IndiaMecca for Real Estate OpportunitiesIndiaMecca for Real Estate Opportunities

The Indian StoryThe Indian Story

•• 10th largest economy in the world based on GDP10th largest economy in the world based on GDP•• Over 8% GDP growth Over 8% GDP growth

•• Real estate growing 30% pa & one of the largest Real estate growing 30% pa & one of the largest employers employers

–– a key contributor to GDPa key contributor to GDP•• Residential market is 80% of the total real estate Residential market is 80% of the total real estate

marketmarket•• Gap between supply & demand in residential market Gap between supply & demand in residential market --

41 41 bnbn sq.ftsq.ft..•• Office space demand of 66 Office space demand of 66 mnmn. . sq.ftsq.ft. for IT industry . for IT industry

over next 5 yearsover next 5 years

The Indian StoryThe Indian Story•• Real Estate in India projected to be USD 50 billion in Real Estate in India projected to be USD 50 billion in

20082008

•• Organized retail space demand of 40 million Organized retail space demand of 40 million sq.ftsq.ft. . over next 3over next 3--4 years4 years

•• India is ranked the 5th largest retail destination India is ranked the 5th largest retail destination across the globeacross the globe

•• 300+ 300+ mnmn middle class households, unemployment at middle class households, unemployment at historical low historical low –– 7.8%7.8%

•• Consumerism Consumerism –– the order of the day, which is fueling the order of the day, which is fueling the growth in both the commercial as well as the the growth in both the commercial as well as the retail sectorretail sector

•• Globalization of Indian EconomyGlobalization of Indian Economy

About the Harvest GroupAbout the Harvest Group

•• Leading Developer Leading Developer –– special focus onspecial focus on―― Land acquisition / aggregation / developmentLand acquisition / aggregation / development―― Purchase / sale of residential propertiesPurchase / sale of residential properties

•• Extremely successful track recordExtremely successful track record―― Partners have included DLF, HSBC, Partners have included DLF, HSBC, AccorAccor, ITC, Knight , ITC, Knight

Frank, Frank, RutleyRutley Fund (UK), Fund (UK), SobhaSobha Developers, Karnataka Developers, Karnataka Housing Board, Singapore CapitalHousing Board, Singapore Capital

•• Slew of exciting projects in handSlew of exciting projects in hand•• Promoted by Capt. Promoted by Capt. SawhneySawhney

―― Graduate in Business & Law & Advanced management Graduate in Business & Law & Advanced management from London School of Economicsfrom London School of Economics

Business Model - PresentBusiness Model - Present

•• Primary model of tying up with individual Primary model of tying up with individual investors on equity basis for projectsinvestors on equity basis for projects

•• Typical partnership ratio Typical partnership ratio –– 51% investor, 51% investor, 49% Harvest 49% Harvest

•• Efficient execution through partners with Efficient execution through partners with proven record & close working proven record & close working relationships with Harvest Group for relationships with Harvest Group for project execution, legal, tax, etc.project execution, legal, tax, etc.

Business Model - FutureBusiness Model - Future

•• Continue to retain transaction based business model and Continue to retain transaction based business model and outsource higher percentage of the operations for next 18outsource higher percentage of the operations for next 18--24 24 monthsmonths

•• Continue to acquire prospective lands in Bangalore and explore Continue to acquire prospective lands in Bangalore and explore opportunities to develop existing land bank opportunities to develop existing land bank

•• Adopt three pronged growth strategyAdopt three pronged growth strategy

–– Build upon the core strength of Land Aggregation and built Build upon the core strength of Land Aggregation and built verticals around land.verticals around land.

–– Expand hotel business to strengthen the hotel/hospitality Expand hotel business to strengthen the hotel/hospitality vertical (always through management contracts)vertical (always through management contracts)

–– Enter into Hospital vertical by utilizing existing land banksEnter into Hospital vertical by utilizing existing land banks

•• Upon completion of current projects, will move to aggregate intoUpon completion of current projects, will move to aggregate intoa formal operating companya formal operating company

Project Portfolio - Past Project Portfolio - Past •• Farm Houses In Delhi Suburb Farm Houses In Delhi Suburb MehrauliMehrauli

–– Gated community Gated community –– 30 Houses30 Houses–– Harvest Investment Harvest Investment RsRs. 40 Cr ( USD 10 . 40 Cr ( USD 10 mnmn))–– Sale Price Sale Price RsRs. 90 Cr ( USD 22 . 90 Cr ( USD 22 mnmn))–– Total Project Duration 24 monthsTotal Project Duration 24 months–– Return in 24 months 125 %Return in 24 months 125 %

•• Residential Complex Layout in HyderabadResidential Complex Layout in Hyderabad–– 150 Acres150 Acres–– Investment Investment RsRs. 75 . 75 CroresCrores ( USD 19 m)( USD 19 m)–– Completed in 24 monthsCompleted in 24 months–– Sold for Sold for RsRs. 154 . 154 CroresCrores ( USD 38.5)( USD 38.5)–– Return of > 100 %Return of > 100 %

Project Portfolio - PastProject Portfolio - Past•• 4 Star, 190 room Hotel, Hyderabad4 Star, 190 room Hotel, Hyderabad

–– 50/50 Partnership with Bharat Hotels50/50 Partnership with Bharat Hotels–– Acquired and completed in 2003Acquired and completed in 2003–– Investment in 2003 Investment in 2003 RsRs. 50 Cr ( USD 12.5 . 50 Cr ( USD 12.5 mnmn))–– Management contract to ITCManagement contract to ITC–– Sold in 2008 to Capitol ( Singapore based hospitality Fund)Sold in 2008 to Capitol ( Singapore based hospitality Fund)–– Sale price Sale price RsRs. 210 Cr ( USD 52.5 . 210 Cr ( USD 52.5 mnmn))–– Revenues earned from ITC till 2008 Revenues earned from ITC till 2008 RsRs. 100 . 100 crcr (USD 25 (USD 25 mnmn))–– Total Returns Rs 310 Cr or 600%Total Returns Rs 310 Cr or 600%

•• Commercial Property Commercial Property –– 652,000 652,000 sqftsqft on 7.5 Acreson 7.5 Acres–– Prime Land , Prime Land , GurgaonGurgaon–– JV with DLF : Promoter => 70:30JV with DLF : Promoter => 70:30–– DLF Investment DLF Investment RsRs. 98 Cr (USD 20 . 98 Cr (USD 20 mnmn))–– Recurring Rev for Promoter share Recurring Rev for Promoter share RsRs. 18 Cr (USD 4.5 . 18 Cr (USD 4.5 mnmn))–– Offer for sales of 30% share at Offer for sales of 30% share at RsRs. 165 Cr (USD 40 . 165 Cr (USD 40 mnmn))

Project Portfolio - PastProject Portfolio - Past

•• Residential Layout for NGOResidential Layout for NGO’’s, Bangalores, Bangalore–– Guaranteed BuybackGuaranteed Buyback–– 110 Acres110 Acres–– Investment (Promoter) Investment (Promoter) RsRs. 55 . 55 CroresCrores (USD 14 Million)(USD 14 Million)–– Sale Price (in 16 months) Sale Price (in 16 months) RsRs. 114 . 114 CroresCrores (USD 28.5 Million)(USD 28.5 Million)–– Return 108%Return 108%

•• Residential Layout, Govt. Housing, BangaloreResidential Layout, Govt. Housing, Bangalore–– 78 Acres78 Acres–– Investment by Promoter Investment by Promoter –– RsRs. 35 . 35 CroresCrores (USD 9.6 Million)(USD 9.6 Million)–– Sale Price in 18 Months Sale Price in 18 Months –– 78 78 CroresCrores (USD 19.5 Million)(USD 19.5 Million)–– Return = 122 %Return = 122 %

•• Land Bank AggregationLand Bank Aggregation–– Aggregated approx. 350 AcresAggregated approx. 350 Acres–– Sold to DLF/Sold to DLF/SobhaSobha

Project Portfolio - PastProject Portfolio - Past

•• Budget Hotel, BangaloreBudget Hotel, Bangalore–– TieTie--up with up with AccorAccor (French Chain)(French Chain)–– AccorAccor: promoter , 51:49: promoter , 51:49–– 100 Rooms, 100 Rooms, AccorAccor Investment Investment RsRs. 20 Cr (USD 5 . 20 Cr (USD 5 mnmn))–– Expected IRR 30%Expected IRR 30%

•• Residential layout for Karnataka Housing BoardResidential layout for Karnataka Housing Board–– 250 Acres250 Acres–– Project Cost Project Cost RsRs. 187.5 Cr (USD 47 . 187.5 Cr (USD 47 mnmn))–– 50:50 JV with HSBC 50:50 JV with HSBC –– Investment Ratios Investment Ratios HSBC:PromoterHSBC:Promoter :: 70:30:: 70:30–– Project Completion 24 monthsProject Completion 24 months–– Sale Price Sale Price RsRs. 446.25 Cr (USD 110 . 446.25 Cr (USD 110 mnmn))–– Return to HSBC 70%Return to HSBC 70%

Project Portfolio - CurrentProject Portfolio - Current

•• Mandate from Mandate from AccorAccor–– For 50 more locationsFor 50 more locations–– Metros/Tier1/Tier2 CitiesMetros/Tier1/Tier2 Cities–– Same specs/arrangement as beforeSame specs/arrangement as before

•• Land Bank ExploitationLand Bank Exploitation–– Have land in prime Areas Have land in prime Areas

–– For Hospitality/Commercial/HospitalsFor Hospitality/Commercial/Hospitals

–– 110 Acres in 110 Acres in GurgaonGurgaon

–– 36 Acres as on 36 Acres as on GurgaonGurgaon SohnaSohna RoadRoad

–– 200 Acres near new International Airport & 200 Acres near new International Airport & MysoreMysoreBangalore RoadBangalore Road

Project Portfolio - CurrentProject Portfolio - Current

•• Residential ProjectsResidential Projects–– 280 Acres 280 Acres RamnagaramRamnagaram Residential Plotted Development Residential Plotted Development –– JV with Karnataka Housing Board JV with Karnataka Housing Board -- $75 $75 mnmn–– 500 Acre Green Integrated Township Project 500 Acre Green Integrated Township Project -- $175 $175 mnmn

•• Hospitality ProjectsHospitality Projects–– Service Apartment cum Hotel Service Apartment cum Hotel –– FiorellaFiorella Project Project -- $25mn$25mn–– Economy Hotel Economy Hotel –– Lalbagh Project Lalbagh Project -- $10 $10 mnmn–– Budget/Transit Hotel Budget/Transit Hotel –– New International Airport New International Airport -- $10 $10 mnmn–– Star Hotel cum Retail space Star Hotel cum Retail space –– Electronic city Electronic city –– 37.5 37.5 mnmn

Bangalore OverviewBangalore Overview

Residential-RamnagaramResidential-Ramnagaram

•• 280 Acre 280 Acre –– Residential Plotted DevelopmentResidential Plotted Development–– JV with State Government Body JV with State Government Body –– Karnataka Housing Board ( Karnataka Housing Board (

KHB)KHB)–– Govt. approved layout, urban and civic amenitiesGovt. approved layout, urban and civic amenities–– Clear title and ownership and guaranteed sale through Govt. Clear title and ownership and guaranteed sale through Govt.

lotterylottery–– 24 months completion24 months completion

•• Located on Bangalore Located on Bangalore –– Mysore HighwayMysore Highway–– Next to 9600 acre DLF townshipNext to 9600 acre DLF township

•• Project Cost is anticipated to be $75 MM and Project Cost is anticipated to be $75 MM and projected IRR of 138%projected IRR of 138%

Residential - RamnagaramResidential - Ramnagaram

Residential - RamnagaramResidential - Ramnagaram

Residential- Green TownshipResidential- Green Township

•• 500 acre Integrated Township of Ranch / Country 500 acre Integrated Township of Ranch / Country homeshomes–– ~1 acre ranch or country homes~1 acre ranch or country homes–– Govt. approved layout, urban and civic amenitiesGovt. approved layout, urban and civic amenities–– Land identified and preliminary agreements in placeLand identified and preliminary agreements in place–– 24 months completion24 months completion

•• Located 12 Located 12 kmskms from new International Airportfrom new International Airport–– Major growth in Major growth in DevanhalliDevanhalli areaarea

•• Project Cost is anticipated to be $175 MM and Project Cost is anticipated to be $175 MM and projected IRR of 120%projected IRR of 120%

Residential - Green TownshipResidential - Green Township

Residential - Green TownshipResidential - Green Township

Hospitality - FiorellaHospitality - Fiorella

•• 108900 sq feet of build up area by 108900 sq feet of build up area by SobhaSobha DevelopersDevelopers–– 80% of civil and hard furnishing work completed80% of civil and hard furnishing work completed–– 100 Service apartment + 50 rooms hotel in Phase 1 100 Service apartment + 50 rooms hotel in Phase 1 -- $25 million$25 million–– Phase 2 to add 200+ rooms Phase 2 to add 200+ rooms -- $30million$30million–– All modern facilities like Gym, Spa, Conference halls, F&B outleAll modern facilities like Gym, Spa, Conference halls, F&B outletsts

•• Excellent LocationExcellent Location–– Open view of Open view of BallandurBallandur lakelake–– 600 600 mtsmts from Outer ring roadfrom Outer ring road–– Located in middle of IT park in Located in middle of IT park in HiTechHiTech Zone. Close proximity to Zone. Close proximity to

MNCMNC’’ss ( IBM, Intel, Accenture)( IBM, Intel, Accenture)

•• Finalizing Operator for Hotel Finalizing Operator for Hotel •• Phase 1 investment of $25 million and Projected IRR of ~ Phase 1 investment of $25 million and Projected IRR of ~

2323--26%26%

Hospitality - FiorellaHospitality - Fiorella

Hospitality - FiorellaHospitality - Fiorella

Hospitality - FiorellaHospitality - Fiorella

Hospitality - FiorellaHospitality - Fiorella

Hospitality – Airport HotelHospitality – Airport Hotel

•• 32000 sq ft land acquired, 4 32000 sq ft land acquired, 4 kmskms from new from new International airport. Adjacent to ITC.International airport. Adjacent to ITC.•• Plan to develop a 150 units Budget Transit Plan to develop a 150 units Budget Transit

hotel of international standardhotel of international standard•• In advanced stages of negotiations with Hotel In advanced stages of negotiations with Hotel

OperatorsOperators•• Investment of ~$10Million USD. Anticipated Investment of ~$10Million USD. Anticipated

IRR 30.1%IRR 30.1%

Hospitality – Airport HotelHospitality – Airport Hotel

Hospitality – Lalbagh HotelHospitality – Lalbagh Hotel

•• 14000 sq ft land acquired, in the heart of the 14000 sq ft land acquired, in the heart of the city. Main road location.city. Main road location.•• Plan to develop a 100 units Budget hotel of Plan to develop a 100 units Budget hotel of

international standardinternational standard•• In advanced stages of negotiations with Hotel In advanced stages of negotiations with Hotel

OperatorsOperators•• Investment of ~$10 Investment of ~$10 mnmn USD. Anticipated IRR USD. Anticipated IRR

30.1%30.1%

Hospitality – Lalbagh HotelHospitality – Lalbagh Hotel

Hospitality – Electronic City Hotel cum Retail spaceHospitality – Electronic City Hotel cum Retail space

•• 2 Acres of land at the cross road of 2 two 2 Acres of land at the cross road of 2 two roads. On the roads. On the HosurHosur main roadmain road•• Plan to develop a 550 units star hotel of Plan to develop a 550 units star hotel of

international standard with retail spaceinternational standard with retail space•• Land is convertedLand is converted•• Investment of ~$37.5 Investment of ~$37.5 mnmn USD. USD. •• Anticipated IRR 35%Anticipated IRR 35%

Hospitality – Electronic City Hotel cum Retail spaceHospitality – Electronic City Hotel cum Retail space

Hospitality – Electronic City Hotel cum Retail spaceHospitality – Electronic City Hotel cum Retail space

Thank YouThank You

Contact for further details :Contact for further details :captsawhney@harvestgroup.co.incaptsawhney@harvestgroup.co.in

+91 98802 81744+91 98802 81744