PRIME LAND_- NORTH BANGALORE

for

JOINT VENTURE
or

OUTRIGHT SALE
NH 207
(Doddabalapur Dobbaspet Road)
(22 acres of industrially converted land available for joint venture)

LJ Hooker are pleased to offer this significant opportunity to the market on behalf of the property owners. The owners hereby seek Expressions of Interest (EOI) from suitable parties to enter into a joint venture for this prime property or to buy it outright. It is envisaged that the succesful entity could be an individual or a company that has demonstrated capacity to close the transaction.
All enquiries should be directed in the first instance to :

B. M. Poonacha
Senior Manager Land and Special Projects Phone: +91 96118 10905 Email: bmpoonacha.pm@ljh.in

LJ Hooker - TOTAL REAL ESTATE SOLUTIONS PHONE : +91 80 2559 0005 FAX : +91 80 2557 6613 EMAIL : info@ljh.in

DISCLAIMER

This document shall be referred to as the Information Memorandum (IM) for the Expression of Interest (EOI) campaign of the registered property owners, and will comprise the only information package which is being made available by LJH to Bidders in accordance with the details contained herein. The landowners have appointed LJ Hooker (LJH) as its Consultant to advise on the process of finding a suitable joint venture partner or buyer for this site. The purpose of this document is to provide Bidders with basic and preliminary information to assist the formulation of their initial Bid and is issued upon the express understanding that recipients will use it only for the purposes set out therein. This document has been prepared on the basis of available information and the Bidders should conduct their own due diligence, investigation and analysis. Further, it should not be assumed that there shall be no change or deviation in the information provided. While LJH has taken due care to try and ensure the accuracy of the information contained in this IM, it has not conducted any due diligence and does not confirm the accuracy, adequacy, sufficiency or otherwise of any information contained in this IM. This IM does not, and does not purport to, contain all the information and data each Bidder and/or its advisors may desire or require in reaching decisions concerning their Bids. Each Bidder should conduct his own investigations and analysis and should check the accuracy, reliability and completeness of the information in this IM. Bidders should form their own views as to whether information provided herein or separately is relevant to any decisions that they make and should make their own independent investigations in relation to any additional information that they may require. The information contained in this IM or any other information which may be provided to Bidders is subject to change without notice. Further, it should not be assumed that there shall be no deviation or change in any information provided. LJH may, in its absolute discretion, but without being under any obligation to do so, update, amend or supplement the information contained herein including the envisaged transaction process mentioned. While this IM has been prepared in good faith, neither the landowners, nor its employees or its Consultant (LJH) make any representation or warranty, express or implied, or accept any responsibility or liability, whatsoever, in respect of any statements or omissions herein, or the accuracy, completeness or reliability of information, and shall incur no liability, under any law, statute, rules or regulations as to the accuracy, reliability or completeness of this IM, even if any loss or damage is caused by any act or omission on the part of the landowners or its employees or its Consultant , whether negligent or otherwise. This IM has not been filed, registered or approved by any regulatory or judicial authority. Recipients of this document, resident in jurisdictions outside India as well as those residents in India should inform themselves of and observe any applicable legal requirements and the landowners, its representatives and its Consultant will not be responsible for compliance with the same.

LJ Hooker - TOTAL REAL ESTATE SOLUTIONS PHONE : +91 80 2559 0005 FAX : +91 80 2557 6613 EMAIL : info@ljh.in

The Opportunity The opportunity is to develop the proposed industrial estate in the Doddabalapur Industrial Corridor, either in partnership with the landowner or by outright purchase of the land. Some of the salient property features include; The property is converted for industrial use (u/s 109 of the Karnataka Land Reforms Act). Located just 8 kms from the Apparel Tech Park at Doddabalapur. Close to Bangalore International Airport. 12km from the Satellite Town Ring Road. Close to the proposed 10,000 acre Information Technology Investment Region (ITIR). Close proximity to NH 207 (Doddabalapur Dobaspet Tumkur Road) and SH 209 (Doddabalapur Gouribidnur Hindpur Road). The land is owned by a (unlisted) public limited company. Interest expressed by various Associations like Karnataka Small Scale Industries Association/Doddabalaur Industrial Estate Association/Peenya Industrial Association, to name a few. Formal letter of intent is expected soon.

Note - The company is the legal owner of 22 acres. In addition, the promoters of the company have signed agreements in place to acquire an additional 18 acres (part in the same survey numbers) of the surrounding land. However this land is not converted for industrial use. The promoter of the company could take responsibility to convert this land and bring it under the direct ownership of the company. Total project size (in phases) could be 40 acres. Further, surrounding land can be acquired at sub market value if the demand justifies it. The total project could be expanded to some 60 acres, and through acquisition at current market price up to a total of 100 acres. However, this current EOI would be focused on the development of 22 to 40 acres only. The incoming investor could evaluate the feasibility of any future expansion. The Current Status The property is owned by a (unlisted) public limited company for the past sixteen years. The company has had in the past disputes in relation to the land, all of which have been settled through court order. The incoming Investor/Buyer would be provided complete details during the legal scrutiny for full legal Due Diligence. A copy of a current legal opinion by leading advocates M/s Kamal and Bhano has been annexed herewith.
LJ Hooker - TOTAL REAL ESTATE SOLUTIONS PHONE : +91 80 2559 0005 FAX : +91 80 2557 6613 EMAIL : info@ljh.in

The Legal Documents for the Site The land is owned by our client who wishes to develop the property into an industrial estate or any other project of commercial value, or if required to sell the land outright. All necessary documents would be provided to the incoming Investor/buyer for a satisfactory due diligence to be completed. As per the above neither the Owner, nor Agent are aware of any legal impediment to the sale and purchase of the land. How Do I Move Forward to invest in this project? All you need do is submit the completed Response Document (attached at rear of this memorandum) and lodge it with your refundable deposit cheque at the offices of LJ Hooker. You should ensure that the terms and offer you submit are your best offer as you will possibly not get a chance to renegotiate or resubmit your bid. After an initial feasibility study, an industrial estate has been proposed, but the seller is open to other development options such as low cost housing, etc. You are free to submit offers which are non compliant in the criteria outlined. Proposed Development: Light Industrial Estate There is a very high demand for industrial plots for small entrepreneurs. After discussion with KSSIDC executives we are of the belief that the demand for plots of 3000 sft, 5000sft and 8000sft is high. Typical end user acquisition costs of this plot size would be Rs. 600/sft upwards. Larger plots of 8000sft, 10000sft and 20,000sft are also in demand. However rates would be Rs. 500/sft upwards. The focus of this proposed industrial estate would be catering to a suitable mix of various sizes. Development Costs: The approximate development cost of the first 22 acres would be Rs. 10 15 cr *
*(Rs. 100 150/sft has been considered the cost of development. This would include roads, storm water drains, compound walls, etc to bring the layout up to KIADB standards)

LJ Hooker - TOTAL REAL ESTATE SOLUTIONS PHONE : +91 80 2559 0005 FAX : +91 80 2557 6613 EMAIL : info@ljh.in

Location Map

LJ Hooker - TOTAL REAL ESTATE SOLUTIONS PHONE : +91 80 2559 0005 FAX : +91 80 2557 6613 EMAIL : info@ljh.in

Response Document
The response document is attached herewith:
Details required from interested parties include; 1. Bidder details including contact details. 2. Bidders financial standing 3. Price and terms being offered 4. Details of any outstanding issues in regards the bidders Due Diligence The response document must be lodged with a cheque/Demand Draft for the refundable earnest money * (Rs. 5 lac) no later than Friday 25th November 2011 at 5pm at the Bangalore Head Office of LJ Hooker. Once the EOI closes the land owner will review the submissions and short list those that they wish to pursue negotiations with. All parties will be informed of the status of their submission within 14 days of the close of the EOI. Expressions of Interest Close Friday 25th November 2011 at 5pm Lodge your Response Document (and cheque for Rs.5,00,000) made Payable to Ausdia Project Marketing Pvt Limited Sales Account) in sealed cover marked PROPOSED INDUSTRAIL ESTATE @ DODDABALAPUR LJ Hooker Suite 201, Raheja Plaza, Commissariat Road, Bangalore 560 025

* The 5 lac cheque for the bidders Earnest Money will be refunded within 7 days of withdrawal of a bidders Response Document or 7 days after the Landowner declines the bidders EOI, whichever occurs first. For the successful bidder the Rs.5 lac will become part of the final consideration between the parties.

Note : The owner may accept any offer regardless of terms, and they may choose to accept an offer prior to the close of the Expression of Interest campaign, in the alternate they may choose to withdraw the property from the market. Nothing in this document binds the owner to any course of action or to accept offers from, or negotiate with any party.

LJ Hooker - TOTAL REAL ESTATE SOLUTIONS PHONE : +91 80 2559 0005 FAX : +91 80 2557 6613 EMAIL : info@ljh.in

Response Document
Sl No 1. 2. 3. 4. 5. 6. 7. Site Address Site Size (aprox) Owners Agent Investor/JV Partner Investor/JV Partners Address for notices Investor/JV Partners Legal Representative Investor/JV Partners Agent (If Any) 1. Out right purchase at Rs. _________/sft amounting to Rs. _____________ 2. JV Goodwill deposit of Land owners share Developers share 8. Offer
3.

Industrial Land bearing Survey numbers 87, 88, 89, 90 & 205, 206, 207 of Kollur and Honnagatta Villages, Doddabalapur Taluk. 22 acres industrially converted land (with option to increase to 40 acres) L.J. Hooker, Bangalore

Rs. ____________________ _______% _______%

Share purchase agreement Rs. ______________________ for ________% stake in the holding company.

(Note: the bidder is free to attach a separate sheet for details of his offer) or (make a non compliant offer/proposal with his complete terms)

9.

Deposit amount & when payable

Rs. 5,00,000 (Rupees Five Lacs Only) Cheque no ________________________

10. Cheque Details drawn on _________________________ 11. Proposed Closure date

12.

Other Conditions Required by buyer

LJ Hooker - TOTAL REAL ESTATE SOLUTIONS PHONE : +91 80 2559 0005 FAX : +91 80 2557 6613 EMAIL : info@ljh.in

Terms and Conditions of the Expression of Interest Campaign and Reciept of the Bidders Response Document. 1. 2. 3. 4. 5. The landowner reserves the right to accept any offer of his choosing irrespective of price, terms or conditions. The landowner reserves his right to terminate the EOI process at anytime and to enter into negotiations and/or agreements with parties of his choosing at anytime. Submission of an offer/bid is in no way binding on the landowner and acceptance of any offer can only be conveyed through a formal MOU between the parties. Parties are required to submit their bids in the format provided in this document or in lieu of this, non compliant bids are to state clearly their full terms. At the time of a bid being lodged the bidder shall also lodge the fully refundable Participation Deposit of Rs.5 lac (Rupees Five Lac) with the Agent. This shall be by way of Demand Draft made out to Ausdia Project Mktg P L - LJH Sales Account (trading as LJ Hooker) Account number 000205019839, ICICI Bank Ltd, Bangalore Branch. No interest shall acrue or be owing to the bidder from lodgement of a Participation Deposit. At the close of bids (5pm on Friday 25th November 2011) the Agent shall notify all bidders of reciept of their bid and all such bids shall be presented to the landowner for consideration. Within 7 days of the close of bids the Agent shall notify the bidders that have been shortlisted and shall commence negotiations between them and the landowner. At this time the Deposit of all non shortlisted biders shall be refunded to them. Within a further of 14 days from this date the Agent expects that a final bider will be nominated, and the bider and landowner shall enter into a sale and purchase agreement for the land. At this time the Participation Deposits of the loosing bidders will be refunded by the Agent. A bidder may at anytime withdraw their bid (in writing to the Agent). At such time the Agent shall refund their Participation Deposit within 3 working days.

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LJ Hooker - TOTAL REAL ESTATE SOLUTIONS PHONE : +91 80 2559 0005 FAX : +91 80 2557 6613 EMAIL : info@ljh.in