Executive Summary

This Investment Memo seeks to attract investor interest in a promising commercial real estate development in Somajiguda, Hyderabad. The project is positioned strategically just 250 meters from the Greenlands Road and Raj Bhavan Road intersection, promising a blend of accessibility and tranquility ideal for businesses. The proposed development involves constructing a G+5 structure covering a total built-up area of 11,585 sq ft, with commercial spaces designed to cater to high demand in the area.

Somajiguda, known for its vibrant commercial activity and proximity to significant city landmarks, offers a compelling location for commercial investments. The financial projections show robust returns, with an expected 1.6-1.8X return on investment by the end of 2025. Investors are invited to contribute between Rs. 50 lakhs to Rs. 2.88 Cr, with detailed terms of investment and projected financial benefits outlined below.

Location Overview

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Situated in the heart of Hyderabad, Somajiguda stands as a prominent commercial center flanking both sides of the illustrious Raj Bhavan Road. What once began as a tranquil residential enclave has gracefully transitioned into a bustling hub of modern commerce within Hyderabad, Telangana, India.Somajiguda pulsates with vibrant commercial activity, hosting a myriad of jewelry emporiums, automotive showrooms, and esteemed banking institutions. Its strategic positioning near key city centers such as Begumpet, Punjagutta, and Khairtabad further amplifies its significance as a prime business locale.

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Amidst this dynamic landscape, iconic landmarks punctuate the skyline, including the stately Raj Bhavan, a symbol of governance, The Park, an epitome of luxury hospitality, and Yashoda Hospital, a beacon of healthcare excellence. Of particular note is the prestigious Raj Bhavan, the official residence of the Governor of the State of Telangana, bestowing upon Somajiguda an aura of governmental prestige. With its blend of commercial vitality, strategic proximity, and esteemed landmarks, Somajiguda emerges as an unparalleled nexus of business and prominence within the vibrant tapestry of Hyderabad.

Project Site Location in Somajiguda

Nestled just 250 meters from the vibrant intersection of Greenlands Road and Raj Bhavan Road, our project site offers a perfect balance of accessibility and tranquility. This strategic positioning ensures easy access to major transportation routes while providing a peaceful environment away from traffic noise—a prime location for office spaces seeking both convenience and serenity.

Access:

+ 0.5KM from Inner Ring Road

+ 33KM from Rajiv Gandhi International Airport

+ 7.5KM from Secunderabad Junction

Site

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+ Address: Thakur Mansion Ln, Durga Nagar Colony, Somajiguda

+ Current Property Type: G+2 Structure, residential built but being used as a offices

+ Lot Size (sq yards): 486 sq yards

+ Plot facing: West

+ Access Road: Thakur Mansion Lane; 31 feet wide road

Current Ownership Structure:

The Site is currently owned by two landowner groups (each owning 50% of the lot size, i.e. 243 sq yards). One of the landowner group is interested in selling their part of the land, while the other landowner group is interested in entering into a joint development with us.

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Market Analysis

Based on the detailed survey of the market, the site is best suited for a commercial development.

Existing Market Map in Somajiguda

Commercial Rental Market

Commercial Sale Market

The present market in Somajiguda prices commercial assets at Rs.12-15K per SQFT for ground floor in new constructions. And Rs.10-12K per SQFT for above floors in new constructions. By the time the projects gets completed towards to end of 2025, we are expecting the commercial sale market to be north of Rs. 13K per SQFT on an average.

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Proposed Development: Commercial

+ Total Site Area = 486 SQYD / 4,370 SQFT / 406 Sq.Mt

+ Permissible Height = Stilt + 12M (4 Floors) + 3M (1 Floor - TDR)

+ Total Built-Up Area = 2,317 X 5 = 11,585 SQFT (including common area)

+ Carpet Area = 10,430 SQFT

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Proposed Timeline

Proposed Specifications

Investment Opportunity

We are selling the project built up area at Rs. 8,000 per SQFT of the total Built Up Area. Along with the corresponding amount of Undivided Share of Land. Investor capital will go towards purchase of the land from the Landowner 2.

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+ Minimum investment amount: Rs. 50,00,000 (Fifty Lakhs)

+ Maximum investment amount: Rs. 2.88 Cr (entire investor share)

+ Expected delivery date: End of year 2025

+ Expected Return: 1.6X of the investment amount as per the expected sale price of the commercial space

+ Investment closing date: May 15th, 2024

Interested?