1. Investment Proposal for Muttukadu Layout, (Next to MGM Resorts, Chennai)

2. ECR Investment Proposal
Uniqueness of deal…..
- Location! Location! Location! ECR, Chennai, IT corridor, with sea view - Proprietary Deal! 10 years+ relationship & experience able to negotiate best prices with - Land owners - Rs.5.3 vs. Rs.7 Cr./acre; lower advance & timelines ext Marketing team: Profit share – 30% vs. 50% industry for layouts - Best Marketing Tie-up! Nova proven team with excellent track-record - Business Model! CEO’s Conclave, Profit sharing, Cash-back from 9 month onwards - Experienced real estate team! Krishna’s partner (Mahesh) with 20+ years in layouts, 15+ layouts in Chennai, investor in the ECR deal & deal monitoring - Legal Clear! Nova legal team checked, known land owners, one family property - Quick flip & high returns! Inv.- Rs. 5 Cr.; Returns – Rs Cr. (2.4x), 12 months - Very High IRR! 75% to Rs.2500 vs. Rs.3000 sq. ft (going rate) Risk: - Sales Delay over 12 months; Mitigation – Extension by another 6 to 12 months - Transparency in accounting; Mitigation – Finance control by Krishna & finance team Timeline for Investment: Very Short, another buyer is ready to pay advance - Advance by March 04’15: Rs.50 lakhs to land owners - Total Rs. 5 Cr.: By April’15 end

3. About NOVA, marketing tie-up
Started by a young team of professionals with over 70 years of man experience. Team has handled projects of 6 million sq.ft in residential sector.
Team has been known for several innovations and has achieved results in key areas.
Nova is lead by Mr. E Senthil Kumar who has over 14 years of experience. Started has Sales Representative and has rose to VP Marketing for Rs Cr. Real estate Co. a well reputed one in Chennai in short span of time. Has handled projects to the tune of 9 million sq.ft. in both layouts and residential.
NOVA is the marketing company recently started by Senthil has competency from Land Acquisition to Liaison to Legal to Sales to Construction to CRM and has the complete setup to handle the functions smoothly.
Nova track-record in span of 9 months completed one layout project; another one is currently running and two more projects under finalization, including proposed ECR deal.
Proprietary Deal for us because of Senthil known to us for last 10 years. In land deals relationship matters more than capital.
The issue is timeline to fund the deal by March 04’15

4. Proposal Details
We are pleased to inform you of an investment proposal with group of highly experienced real estate and finance professionals, project led by Krishna. Along with high caliber & proven track-record marketing team tie-up Nova Life Space Pvt. Ltd.
Contents of the Document
Offer Summary
Subject Site Details
Micro Market Analysis
Project Details
Investment & Returns Details

5. Offer Summary

6. Offer Summary Site Summary Location Next to MGM Resorts, ECR, Chennai
Land Area
5.36 acres
Project Type
Layout
Achievable FSI
14 Grounds Per Acre
Saleable Area (Grounds) 74
Investment Required
Rs.5 Crores
Investment Timeline
12 Months + 3 months = 15 months

7. Subject Site Details

8. Investment Opportunity for Layout Development
Site Details
Investment Opportunity for Layout Development
Site Extent
5.36 Acres
Access Road Width
33 Feet Road
Approval Authority
Panchayat
Village
Muttukadu Village
Ideal Use of Site
Residential Layout, targeting high-end buyers
Positioning: CEO Conclave (IT, Expats, Celebrities)
Expected Sale Price
Rs.2,500 Per Sq. Ft. vs. Rs.3000 Per Sq. Ft.
(Based on recent transactions)

9. Location Map
Proposed Site

10. Google Image N E
To Ambattur
Lake

11. Micro Market Analysis
Muttukadu, ECR

12. Micro Market Map Residential Landmarks
Map Showing Key Real Estate Developments in the Micro Market
Residential
Landmarks
Industrial
Office

13. Micro Market Map
Map Showing Key Real Estate Developments along ECR Road
Upcoming Residential Zones

14. International Airport
Site Connectivity
Transport – Roadways
Distance
(km)
Travel
Time
(mins)
MGM to Adyar 15
MGM to OMR 6
5 to 10
MGM to Mahabalipuram 25
International Airport
Meenambakkam
33 kms
45-60

15. Social Infrastructure
Facility
Location
Distance (KM)
MGM
Next Compound
Taj Fisherman cove
Kovalam 2
Sheraton Hotel
Nemili 5
Mayazaal
Kanathur

16. Demand
Three Distinct reasons for the preference of this micro-market residential location are:
Sr. Executives who are employed in the OMR IT corridor and GST Industrial corridor located in and around the micro-market will be the ideal target.
Proximity to OMR and GST/Oragadam: Both the corridors can be accessed with in 30 mins.
ECR Road widening is currently under progress and will establish a fast link between chennai and pondy.
Since site is located between Dakshinchitra and MGM, this will be a ideal location for residential and recreation. Since the site is very near to OMR IT corridor there will be a good demand for well developed plots for residential purposes.
IT Professionals Population in OMR IT Corridor is around 2 lakhs. There will be another 25,000 Professionals in GST/Oragadam corridor.
Strong presence of manufacturing companies and IT/ITeS companies provide a huge potential for residential development. This untapped potential for quality housing in the Micro-market would serve a key demand driver.

17. Project Details

18. Site Plan

19. Financial Assumptions
Residentail Layout
Development size in Grounds 74
Average Sale Price Rs. Per Sft
 2500/-
All Inclusive Cost of Development Per Sft.
Approval Cost
Site Development Cost
Marketing Cost
Total
25/-
100/-
75/-
200/-
Total Sales ( Sq. Ft X Rs.2500)
46,20,00,000
Land Cost & Other Expenses( Sq. Ft X Rs cr)
33,00,00,000
PBT
12,80,00,000

20. Land Acquisition Total Land Area – 5.36 Acres
Total Land Cost – 30 Crore
Total Investment – 5 Crore
Advance for Land – 2.5 Crore
Development , Appvl & Marketing Cost – 2.5 Crore
Balance Land Payment – To be paid in 12 months from sales proceeds

21. Market Value Analysis Olive Beach Properties – Rs. 3000 sq.ft
Present Guideline value – 7 Crore per acre
Our purchase price – 5.3 Cr. per acre
Recent Transaction: Muttukadu – 10 Cr. per acre in 2012
Industry predictions – Market is expected to start on upward swing again from June’15 onwards due to economy growth. Transactions have slowly started.
Risk: Maximum sales may get delayed by another 6 months, 18 mon. vs. 12 mon.
Risk is mitigated by getting extension from land owners for another 12 month
Proposed Land: 50%+ (~35) plots targeted to sell on launch date in June/July’15. Recovery of principal investment in 6 months.
Nova has extensive marketing connections for buyers in TN, Bangalore, Singapore, Malaysia and Middle East
Risk is mitigated by selecting hot location – ECR, value likely to increase with time delay

22. Investment Details
Muttukadu, ECR

23. Deal metrics…Optimized, higher returns to Investors Through 3 months negotiations. Given below is final.

24. Property Details & Assumptions Proposed layout will be sold as plot of one ground each (2400 Sq. Ft.)

25. Property Details & Assumptions Layout will have swimming pool, club house, sea view ideal for Villa constructions

26. Project Cost and Payment Schedule Deal time available till March 04th’15, another buyer waiting

27. ECR Investment & Returns Structure Investors return attractive
ECR Investment & Returns Structure Investors return attractive! To be about 2.4 times in 12 months

28. Investors & Expected Returns - About Rs. 2. 5 Cr
Investors & Expected Returns - About Rs.2.5 Cr. tied-up, cash back will start in 6-9 month onwards - Small investors do not have access to large land deals, Opportunity! - Since I am leading I wanted everyone to grow with me