Development of Integrated Residential Complex

over 12 Acres of land at Shankarpur,

Bhubaneswar

Bhubaneswar Development Authority

Pre - Bid Presentation

April 4, 2011

Contents of Presentation

� City profile

� Residential, Retail and Commercial overview

� Project Background

� Project brief

� Eligibility Criteria

� Proposal requirements

� Key features of RFP

Macro Economic Indicators: Bhubaneswar

The FAR and ground coverage applicable is based on the land use, size of land parcel, location and the road widthThe norms and standards as per BDA (Planning & Building Standards) Regulations – 2008

DCR (details for residential typologies, and commercial/ retail/hospitality)

Chandrashekharpur in the North; Khurda, Jatni, and Choudwar towards the South; along Cuttack-Bhubaneswar Road along the NH-5

Future Growth Corridors

Jaydev Vihar (Nayapalli), Bhomikhal, Shahid Nagar, Janpath, Lewis Road, Bapuji Nagar, Bara munda

Established Real Estate Markets

a) the inherent latent demand existing in the city; b) the growing IT-ITeS sectors in the city; c) various developmental endeavors underway in the state of Orissa.

Factors Governing Growth of Real Estate

Approx. 4.0 kmDistance of Airport from CBD (Janpath)

IT-ITeS, Manufacturing sectors – Cement, Steel, Aluminum, PowerEconomic Drivers of the City

BDA – Bhubaneswar Development AuthorityBMC – Bhubaneswar Municipal Corporation

Local Administration

141.69 square km (municipal area)Area

10 Lakhs; Projected at 30 Lakhs in 2030 (excluding floating population)Population (Bhubaneswar)

4.2 CrPopulation (Orissa)

DESCRIPTION PARAMETER

Regional Connectivity

• Rail connection – The South Eastern railway route

• Air connection – Biju Patnaik International Airport

• Road connection – towards Chennai and Kolkata via NH-5 and Sambalpur via NH-42.

• Inter-city transport – Regular buses between Bhubaneswar and other important towns of Orissa such as Berhampur, Chilka, Cuttack, Konark, Paradip, Puri, Rourkela, Sambalpur etc. Interstate buses ply between Kolkata (West Bengal) and Tatanagar (Jharkhand)

• Intra-city transport – Mostly dependent upon Auto and cycle rickshaw services, however taxis are available in the city.

Bhubaneswar

Towards PuriJatni

To Chandaka

Nandan Kanan

Cuttack

Khurda

CBD areas:

Janpath, Sachivalaya Margand Bidyut Marg,Areas such as Shahidnagar, and Ashok nagar

Upcoming areas:

Chandrashekharpur, Patiain the North; Khandagiri / Shankarpurand Khurda Road in the South;Cuttack Bhubaneswar Road in the East

Growth Directions

Growth Node – Khandagiri / Shankarpur

Along the mentioned growth corridors, the administration is envisaging a number of developments such as:

Growth Corridors

20.50 acresNear RasulgarhInternational Convention Centre

Over 100 acres

Near KhurdaKnowledge City

30-35 acres-Not yet specified-

Proposed Handicraft complex

65.0 acresNear KhandagiriProposed Bio-Tech Park on PPP basis

650.0 acresbetween Bhubaneswar and Khurda

Proposed Integrated IT-Park including a proposed SEZ (Info city II)

Land area / BUA

Location Name of Project

Info City I

(Operational)

Biju Patnaik

Energy Park

Info City II

Knowledge City

Biotechnology

Park, AndharuaThe Site

Real Estate Profile

Residential Retail Commercial

Residential Pricing Trend

Pricing Trend - Residential

30003400

4200

4800

19002200

2700

3300

0

1000

2000

3000

4000

5000

6000

2007 2008 2009 2010

Year (4th Quarter)

Outright Sale Price (INR /

sft)

DownTown Fringe Areas

Commercial Pricing Trend

Pricing Trend - Commercial

40

55

65

75

2226

3035

0

10

20

30

40

50

60

70

80

2007 2008 2009 2010

Year (4th Quarter)

Rentals (INR / sft / m)

DownTown Fringe Areas

Retail Pricing Trend

Pricing Trend - Retail High Street

60

70

80

95

35

4550

60

0

10

20

30

40

50

60

70

80

90

100

2007 2008 2009 2010

Year (4th Quarter)

Rentals (INR / sft / m)

DownTown Fringe Areas

Project Background

� Bhubaneswar Development Authority is the facilitator and regulator for organized development in the Bhubaneswar Development Plan Area.

� BDA proposes to develop an Integrated Group Housing Facility over 4.81 Hectares of land at Shankarpur, Bhubaneswar on PPP mode.

� Jones Lang LaSalle Property Consultants (India) Pvt Ltd is the Project Development Advisor to BDA for viability assessment, conducting a transparent and competitive bid process and execution of requisite contractual requirements.

Project Location

� The 12 Acre site is located in Mauza: Shankarpur; Zone No. 20

: Aigania; Plot number: 1263 & 1264.

� Land-Use: Residential

� 14 Kms from the Bhubaneswar Secretariat; 8 Kms from the Biju Patnaik International Airport

� The prime approach to the site is from the East through a 100 ft wide road connecting to the NH5 at a distance of 2 Km from the site

KHANDAGIRI

CHOWK

THE

SITE

VIPUL GARDEN

AIRPORT

TO

KHURDA

TO BBSR

R.K. STEEL JUNCTION /

KALINGA HATCHERY

(Approx. 2.5 km from

R.K. Steel Junction)

To

PAIKARAPUR

NH-5

100’ APPROACH

ROAD

NORTH

Site Location

Project Component

• Proposed Development:-

Housing for HIG, MIG, LIG segment with support facility – a minimum of 70% of Built-up AreaCommercial – a maximum of 30% of Built-up Area

• Likely support facility and Infrastructure:-

Internal Roads with adequate street light and furniture, Uninterrupted power supply with necessary back up facilities, Water Supply, Fire-fighting facilities, Rain Water Harvesting for car washing, Solar Energy System for Common Area lighting, Adequate Parking facility, Adequate Landscaping/ Green Areas, Club House, Swimming Pool etc.

Note:Project components shall be finalized based on the applicable development controls prevailing in Bhubaneswar.

Estimated Built up Area

Total area 12 Acres

48,561.87 sq.m

522,720 sq.ft

FAR 2.75

Total Permissible Built-up

area 133,545 sq.m

1,437,480 sq.ft

Total Car-parking area 30% of the BUA

431,244 sq.ft

Covered car-parking 50% of the total car-parking area

215,622 sq.ft

Estimated Project Cost

Particulars Rate Unit / Remarks Costs Unit

Cost for land development, site infrastructure, landscaping & hardscaping … (A) 20 INR / sq.ft of land area 104.54 INR lakhs

Civil Cost 900 INR / sq.ft of permissible BUA 12,937.32 INR lakhs

Int. Electri 115 INR / sq.ft of permissible BUA 1,653.10 INR lakhs

Sanitary & Water Supply 115 INR / sq.ft of permissible BUA 1,653.10 INR lakhs

Fire Fighting 5 INR / sq.ft of permissible BUA 71.87 INR lakhs

Passenger Lifts 12 INR / sq.ft of permissible BUA 172.80 INR lakhs

Back up facilities 10 INR / sq.ft of permissible BUA 143.75 INR lakhs

Cost of Construction of Built-up Area … (B) 16,631.95 INR lakhs

Cost of Construction of Covered Parking Area … (C) 500INR / sq.ft of Covered Parking Area 1,078.11 INR lakhs

Construction and Development Cost … (D) = (A+B+C) 17,814.60 INR lakhs

Other Soft Costs

Architecture, Planning & Landscaping 3%

3,117.56 INR lakhs

PMC 2%

Legal & Admin 2%

EIA 0.5%

Interest During Construction 7%

Assuming 14% Interest rate on Debt Component (50% of the Const. & Dev. Cost) with an average holding period of 1 year

Advertisement, Brokerage, Marketing, etc. 3%

Total Soft Costs … (E) 17.5%of the Construction & Development Cost

Total Project Cost … (F) = (D+E) 20,932.16 INR lakhs

Approx. INR 210 Cr.

Lay out Plan- Illustrative

Development Guidelines

� Developer shall develop and sublease 20% of the total dwelling units or 200 units whichever is higher to the LIG category (48 sq. mt per DU).

� Developer shall develop and sublease 10% of the total dwelling units or 100 units whichever is higher to the MIG category (80 sq. mt per DU).

� Develop support facilities and on-site infrastructure like internal road network, parking areas, security, landscaping, street lighting and other services required for the project as per the Applicable Laws and guidelines prevailing in Bhubaneswar.

� Develop and maintain the project as per the standards and specifications mentioned in the RFP and good industry practices.

� Provision of Independent Engineer for supervision during construction period and Management Board during implementation period

� Implementation Period – 5 years from the date of signing of Lease Deed beyond which Penalty Clause will prevail for another 12 months after which the non-completion of the Project will be considered as the Developer’s Event of Default leading to Termination.

Project Brief

Lease Period 90 Years effective from signing of Lease Deed

Construction Period 5 Years

Bidder Single entity or Consortium of Max. three firms

Single Stage 2 Envelope Bid Submission

The outer enveloper should contain

a. Envelope I – Technical Bid

b. Envelope II - Commercial Bid

Bid Criteria Highest Upfront Lease Premium

Development Guideline Planning and Building Standards Regulations 2008, BDA

Bid Validity 180 days from last date of submission of bid

Bid Security INR 50 lakh

Validity of Bid Security 180 days from last date of submission of bid

Performance security 10% of Upfront Lease Premium

Validity of Performance security Till the issuance of Project Completion certificate from the date of submission of performance security.

Institutional Structure Special Purpose Vehicle (SPV) to be formed by the preferred bidder under Company’s Act 1956

Fixed Parameter 20% of the total DUs for LIG category and 10% of the total DUs for MIG category

Implementation Structure

� A Consortium of maximum 3 members will be allowed to participatein the Bid

� Lead member to have minimum 26% equity in Project SPV

� Other members to have minimum 10% equity in Project SPV

� Lock in Period: Equity lock in is 8 years from the Scheduled Completion Date

� The Preferred Bidder (either Single Member or as a Consortium) shall hold 51% (fifty one percent) of the total paid up equity capital in the SPV till the Lock-in period.

Payment of ULP

• Upfront Lease Premium

� 1/3rd of ULP to be paid before signing of Development Agreement (1st installment)

� 1/3rd of ULP after completion of 1st year from the date of signing of Development Agreement (2nd installment) and before signing of Lease Deed. Along with payment of 2nd installment, the Developer is required to submit a Bank Guarantee equivalent to outstanding as on date – Lease Deed is Signed (this installment is Interest free)

� 1/3rd of ULP after completion of 2nd year from the date of signing of Development Agreement plus interest thereof (3rd installment). The interest charged on the outstanding amount will be (SBI Base Rate + 5%) and will be charged for the period of 12 months period from the submission of BG till payment of the full

amount (i.e. 13th -24th month of signing the DA).

• Annual Lease Rental - The Rate to be specified by BDA (as per Revenue Rate)

Development Agreement & Lease Deed

• Whoever quoted the highest ULP is the Preferred Bidder

• Development Agreement shall be signed between BDA and the preferred bidder after the preferred bidder has:

• Paid to BDA the first installment (1/3rd of the ULP)

• Paid to BDA the Bank Guarantee of (10% of ULP) as Performance Security.

• Paid the project development fee of (0.25% of the Project Cost) to BDA.

• Paid the project development fee of (0.25% of the Project Cost) Jones Lang LaSalle Property Consultants Pvt. Ltd.

• Lease Deed to be signed after 1 year from the date of signing ofdevelopment agreement and upon deposit of the 2nd installment along with a bank guarantee of the 3rd and final installment.

Eligibility Criteria

The advertisement calling “ RfP for development of Integrated Housing facility at Shankarpur through PPP” was published in National Newspaper on March 22, 2011.

Experience

Technical Criteria

� at least 25,000 sq.m., Residential/Commercial built up space in the last 5 years, in a Single Project ;

OR

� at least totaling 50,000 sq.m., Residential/Commercial built up space in the last 5 years, through a maximum of 3 Projects, with minimum 10,000 sq.m. built-up space for each project.

(Certified Completion Certificates from Architect to be provided as specified)

Financial Criteria

� Combined Minimum Net Worth: INR25 Cr

(Certification from Chartered Accountant to be provided as specified)

Proposal Requirements

Substantially Responsive Proposal

� Is received by the Proposal Due Date including any extension there of

� Is signed, sealed and marked as stipulated in the RFP document

� Is accompanied by the Power of Attorney in the format specified

� Is accompanied by Bank Guarantee towards Bid Security (INR 50 lakhs)

� Is accompanied by Demand Draft towards Cost of RfPdocument (INR 52,000/-)

� Contains all the information as requested in the RFP

� Mentions the validity period

Tenants of Development Agreement

� The Project Scope includes:

� conceptualizing, planning, designing, financing, construction of a Integrated

Residential Complex only

� obtaining the Applicable Permits under the Applicable Law

� marketing of the Project and generating revenue from the Project after

executing the Lease Deed

� operating and maintaining the Project

� Formal possession of the Site will be handed over on signing of the

Lease Deed

� The site will be handed over on “as is where is” condition

� The Developer will have right to create mortgage/ charge over the

development right for availing finance

� Equity Lock in period would be 8 years from the Project Completion

date

� The Lease Period of 90 years shall be renewable on mutually agreed

terms

� Upon expiry of Lease Period, the Project will vest with BDA free from

all encumbrances

Developers obligations

� Compliance of development controls mentioned in the RfP;

� Undertake time bound execution of the Project;

� Make timely payment of consideration to BDA;

� Follow all relevant act, rules, regulations, guideline during

construction and post construction period;

� Provide certified true copy of all Project Agreements to BDA within

7 days;

� Provide all assistance to the BDA or any official of BDA or the

Independent Engineer during construction and post construction

period;

� Responsible for compliance of relevant act, rules, regulation for

their employees including employees of its subcontractors;

� Responsible for safety, soundness and durability of the Project;

� Maintaining the Site from all encroachments and take all steps to

remove the same, if any.

BDA’s obligations

� enable the Developer to have access to the Site, free from

encumbrances;

� permit use of the Site by the Developer without hindrance from

BDA or persons claiming through or under it;

� assist and provide all reasonable support to the Developer in

obtaining Applicable Permits;

� upon written request from the Developer, assist the Developer in

obtaining access to reasonable infrastructure facilities and utilities,

including water, electricity and telecommunication facilities;

� provide full cooperation to the Developer in order to achieve the

objectives of this Development Agreement.

Bid Process

• Single Stage Bidding Process (Pre-qualification, Technical & Financial Proposal)

• Bids to be submitted in two separate sealed covers

ECI Approval

Adv. of RfP in Print Media;

Uploading of document in BDA website 22 March 2011

Receipt of Bids and Opening of Technical

Bids4 May 2011 & 5 May 2011

Pre bid Meeting4 April 2011

Technical Bid Evaluation Report and Opening of

Financial Bids(11 May 2011)

Issue of LoA to the Preferred Bidder

(to be communicated)

Signing of DevelopmentAgreement

Discussions….

Down Town Residential Areas

Fringe Residential Areas

Commercial Sector

Upcoming Info city II –being developed by IDCO

IT SectorAlong KhurdaRoad

Chandrashekharpur is the upcoming IT-Zone of Bhubaneswar. The area boasts of the existing Infosys campus, Wipro and the STPI located within Fortune Tower

IT SectorChandrashekharpur

Up-coming areas

This is the area where many of the public sector offices are located

Government officesCentral areas –SachivalayaMarg

Ashok Nagar

Bapuji Nagar

Established market. This is the heartthrob of the commercial activities in Bhubaneswar

Financial SectorShahid Nagar

CBD of BhubnaeswarFinancial Sector, GovtOffices, Private organisations

Central areas –Janpath

RemarksType of occupantsSubmarket

Retail - Markets

Bhubaneswar Retail Organised Market Classification and Location

Southern part of the city along NH 5Nandan kanan, Aiginia

Suburban Malls

Locations Surrounded by the Outer Ring Road

Satya Nagar, JaidevVihar, Rasulgarh, Patia, Janpath road, Saheed Nagar

Prime Malls

Location within City

Localities included Micro market

5 Kms beyond Info city I, Southern suburbs of Bhubaneswar.

Baramunda area, Bajrang Vihar,

Secondary High Streets

Locations Surrounded by the Outer Ring Road

Janpath road, ShahidNagar, Ashok Nagar, Bapuji Nagar, SatyaNagar, LingarajMarket area,

Prime High Streets

Location within City

Localities included Micro market

Lingaraj Temple

Ashok Nagar

Big BazaarEkamra Haat

Jaydev

Vihar

Khandagiri

SquareBaramunda

Retail areas in Bhubaneswar

Sahid

nagar

Bapuji Nagar

Unit 1 & 2

market

The

World

Pal Heights

Maruti Mall