Bangalore 2Q12Office | Retail | Residential

Real Estate Intelligence ServiceJune 2012

Overview

2

GSDP

271,956 Cr*

76,000 Cr**SOFTWARE EXPORTS

*Expected GSDP in Fiscal 2010 – 2011, **Software Exports for 2009 - 2010 , Source (GDP) : http://www.hindu.com/2011/02/24/stories/2011022462350600.htm , Source (Mercer Survey) : http://www.bbc.co.uk/news/world-asia-india-15956457

IT / ITES, TELECOM AND ELECTRONICS, ENGINEERING,

BIOTECH,AEROSPACE, AUTOMOTIVE, TEXTILES AND

APPAREL

KEY INDUSTRIES

9.6 MillionPOPULATION

LARGEST URBAN METROPOLIS IN KARNATAKA

STRONG ACADEMIC AND R&D BASE

“LEADER” IN INFORMATION TECHNOLOGY

HIGHLY EVOLVED REAL ESTATE MARKET

DEVELOPING INFRASTRUCTURE

WELL DEVELOPED VIRTUAL CONNECTIVITY

“BEST INDIAN CITY TO LIVE IN” MERCER SURVEY 2011

“SILICON VALLEY OF INDIA”

2

CITY OVERVIEW

3

Advantage Bangalore

Large Talented Human Resource Pool

Large English Speaking Cosmopolitan Population

Good Educational and Research Institutions

Relatively Economical Cost of Labour and Operations

Conducive Labour Relations

Progressive Infrastructure

Better State Policy and Investor Perception

Good Telecom Connectivity

Moderate Climate

Good Law and Order situation

Technological Prowess

Among the Fastest Growing Cities in Asia

4

Large and Growing Pool of Skilled Professionals In Information Technology (IT) and IT Enabled Services (ITES)

Bangalore : Knowledge Capital of India

•Highest number of employees in the IT/ITES sector •Approximately 600,000* IT and ITES Professionals

Availability of High Quality Work Force with Varied Experience and Diverse IT Skills Ease of

Scalability and Maturity of Process

Highest Availability of Middle And Top Management

Better Access to Research and Development Institutions

*Business Today

AVAILABLE TALENT POOL POTENTIAL TALENT POOL

Large resource pool in the form of graduating students suitable for IT/ITES

The maturing talent pool Sophistication of jobs

High Synergy between the Academia and Industry

Home to• Indian Institute of Science• Indian Institute of Management • Indian Institute of Information Technology

5

Real Estate Infrastructure : Commercial

Bangalore becoming a preferred destination for IT / ITES companies owing to Brand Bangalore, A Global Hub for IT Products & Technology

International standard Software Tech Parks in different business districts

Major Link Roads in South and East being developed as Mutation Corridors More software parks and other commercial establishments

Current Office Space Stock of approx. 65 Million Sq.ft

Approximately 4 Million Sq.ft of office space to be added by Q4, 2012

11 Operational Multi-tenanted SEZs

International Standards in Office Space

Amenities and Services • Large Efficient floor plates• Plug and play facilities for temporary accommodation• Building Management System where air conditioning, lifts, water

level, lighting are centrally controlled• Complete backup for essential services • Water Storage and Sewage Treatment Plant• Liberal parking standard to accommodate employee transport

fleets• Independent control and high-end security systems• Dedicated security teams

Comparatively Economic Rental levels

Availability of Quality Residential and Commercial development

High Transparency in Real Estate

High Office Market Activity

6

Preferential Incentives and PoliciesSTATE POLICY AND INCENTIVES

Incentives and Concessions under Millennium IT Policy

• Fiscal : Exemption to IT companies from payment of entry tax on certain capital goods, concession on stamp duty & registration charges, rebate on cost of land

• Power : Continuous and uninterrupted supply of power at industrial rates

• Simplified procedures/laws : Pollution control clearances, urban planning/zonal regulations, relaxation in labour laws, facilitation through single window agency

• Financial Support : Venture capital from Government for start-ups

• The Karnataka government is planning to come out with a semiconductor policy

• Special focus on manufacturing of photovoltaic cells/solar panels for energy conservation and efficiency

• A fast track mechanism to expedite clearance of IT and BT projects within a period of 30 days ( under consideration )

• Special emphasis on electronic hardware manufacturing

• IT parks to be set up in the Bangalore-Mysore Infrastructure Corridor Planning Area.

GOVERNMENT INITIATIVES FOR FUTURE GROWTH

7

Bangalore International Airport

Bangalore Mysore Infrastructure Corridor (Phase 1): Under Construction*.

• 41 km of Peripheral road linking NH-7 and NH-4

• 9.1 km Link Road linking City Centre to Peripheral Road

• 12 km Expressway from the Peripheral road upto Bidadi

• Current Status : Feeder roads are completed

Peripheral Ring Road

• Under Construction.

• 110-km peripheral ring road to circumnavigate the city linking the major highways - Tumkur Road, Mysore Road, Old Madras Road, and the Hosur Road.

• Likely to be operational by 2015 - 2016

Proposed High Speed Rail link (HSRL) by Bangalore Metro

Rail Corporation Ltd.

• Stations at Cubbon Road, Hebbal and Yelahanka

• Currently the project is on hold.

Note: Peripheral Ring Road and Mysore road alignments to be confirmed

*Source: www.nicelimited.comhttp://www.deccanchronicle.com/channels/nation/south/after-metro-bengaluru-set-high-speed-rail-link-150

Infrastructure Initiatives

Metro Rail : Under Construction. • Phase 1 : Mysore Road to Byappanahalli and from

Hesarghatta Cross to Puttenahalli. To be operational by mid 2014

• Ensuring Enhanced Connectivity across the City • Phase 2 (61 stations covering 72.06 kms )to be operational by

2017

M G Road to Byappanahalli (~ 7kms) : Operational

Bidadi

Signal free south to north Outer Ring Road : Under Construction

To be operational by 2012

Flyover Underpass Flyover and Underpass

Hebbal - Yelahanka Expressway• 22.12 km long elevated six lane expressway connecting

Hebbal & Yelahanka. • Proposed Completion Timelines : 2 years starting from 2011.

7

8

26 Deepanjalinagar27 Mysore Road28 Swastik29 Malleshwaram30 Kuvempu Road31 Rajajinagar32 Mahalaxmi Layout33 Soap Factory34 Yeshwanthpur35 ORR Junction36 Peenya Village37 Peenya Industrial Area38 Jalahalli39 T Dasarahalli40 Hesaraghatta Cross

METRO STATIONS - PHASE I1 Bayappanhalli2 Old Madras Road3 CMH Road4 Ulsoor5 Trinity Circle6 M G Road7 Cricket Stadium8 Vidhana Soudha9 Central College10 Central Bangalore: Majestic11 Chikpet12 City Market13 K R Road14 Lalbagh15 South End Circle16 Jayanagar17 R.V.Road18 Banashankri19 J P Nagar20 Puttenahalli21 City Railway Station22 Magadi Road23 Toll Gate24 Hosahalli25 Vijayanagar

Bangalore Metro Phase 1

ELECTRONIC CITY

34

12

3456

7

3332

3029

28

31

21222324

25

2627

89

11

1314

151617

10

35

37383940

18

19

20

12

36

Proposed Metro Phase 2 : Planning Stage

Extension of Phase 1 : Alignments to be confirmed

Bangalore Metro

GOTTIGEREANJANPURA TOWNSHIP

WHITEFIELD

BIEC

KENGERI

NAGAWARA

8

9

Social InfrastructureHOTELS

Presence of numerous luxury hotels and serviced apartments Currently over 7,700 rooms with 9,800 hotel rooms in the branded

segment slated to enter Bangalore Market over the next five years. 22 Upcoming hotels including Prestige Group's Hilton Hotels, Nitesh

Estates's Ritz Carlton, Hyatt and JW Marriott which are at different stages of construction

Quality recreational Facilities : Numerous Multiplexes, Shopping malls and pubs

Presence of all major global brands, Presence of World leaders in Retail Consumer Segment

Currently have an existing retail mall space of 4 Mn sq.ft spread over 20 major malls

RETAIL

Large numbers of institutions of international repute for providing technical and professional education : Indian Institute of Science (IISc) ,Indian Institute of Astrophysics (IIA), Indian Institute of Management Bangalore (IIMB), Centre for Liquid Crystal Research, National Aerospace Laboratories, Institute of Technology (BIT), Indian Space Research Organization (ISRO), National Law School of India University.

187 Engineering Colleges, 291 Polytechnics, 76 Fine Arts Colleges

World Class Health Care Centers Apollo Hospital , Wockhardt Hospital, Columbia Asia Hospital,, Manipal

Hospital, Mallya Hospital, HOSMAT, Sagar Apollo Hospital, NIMHANS (National Institute of Mental Health and Neuro Sciences)

EDUCATIONAL INSTITUTES

HOSPITALS

UB CITY COLLECTIONSMARKET CITY FORUMCENTRAL GOPALAN MALL

PES SCHOOL OF ENGINEERING

CHRIST COLLEGE IIM, BANGALORE IISC St JOHN’S MEDICAL COLLEGE

ZURI TAJ VIVANTA IVY – UNWIND ISLANDPARK PLAZAOBEROI

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10

Prominent Occupiers

IT / ITES

Others

Banking & Financial

11

Growth Corridors

Emerging Growth Corridor Growth Horizon : 3 – 5 Years

Emerging Growth Corridor Growth Horizon : 1 – 2 Years

Current Growth Corridor

Upcoming Location

NORTH BANGALORE : FUTURE POTENTIAL• Proximity to international airport • Features prominently in the Comprehensive

Development Plan and the Greater Bangalore Development Plan

• Exclusive IT space (over 10,000 acres) – Information Technology Investment Region ( ITIR) planned in Devanahalli and Doddaballapur Region.

• Currently, Limited Social Infrastructure

OUTER RING ROAD : COMPETITIVE LOCATION • Preferred Destination owing to better

connectivity and proximity to employee catchments ( South Bangalore)

• Major SEZ developments along the stretch• ~3 Million sq.ft of space taken off the market

based on staggered commitment from April to August 2010

• Appreciation of 15 – 20% in rental values due to rising demand for commercial spaces

WHITEFIELD & ELECTRONICS CITY: MOST ECONOMICAL DESTINATIONS

• Relatively lower rentals, Abundant supply of quality office space

• Future Plan of Metro connectivity for Whitefield• Elevated fly-over has eased the traffic and

provides better connectivity to Electronics City• NICE road provides connectivity between

Electronics City and South Bangalore.

SARJAPUR ROAD : UPCOMING LOCATION• Upcoming IT corridor – WIPRO & Infosys

campus• Land parcels acquired by major developers for

upcoming projects• Development of major residential projects• Connectivity to Electronic City, Whitefield and

North Bangalore through Peripheral Ring Road

Commercial Office Trends

NCR-Delhi

Mumbai

Bangalore

Chennai

Pune

Hyderabad

Kolkata

0

10

20

30

40

50

60

70

80

90

100

0% 5% 10% 15% 20% 25% 30% 35% 40%

Stoc

k (m

illio

n sq

ft)

Vacancy (%)

Source: Real Estate Intelligence Service (JLL), 1Q12

13

Commercial Trends: Stock Vs Vacancy 1Q12Bangalore and Hyderabad continue to have low vacancy levels. Chennai

soon to cross the 50 million sq ft mark.

PA

N-I

ND

IA

VA

CA

NC

Y

Bangalore and Hyderabad have below

average vacancy

Pune, NCR-Delhi and Mumbai close

to average vacancy

Commercial TrendsRental Values

Micro MarketWarm Shell Rent

( INR/ Sq.ft / Month)Maintenance

( INR/ Sq.ft / Month)Car Park Allocation

(Slot/Sq.ft)Car Parking Charges

( INR/ Slot / Month)

CBD 70 – 110 5 – 7 1 per 1,500 4,000 – 6,000

SBD 40 – 65 5 – 7 1 per 1,000 2,500 – 3,000

PBD 25 – 38 5 – 7 1 per 750 2,000 – 2,500

Source: Real Estate Intelligence Service (JLL), 2Q11

STPI Rental Range

SEZ Rental Range

Micro MarketWarm Shell Rent

( INR/ Sq.ft / Month)Maintenance

( INR/ Sq.ft / Month)Car Park Allocation

(Slot/Sq.ft)Car Parking Charges

( INR/ Slot / Month)

SBD 42 – 53 5 – 7 1 per 800 2,500 – 3,000

PBD 35 – 48 5 – 7 1 per 800 2,000 – 2,500

Commercial TrendsProperty Clock

Source: Real Estate Intelligence Service (JLL), 2Q11

RENTS DECLINING

RENTS RISING

GROWTH SLOWING

DECLINE SLOWING

BangaloreNCR-Delhi

Chennai PuneHyderabad1Q12 Mumbai

Kolkata

Retail Trends

NCR-Delhi

Mumbai

Bangalore

Chennai

PuneHyderabad Kolkata

0

5

10

15

20

25

30

0% 5% 10% 15% 20% 25% 30% 35% 40%

Stoc

k (m

illio

n sq

ft)

Vacancy (%)

NCR-Delhi and Mumbai lead others by a huge margin in terms of operational retail

stock; have high vacancies in secondary districts

Kolkata, Hyderabad and Bangalore have relatively low stock and low vacancy; These

cities have considerable activity on high streets

NCR-Delhi and Mumbai constitute two-thirds of pan India retail mall space.Considerable retail activity remains on the traditional high streets of India.

Source: Real Estate Intelligence Service (JLL), 1Q12

Pune has high vacancies due to select retail properties having low

occupancy levels. Other properties enjoy good occupancy

Retail Trends: Stock vs Vacancy 1Q12

PA

N-I

ND

IA

VA

CA

NC

Y

Retail TrendsRental Values

Micro MarketWarm Shell Vanilla Rents

( INR/ Sq.ft / Month)

Prime 160– 250

Secondary 80-120

Suburbs 60-80

Source: Real Estate Intelligence Service (JLL), 2Q11

Retail TrendsProperty Clock

Source: Real Estate Intelligence Service (JLL), 2Q11

RENTS DECLINING

RENTS RISING

GROWTH SLOWING

DECLINE SLOWING

Pune

Mumbai

ChennaiBangaloreHyderabad

1Q12 NCR-Delhi

Kolkata

Residential Trends

Residential Capital Values-Micro-market wise

Source: Real Estate Intelligence Service (JLL), 2Q11

3. Bellary Road (INR 3,000 – 8,000)

4. Tumkur Road (INR 2,500 – 5,200)

2. Secondary (INR 3,500 – 7,000)

1. Prime (INR 10,000 – 26,000)

8. Whitefield (INR 2,600 – 6,500)

5. Mysore Road (INR 2,100 – 3,000)

6. Kanakapura Road (INR 2,800 – 5,000)

7. Hosur Road (INR 2,500 – 4,000)

Capital Values (INR/Sq.ft)

Residential TrendsSupply and Absorption Trends(3Q18 – 1Q12)

Source: Real Estate Intelligence Service (JLL), 1Q12

capital values expected to be stable during 2012

15%

18%

14%

12%

7%

12%

10%

16%

26% 26%

19%18%

14%13%

11%10% 11%

0%

5%

10%

15%

20%

25%

30%

0

2000

4000

6000

8000

10000

12000

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

Ab

sorp

tio

n R

ate

(%)

Nu

mb

er o

f U

nit

s La

un

ched

/ A

bso

rbed

Supply Absorption Absorption Rate

Residential TrendsMovement of Capital Values (3Q18 – 1Q12)

Source: Real Estate Intelligence Service (JLL), 1Q12

Capital values expected to be stable during 2012

2,000

3,000

4,000

5,000

6,000

4,000

6,000

8,000

10,000

12,000

14,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(Capital Values for Prime) (INR psf)

Prime Secondary Bellary Rd Hosur Rd Whitefield Tumkur Rd Kanakapura Rd Mysore Rd

ForecastForecast

Source: Real Estate Intelligence Service (JLL), 1Q12

Average residential capital values appreciated by nearly 2-3% in 1Q12. With subdued residential activity, capital values in Hyderabad remained stable during 1Q12.

Movement of Capital Values (1Q08 – 1Q12)

Note: Figures represent the top seven cities of India – Mumbai, NCR-Delhi, Bangalore, Chennai, Pune, Hyderabad and Kolkata.

Simple Average of % Q-o-Q Change in Capital Values of Constituent Micro-Markets

SLOW GROWT

H

Capital Value Movement

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 1Q08-1Q12

NCR-Delhi 8.8% 1.6% 0.6% -5.7% -9.7% -4.9% -2.4% 2.3% 1.1% 2.1% 2.6% 2.0% 2.3% 2.4% 2.6% 1.9% 2.5%

Mumbai 7.0% 2.2% 0.0% -8.3% -12.9% -4.0% 6.7% 8.0% 6.4% 5.3% 3.6% 6.0% 0.8% 1.5% 1.3% 1.6% 3.2%

Bangalore 4.2% 3.6% 1.7% -8.4% -4.4% -1.1% 0.0% 4.9% 2.5% 4.9% 5.6% 1.7% 5.2% 2.8% 2.5% 0.5% 2.3%

Chennai 19.6% 4.7% 0.0% -6.5% -6.9% -1.8% 2.0% 2.6% 3.0% 3.0% 3.4% 3.7% 0.3% 1.8% 2.2% 3.4% 2.0%

Hyderabad 5.1% 2.4% 0.0% -9.1% -4.7% -4.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.0% 0.0% 0.0% 0.0% 0.0%

Kolkata 22.9% 3.5% 0.0% -6.1% -8.9% -2.9% 0.4% 3.7% 2.9% 3.7% 5.1% 1.5% 1.7% 2.2% 2.1% 2.7% 3.7%

Pune 4.4% 1.9% 0.0% -7.7% -7.2% -16.0% 0.0% 5.5% 4.7% 1.6% 2.2% 1.4% 3.8% 2.7% 1.5% 1.3% 2.9%

GROWTH SLOWINGCV

RISINGCV RISING

DECLINE SLOWING

CV FALLING

-

Residential TrendsProperty Clock REIS

-

Source: Real Estate Intelligence Service (JLL), 1Q12

VALUES DECLINING

VALUES RISING

GROWTH SLOWING

DECLINE SLOWING

Kolkata

Chennai

Pune

Hyderabad1Q12

Delhi

Bangalore

Mumbai

GurgaonNoida

Coimbatore

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