RBE - Bridge Funding Opportunity

Bridge Fund Opportunity - River Bank Estates

River Bank Estates

A combination of equable climate, long shoreline, serene beaches, tranquil backwaters, lush hill stations, exoticwildlife, waterfalls, historic and cultural monuments have earned Kerala the name “God’s own country”

Total number of tourists both domestic & foreign to Kerala in 2007 was over 8.7 Mn. Named as one of the "tenparadises of the world" and "50 places of a lifetime" by the National Geographic Traveler magazine, Kerala isespecially known for its ecotourism initiatives and ayurvedic health holidays

Private and Confidential 4

Project & Location Brief

KOCHI INFORMATION

Largest city in the state of Kerala with a major port and an international airport

Graduates passing out suitable for IT / ITES sector is around 5000 per year

Number of higher education institutes is 31

One of the emerging IT destinations with excellent infrastructure (rated above average )

5th highest per capita in the country

Upcoming PPP projects include Smart City, Shobha Hi-tech City and CIAL IT Park, Golf Course at Intl Airport

PROJECT FOCUS – RIVER BANK ESTATES

A mixed use development opportunity on the banks of River Periyar located at Alwaye, Kerala, based on the themeof nature and knowledge

The 120 acre project has a waterfront of 1 km and is located 6.3 km from the Kochi International airport and 50 kmfrom Trichur

Source: MaFoi Talent Pool Mapping Study 2006

PROJECT FOCUS – RIVER BANK ESTATES


Location – Alwaye, Kochi

Birthplace of Adi Shankaracharya, the sage who transformed India to the Vedic school of thought and the Advaita philosophyHome of the Advaita Ashram founded by Sree Narayana Guru, the man who sage and social reformer of IndiaSt. Thomas, who was responsible for propagating Christianity, set up a church at the nearby Malayattur

Located on the banks of River Periyar – the Lifeline of Kerala – which is a perennial riverDistance from Airport: 6.3 kmDistance from Cochin SEZ: 23 kmDistance from M.G. Road, Ernakulam: 35 kmDistance from Trichur: 50 km

GEOGRAPHICALHISTORICAL

UPCOMING PROJECTS IN KOCHI

Plan to develop 16 road corridors. A 65 km ring road and a North –South road have been plannedThe coastal highway a 30 meter road that will link Vypeen and Puthuvype islands and other existing roads is plannedThe airport-seaport highway will connect major industrial hubs to the portThe 25 km two way metro rail will run from Alwaye to Tripunithura and have 21 stationsTourism is on the rise and Kochi has attracted investments from both domestic and international markets

Alwaye

Airport

International Airport


5

1 4

3

2

There are 3 major regions in Cochin wherethe developments have been pre-dominant inthe pastRegion 1: This is the Central BusinessDevelopment area. It is densely packed andthere is hardly any space for furtherdevelopmentsRegion 2: This is the old industrial area. Itincludes industries like Binami cement,Hindalco, BSES, Apollo tires, NeSTRegion 3: This is the tourism and heritagecenter of the city. It also includes the retailand residential developments

We believe that these 3 regions arealready saturated and the next wave ofdevelopments are going to be along theAirport Seaport road as shown by the lightarrows and towards the InternationalAirport as shown by the dark arrowsRegion 4: This is the industrial and high –end residential area. It includes industries likeKRL, FACT, BSES Diesel Power plant,BPCL. Also includes the KINFRA Project, theCochin SEZ and the proposed Dubai internetcityRegion 5: The region close to theinternational airport. It is the next potential IThub of Cochin and the location of the project

The Airport –Seaport

road

Map not to scale

CochinRiver Bank

Estates, Alwaye


Project statusPROJECT STATUS

Kings Group has an agreement with accumulator for the property and has paid upfront considerationTitle in the name of the aggregator or his nominees75 acres registered into the SPV of Kings Group25 acres agreement with consideration20 acres under token advancesMaster planning underway

River Periyar

Project Plot


Project statusTIE UPS

CPG Corporation , a leading architectural design firm of international repute has been roped in to provide Detailed Master Planning and Detailed Infrastructural and Engineering Design for the project. Among CPG’s important works in India are the Ahmedabad International Airport, Whitefield Singa Gardens (Bangalore). Their international works include, Nanyang Technological University of Singapore, Xian Aviation Park in China, Central Park Apartments of Shanghai, Emirates Financial Towers at Dubai International Finance Center, Changi International Airport I, II, III Singapore.Ashiana Retirement Village Limited (ARVL) of Ashiana Housing Limited (listed on BSE and a leading developer of Mid-Income Group houses) whose focus is on the development of Senior citizen’s housing facilities across the country under the brand name ‘Ashiana Utsav’. has signed a Joint Venture to develop 550,000 sft of Retirement Village offering seniors an independent lifestyle, a healthier and longer life with prompt access to medical and emergency care. ARVL already has a 600 unit Utsav in NCR and has 4 projects underway. India Value Fund (‘IVF’) is a premier private equity investment fund with a corpus of US$ 600 million. IVF has invested and exited TTK Healthcare Services and CARE Hospitals and is seeking other investments in this area. Other portfolio companies at present are Radio City , Fab Mall, RDC Concrete, Fame Cinemas, Centurion Bank of Punjab. IVF along with Euro Health Systems has been roped in for a healthcare center at River Bank Estates including a dedicated research center


SWOT Analysis

Financially sound development mix with unique themeOwnership of large land area which is contiguousLand bank on the shores of a riverLocated in a fast growing city, Kochi

Untried concept in the Kochi marketComparable land holdings held by Emaar MGF and Parsvnath DevelopersLocation, Kochi, is in the early growth stageMarket for office space is yet to mature in Kochi

STRENGTHS WEAKNESS

OPPORTUNITIES THREATS

Volumes and prices in residential markets have decreased but land values are highMiddle income group and low income group residences are undersupplied and show healthy growthExcellent macro-economic conditions in India in general and in Kerala in particular, with high rate of job creationEarly mover advantage since this mix has not been previously tried in Kochi, the upcoming IT hub of South IndiaLarge number of infrastructure projects like the International Airport and the Seaport SEZ and development projects like Dubai internet city, Cochin SEZ have created a demand for HIG residences

Over supply and reduction in demandDevelopment and construction risksRisk to properties & Uninsured lossesNo consistent policy framework for urban developmentPolitical, economic and legal instabilityInflation or slowdown in economic growthLand redemption by relevant authoritiesNatural calamity & Terrorist attacks, civil unrest and hostilitiesCompetition for investmentsDelay in investment in real property assetsLegal risk includes that of clear marketable titles


Promoter BackgroundThe Promoter is Kings Group, which engaged in Real Estate Land acquisition in Karnataka and Kerala for the past 15 years.

The Group is headed by Mr. Shaji Baby John who is an Engineering Graduate and is the pioneer in Aquaculture in India. He was heading a listed company engaged in aquaculture in the nineties. The Supreme Court ban on aquaculture forced the company to cut down its operations significantly

He has been an adviser to Hindustan Lever, TATA group, Thapar Group and Unitech in the aquaculture space

He has been on the board of MPEDA, India and has also served as a member on “Expert Group for promotion of Exports from India”, of the Government of India with P. Chidambaram as the Chairman of the Group

The promoter has successfully completed acquisition and subsequent divestment of 180 acres in Bangalore and approx 120 acres in Kerala. He manages a land bank of 300 acres in Bangalore, 200 acres in Cochin and more than 1000 acres in Tamil Nadu

Clear understanding of the local laws and development guidelines and also presence in the planning area where land acquisition is being carried out

The promoter has successfully partnered in the past with Gulfar Group, Ozone Group in land acquisition. He has also successfully completed transactions with Oczhiff

The promoter owns a Travel & Holiday Company in Dubai

The King’s Group is also into residential apartment development. It successfully completed a 100 unit luxury apartment “Atria” in the heart of Kochi

The company is developing a free trade warehousing zone in Tuticorin on a 126 acres land parcel

The company is also developing 250 acres in Bangalore partnering with CapitaLand of Singapore


Board of DirectorsThe board comprises experienced individuals with distinguished and varied backgrounds and excellent track records. They have been culled from across different industries.

Mr. Joseph Kootturun – Mr. Joseph is the Chief Executive Officer. He is an MBA in Marketing and was the primary person behind the Kochi Info Park (which is now Smart City)

James Joseph – A Civil Engineer by education, he retired from the Indian Audits and Accounts Department. He has served as the Accountant General with Kerala and Maharashtra Governments. He was one of the youngest Joint Secretaries in the Indian Ministry. He also served as the Managing Director of Kerala State Industrial Development Corporation.

Sreenakesh – Mr.Sreenakesh has over 20 years experience with the media industry.He has served with both the Kerala State and Central Governments in various capacities. He is also the chief promoter of Start Trek Digital Studio. Mr. Sreenakesh brings in an in-depth understanding of the market to the team.

S S Kaushik – A Chartered Accountant and Company Secretary, he was a management consultant to Unitech. He has a Financial Consultancy firm Analysis Financial Limited, listed on the National Stock Exchange. He was also the Finance Director to Vipul International, a Delhi based firm, which has over $ 250 Mn worth of development to its credit.

Ramakrishna – Mr. Ramakrishna serves as the Director of Finance. He is a Chartered Accountant with over 20 years experience as a Project Consultant.

E S Menon – Mr. Menon has served as a Director of Kochi Refineries, one of the largest Public Sector Companies in Kerala.

Venkatramani – Mr. Venkatramani has worked with Deutsche Bank before starting his own Financial Consultancy firm. He brings on board years of experience working with corporate bodies.

The Group has a Professional team in place that takes care of the operations of the organization on a daily basis

Financials


Area Statement

Total area is 120 acresPermissible FAR is 2.5Maximum FSI with fees at USD 2.5 per sq m is 4.0Effective FAR is 1.91Community development includes Schools, Hospitals, Neighborhood Center, Knowledge Center

Development MixArea

( Mio Sq Ft ) %

Phasing

I II III

Residence 4.5 45% 2.0 1.5 1.0

Villa (Gated Community) 0.5 5% 0.5

Office Building 2.5 25% 0.5 1.0 1.0

Community 1.1 11% 0.5 0.6

Retail 1.0 10% 0.5 0.5

Hospitality 0.3 3% 0.3

Convention 0.1 1% 0.1

Total 10.0 100% 3.8 3.7 2.5

% of overall development 38% 37% 25%


Contact Details

Mumbai# 4331, Grand Hyatt, Santa Cruz (East)Mumbai – 400055Tel: +91 22 3262 6264Email: [email protected]

T R SrinivasEmail: [email protected]

Mobile: +91 9845202187

Bangalore# 3, Lavelle Road,

Bangalore – 560001Tel: +91 80 4112 8111

Email: [email protected]

Website: www.o3capital.com

Harsha ShastryEmail: [email protected]

Mobile: +91 98861 58292

Vinod MenonEmail: [email protected]

Mobile: +91 99451 99544

Washington DC4511 Singer Court, Suite 201

Chantilly, VA 20151Tel: +1 774 922 2667

Email: [email protected]

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RBE - Bridge Funding Opportunity