demand

Good to Have
Better air pollution filtration to Visual continuity and connectivity is Emphasis should be laid on creating LEED - Leadership in Energy and
ensure better air quality inside to be created in spaces to give the more green spaces both Environmental Design should be
the office premises is becoming public a sense of direction within the horizontally and vertically . Trees to attained which marks the highest
one of the important criteria for site. be provided along pedestrian and certification to ensure energy
building selection roads and more green pockets near conservation and improve work
the site. efficiency at site.

Source: Client Inputs, C&W Research 102

PRICING
ASSESSMENT

GRA LLP Development Pvt. Ltd. | Cushman & Wakefield 103

Opportunity, Gap, Project and Pricing Assessment Pricing Assessment

Price Discovery
Adjustment Rationale (1/ 2)
Comparison
Adjustment Rationale Comparable 1 Comparable 2 Comparable 3 Comparable 4
Element
Area Subject Site DLF Cyberpark, NH 48 Rolta Corporate Towers SP Infocity Infinity Tower, Cybercity

The comparable is located on

the main road and is connected
to NH 48 via the Shankar Chowk
Marg road . The Comparable is located
Being closer to Delhi, attracts The Comparable is located away from the NH-48 road b y
higher land values compared to approximately 950 M. The The comparable property is
location at a distance from Delhi away from the NH-48 road project has no major big located in Cyber Hub which is
Adjustment on account by approximately 1.1 km via industries, except for Thomas 450 m from NH 48 via DLF
of neighbourhood and Udyog Vihar - II Road. The
Subject site is situated near Cook & Wipro Ltd, however, Tower 8th Road . it is in a wel
Location and catchment profile . More project has no major
bigindustries like Moody's has better location profile establish industrial area and is
Neighbourhood established locations bigindustries, except for
Analytics, Canara Bank, Times as compared to Rolta surrounded by
Profile command premium Thomas Cook & Wipro
than untested/ nascent internet Limited, WeMart Towers, and better tenant category
Ltd .
Retail profilesas industries .
locations office which makes it more Hence a premium of 15% has well.
favourable professional visit . It been allocated to the subject Hence a premium of 10% is
is
also near Oberoi and Trident site. Hence a premium of 5% has attributed to comparable it .
Hotels been allocated to the
comparable site.
Hence a premium of 7.5% has
been attributed to the
comparable .
- 7.5% 15% - 5% - 10 %
The comparable has better
The comparable lacks a few The comparable lacks a few
Price adjusted to amenities such as banks, ATM's, The comparable lacks a few
amenities such as gym and amenities such as gym and
account for available Cab Pick up and drop facility, amenities such as creche .
Amenities food court health care.
amenities as compared roof terraces, etc. Hence a 5% premium is allocated
Hence a 10% premium is Hence a 5% premium is
to existing benchmarks Hence a 5% premium is to the subject site.
allocated to the subject site. allocated to the subject site.
allocated to the comparable .
GRA Source: C&W Research 104
Opportunity, Gap, Project and Pricing Assessment Pricing Assessment

Price Discovery
Adjustment Rationale (1/ 2)
-5% 10% 5% 5%

GRA Source: C&W Research 105

Opportunity, Gap, Project and Pricing Assessment Pricing Assessment

Price Discovery
Adjustment Rationale (2/ 2)
Comparison
Adjustment Rationale Comparable 1 Comparable 2 Comparable 3 Comparable 4
Element
Area Subject Site DLF Cyberpark, NH 48 Rolta Corporate Towers SP Infocity Infinity Tower, Cybercity
The comparable is located on the
main road and is connected to
NH 48 via the Shankar Chowk The Comparable is located The Comparable is located away The comparable property is
Price adjusted to account Marg road . away from the NH-48 road b y
for differences in location from the NH-48 road by located in Cyber Hub which is 450
Being closer to Delhi, attracts approximately 1.1 km via Udyog approximately 950 M. It is only m from NH 48 via DLF Tower 8th
connectivity via surface
higher land values compared Vihar - II Road. It is 1.9 Km 2.4 Km near Moulsari Avenue Road. it is in a well establish area
Connectivity & network i.e road (arterial away from the Indusland Bank
to location at a distance from and has great road connectivity and is surrounded by IT category
Access roads, main roads) and Metro Station .
Delhi . industries .
The Indusland Bank Metro Station
proximity to public is 0 .8 Km Hence a premium of 7.5% has
transports like metro / Hence a premium of 10% has
Bus network been allocated to the subject been allocated to the Henc a premium of 10% is
e
Hence a premium of 10% has site. comparable . attributed to comparable .
been attributed to the
comparable .
-7.5% 10% -7.5% -10%
The comparable has a floor The comparable has a floor The comparable has a floor plate The comparable has a floor plate
Price adjusted to account
plate of 64300 -70000 sft, plate of 70000 sft, almost of 80 ,000 sft , almost thrice of 32,500 -45,400 sft, marginally
for availability of larger
Floor Plate Size proposed 2our proposed o
u
r proposed simalar to ours.
almost 2 our floor plates owing to size. Hence a premium of 10% size. Hence a premium of 5% is
size.
Hence a premium of 10% is is allocated to the Hence a premium of 10% is allocated to the subject site.
large building size allocated to the comparable comparable allocated to the comparable
-10% -10% -10% -5%
The comparable site is visible The comparable site is away byThe comparable site is visible The comparable site is visible
from the NH 48 Road via Shankar 1.1 km from the main road and from the NH 48 Road by 950Mfrom the NH 48 Road and is only
Price adjusted to account Chowk Marg . clearly not visible. and lies on the main away by 450 M.
for difference in visibility the subject site is not The subject site is clearly road .. The subject site is not the subject site is not clearly
Visibility clearly of the project owing to visible as compared visible as compared to the clearly visible as compared visible as compared to the
to the attributes like frontage comparable comparable site. to the comparable comparable site.
site.

Source: C&W Research 105

Opportunity, Gap, Project and Pricing Assessment Pricing Assessment

Price Discovery
site. along the access road
Hence a premium of 10% is Hence a premium of 5% is Hence a premium of 10% is
Hence a premium of 5% is
allocated to the subject site. allocated to the comparable allocated to the comparable site.
allocated to the comparable site.
site.
-5% 10% -5% -10%

Source: C&W Research 106

Opportunity, Gap, Project and Pricing Assessment Pricing Assessment

Price Discovery
Benchmarked Projects & Price Adjustments

Comparables Subject Site Comparable 1 Comparable 2 Comparable 3 Comparable 4

The Dominant, Udyog
DLF Cyberpark, NH 48 Rolta Corporate Towers SP Infocity Infinity Tower, Cybercity
Vihar
Rental (INR/ [Link] ./ month) 140 53 70 117
Location and Neighbourhood
-7.5% 15% -5% -10%
Profile
Amenities -5% 10.0% 5.0% 5%
Connectivity & Access -7.5% 10% -7.5% -10%
Floor plate Size -10% -10% -10% -5%
Visibility -5% 10% -5% -10%
Total Net Adjustment -35% 35% -23% -30%
Final Adjusted Price 91 72 54 82

Comparables Subject Site Comparable 1 Comparable 2 Comparable 3 Comparable 4

The Dominant,
Area DLF Cyberpark, NH 48 Rolta Corporate Towers SP Infocity Infinity Tower, Cybercity
Udyog Vihar
Total Leasable
457,412 2,578,938 450,000 6,70,000 1,272,500
Area
Distance from
NA 2.9 2.5 2.7 4
Subject Site
Rental
70 - 72* 140 53 70 117
(INR/ [Link]./ month)

*The above achievable rental is calculated in pre Covid scenario. Considering the market is expected to make a recovery in th e medium term
(2022 -23), the subject development is expected to witness average achievable rentals to pre Covid levels by the time of construc tion completion
(2023). This market hypothesis is considered applicable when vaccine/normalcy is expected to be achieved in some form/shape b y Q 1 2021. The
above outlined pricing hypothesis could change if the aforementioned vaccine development expectations/ timelines gets changed.

Source: C&W Research 107

 Assignment Background

S1 Location Assessment

S2 Site Assessment

S3 Project Assessment

S4 Regulatory Assessment

S5 Office Market Analysis

S6 Benchmarking Analysis

S7 Impact of Covid 19

Financial Analysis &

S8 Recommendations

Caveats & Limitations

GRA LLP Dev e opment Pvt. Ltd. | Cushman & Wakefield 107
Financial Analysis Financial Model

Development and Product Strategy

Financial Assessment - Summary
Summary Sheet

Total Total NPV

Total Total Commercial
Land Area Permissible FAR Proposed Commercial NPV (INR
Development Scenario Asset Class Leasable Retail Leasable Area IRR (%)
(Acres) (ratio) FAR Area Office Leasable (INR Million) Million Per
Area (sq. ft.) (sq. ft.)
([Link].) Area (sq. ft.) Acre)

Option 1: Non - TOD Commercial Office 5.419 2.5 4,81,018 5,36,201 5,03,154 33,047 741 137 14% Suggested
Option
Option 2: TOD Commercial Office 5.419 5 11,67,860 12,98,809 12,32,715 66,094 753 139 16%

Option 1 is suggested as preferred option on the basis of the financial analysis, as it is evident that the difference in the net value
creation (NPV per ace) between both options is minimalistic, when compared to the risk involved in
option 2 i.e. with TOD there are multiple variables like higher capital investment, delayed
breakeven period, uncertainty in leasing period, amongst others could have
signifcantimpact on eventual financial viability of the project

Option 1: Non - TOD

Net Cashflows Total Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Cash Outflow (A) (2,200) (1,558) (462) (646) (600) (26) (31) (37) (29) (17) (17) (335)
Cash Inflow (B) 9,654 - - - - 186 336 494 577 571 593 6,897
Net Cashflow
7,454 (1,558) (462) (646) (600) 160 305 457 548 554 576 6,562
(B-A)

Option 1: TOD
Net Cashflows Total Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12
Cash Outflow
(4,535) (1,558) (561) (981) (423) (675) (1,167) (514) (43) (50) (57) (65) (69) (887)
(A)
Cash Inflow (B) 4,931 - - - - 185 334 490 675 868 1,072 1,308 1,399 15,025

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Financial Analysis Financial Model

Development and Product Strategy

Net Cashflow
(B-A) 396 (1,558) (561) (981) (423) (490) (833) (24) 631 818 1,014 1,243 1,330 14,138

GRA 109
Financial Analysis Financial Model

Development and Product Strategy

Financial Assessment – Option 1: Non-TOD

Development Assumptions Cost Assumptions

Particulars Amount Unit Particulars Amount Unit
Land Area 5.42 Acres
Total Land Cost (Circle Rate) INR 1,558 INR million
Land Area 26,228 sq yard
Land Area 2,36,052 sq ft Construction Cost - Y0 INR 3,200 per sq ft
Permissible FAR 2.5 Ratio Soft and Infrastructure Cost on BUA INR 0 per sq ft on BUA
Permissible IT FAR 5,66,524 sq ft Professional Fees 0% □ on construction cost
Proposed IT FAR 4,57,413 sq ft Overheads and Contingency Costs 0% □ on construction cost
Loading on Office 10% % Escalation on Construction Cost 5% %
Total Leasable Area (IT) 5,03,154 sq ft Administrative and Marketing Expenses 3% □ of Rental Revenue
Allowable Retail area 4% %
Allowable Retail area 23,605 Sq ft Revenue Assumptions

Allowable Retail area 23,605 Sq ft Particulars Amount Unit

Loading on Retail 40% % Rental value - Y0 (Weighted Rental: Office +
Retail) 74 INR per sq ft pm
Leasable Area (Retail) 33,047 Sq ft
Brokerage on Fresh Lease / Churned Space 2 months
Total Proposed FAR area 81,018 Sq ft
Rent Free Period 17% or, 2 months
Total Leasable Area 5,36,201 Sq ft
Pre-operation Escalation (COVID -19 - Short Term) 0% %
Peak Occupancy 95% %
Pre-operation Escalation 5% %
Operations Assumptions
Rental Escalation (every 3 years) 15% %
Particulars Amount Unit Rent escalation after 3 years
YoY Area that will be leased ( Pre COVID -19) 1,50,000 Sq ft
Deposits (In No. of Months' Rental) 6 month Months
Average Office Space per person ( Pre COVID -19) 70.0 Sq ft
Interest on Deposit 8% %
Average Workforce addition YoY basis 2,143 no
□ of Workforce that would be working from home (Post COVID Financial Structuring
25% %
-
19) Mode Proportion Rate
No. of people that would be working from office space 1,607 no Debt 50% 14% 7%
Average Office Space per person ( Post COVID -19) 90.0 Sq ft Equity 50% 24% 12%
YoY Area that will be leased ( Post COVID -19) 1,44,643 Sq ft Discount Rated Benchmarked with Weighted Average Cost of Capital 19.00%

GRA 109
Financial Analysis Financial Model

Development and Product Strategy

Financial Assessment – Option 1: Non-TOD
Summary
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Construction Cost (INR per 3,200 3,360 3,528 3,704 3,890 4,084 4,288 4,503 4,728 4,964
sq ft)
Construction Rollout 30% 40% 30%
Total Constructed BUA ( sq 144,305 192,407 169,957
ft)
Absorption Rollout ( sq ft) 144,643 144,643 144,643 75,462

Expense
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Capital Expense (1558) (462) (646) (600) - - - - - - -

Operational Expense - - - - (26) (31) (37) (29) (17) (17) (18)
Exit Cost* (63)
Deposit Repayment (254)
Total Expense (A) (1,558) (462) (646) (600) (26) (31) (37) (29) (17) (17) (335)

Income
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Lease Income - - - - 113 254 402 516 551 573 609
Deposits - - - - 68 71 75 41 0 0 0
Interest on Deposits - - - - 5 11 17 20 20 20 20
Exit Value 6,268
Total Income (B) - - - - 186 336 494 577 571 593 6,897

Gross Income Statement Unit Total Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross Cash Outflow (A) INR mn (2,200) (1,558) (462) (646) (600) (26) (31) (37) (29) (17) (17) (335)

Gross Cash Inflow (B) INR mn 9,654 - - - - 186 336 494 577 571 593 6,897

Net Cashflow (B -A) INR mn 7,454 (1,558) (462) (646) (600 ) 160 305 457 548 554 576 6,562

Exit Year: Year 10; Exit Cost*: 1% of Exit Value

GRA 110
Financial Analysis Financial Model

Development and Product Strategy

Financial Assessment – Option 1: Non-TOD

IRR (%) 14%

NPV (INR Million) 741
NPV (INR Million Per Acre) 137
Estimated NPV (INR Million)
Weighted Rentals (INR per sq. ft. per month)
INR 741 58 63 68 73 78 83 88

2,450 INR 596 INR 726 INR 857 INR 987 INR 1,118 INR 1,248 INR 1,379

2,700 INR 502 INR 632 INR 763 INR 894 INR 1,024 INR 1,155 INR 1,285

2,950 INR 408 INR 539 INR 669 INR 800 INR 930 INR 1,061 INR 1,191
Construction Cost (INR per sq. ft.)
3,200 INR 314 INR 445 INR 575 INR 706 INR 837 INR 967 INR 1,098

3,450 INR 220 INR 351 INR 482 INR 612 INR 743 INR 873 INR 1,004

3,700 INR 127 INR 257 INR 388 INR 518 INR 649 INR 780 INR 910

3,950 INR 33 INR 163 INR 294 INR 425 INR 555 INR 686 INR 816

Estimated IRR (%)

Weighted Rentals (INR per sq. ft. per month)
INR 741 58 63 68 73 78 83 88
2,000 13% 14% 15% 16% 17% 18% 19%
2,250 12% 14% 15% 16% 17% 17% 18%
2,500 12% 13% 14% 15% 16% 17% 18%
Construction Cost (INR per sq, ft,)
2,750 11% 12% 13% 14% 15% 16% 17%
3,000 11% 12% 13% 14% 15% 16% 17%
3,250 10% 11% 12% 13% 14% 15% 16%
3,500 10% 11% 12% 13% 14% 15% 16%

GRA 111
Financial Analysis Financial Model

Development and Product Strategy

Financial Assessment – Option 2: TOD

Development Assumptions Cost Assumptions

Particulars Amount Unit Particulars Amount Unit
Land Area 5.42 Acres
Total Land Cost (Circle Rate) INR 1,558 INR million
Land Area 26,228 sq yard
Land Area 2,36,052 sq ft Construction Cost - Y0 INR 3,200 per sq ft
Permissible FAR 5.0 Ratio Soft and Infrastructure Cost on BUA INR 0 per sq ft on BUA
Permissible IT FAR 1,133,048 sq ft Professional Fees 0% □ on construction cost
Proposed IT FAR 1,120,650 sq ft Overheads and Contingency Costs 0% □ on construction cost
Loading on Office 10% % Escalation on Construction Cost 5% %
Total Leasable Area (IT) 1,232,715 sq ft Administrative and Marketing Expenses 3% □ of Rental Revenue
Allowable Retail area 4% %
Allowable Retail area 47,210 Sq ft Revenue Assumptions

Allowable Retail area 47,210 Sq ft Particulars Amount Unit

Loading on Retail 40% % Rental value - Y0 (Weighted Rental: Office +
Retail) 74 INR per sq ft pm
Leasable Area (Retail) 66,094 Sq ft
Brokerage on Fresh Lease / Churned Space 2 months
Total Proposed FAR area 1,167,860 Sq ft
Rent Free Period 17% or, 2 months
Total Leasable Area 1,298,809 Sq ft
Pre-operation Escalation (COVID -19 - Short Term) 0% %
Peak Occupancy 95% %
Pre-operation Escalation 5% %
Operations Assumptions
Rental Escalation (every 3 years) 15% %
Particulars Amount Unit Rent escalation after 3 years
YoY Area that will be leased ( Pre COVID -19) 1,50,000 Sq ft
Deposits (In No. of Months' Rental) 6 month Months
Average Office Space per person ( Pre COVID -19) 70.0 Sq ft
Interest on Deposit 8% %
Average Workforce addition YoY basis 2,143 no Financial Structuring
□ of Workforce that would be working from home (Post COVID
-
25% % Mode Proportion Rate
19) Debt 50% 14% 7%
No. of people that would be working from office space 1,607 no Equity 50% 24% 12%
Average Office Space per person ( Post COVID -19) 90.0 Sq ft Discount Rated Benchmarked with Weighted Average Cost of Capital 19.00%
YoY Area that will be leased ( Post COVID -19) 1,44,643 Sq ft

GRA 112
Financial Analysis Financial Model

Development and Product Strategy

Financial Assessment – Option 2: TOD
Summary
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12
Construction Cost 3,200 3,360 3,528 3,704 3,890 4,084 4,288 4,503 4,728 4,964 5,212 5,473
(INR per sq ft)
Construction 15% 25% 10% 15% 25% 10%
Rollout
Total Constructed 175,179 291,965 116,786 175,179 291,965 116,786
BUA ( sq ft)
Absorption Rollout
(sq ft) 144,643 144,643 144,643 144,643 144,643 144,643 144,643 144,643 76,726

Expense
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12

Capital Expense (1558) (561) (981) (423) (649) (1,136) (477) - - - - -

Operational - - - - (26) (31) (37) (43) (50) (57) (65) (69) (57)
Expense
Exit Cost* (136)
Deposit Repayment (694)
Total Expense (A) (1,558) (561) (981) (423) (675) (1,167) (514) (43) (50) (57) (65) (69) (887)
Income
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12

Lease Income - - - - 112 252 399 574 757 949 1,174 1,253 1,305
Deposits - - - - 67 71 74 78 82 86 90 95 53
Interest on - - - - 5 11 17 23 30 37 44 51 56
Deposits
Exit Value 13,612
Total Income (B) - - - - 185 334 490 675 868 1,072 1,308 1,399 15,025

Gross Income Statement Unit Total Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12
Gross Cash Outflow (A) INR mn (4,535) (1,558) (561) (981) (423) (675) (1,167) (514) (43) (50) (57) (65) (69) (887)

Gross Cash Inflow (B) INR mn 4,931 - - - - 185 334 490 675 868 1,072 1,308 1,399 15,025

Net Cashflow (B -A) INR mn 396 (1,558) (561) (981) (423) (490) (833) (24) 631 818 1,014 1,243 1,330 14,138
Exit Year: Year 12; Exit Cost*: 1% of Exit Value
GRA 113
Financial Analysis Financial Model

Development and Product Strategy

Financial Assessment – Option 2: TOD

IRR (%) 16%

NPV (INR Million) 753
NPV (INR Million Per Acre) 139
Estimated NPV (INR Million)
Weighted Rentals (INR per sq. ft. per month)
INR 753 58 63 68 73 78 83 88
2,450 INR 641 INR 853 INR 1,066 INR 1,278 INR 1,491 INR 1,704 INR 1,916
2,700 INR 455 INR 668 INR 880 INR 1,093 INR 1,305 INR 1,518 INR 1,731
2,950 INR 269 INR 482 INR 695 INR 907 INR 1,120 INR 1,332 INR 1,545
Construction Cost (INR per sq. ft.)
3,200 INR 84 INR 296 INR 509 INR 722 INR 934 INR 1,147 INR 1,359
3,450 (INR 102) INR 111 INR 323 INR 536 INR 749 INR 961 INR 1,174
3,700 (INR 287) (INR 75) INR 138 INR 350 INR 563 INR 776 INR 988
3,950 (INR 473) (INR 260) (INR 48) INR 165 INR 377 INR 590 INR 803

Estimated IRR (%)

Weighted Rentals (INR per sq. ft. per month)
INR 753 58 63 68 73 78 83 88
2,000 16% 17% 18% 19% 20% 21% 22%
2,250 15% 16% 17% 18% 19% 20% 21%
2,500 15% 16% 17% 18% 19% 19% 20%
Construction Cost (INR per sq, ft,)
2,750 14% 15% 16% 17% 18% 19% 20%
3,000 13% 14% 15% 16% 17% 18% 19%
3,250 12% 14% 15% 16% 16% 17% 18%
3,500 12% 13% 14% 15% 16% 17% 17%
GRA 114
 Assignment Background

S1 Location Assessment

S2 Site Assessment

S3 Project Assessment

S4 Regulatory Assessment

S5 Office Market Analysis

S6 Benchmarking Analysis

S7 Impact of Covid 19

Financial Analysis &

S8 Recommendations

Caveats & Limitations

GRA LLP Dev e opment Pvt. Ltd. | Cushman & Wakefield 115
Caveats & Limitations

Caveats & Limitations

• The Industrial Location Advisory Strategy Report (referred to as the will not be based on comprehensive market research of the overall
ma
rk
e
t for all possible situations . Cushman & Wakefield India (hereafter referred to as will cover specific markets and situations,
which will be highlighted in the Report . C&WI would undertake limited field research basis the nature of the scope of assignment
and review prevailing market conditions sufficient to draw analysis under the Report . In this connection, C&WI will rely solely on the
information supplied to C&WI and update it by reworking the crucial assumptions underlying such information as well as incorporating
published or otherwise available information .

• In conducting this assignment, C&WI will carry out analysis and assessments of the level of interest envisaged for the subject property
under consideration and the demand -supply for the real estate sector in general . C&WI will also obtain other available information and
documents that are additionally considered relevant for carrying out the exercise . The opinions expressed in the Report will be subject to
the limitations expressed below

• C&WI endeavors to develop forecasts on demand, supply and pricing on assumptions that would be considered relevant and reasonable
at that point of time . All of forecasts or recommendations mentioned in the report would be conditional and based on likely or
possible events / occurrences and other market & financial assumptions . Any decision or course of action adopted hereafter by
the client or its affiliates and subsidiaries or its customers based on any forecasts and recommendations would be at their own fair
judgment . The use of the Report at a later date may invalidate the assumptions and bases on which forecasts have been
generated and is not recommended as an input to a financial decision .

• Changes in socio -economic and political conditions could result in a substantially different situation than those presented at the stated
efectivedate . C&WI assumes no responsibility for changes in such external conditions .

• In the absence of a detailed field survey of the market and industry (as and where applicable), C&WI will rely upon secondary
sources of information for a macro -level analysis. Hence, no direct link is sought to be established between the macro -level
understandings on the market with the assumptions estimated for the analysis.

• The services provided will be limited to development feasibility and will not constitute an audit, a due diligence, tax related
servicesor an independent validation of the projections . Accordingly, C&WI will not express any opinion on the financial information of the
business of any party, including the Client and its affiliates and subsidiaries . The Report will be prepared solely for the purpose
GRA 116
Caveats & Limitations

Caveats & Limitations

stated, and should not be used for any other purpose .

GRA 117
Caveats & Limitations

Caveats & Limitations

• While the information included in the Report will be believed to be accurate and reliable, no representations or warranties, expressed or
i plied, as to the accuracy or completeness of such information is being made . C&WI will not undertake any obligation to update, correct
m
or supplement any information contained in the Report .

• In the preparation of the Report, C&WI will rely on the following information :
o Information provided to us by the Client and its affiliates and subsidiaries and third parties ;
o Recent data on the industry segments and market projections ;
o Other relevant information provided to us by the Client and its affiliates and subsidiaries at C&WI's request ;
o Other relevant information available to C&WI; and
o Other publicly available information and reports .
• The Report will reflect matters as they currently exist . Changes may materially affect the information contained in the Report .

• All assumptions made in the feasibility study will be based on information or opinions as current . In the course of the analysis, C&WI would
be relying on information or opinions, both written and verbal, as current obtained from the Client as well as from third parties provided
with, including limited information on the market, financial and operating data, which would be accepted as accurate in bona -fide
belief . No responsibility is assumed for technical information furnished by the third party organizations and this is bona -fidely believed to
be reliable .

• No investigation of the title of the assets will be been made and owners' claims to the assets will be assumed to be valid . No consideration
wilbe given to liens or encumbrances, which may be against the assets. Therefore, no responsibility is assumed for matters of a legal nature .

• The Client including its agents, affiliates and employees, must not use, reproduce or divulge to any third party any information it receives
fm C&WI for any purpose without prior consent from C&WI and should take all reasonable precautions to protect such information from
ro
any sort of disclosure . The information or data, whether oral or in written form (including any negotiations, discussion, information or
data) forwarded by C&WI to the Client may comprise confidential information and the Client undertakes to keep such information strictly
confidential at all times .

GRA 118
About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global real estate services
firm that delivers exceptionalvalue for real estate occupiers and owners. Cushman
& Wakefield is among the largest real estate se rvicesfirms with approximately
51,000 employees in 400 offices and 70 countries. In 2018, the firm had
revenue of
$8.2 billion across core services of property, facilities and project
management, leasing, capital markets,valuation and other services.
GRA LLP Development Pvt. Ltd. | Cushman & Wakefield
To learn more, visit www. Cushman Wakefield .com or follow @Cush Wake on Twitter.