GERA’S

PATH FINDERSMay 2017 | Issue 2 | For Private Circulation Only

www.gera.in

The last six months have probably been the most turbulent in the history of Ind ian rea l e s ta te . We saw demonetization in November 2016. Wild predictions were made about an imminent crash in the real estate market across the country. The demonetization as well as these baseless predictions created additional headwinds for the industry that was already facing challenges. There was an expectation that the Union Budget would take steps to boost the sector, which also did not happen. The last couple of months have seen a frenzy of media stories on the introduction of the Real Estate Regulation & Development Act. RERA, as it is now called, can potentially be a game changer for the entire industry. Despite the challenges and the headwinds at Gera, we continued to OUTDO, with the year 2016 - 17 being our best year ever. Some noteworthy milestones of the last few months include the launch of our commercial project Gera's Imperium Rise at Hinjewadi, that met with a tremendous response from customers. The next version of our

TMGeraWorld App for customers was launched. Customers will be able to download their project documents on demand as and when they require. The

TMGeraWorld App also allows for the

TMmanagement of the entire ChildCentric project, where customers can reserve coaching for the children and themselves across various disciplines, using the app.On the financial side, an assessment by the credit rating agency has reiterated our rating of an A+ and increased total borrowing eligibility at this level from Rs. 485 crores last year to Rs. 639.85 crores this year. This third party validation is a matter of pride especially as it comes at a time when the industry is seeing default and downgrades of ratings of many developers. We believe that this is a result of our conservative fiscal approach over many years.We be l i e v e t ha t RERA , when implemented in spirit, will help to transform the industry and we look forward to being a part of the new real estate order in the near future.

The rating grades straddle both,

publicly listed as well as privately held

brands. A snapshot of some of the best

represented Real Estate brands with

their ‘CURRENT RATING’ are as

follows: There are some brands

namely Shapoorji Pallonji and Co. Ltd.,

Tata Housing Development Co. Ltd.

that are rated an AA and whose rating

as wel l as quantum remains

unchanged.

There are those brands like Indiabulls

Real Estate Limited, K.Raheja Corp.,

Mahindra Integrated Township Limited

and Godrej Properties that are rated an

AA- and whose rating as well as

quantum remains unchanged.

Across the A Series categories, Gera

Developments has the unique

distinction of being the only real estate

brand in the country whose quantum

has increased. That, with a significant

33% while retaining its rating of an A+.

Other brands in the A+ listed category

are Sunteck Realty Limited, Prestige

Estates Projects Limited, Kolte-Patil

Developers Limited, RMZ Infotech

Private Limited and Mahindra Homes

Private Limited whose rating as well as

quantum remains unchanged. CARE’s

ratings have rated the ‘DEBT

I N S T R U M E N T S ’ f r o m G e r a

Developments an A+ moving from Rs.

485 Cr. to Rs. 639.85 Cr. This is a

significant increase of a 33% and was

on the basis of the audit carried out of

the operational and financial

performance of the company.

T h e c r e d i t r a t i n g o f G e r a

Developments has gone up largely due

to the ‘High Collection Efficiency’ and

‘Stable Cash Flows’ that have been

managed over the on-going projects.

The ‘Ring-Fencing’ of the ‘Project-

Specific Cash Flows’ with the singular

prioritization of debt servicing

capabilities have been maintained.

There is also full coverage of

construction costs to complete all on-

going projects against clearly tied-up

receivables which comprehensively

justifies the company’s ability to service

its’ debt. Lastly, the comfortable

booking status has rendered adequate

future revenue visibility.

The sustained market momentum

that GERA has always been able to

produce is attributable to the

following factors:

The distinguished legacy and track

record of the promoters of the

company with the Chairman, Mr.

Kumar Gera being the Founder

President of CREDAI, a member of

the State Planning Board, Govt. of

Maharashtra and the task force of

the National Housing Policy (NHP),

Govt. of India (GOI). Mr. Rohit

Gera, Managing Director of Gera

Developments and Vice President of

CREDAI Pune since 2007 and has

been on the managing committee

for almost two decades since 1999.

An Advisory Board that comprises

of stalwarts in the Industry with

names like Mr. Deepak Parekh,

Chairman of HDFC, Mr. Farhad

Forbes, Managing Director of

Forbes Marshal and Mr. Ganesh

Natarajan, Ex-CEO of Zensar

Technologies.

CREDIT RATING REAFFIRMED AT A+. QUANTUM LEAP

IN CAPACITY OF 33%

“We are the proud owners of an apartment at Gera’s Song of Joy and are writing in to thank you for delivering us our flat in very good condition and we would like to acknowledge the effort by your team. Initially, after getting possession, we were unhappy with the buy due to issues like leakages, etc. We highlighted these issues and approached the CRM team for resolution. We spent an entire day at the site, gauging the progress made as we

CUSTOMER'S TESTIMONIALwanted to shift in as soon as possible. Given the work and progress witnessed during this period, both of us were very pleased as well as impressed with the hard work the implementation team put on ground. They were not only very prompt in acting on highlighted issues, but also helped in expediting the work along the way and guided us on matters like AC fitment, etc.Our initial disappointment was quickly turned around by the hard work and

prompt action of the team on ground in getting our flat ready in a really appreciable condition and gave us the confidence that we were finally getting a qua l i t y apa r tmen t and a differentiated product at the end.

Hoping to continue getting the same support after we move in. Thanks.”

-Snehal & Girish Kulkarni

Gera’s Song of JoyMr. Rohit Gera

Managing Director

NAVBHARAT'S REALTY BUSINESS ACHIEVERS AWARD 2016 for the best themed project of the year

SIX MONTHS IN REVIEW

MARKET RESEARCH

LINT COMMUNITY ENGAGEMENT -COMMERCIAL REAL ESTATELINT, a unique ‘COMMUNITY BUILDING’

initiative from Gera for its IMPERIUM customers

This initiative was borne out of its corporate philosophy, “OUTDO” to help their customers increase their business productivity by adding valuable insights under an annual calendar of events.

Aimed at providing qualitative inputs to their commercial customers in helping accelerate business success.

LINT is Gera’s community building initiative consisting of Learning, Inspiration, Networking & Training for its commercial customers of the IMPERIUM projects in Goa.

This initiative was borne out of its corporate philosophy, “OUTDO” to help their customers increase their business productivity by adding valuable insights under an annual calendar of events.

L INT was launched w i th i t s ‘INSPIRATIONAL’ section along with Mr. Rajdeep Sardesai, a renowned and accomplished media legend and professional with an illustrious Goan lineage. This was followed up with a work shop in En t r ep reneu r ia l Leadership Development along with Dale Carnegie. Others that followed were a workshop in Financial Modeling under the ‘LEARNING’ section and then successive ‘TRAINING’ sessions in Personal Grooming & Personal

“Gera brought us a lifestyle workshop on the 25th and 26th March 2017, on how to be Pro-active with regard to our health. The workshop made me realise as to why taking care of a woman's health is of utmost importance. One, because a woman is a 'household management consultant' and thus if she imbibes healthy habits and healthy lifestyle, entire family is going to eat healthy and be healthy. Two, simply because only a woman can truly take care of herself, as her family depends on her for her support. So I am thankful to

CUSTOMER'S TESTIMONIAL

TM

TMThe GeraWorld App, which provides

a hassle-free customer interaction has

gone through a few developments and

innovations to ensure that the bridge

between the brand and the customer is

fur ther s t rengthened. Ear l ier,

customers had to place a request for

the issue of documents such as

Sanctioned Plans, Loan Related

Documents, Receipts, etc.

But now with the upgraded ‘Document

Request’ feature, one can download

the documents from the App itself.

The next is the ‘Feedback For CRM’

feature. This simply allows you to place

on record your honest feedback on our

CRM personnel who interact with you

on a continual basis.

Yet another is the ‘Time Enhancement

& the Flexibility’ given to the Customer

to Close the Request.

Earlier, on issues pertaining to Common

Areas of the Building related to Gera’s 5

Year Warranty, the customers could

‘create & track requests’. The warranty

feature permitted the customer to

upload photographs of the problem and

while this has led to a 75% reduction in

visits to the customers’ premises, there

previously existed ONLY a window of 2

days to provide feedback and close the

request, failing which the request would

get closed automatically. Now, you have

the time flexibility of being able to

respond to the closure of your request by

a total of 5 days.

The new version can now be

downloaded from Google Play Store or

the Apple App Store.

Gera for understanding this importance of women's health and for bringing such a workshop. Healthy recipes and essential diet components were shared. The information was presented by the instructor in a scientific and convincing manner. So overall, I am thankful to Gera for inspiring me and my family to truly outdo ourselves, by bringing us such worthwhile activities in the society. These endeavors are also building a community which shares such progressive vision.”

-Reshma Prasad Deshkar Gera’s Song of Joy

BANER Prices ( simple average per sq. ft.) in Baner have remained flat over the past 12 months moving within a tight range of Rs 7250 per sq. ft. – 7388 per sq. ft. However, the weighted average price per sq. ft. is in a downtrend indicating that unsold units are priced lower than they were 12 months ago.

PRICES

BAVDHANPRICES

Prices ( simple average per sq. ft.) in Bavdhan has slipped

back under the Rs 6000 per sq. ft. level in the last few

months. However, the weighted average per sq. ft. has for

the first time in the last year increased to above Rs 6000 per

sq. ft. indicating that the lower priced units are moving faster

and the market unsold inventory consists of the higher priced

inventory. In the past 3 months, prices (both simple and

weighted) have hopped up a notch, indicating a change in

market sentiment.

7250

7279

7286

7317

7388

7319

7327

7308

7277

7271

7272

7259

7100

7150

7200

7250

7300

7350

7400

7450

7500

Apr-

16

M

ay-1

6

Ju

n-1

6

Ju

l-16

Aug-1

6

Sep-1

6

Oct-

16

Nov-1

6

Dec-1

6

Jan-1

7

Feb-1

7

Mar-

17

Price Per Sq. Ft. ( Simple Average )

6155

6102

6075

6031

6075

6121

5971

6014

5981

5901 5921

5956

5900

5950

6000

6050

6100

6150

6200

Apr-

16

May-1

6

Jun-1

6

Jul-

16

Aug-1

6

Sep-1

6

Oct-

16

Nov-1

6

Dec-1

6

Jan-1

7

Feb-1

7

Mar-

17

Price Per Sq. Ft. ( Simple Average )

KHARADI

PRICES

Prices ( simple average per sq. ft.) in Kharadi have remained

flat for the past 12 months and are consolidating. The

weighted average price per sq. ft. is above the simple average

indicating that the bulk of the unsold inventory is priced above

Rs 6000 per sq. ft. In general however, it is clear that prices

have remained at the same levels for the past 12 months.

5710

5733

5715

5745

5742

5740

5729

5750

5737

5713

5727

5732

5600

5650

5700

5750

5800

5850

5900

Apr-

16

May-1

6

Jun-1

6

Jul-

16

Aug-1

6

Sep-1

6

Oct-

16

Nov-1

6

Dec-1

6

Jan-1

7

Feb-1

7

Mar-

17

Price Per Sq. Ft. ( Simple Average )

Etiquette and Selling Skills and Performance Building.

Mr. Rohit Gera, Managing Director, Gera Developments said, “We have received tremendous response and support from Goa for all our projects and hence we are delighted to launch LINT for our customers here. This is reflective of our brand’s core philosophy to ‘OUTDO’, which drives us into newer, uncharted territories by providing our customers excellent product quality, services and brand offerings. We believe customers buy our commercial properties with a view to maximize their returns, be it by occupying or renting or merely through capital appreciation. We therefore believe that we can help our customers and their tenants truly OUTDO in their own investments and therefore have embarked upon this ambitious plan to provide Learning & Inspiration to the business owners, Networking amongst our customers and Training for the employees of the customers and their tenants.

CUSTOMER-FIRST APPROACHTM

GERAWORLD APP_2.0

Gera’s Community Engagement programs provide an

environment that ‘NURTURES’ & continually feeds the

hunger for ‘ACCOMPLISHMENT’

The community engagement programs are open to the residents of Gera’s communities. It’s an environment that fosters participation, knowledge and the getting-together of neighbors in fostering a larger community. What makes it so incredibly relevant is that in today’s context, these engagement programs are run on a sustained basis to accentuate the bonhomie between the residents of the community.

Gera’s consumer-connect and

engagement events provide the kind

of interest and inspiration that are

required to learn in whichever field.

One of the more recent events

conducted for the residents was the

Gera’s Master Chef Series that was

designed for one-half of the couple.

Only one-half of the couple, be it

either wife or husband was invited to

take part in this Gera’s Master Chef

Series. While part of the overall

objective was to always leave with the

customer an engagement with the

brand, in this case it was aimed at

pushing the parent to CREATE

something EXOTIC and out of the

ordinary in terms of a culinary

delight. This was a clear action of

going beyond ordinary CONVENTION

into OUTDOing. Lastly, this was being

created with one’s hands and was being

SHARED with the SPOUSE and the

FAMILY at home. In this specific Master

Chef event, the act of creating

something exotic that one has not done

before bringing together all of one’s

s e n s e s t o c r e a t e s o m e t h i n g

‘GRATIFYING’ was very rewarding and

made for a memorable experience.

The entire sequence of creating

something not done before, the act of

using one’s collective senses, hands,

eyes and intent to make something

wonderful is all linked to the philosophy

of OUTDO and doing something newer

and better than ever before.

COMMUNITY ENGAGEMENT-RESIDENTIAL REAL ESTATE

“Two years back when we were looking for a home in Pune, we came across Gera GreensVille Trinity Towers in Kharadi. Our search for the perfect home ended here. Two years down the line. I can safely say that staying at this Gera property has truly been an experience to cherish. The feeling of

staying in a luxury apartment with modern amenities, community of like-minded people, safe and secure environment for the family and the proximity to work, makes Trinity Towers a perfect place to enjoy life. Kudos to Gera Developments for this amazing project. They have truly lived upto their brand promise of 'Outdo'.”

-Abhijat Shukla Gera’s Trinity Towers

TMChildCentric Homes provides an

entire roster of services focusing on the

holistic development of the children by

getting them to learn, play and grow.

However, given the ‘PARANOIA’ that

generally surrounds the examination

performance amongst children in this

country, the insight being the deep-

seated fear amongst children causing

uncontrollable stress and that this

same fear in the parents was causing

uncontrolled anxiety.

But, how would GERA play the role of a

‘FACILITATOR’ to MANAGING

CHILDREN’S STRESS AND PARENTAL

ANXIETY?

The solution was rather simple and we

got one of our strategic partners in

‘DEVELOPMENT’, DALE CARNEGIE, to

www.childcentric.in

HANDLING CHILDREN�S EXAM STRESS & PARENT�S EXAM ANXIETY

help both, children and parents alike

prepare for these EXAM modules.

The idea was to simply make the parents

responsible for the role they had to play

in their children’s exams schedule and

preparation. For the children, handling

stress is just a function of keeping calm,

planning & managing time. Simply put,

children’s performance anxiety needs to

be dealt through by parents differently

There were physical exercises which

were done to get the children focused.

They created charts on what were the

physical, personal, mental, and social

symptoms of stress.

The most defining change in the real estate sector is the introduction of RERA. It is not that there has never been legislation for the sector before. M a h a r a s h t r a i n t r o d u c e d t h e Maharashtra Ownership Flats Act in 1963. The challenge has been implementation - the MOFA was never implemented as it had been envisaged, leading to rampant breaking of promises to customers. This time however, the scenario is different. Customers are no longer willing to take broken promises lying down. They are willing to act and fight for their rights. More importantly, every state is required to set up a regulator and complaints are necessarily to be redressed in 60 days.The introduction of RERA will require a business approach transformation for many of the Developers who have been used to a life without restriction. Delivery as promised will be the norm. Fiscal prudence, something that was practised by a few of us, will now be forced upon all developers, with 70% of the customer payments only being released to the developer based on the progress of the work at the project site. From an era of being able to change the product at will, developers will now need to plan their product mix far better, as obtaining consent from customers to make changes will now be near impossible. Finally, all developers will need to stand behind the product quality for 5 years. We had introduced a 5 year warranty 13 years ago - this has finally become the law of the land.While these aspects will make life difficult for developers, there is finally a lot of clarity for the developers for multi-phase projects. Changes in product are locked in for the phase that has been declared. Developers are free to create future phases as per the market demand. This will help in reducing litigation. The Maharashtra RERA Rules also clarify the f o rma t i on o f t h e s o c i e t y ( o r condominium/other body) for each building as the requisite percentage of customers book the flats. On the whole, though restrictive, there is far greater clarity and in the long run this is good for professional developers interested in building a business in the long run.

Some of the provisions of RERA that provide for a positive outcome for flat purchasers: Delivery on time Reduced risk of title defects Changes in the project requires

approvals from purchasers Formation of society upon booking

of 51% of flat buyers Defect liability period of 5 years 70% of funds go to a designated

account for use of the project only No siphoning off funds for other

uses No sale before approvals

All this will reduce the total cost of ownership for the flat purchaser. The total cost of ownership is the base cost paid to the developer for the flat plus the interest during construction plus the rent paid in case of delay in possession plus the cost of repairs for defective construction. This will now be borne by the developer thereby, increasing his cost structure. While the total cost of ownership goes down, some of the increased costs of the developer will be reflected in an increased cost of the basic rate paid to the developer.While RERA certainly provides clarity and protection in a number of areas, there are challenges generated as a result of the law. Ongoing projects where amounts drawn are in excess of the percentage of work done will not be able to draw money from the designated account. As a result they may face a working capital crunch. A large part of the funds needed for projects was provided through customer funds; this will no longer be the case. In fact, more capital will be required as sales are not permitted without approvals. Unless there is new source of capital, many developers will face capital constraints.All in all, RERA will change the way the real estate developers do business. Many fly-by-night operators who followed the business model of over-promise and under-deliver will be forced to find other pastures. In the long run, the business of real estate development will be left to professionals who are willing to stand behind their promises. A time worth looking forward to.

WITH RERA, COMMENCES A NEW ERA OF REAL ESTATE

CUSTOMER'S TESTIMONIAL

NDTV Property Awards 2016 for 'Premium Villa Project' of the year

BEST CONSUMER-CONNECT

INITIATIVE, REALTY PLUS

PROJECT UPDATE

NEW PROJECT

Misty Waters is an upcoming project by the Mula Mutha riverfront, at Keshav Nagar. The homes at this

Oproject will offer an exceptional 230 view of the river. The project enjoys exceptional connectivity to the city’s prominent IT hubs, recreation centers, and educational and health institutes, being located at Keshav Nagar.

Key Points:Site address: Gera's Misty Waters, S.No. 9 to14, Hissa No. 12, Keshav Nagar, Pune - 411036

Location: Keshav NagarNo. of floors: P+10 storey buildingTotal number of units: 118 units 2 BHK: 108 units 2.5 BHK: 10 unitsAverage Area: 2 BHK: 1120 sq.ft. 2.5 BHK: 1328 sq.ft.No. of Buildings:1 No., Wing-A & B Possession: Dec 2019

Highlights:

Area: PMRDAArea in Acre: 2 Acres

Amenities :

Club House

Jogging Track

Kids’ Play Area

Swimming Pool

“The idea and the intentions are innovative and it most certainly gives a feeling of 'NURTURING' APTITUDE at a business place. I would say additionally it gives me a feeling of being 'AMONG SPECIAL'. I also would like to attend the forthcoming sessions in the areas of learning & networking.”

- Prasad ShethGera’s IMPERIUM GRAND

My husband and I run a highly

rated restaurant “Ritz Classic” at

Gera’s Imperium II.It is our honor to be associated

with the GERA brand since the last

couple of years and the

experience with LINT should take

our experience with GERA one

notch h igher. Your brand

philosophy of “OUTDO” is what we

ourselves are here to achieve. In

fact after we opened Ritz Classic

and delivered on trust, quality and

impeccable services, we too

OUTDID ourselves at Gera’s

Imperium II, and expanded with two

new restaurants, Ritz Classic Patto

and Ritz Classic Mall de Goa.For us, this announcement brings

hope for more growth, more

satisf ied customers through

cons tan t improv ing unde r

‘Learning, Inspiration, Training and

Networking’. We look forward to

your next announcement. -Smruti and Rajesh Desai Gera’s IMPERIUM II

Looking forward to hear from you at feedback.newsletter@gera.inHead Office: 200, Gera Plaza, Boat Club Road, Pune - 411001| Goa Office: G-18, Gera's Imperium, Patto Plaza, Panjim-403001 | www.gera.in

Dubai Representative Office: Office No. 1804, Dubai Burjuman, Burjuman Tower, 18th Floor, Sheikh Khalifa Bin Zayed Road, PO Box 121828, Dubai, UAE

GERA’S IMPERIUM GRAND

APR 2017JAN 2017

Final concrete pour scheduled for the last final slab (11th)

GERA’S IMPERIUM STAR

JAN 2017 APR 2017

Diaphragm Wall under progress Diaphragm Wall Completed. •Excavation and Pile Breaking in Progress. • Raft Work in Progress 1st RCC Slab in Progress

GERA’S IMPERIUM RISE GERA’S ISLE ROYALE (TOWER - II)

APR 2017

6th RCC Slab is in progress(1st Architectural Floor is in progress)

JAN 2017

1st RCC Slab is Cast

JAN 2017

1st RCC Slab formwork is in progress

APR 2017

5th RCC Slab is in progress

GERA’S MISTY WATERS GERA’S SONG OF JOY

Excavation completed. Footing setting out is in progress

JAN 2017

Plinth beams are in progress

APR 2017 JAN 2017

Tower A1 and A2 Handed over • Tower A3 -13th RCC slab is in progress • Tower B1- 13th RCC slab is in progress • SOJ Club House, Site cleaning is in progress

APR 2017

Tower A3 and B1, Terrace slab completed, top terrace work is in progress• SOJ Club House RCC works in progress

8th RCC Slab is Cast