Sobha Valley View, Near Banashankari, South West Bangalore

Detailed Pre-Launch Analysis Report by Properji

16th November 2013

Researchers: Sriram R Guruprasad Bangle

Investor Summary Sheet

Details Project Location Complex Type Total Area Water Amenities Open Space Project Status Expected Launch Estimated Completion Expected PreLaunch Price Booking amount Properji View 1. Location Upcoming Developing Well Developed Value Homes Mid Segment Luxury Pending cases Litigation expected Clear titles, approvals received Low Medium High Low Medium High 2. Builder 3. Construction Quality 5. Completion expectation 7. Four year Target Price 8. Market liquidity New in market With good repute Among Top 5 builders Low Standard High Long delays Some delays On time Rs. 7250 /sqft Low Medium High Sobha Valley View Near Banashankari behind PESIT, Bangalore South West Apartments 15 Acres Bore well + BWSSB Builder Land Holding Units Number of Units Power Sobha Developers 100% owned by Sobha 2 and 3 bedrooms 700+ BESCOM with backup generators

Swimming pool, clubhouse, grocery store, badminton courts, gym 60% Pre-Launch December 2013 December 2017 Rs. 5000-5500/sqft Rs. 5 Lakh cheque submission Carpet Area Approval Status Project Start Construction Status Total Price Unit Allocation 75% BDA, BBMP approved January 2014 Model Apartment under construction Rs. 75 L to 1.3 Cr On a first come first serve basis

3. Project

4. Legal Risk

6. Appreciation 8. Rental Income

Location
Banashankari, which derives its name from the temple of Goddess Banashankari is an upcoming area towards the South and South West Bangalore. It provides a link between the old Bangalore areas such as Jayanagar, JP nagar, Basavanagudi and the new areas of Bangalore such as Uttarahalli, Rajarajeshwari Nagar and Kengeri Satellite Town. Its well connected through the Outer Ring Road, NICE Road (PESIT College Exit) and also through the Metro

Location Highlights
The project as such is located strategically as it is very close to the NICE RoadPESIT exit and the Bangalore-Mysore Highway The metro station at Nayandahalli junction is about 1.5km away and the Banashankari station is about 6 kms The Kengeri railway station is about 5 kms from the project site and a drive to the Bangalore International Airport takes about 1.5 hours Very close to all educational institutions such as PESIT, RNSIT, RV College of Engineering, Jain College, Mount Carmel English School, New Horizon, Baldwin school and Bangalore University Malls such as Gopalan mall, Big Bazaar and many other Factory seconds outlets on Kathriguppe are very good shopping centres Location is easily accessible from IT parks such as Global Village Tech Park, Kalyani Magnum Tech Park and other IT companies such as Mascon, Mindtree, IBM, Oracle, Accenture and Honeywell Easily accessible from Bidadi industrial area which houses companies such as Toyota, Featherlite, Hindustan Coca Cola etc Very Close to Hospitals such as Manipal Super specialty hospital and BGS Global Hospital Water supply will be through BWSSB. However, being close to a lake and lowlying site ground water should be easily available. Ground water pollution is a issue One potential negative point is a large BWSSB sewage treatment plant, which is 800 meters away from the project site. We couldnt source any known report of ground water contamination due to this plant. Also the plant is far enough for any foul smell to travel till this site.

Road Expansion Plans from Hosur Road to Mysore Road

According to CDP, the road from Hosur Road starting from the Central Silk Board until the Mysore Road end at Nayandahalli has been earmarked for conversion to signal free corridors. This will help in easing the pressure on some areas such as the Devegowda Petrol Bunk, Kamakhya Theatre signal and the Dayananda Sagar signal and help in faster traffic movement.

About Builder
Sobha is a very well known builder in Bangalore being in the construction business for over 18 years. They started with small apartment complexes and over the years built a strong reputation for themselves for quality. They went public through an IPO in 2006. Since then they have been land aggregating in Bangalore. Being a publicly listed company we can gauge their strength by looking at their stock performance.

Graph Credit: Moneycontrol.com From the above graph we can see from past 5 years they have greatly out performed compared to the BSE Realty index. Sobha is one of the few builders that have adopted backward integration into building materials to provide quality and timeliness of project completion. This definitely sets them apart.

The Project
Sobha is targeting the middle and upper-middle class community for this project. The locality is ideal for this profile. The focus is likely to be utility and providing value for money as opposed to high-end luxury. However, the builder is committed to stick to the quality specification like all their other projects. Re-sale is easy for this kind of projects because of the large number on the demand side and relatively lower price. The project has roads on 3 of the 4 sides; hence more number of apartments will receive good light and air.
Most amenities including grocery store will be inside the community for day-to-day needs. In many of Sobhas big projects they provide water purification plants and recycling systems. Its to be seen if a similar facility will be provided here. The project is approved by BDA and BBMP and the water supply will be predominantly by BWSSB. The land parcel is fully owned by Sobha with clear titles.

Price Point Analysis

In this section well discuss current price in Bangalore South and West, more specifically among top-builders. Based on data we will arrive a good price point for this project. Developers
Nitesh Brigade Sobha Mantri Nitesh Mantri Prestige Tata Housing Salarpuria Mantri Adarsh

Name of Project
Caesars Palace Brigade Omega Forest View Mantri Serenity Nitesh Hyde Park Mantri Pinnacle Brooklyn Heights The Promont Melody Mantri Alpyne Premia

Location
Kanakpura Road Kanakpura Road Kanakpura Road Kanakpura Road Bannerghatta Road Bannerghatta Road Banashankari Banashankari Nagarbhavi Uttarahalli Banashankari

Launch Possession Date Date

Aug 2010 Jun 2011 Jun 2011 Apr 2011 Jun 2011 Dec 2010 Mar 2013 Jul 2011 Dec 2010 Apr 2011 Aug 2013 Dec 2014 Dec 2016 Dec 2016 Oct 2016 Dec 2014 Mar 2014 Sep 2016 Jul 2016 Dec 2013 Dec 2014 Dec 2016

Total Units
516 520 889 2,500 507 133 94 320 308 1,144 330

Land Area
4.92 acres NA 13.5 acres 19.6 acres 5.17 acres NA NA 14 acres 3.3 10 acres

Price/sqft
4,625 4,740 4,870 4,990 5,000 7,990 8,000 9950 4750 4,190 8300

Looking at the projects of comparable builders within South and South West Bangalore we see the price varies drastically. The lowest price point is Rs. 4190 of Mantri Alpyne. However, this project is 6 km away from Sobha Valley View site and doesnt have t he easy accessibility to well developed area like Banashankari and JP Nagar. The closest project is Tata Housings The Promont, which is located just 1 km away. Its marketed as a high segment luxury project at Rs. 9950. Adarsh Premia, which is 5 km away from this project on Outer Ring road near Devagowda pertrol bunk, is priced at Rs. 8300/sqft. Another completed project nearby is Prestige South Ridge, which is currently selling at Rs. 6500/sqft on re-sale. Other good comparison is Salarpuria Melody in Nagarbhavi priced at Rs. 4750. Quality and specification wise we expect Sobha Valley View to be a notch better than Salarpuria Melody. Hence, we expect the price definitely to be above Rs. 4750. Among residential projects Sobha also commands a higher brand value than Salarpuria Sattva Group in Bangalore. Being a mid-segment project adding a 15% premium over Salarpuria Melody at price of Rs. 5460 is a good buy for this project. On completion the price should at least similar Prestige South Ridge at Rs. 6500/sqft. That is a minimum 20% appreciation. Taking into account inflation, availability of land parcel in the region and demand. A price between Rs 7000 to Rs. 7500/sqft can be expected.

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Properji tries its best to ensure clients are provided fact-based research to make an informed decision. However, investment choices vary across investors subject to their specific needs. Hence, we recommend investor to not to solely rely upon this report or other such reports provided by Properji. This report contains information available to the public and has been relied upon by Properji on the basis that it is accurate and complete. Properji accepts no responsibility if this should prove not to be the case. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.