iThink - Thane

Question 1

Area of Property Bought

Answer 1

73,347 sq ft (56%)

57,612 (Wing B) Total : 130,959

Question 2

Property bought on

Answer 2

Dec 2018 (1st tranche paid in Nov 2018)

Question 3

Acquisition price of property

Answer 3

52. 09 [7102]
53. 94
54. 03 [7639]

Question 4

Monthly Rental – Lacs

Answer 4

35.42 Lacs

Question 5

Annual Rental – crores

Answer 5

4.25 cr

Question 6

Property Tax

Answer 6

1.2 psf / pm

Question 7

Address of Property

Answer 7

7th Floor, A Wing, Lodha I-Think, Pokhran Road No 2, Thane

Question 8

Details of Lodha I-Think

Answer 8

Completed 2011
960,000 (wing A & B)
5 acre land parcel
1 to 9 floors

Question 9

Other Competing Buildings

Answer 9

• GCorp [715,000 / 2010]
• Hiranandani [1.7 msf – Olympus 1/2/3]
• Lodha – Kolshet Road

Sheth property
Wagle Estate
-	Ashar [700,000 / 2009]
-	Neptune 
-	Kalpataru [318,000 / 2013]
-	Dosti [300,000 / 2009]

Question 10

Lease Details

Answer 10

01 Sep 2014 – 5 years
Renewed on Sep 2019 for 5 years

Escalation from 01 Sep 2020 of 15%

Question 11

Current Rental – Rs / pm / psf

Answer 11

48.3

Question 12

Security Deposit (Amt and Period)

Answer 12

1. 848 crores

5. 2 months

Question 13

Details of Tenant

Answer 13

WTW Global Delivery & Soln Pvt Ltd

1. Listed on US NASDAQ – $ 20 Bn
2. Presence in 140 countries.
3. Occupied since 2014
4. Also at Godrej & Boyce , Akruti
5. In Mumbai since 1992
6. Main service centre globally (other two in US and UK)

Question 14

Leverage

Answer 14

11 crores

Question 15

Property Usage

Answer 15

70% [39,937 + 11419] 51,356

Carpet + Exclusive Right to use area

Question 16

Parkings

Answer 16

61

Question 17

Infra Connectivity

Answer 17

Highway : < 1 km
Station : 3.5 kms
Metro : < 1 km

Question 18

CAM

Answer 18

5.55 psf pm

Question 19

Developer

Answer 19

Lodha

Question 20

Target Sale Price

Answer 20

11793

Question 21

Target Exit Rental

Answer 21

63.88

Question 22

Target Exit IRR

Answer 22

16.32%

Question 23

Target Exit Timelines

Answer 23

Dec – 23

Question 24

Vacancy in Building

Answer 24

None

Question 25

Other Tenants in Building

Answer 25

Tata Motors, Tata Capital, Tata AIA

Worley Parsons, Anchor Panasonic

Question 26

ULC issue

Answer 26

2004 Notification – allowing construction of IT Park on land for which exemption order has been passed : 50% of ready reckoner value as premium

2007 – ULC repealed by Maharashtra Govt

Bombay HC said still need to comply with exemption conditions, inspite of repeal

Matter with Supreme Court. Maha Govt appointed committee headed by B.N. Shrikrishna (retired supreme court judge) and B.N. Makhija (retired bureaucrat) to come with a report

Expected to reduce premium to 5 - 20% of RR

Question 27

Structure

Answer 27

Company vs Society

Question 28

OC of the Building

Answer 28

2013

Question 29

ULC Liability at time of IC

Answer 29

5.86 Crores

@50% premium : 60.07 cr
Share : 9.75% - 5.86 cr (full floor)

Land area : 28269 sq mtr
RR Value : 42500

Expected to come down to 5-20%

Question 30

ULC Liability : Now

Answer 30

98.42 Lacs

@15% premium : 18.02 cr
Share : 5.46% - 0.9842 cr (full floor)
Reckoner value hasn’t changed of land

Area Bought (56%) ~ 5.46%

Indemnity from LLP and Kirti Kedia
2.5 cr * 56% = 1.4 crore

Question 31

Mitigation for ULC Liability at time of deal

Answer 31

• Simtools and LEBPL have indemnified seller for any statutory dues related to property prior to date of transfer of shares of Simtools to seller
o Indemnity valid for 7 years from Sep 2015 and is assignable.
o Maximum indemnity of 750 Mn
• Seller to indemnify upto 25 Mn & Post that 50:50 sharing
o This indemnity limited to fund and will not be passed to subsequent buyer

Question 32

HDFC EMI

Answer 32

12.83 Lacs (10.25 cr loan May 20)

Question 33

Exit Cap Rate

Answer 33

6.50%