City Report Bangalore Office Market Q2 2010

CITY REPORTBANGALORE OFFICE MARKET

Q2 2010

BNP Paribas Real EstateAll the buildings blocks

In India our specialists bring you our expertise in Transaction Advisory, Valuation, Consulting.With our international scope and on-the-ground presence, you’ll find the perfect partner that can ensure thesuccess of your real estate project. With BNP Paribas Real Estate, all the pieces come together.

Your contact in India: Bangalore: +91 80 4050 8888 - Mumbai: +91 22 6138 8088 - Delhi: +91 11 4959 [email protected]

www.realestate.bnpparibas.com

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CITY REPORTBANGALORE OFFICE MARKET - Q2 2010

Summary p. 4

Macroeconomic Context p. 5

Bangalore Map p. 6

Central Business District (CBD) p. 7

Secondary Business District (SBD) p. 8

Periphery Business District (PBD) p. 9

Rental Values & Capital Values p. 10

Key Projects p. 10

p. 12Glossary

CONTENTS

Major Transactions p. 11

4I I

SUMMARY

The Bangalore Real Estate Market is continuing to show positive signs of recovery by reporting transaction volumes of approx. 3.6 mn sq.ft. in Q2 2010. Given this performance, the first half of 2010 has witnessed transaction volumes of 5.6 mn sq ft. When compared to transaction volumes of 4.6 mn sq ft in 2009, this is a clear indication of rising positive sentiments among occupiers in Bangalore. A major portion of these transactions took place in IT parks located on the South-Eastern quadrant of the Outer Ring Road micro market. The Peripheral Business Districts continue to report high vacancy levels because of the competitive space options available on the Outer Ring Road between Sarjapur and Hebbal. While Q2 2010 witnessed transaction volumes of 3.6 mn sq ft, the year ended 2010 projections are expected to be close to 8 mn sq ft for Bangalore.

If the momentum of the present demand is sustained, vacancy levels are expected to decline in the CBD and SBD, which in turn will put pressure on rental values in these micro markets. Leverage in negotiations is also expected to continue to favor developers in the CBD keeping the rental value momentum in an upward direction.

It is also expected that some of the existing corporates in this region will relocate to other competitive location of the SBD owing to lower rentals in comparison to CBD and availability of scale up options of “grade A” office space in the micro-market.

PBD markets of the city are witnessing increasing levels of vacancy due to excess supply. With approximately 7 mn sq ft of additional fresh supply expected to be completed by the end of Q4 2010, vacancy levels are expected to further escalate. However with regard to the SEZ sector, based on existing & projected future SEZ supply which is expected to be completed at regular intervals, equilibrium between Supply & Demand is expected to be maintained over the medium term and rental values in SEZ developments are expected to remain stable till Q2 2011. With the availability of good infrastructure and stabilization in rentals across the last two quarters, the PBD is expected to attract large format space occupiers.


5I ICITY REPORTBANGALORE OFFICE MARKET - Q2 2010

20-O

ct-0

8

Repo Reverse Repo

Repo & Reverse Repo Rate10

8

6

4

Perc

ent

2

MACROECONOMIC CONTEXTRates hiked further. Well calibrated move to manage growth and inflationThe Reserve Bank of India (RBI), which is the central bank of India in its monetary policy has further raised the CRR, Repo Rate and the Reverse Repo Rate by 25 basis point each. This action by the central bank is seen as a well calibrated move to balance growth, arrest rising inflation and manage liquidity and currency. It is expected that due to rise in rates, the real estate lenders will also increase their rates especially for construction lending. The banking sector also moved to a new “base rate” system of lending effective July 1, 2010, which is expected to enhance transparency in loan pricing, promote competition in the credit market and also improve the transmission of monetary policy. On the credit side, the base rates set by major public sector banks were in the narrow range of 7.25% -8% Further, the RBI also announced two real estate indices for residential and commercial rates. These indices are expected to be updated every quarter. However, it will take some time for these indices to be active.

The economic recovery gained further momentum with the good progress of the monsoon which is expected to yield better agricultural output. The last 6 months has seen substantial rise in foreign cash flows and exports. However, the trade deficit is increasing as imports, especially the oil based imports has risen significantly as well. The economic survey report released by the government of India just ahead of the union budget announced a GDP between 8.25% - 8.75% for the year 2010-11. However, the various industry estimates pegs the GDP growth between 7% -8%.

On the SEZ space, the fate of approved Special Economic Zones, which are yet to become operational, hangs in balance with the proposed Direct Tax Code (DTC) denying tax exemptions to new units in the SEZs. According to the revised DTC draft, the tax exemptions for the SEZs have been provided only for the existing units. The new draft clearly mentions that the profit-linked deductions of units already operating in SEZs for the unexpired period (of 15 years) will be incorporated. This provision would mean end of new investment by promoters, who have received formal approvals from the Commerce Ministry after acquiring land for their projects. The uncertainty will affect even the operational SEZs because not all of them have been occupied by units. At present, SEZ units get 100% income tax exemption on export income for the first five years, 50% for the next five years. They also get exemption on 50% of the ploughed back export profit for the next five years after the first 10 years. The leading SEZ developers of India especially in the IT/ITES space are currently lobbying with the government to reverse certain decisions with respect to exemption for the SEZ units and it will be interesting to see the impact of these revisions of DTC on the decision making process especially of the international corporate occupiers in the IT/ITES services sector.

SLR CRR

CRR & SLR10

8

6

4

2

Perc

ent

0

May

-08

Jul-

08

Sep-

08

Nov

-08

Jan-

09

Mar

-09

May

-09

Jul-

09

Sep-

09

Mar

-08

Nov

-09

Jan-

10

Mar

-10

Gross Domestic Product (GDP)

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

9.20%

9.30%

8.80%

8.80%

7.90%7.60%

5.30%

5.80%

6.10%

Q22007

Q32007

Q42007

Q32009

7.90%

Q42009

6.00%

Wholesale Price Index (WPI)

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

Jan-

06

Apr-

06

Jul-

06

Oct-

06

Jan-

07

Apr-

07

Jul-

07

Oct-

07

Jan-

08

Apr-

08

Jul-

08

Oct-

08

Jan-

09

Apr-

09

Jul-

09

Oct-

09

Jan-

10

Source: Confederation of Indian Industries

Q12010

8.60%

Apr-

10

May

-10

Jul-

10

DLF Limited 202,853 199,437 2% 41,103 42,638 -4%

Major Real EstateCompanies in

India

Sales (In INR / In Million) Profits (In INR / In Million)

Q2 2010 Q1 2010Q on Q

Change % Q2 2010 Q1 2010Q on Q

Change %

Unitech 82,857 113,248 -27% 18,004 16,341 10%

India Bulls 43,371 49176 -12% 13,358 9,427 42%Sobha Developers 31,560 39,950 -21% 3,430 5,570 -38%

Peninsula Land 14,831 22,474 -34% 4,996 9,627 -48%ParsvnathDevelopers 25,279 35,489 -29% 3,182 3,472 -8%

Pheonix 4,043 3,447 17% 1,826 1,570 16%

Omaxe Limited 25,293 37,820 -33% 2,172 4,511 -52%

MahindraLifespace 6,793 10,096 -33% 1,448 2,369 -39%

Ananthraj 10,342 3,409 203% 4,585 3,095 48%

Ackruti City 17,649 21,731 -19% 4,205 5,420 -22%

Ansal Properties 25,077 21,571 16% 3,686 -633 -682%

20-N

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20-D

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20-J

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20-F

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20-M

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9

20-A

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9

20-M

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9

20-J

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9

20-J

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9

20-A

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BANGALORE MAP

Coce urs ada e RoR Race

Course

RajBhavan

VidhanSoudha

HighCourt

CubbonParkChikpete Rd

Kastur

ba Rd

nroa yh oM R

Rd

Brig

ade

Rd WHITEFIELD

Hoodi

Brigade TechPark

Whi

tefie

ld

Whitefield Rd

Rd

Bela

tur

Rd

Belatur

Kodugodi

Whitefield

Kodugodi RdStation Rd

BhattarahalliRd

Domsandra

Sadarmangal

1 M

ain

Rd

2 Main Rd

Borewell Rd

Vartur Rd

VarturKere

Vartur

Adarsh PalmRetreat

Vartu

r Rd

Channapanhalli

Southern Railway

Vartur Rd

Marattahalli

InnovativeMultiplex

Soul Space

Bellandur

BellandurTank

Salarpuria Softzone

Vimanpura

HAL

LB ShastriNagar

Suranjaindas Rd

Outer Ring Road

DoddaNekkundi

Old Madras Rd

KodihalliVictoria d R

Cantonment

Cubbon Rd

ChinnaswamyCricketStadiumSeshadri Rd

KSRTCBus Terminal

Majestic

Chikpete

Elevated RdVictoria

UrvashiAlbert Victor Rd

K R

Road

Bull Temple Rd

Basavangudi

LalBagh

Lal Bagh Fort Rd

UlsoorLake

Whe

eler

Rd

Munireddypalya

Mattadahalli

Ram

anam

ahar

ishi

Rd

Nagavara

Nag

avar

a M

ain

Rd

Hennu

ru M

ain Rd

Hennuru

Krishnarajapura

RamamurthyNagar

YellarnallappachettyKere

Chikkabanhalli

Old Madras Rd

Whitefield Rd

Devasandra

BhattarahalliAnandapuram

BangaloreHALAirportGolf

Course

Chamarajpet

Sarjapur Rd

Outer Ring Road

HSR Layout

South End Rd

Banashankari

dR arup kanaK

Uttarahalli

li RdlaharattU

Malleshvaram

Chor

d Rd

West ofChord Rd

Pineline Rd

Magadi Rd Chor

d Rd

Link Rd

Magadi Rd

Uni

vers

ity R

d

Hegganahalli

dR illahanaggeH

Bangalore CityRailway Station

Lottegollahalli

Lottegollahalli

Mattikere

Yeshvantpur

Bel Road

HebbalKere

Esteem Mall

NagavaraKere

CoxTown

Hosur RdKana

kpur

a Rd

Chandrapura

Madurai

Begur

Begu

r Rd

Kudlu

Kudlu Rd

NH-7

Bann

ergh

atta

JPNagar

MandivalaTank

MandivalaAgaraKere

adoR erosyM

Chor

d Rd

Magadi Rd

BangalorePalace

Bommanahalli

Marigowda Rd

HosakerehalliKere

dR illU ahattar

Vasantpura Rd

DoddaKalsandra

Kana

kpur

a

da oR attaghcnuhC

Electronic City

Kambipura Rd

Southern Railw

ayBangaloreUniversity

University Rd

TajWestend

JayamahalPalace

Karirobanhalli RdPeenya

YeshvantpurSuburb

Tumkur Road

NH-4

C V Raman Rd

Old Tumkur Rd

Bupasandra Rd

Jalahalli

Kodigehalli RdBELDefence

Colony

Byatarayanapura RachanaHalliKere

Bella

ry R

d

Agrahara

Bella

ry R

d

YelahankaNew Town

Dod Ballapur RdHindupur

Southern Railway

YelahankaKere

BangaloreInternationalAirport

Hyde

raba

d

Harohalli

d RurtpnvahYes

NH-7

ChikkaBommasandra

Rajiv GandhiNagar

KodigehalliKere

Kodigehalli

Southern Railway

Banaswadi idawsanaB

B Channasandra

NH-4

KrishnarajaPuram

Channasandra

BaiyyappanaHalli

R illahanam

maK

d

dR illahalaJ

Chikka Banavar Rd

Southern Railway

Bagalakunte

NH-4

Sarjapur Rd

ChikkaNayakamahalli

Salem

Anek

al

NH-4

NH-4

BangaloreEast

Major Roads

Roads

River / Water Bodies

Park / Green AreaRailway Station CBD

SBD

PBD

Airport

Outer / Ring Road

Inner

1

4

5 6

1

3

8

6

9

13

15

16

4

1

2

3

RajajiNagar

VijayNagar

16

16

16

2

5

7

10

11

1214

17

18

27

8 9

10

113

N

403, The Estate,121, Dickenson Road

Central Business District Secondary Business District Periphery Business District

1. Electronic City2. Mysore Road3. Whitefield

1. Cunningham Road2. Langford Road3. Lavelle Road4. MG Road5. Residency Road6. Richmond Road7. Richmond Town

1. Airport Road 2. Adugodi3. Banerghatta Road 4. Bellary Road5. BTM Layout6. CV Raman Nagar7. Domlur8. Hebbal9. Indiranagar

10. Jaya Nagar11. Jayamahal Rd12. Kammanahalli13. Koramangala 14. Mekhri Circle15. Old Madras Road16. Outer Ring Road 17. R T Nagar18. Shanti Nagar

8. St Marks Road9. Ulsoor10. Vasanth Nagar11. Vitthal Malya

Road

7I I

CENTRAL BUSINESS DISTRICT (CBD)

Supply & Vacancy TrendWith no new completion recorded in CBD during Q2 2010, development activities remained subdued due to the non availability of the land parcels for development of “grade A” office space. Approximately 0.5 mn sq ft of commercial space is under construction in this micro market, which is expected to be completed by year end 2011. This space is distributed across five buildings with built-up area ranging from 30,000 sq ft to 200,000 sq ft. The current stock in this micro market stands at 6 mn sq ft.

Developers are also looking at using the land parcels for hotel asset class owing to the good demand for hotel rooms from the office space housed in the CBD.

The vacancy rate increased marginally to 3.8% in Q2 2010 as compared to 3.6% during the last quarter. This is on the account of addition of grade A stock during Q1 2010 and relocation of some of the occupiers to the other micro markets because of good real estate space options and affordable rentals.

Rentals and vacancy stabilize in CBD on the back of consistent occupier demand

Rental & Capital Values

55

60

65

70

75

80

5,500

6,000

6,500

7,000

7,500

8,000

Q12009

Q22009

Q32009

Q42009

Q12010

Capital Value (INR/sq.ft)

Rent

al V

alue

(IN

R/sq

.ft/m

onth

)

Q22010

2,500

3,000

3,500

0.0%

0.5%

Q12009

Q22009

Q32009

Q42009

Q12010

Supply & Vacancy Trend

Stoc

k (’0

00 s

q. ft

) Vacancy Rate4,000

Q22010

Rental & Capital ValuesNo increase in the rental values was observed in the CBD over Q1 2010 values. This is due to the correction in the rental values post global recession and addition of the significant stock in CBD.

Rentals are expected to show a northward trend in the CBD once the accessibility of this micro market improves after completion of “Reach 1” of Bangalore Metro. Reach 1 will connect Bangalore CBD to Bayapannahalli. The stretch is expected to get operational by end of 2010. Addition of 0.5 mn, sq ft in H2 2010 will create fresh grade A space options for BFSI and associated sectors for which CBD is a preferred location.

Source: BNP Paribas Real Estate, India

Q3 2009 5,651 1.6%Q2 2009 5,651 1.6%Q1 2009 5,651 1.6%

Stock ('000 sq ft) Vacancy

Supply & Vacancy Trend for the past 6 Quarters

Q4 2009 5,933 2.7%


Q3 2009 70 7,200Q2 2009 70 7,200Q1 2009 70 7,200

Rental Values (INR / sq. ft / month)

Capital Values(INR / sq. ft)

Rental & Capital Values over the Past 6 Quarters

Q4 2009 73 7,508

Major areas that constitute CBD include:-• MG Road• Residency Road• Richmond Road• Cunningham Road

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4,500

5,000

5,500

6,000

6,500


The average headline rentals & capital values for the last 6 quarters are as follows:-

Q2 2010Q1 2010 75 8,333

Q2 2010Q1 2010 6,050 3.6%

75 8,333

6,050 3.8%

85

90

8,500

9,000

Stock Vacancy Rate

Capital Value Rental Value

8I I

Supply & Vacancy TrendThe SBD witnessed completion of 0.91 mn sq ft of Grade A supply during Q2 2010 spread across two projects. This gives the current CBD occupiers more options to upgrade and expand their operations in the SBD micro market. At present, the stock in this micro market stands at 27 mn sq ft. The vacancy rate in SBD declined by 2.4% compared to Q1 2010 and currently stands at 3.7%. This is due to increase in number of transactions in SEZ space as major corporates have leased over 1.5 mn sq ft of SEZ space in this micro market alone.

Demand for SEZ space continues to remain high

SECONDARY BUSINESS DISTRICT (SBD)

Rental & Capital ValuesThe weighted average of quoted rental values in the SBD in Q2 2010 is 4.2% higher than the previous quarter. This increase is largely due to the rising demand for commercial space in this micro market. This is evident from the fact that out of 3.6 mn. sq ft of transaction volumes SBD contributed 2.9 mn sq ft for leased office space. Out of the 2.9 mn sq ft, 1.5 mn sq. ft accounts for SEZ space and the remaining 1.4 mn sq ft is taken up by the Non SEZ space. We expect the rental values to continue to increase due to the constant rising demand and increased queries in this micro market.

Capital values have shown Q on Q increase of 4.7 % from Q1 2010 levels and stands at INR 4450 per sq ft. during Q2 2010, further indicating the rising demand for office space in this micro market.


Q3 2009 24,904 7.8%Q2 2009 24,794 7.8%Q1 2009 22,029 0.2%

Stock ('000 sq ft) Vacancy


Q4 2009 25,899 7.5%


Q3 2009 40 4,000Q2 2009 40 4,000Q1 2009 40 4,000

Rentals (INR / sq. ft / month)



Q4 2009 45 4,409

Major areas that constitute SBD include:-• Koramangala • Indiranagar and CV Raman Nagar • Old Madras Road• Airport Road • Banerghatta Road • Outer Ring Road • Hebbal• Bellary Road

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

26,000

0%

1%

2%

3%

4%

5%

6%

7%

8%

Stoc

k (’0

00 s

q.ft

) Vacancy Rate

Q12009

Q22009

Q32009

Q42009

Q12010


Q22010

9%28,000

Stock Vacancy Rate

3,700

3,900

4,100

4,300

4,500

37

39

41

43

45

Rent

al V

alue

(IN

R/sq

.ft/m

onth

)



Q12009

Q22009

Q32009

Q42009

Q12010

35

47

Q22010

49

3,500

4,700

4,900




Q2 2010Q1 2010 26,419 6.1%

Q2 2010Q1 2010 47 4,250

27,333 3.7%

49 4,450

9I I

Downward Pressure on rental values due to Excess supplySupply & Vacancy TrendCompletion of 1.47 mn sq ft of office space increased the vacany levels to 22.14 % a 2.62% jump over Q1 2010 levels. This new supply in PBD micro-markets of Whitefield and Electronic city constitutes completion of 3 projects each.

Although there have been optimistic forecasts from economists for Bangalore for year 2010, Whitefield and Electronic city are still facing challenges of oversupply and competitive alternative markets. However due to completion of Elevated expressway leading to improved accessibility, Hosur Road & Electronic City micro markets have seen a nominal revival in transaction volumes with cumulative transactions to the tune of 0.3 mn sq ft in H1 2010. This situation is expected to further improve in the medium to long term.

PERIPHERY BUSINESS DISTRICT (PBD)

500

1,000

1,500

2,000

2,500

3,000

3,500

Q12009

Q22009

Q32009

Q42009

Q12010

Rent

al V

alue

(IN

R/sq

.ft/m

onth

)



5

10

15

20

25

30

35

Q22010

0

5%

10%

15%

20%

Stoc

k (’0

00 s

q.ft

) Vacancy Rate


Q12009

Q22009

Q32009

Q42009

Q12010

5,000

Q22010

Rental & Capital ValuesRental and capital values remained stable during Q2 2010. With increasing vacancy levels and fresh supply of 7 mn sq ft. expected to come into the market by the end of the calendar year, the rentals in this micro market are expected to become even more competitive as compared to current levels. However, with regard to the SEZ sector, based on existing & projected future SEZ supply expected to be completed at regular intervals, equilibrium between Supply & Demand is expected to be maintained over the medium term and rental values in SEZ developments are expected to remain stable till Q2 2010. With the availability of good infrastructure and stabilization in rentals across the last two quarters, the PBD is expected to attract large format space occupiers.


Q3 2009 16,680 16.2%Q2 2009 16,680 16.2%Q1 2009 14,555 15.0%

Stock ('000 sq ft)

Vacancy


Q4 2009 17,280 17.3%

Major areas that constitute PBD include:-• Whitefield• Electronic City• Mysore Road


Q3 2009 25 2,150Q2 2009 25 2,200Q1 2009 25 2,200

Rentals (INR / sq. ft / month)



Q4 2009 26.5 2,328

10,000

25,000

15,000

20,000

0%

25%



Q2 2010Q1 2010 17,752 19.5%

Q2 2010Q1 2010 27.5 2,300

19,221 22.14%

27.5 2,300


Stock Vacancy Rate

10I I

RENTAL VALUES FOR Q2 2010

RentINR/ sq.ft/ month

CBD

PBD

SBD

MicroMarket

Q on QChange

75

27.549 4%

0%

0%

CAPITAL VALUES FOR Q2 2010

SBDCBD

PBD

MicroMarket

Q on QChangeINR / sq.ft

4,4508,333

2,3005%0%

0%


KEY PROJECTS


New Supply - Year 2010

Property Location Micro Market

Total built-up area (sq.ft)

Completion date (expected)

Pride Hulkul Lalbagh Road CBD 230,000 Q3 2010

Vaswani Centropolis Langford Town CBD 162,628 Q4 2010

Embassy Golf Links Business Park (13/2) Inner Ring Road SBD 112,000 Q3 2010

Brigade North Star Yeshwantpur SBD 1,100,000 Q3 2010

Divyasree Technopark Accenture Block A3 Whitefield PBD 200,000 Q4 2010

Niel Rao Tech Park Phase II Whitefield PBD 120,000 Q4 2010

Prestige Shantiniketan Whitefield PBD 3,100,000 Q3 2010

Brigade Metropolis Summit 1 Mahadevpura-Whitefield PBD 242,000 Q3 2010

Brigade Metropolis Summit 2 Mahadevpura-Whitefield PBD 588,000 Q3 2010

Bhoruka IT Park Phase II Whitefield PBD 423,000 Q4 2010

Bearys Global Research Triangle (Phase I)

Whitefield Sai Baba Ashram Road PBD 1,250,000 Q3 2010

GVR Tech Park Whitefield PBD 480,000 Q4 2010

Salarpuria Symphony Hosur Road PBD 160,000 Q3 2010

Harita IT Park Block I Electronic City - Phase 1 PBD 385,000 Q3 2010

SJR Equinox Electronic City - Phase 1 PBD 220,000 Q3 2010

Q2 2010

Property Tenant Micro Market

Size(sq.ft) Location

Chambers @ Mantri AMD CBD 14,200 Richmond Road

Safina Towers Atkins CBD 26,666 Millers Road

Divyasree Chambers Vatika CBD 25,000 Langford Town

Embassy Icon Hexaware Technologies CBD 26,000 Infantry Road

The Estate System Advisers CBD 18,300 Dickenson Road

Safina Towers Amazon Software India Pvt Ltd CBD 10,300 Millers Road

The Residency Hitachi CBD 11,500 Residency Road

Divyasree Towers Allegis SBD 31,000 Bannerghatta Road

Shanthi Tech Park Jain Group of Institutions SBD 350,000 Jayanagar 9th Block

Kalyani Magnum Oracle SBD 285,000 Krishnaraju Layout, Puttenahalli

Pritech Park Accenture SBD 820,000 Outer Ring Road (Marathahalli-Sarjapur)

Vrindavan Tech Village Stratify SBD 30,000 Outer Ring Road

Vrindavan Tech Village Ocwen Financials SBD 60,000 Outer Ring Road (Marathahalli-Sarjapur)

Vrindavan Tech Village Altisource SBD 60,000 Outer Ring Road (Marathahalli-Sarjapur)

Pritech Park CapGemini SBD 200,000 Outer Ring Road (Marathahalli-Sarjapur)

Embassy Kirloskar Business Park Tata Tea SBD 38,700 Bellary Road (Hebbal)

Salarpuria Supreme Deloitte India SBD 56,900 Outer Ring Road (Marathahalli-Sarjapur)

Manyata Embassy Business Park Aditi Technologies SBD 60,000 Outer Ring Road (Hebbal)

Manyata Embassy Business Park IBM SBD 429,000 Outer Ring Road (Hebbal)

Vrindavan Tech Village Sony SBD 30,000 Outer Ring Road (Marathahalli-Sarjapur)

Kalyani Magnum Ernst & Young SBD 40,000 Krishnaraju Layout, Puttenahalli

Vrindavan Tech Village Eka SBD 31,200 Outer Ring Road (Marathahalli-Sarjapur)

ITPB Society General PBD 100,000 Whitefield

Kalyani Platina MuSigma PBD 75,400 Whitefield

Sri Ganesh Complex Emids Technologies PBD 40,000 Hosur Road

RMZ NXT Schneider Electric PBD 65,200 Whitefield

Adarsh Eco Place Infinite PBD 65,000 Whitefield

RMZ Centennial Tyco Electronics PBD 36,000 Whitefield

MAJOR TRANSACTIONS




GLOSSARYQ2:

Super Built-up Area (SBUA):

Carpet Area:

Sq.mt:

Mn:

New:

Recent:

BFSI:

SLR:

CRR:

FSI:

Quarter 2 of the financial year (April - May - June)

Built-up area + common area including lifts area, common passages, utilities, terrace etc. & varies from building to building.

Actual usable area, and does not include any common areas, area occupied by walls etc.

Square Meter

Million

Building built within the last 5 years.

Building less than 10 years old.

Banking & Financial Services Industry

Statutory Liquidity Ratio

Cash Reserve Ratio

Floor Space Index

Absorption:

Bare Shell:

BPO:

BUA:

Completed Stock:

DU:

EPIP:

FAR:

Grade A Space:

Ground Coverage:

Hard Option:

INR:

Pre-lease:

Speculative Stock:

Stock:

Supply:

Transaction Volumes:

Vacancy:

Warm Shell:

Q on Q:

y-o-y:

IT:

ITES:

Repo Rate:

Reverse Repo Rate:

SEC A, B, C & D Socio:

Sq.ft:

Stamp Duty:

Occupied Stock (n) – Occupied Stock (n-1); Where “n” is the specified period (quarter, year etc.)

Premises consisting of basic structure with lifts, power supply to junction box, water supply line, toilets

Business Process Outsourcing

Built up area

Either the building has received occupancy certificate or the client has moved in and occupied space and started working in a particular premises

Dwelling Unit

Export Promotion Industrial Park

Floor Area Ratio (BUA/ Plot Area)

Office Space with efficiency in excess of 75%, floor plate in excess of 15,000 sq. ft., Car Parking ratio of atleast 1 per 1000 sq. ft., Floor-to-ceiling height in excess of 3.75 m, Power provision of 1.25KVA per 100 sq. ft. with 100% power-backup wherever applicable and professionally managed facilities

It is the total covered area on ground by the built component and is expressed as a percentage of the plot area

Real estate space reserved by the lessee for future occupation within a particular time frame and at a pre-decided rental

Indian National Rupees

Space committed for lease before completion of construction

The stock which can be leased and excludes Built-to-Suit (BTS) and Campus facilities.

Cumulative Supply

New construction in a particular specified period

Total number of transaction in a particular specified period

Total vacant space in the completed stock

Premises consisting of power backup, high side A.C., common area fit outs and fitted out toilets

Quarter on Quarter

year-on-year (All growth figures in this report are y-o-y unless otherwise mentioned

Information Technology

Information Technology Enabled Services (includes various services ranging from call centres, claims processing, medical transcription, e-CRM, SCM to back-office operations such as accounting, data processing, and data mining)

Rate that an eligible depository institution (such as a bank) is charged to borrow short term funds directly from the central bank through the discount window

Interest rate that a bank earns for lending money to the Reserve Bank of India in exchange for government securities

Economic Classification; SEC A represents the highest propensity to spend and SEC D represents the lowest propensity to spend.

Square Feet

Form of tax charged on instruments (written documents) requiring a physical stamp (for government legality) to be attached to or impressed.

SEZ: Special Economic Zone having special tax exemptions / incentives to corporate occupiers

ORR:

Headline rent:

Average headline rent:

Disclaimer:

Outer Ring Road

Monthly rent per square feet, charged on super built-up area basis, featured on the lease, and expressed excluding fitouts, taxes, deposits, advances, maintenance charges and does not take into account building efficiency (super built up area - carpet area ratio). Further it does not include attached premises such as parking areas, archives, staff canteens, etc. If the rental is progressive, the value applied is the average for the first 3 years or the fixed term of the lease.

Weighted average of rented area. The average featured is a moving average over the quarter, to smooth out the changes, exclusive of all taxes, deposits, advances & maintenance charges.

Major Refurbishment:

Renovated:

Modern:Old:CCI (Cost of construction index):

Demand:

For the occupier:New Supply:

Completed new supply:Under construction:

Planning permission granted:

Planning permission submitted:Pre-letting:

Underlying rent:

Prime rents:

Top rent:

Second hand premises:

Very good condition:Existing state of repair:To be renovated:Supply available within 1 year:

Take-up:

Vacancy rate:

Building which has undergone structural alteration less than 5 years ago, subject to planning permission.

.

Building which has undergone renovation work not requiring for planning permission less than 5 years ago.

High-performance building over 10 years old. Low-performance building over 10 years old.

Index that makes quarterly measurements of construction prices for new house building. It is the price after VAT paid by the owner to construction companies. It excludes land-related prices and costs (site development, special foundations, etc.), fees and financial costs.

A search for premises expressed to BNP Paribas Real Estate. The analysis pertains only to the flow of new demand expressed.

Operation undertaken by an occupier for its own purposes. Any new building and/or heavily refurbished building that adds to the

existing stocks. These are analysed according to progress. Buildings on which construction work is finished.

Buildings on which construction has effectively begun. Prior demolition work is not taken into account.

Authorisation to build obtained, generally booked after settlement of third party claims.

Planning permission requested, being processed.Transaction by an occupier more than 6 months before the delivery of the

building.

Annual rent per square meter expressed free of tax and charges and excluding advantages agreed by the owners (rent incentive building works, etc).

Represents the top headline rent (excluding non significant transactions) for an office unit:- of standard size, of the highest quality and specification, in the best location in each market.

Represents the top headline rent for an office unit. It is not necessarily a prime rent.

Premises that have been previously occupied by an occupier for vacant for more than 5 years.

High-performance premises of high quality. Low-performance premises that can be rented as they are.

Low performance premises that need renovation. All premises and buildings available within 1 year

including the supply available immediately, new supply that has not been pre-let and second hand supply that will be vacated definitively (notable terminated leases).

Rental or sale of a property asset, finalised by the signature of a lease or a bill of sale including turnkey transactions and owner-occupier. The transaction is only taken into account once any existing conditional clauses have been lifted.

Ratio measuring the relationship between the supply immediately available and the existing stock.

This report is released by BNP Paribas Real Estate & Infrastructure Advisory Services and the information in it is dedicated to the exclusive use of its clients. The report and the information contained in it should not be copied or reproduced without prior permission from BNP Paribas Real Estate and Infrastructure Advisory Services. The facts of these reports are believed to be correct at the time of it's release but cannot be guaranteed. Please note the findings, projections, conclusions and recommendations are based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. BNP Paribas Real Estate & Infrastructure Advisory Services cannot be held responsible if, despite it's best efforts, the information contained in the present report turns out to be inaccurate or incomplete.

www.realestate.bnpparibas.com

.

ALBANIA*Danos & AssociatesBlvd. Deshmoret e KombitTwin Towers - Building 211th FloorTiranaTel.: +355-4-2280488Fax: +355-4-2280192

AUSTRIA*Dr. Max Huber & PartnerDr. Karl-Lueger-Platz 51010 ViennaTel: +43-1-513 29 39 0Fax: +43-1-513 29 39 14

BULGARIA*

28, Hristo Botev BoulevardSofiaTel: +359-2-9532314Fax: +359-2-9532399

CANADA*Cresa PartnersTel.: +1-617-758 6000Fax: +1-617-742 0643

CYPRUS*Danos & Associates35, I. Hatziosif Ave2027, NicosiaTel.: +357-22 31 70 31Fax: +357-22 31 70 11

Danos & Associates

GREECE*Danos & Associates1, Eratosthenous Str.11635 AthensTel: +30-210 7 567 567Fax: +30-210 7 567 267

JAPAN*RISA Partners5F Akasaka Intercity 1-11-44Akasaka, Minato-ku107-0052 TokyoTel: +81-3-5573 8011Fax: +81-3-5573 8012

RUSSIA*Astera10, b.2 Nikolskaya Str.Moscow, 109012Tel/Fax: +7-495-925 00 05

NETHERLANDS*Holland Realty PartnersJ.J. Viottastraat 33,1071 JPAmsterdam,Tel: +31-20-305 97 20Fax: +31-20-305 97 21

NORTHERN IRELAND*Whelan Property Consultants44 Upper Arthur StreetBelfast Bt1 4GJTel: +44-28-9044 1000Fax: +44-28-9033 2266

POLAND*Brittain Hadley EuropaWarsaw Financial Centre13th floorEmilii Plater 5300-113 WarsawTel.: +48-22-586 31 00Fax: +48-22-586 31 16

SERBIA*6, Vladimira Popovica StreetOffice B3111000 BelgradeTel.: +381-11-2600 603Fax: +381-11-2601 571

SLOVAKIA*Modesta (Dr. Max Huber &Partner Group)Heydukova 12-14811 08 BratislavaTel.: +421-2-3240 8888Fax: +421-2-3214 4777

SWITZERLAND*NaefAvenue Eugène-Pittard 14-16Case Postale 301211 Geneva 17Tel.: +41-22 839 39 39Fax: +41-22 839 38 38

UKRAINE*Astera2a Konstantinovskaya Street04071, KievTel: +38-044-501 50 10Fax: +38-044-501 50 11

USA*Cresa Partners200 State Street13th FloorBoston, Massachusetts 02109Tel.: +1-617-758 6000Fax: +1-617-742 0643

Falcon Real Estate570 Lexington Avenue32nd FloorNew York, NY 10022Tel.: +1-212 271-5445Fax: +1-212 271-5588

ABU DHABIAl Bateen AreaPlot No. 144, W-11New Al Bateen MunicipalityStreet 32P.O. Box 2742Abu Dhabi, UAETel.: +971-505 573 055Fax: +971-44 257 817

BELGIUMBlue TowerAvenue Louise 326B14 Louizalaan1050 BrusselsTel: +32-2-646 49 49Fax: +32-2-646 46 50

DUBAIEmmar SquareBuilding No. 1, 7th FloorP.O. Box 7233Dubai, UAETel: +971-505 573 055Fax: +971-44 257 817

FRANCE13 boulevard du Fort de Vaux75017 ParisTel: +33-1-55 65 20 04Fax: +33-1-55 65 20 00

GERMANYGoetheplatz 460311 FrankfurtTel.: +49-69-2 98 99 0Fax: +49-69-2 92 91 4

IRELAND40 Fitzwilliam PlaceDublin 2Tel: +353-1-66 11 233Fax: +353-1-67 89 981

JERSEY4th Floor, Conway HouseConway StreetSt HelierJersey Je2 3NTTel: +44-15 34-62 90 01Fax: +44-15 34-62 90 11

ITALYCorsa Italia, 15/A20122 MilanTel: +39-02-58 33 141Fax: +39-02-58 33 14 39

LUXEMBOURGAxento BuildingAvenue J.F. Kennedy 441855 LuxembourgTel.: +352-34 94 84Fax: +352-34 94 73

ROMANIAUnion International Center11 Ion Campineanu StreetSector 1Bucharest 010031Tel: +40-21-312 7000Fax: +40-21-312 7001

SPAINMaría de Molina, 5428006 MadridTel: +34-91-454 96 00Fax: +34-91-454 97 65

UNITED KINGDOM90 Chancery LaneLondon WC2A 1EUTel: +44-20-7338 4000Fax: +44-20-7430 2628

*Alliances

Bangalore403, The Estate,121, Dickenson Road,Bangalore - 560 042Tel: +91 80 4050 8888Fax: +91 80 4050 8899

DelhiUpper ground floor, Unit No 7,Mercantile House, 15 KG Marg,New Delhi 110001Tel: +91 11 4959 8800Fax: +91 11 4959 8818

INDIA

Mumbai704, Level 7, MMTC House, C-22,Bandra Kurla Complex, Bandra (E),Mumbai - 400 051Tel: +91 22 6138 8088Fax: +91 22 6138 8089

For Queries / Comments:Tasneem Gandhi at+91 9930141009 or email at [email protected]

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City Report Bangalore Office Market Q2 2010

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