real estate sector trends -...

Real Estate Sector Trends

February 2018

Strictly private and confidential

Source: Equirus research

Industry News

1

Government approves construction of over 1.86 lakh more houses under PMAY-Urban

The Government announced that the Centre has given nod for the construction of over 1.86 lakh more affordable houses for urban poor under its urban housing scheme,

taking the total number of houses to over 39.25 lakh. The latest approvals under Pradhan Mantri Awas Yojana, PMAY (Urban), entailed an investment INR 11,169 Crs.

with central assistance of INR 2,797 Crs. Haryana has been sanctioned the maximum number of 53,290 houses in this round of approval, followed by Tamil Nadu 40,623

houses, Karnataka 32,656 houses and Gujarat 15,584 houses. Maharashtra got 12,123 houses, Kerala 9,461, Uttarakhand 6,226 and Orissa 5,133 houses.

ET Realty

India office space absorption tops 42 million sq ft in 2017; CBRE South Asia report

According to CBRE South Asia report, annual absorption of office space in India crossed 42 million sq ft in 2017, signaling the continued growth of the segment. Out of

the key markets, Bangalore and Delhi-NCR accounted for over 50% of annual leasing activity. Annual supply for prime office space was over 29 million sq. ft. during the

year, a decline of about 18%. Leasing activity in 2017 was driven by the IT sector with a 32% share of total leasing

ET Realty

Cumulative net office absorption estimated to cross 100 million sq ft by 2020; JLL India

According to JLL India, cumulative net absorption of office space is expected to cross 100 million sq ft by end of 2020 in the top eight Indian cities as the absorption is

expected to grow at a CAGR of 8% over 2017. These eight property markets include Mumbai, Delhi-NCR, Bangalore, Chennai, Hyderabad, Pune, Ahmedabad and

Kolkata. The office space market has been experiencing robust demand trends which will be fructified in the next 2 -3 years keeping the office leasing activities buoyant

and in an upward movement. Net absorption for 2018 is expected to be at 30.2 million sq ft to record a positive growth over 2017

ET Realty

Lease contracts of 1.8 million sq ft office spaces in Gurugram to expire by March

Lease contracts for office spaces spread over more than 5.4 million sq ft in Gurgaon are set to expire by the end of this year. Of this, the highest amount of lease expiry

for 1.87 mn sq ft office space would take place by March end, showed data from realty information and analytic firm Propstack. The expected expiries in 2018 are over

46% higher than expiries of lease agreements witnessed in 2017 that saw total 3.7 mn sq ft commercial spaces coming up for lease renewal

ET Realty


Industry News

2

PE investments in Indian realty to touch US$100 billion by 2026

According to JLL India, Private Equity investments in Indian real estate is estimated to rise taking the cumulative investments to $100 billion by 2026. In the past 12 years

between 2006 and 2017, India has seen investments of US$ 42 billion. Given the renewal of the sector with new policy changes bringing in transparency, maturity of the

markets aside of the expected growth in the sector on the whole, the next 10 years between 2017 and 2026 is expected to see investments to the tune of US$56 billion.

ET Realty

Rajasthan housing board to build 23,000 houses on PPP basis in seven cities

After receiving in-principle approval from UDH minister Shrichand Kriplani, the Rajasthan Housing Board (RHB) will construct houses on PPP mode under Housing For All

scheme. The board, has been defunct for nearly past three years, is planning to construct 23,000 houses on PPP mode in seven cities. According to officials, the proposal

was forwarded to the (UDH) department for administrative approval. As per the proposal, RHB would provide funds per unit to the firm which will take up construction

work on the board’s land. The board will monitor, inspect projects and ensure quality control. The process to invite firms on PPP model is expected to start in March

The Times of India

India needs US$330 bn to fund construction of houses

India still has a shortage of 18 mn homes and requires US$330 bn of construction funding. According to ANB Capital Advisors, the existing gross bank credit to the sector

is less than US$55 bn. If we consider the larger sector beyond residential, the capital infusion requirements are virtually limitless. Indian real estate is metamorphosing

into a highly transparent industry into which all large global funds will want to enter aggressively

Business Line

INR 6,500 Crs., Budgetary support for urban housing scheme

According to Hardeep Singh Puri, Minister of State (Independent Charge) for Ministry of Housing and Urban Affairs, announced that INR 41,765 Crs. has been allocated

to the Ministry during 2018-19 as against INR 40, 617 Crs. during 2017-18 which translates into an increase of nearly 3% in gross budgetary support. He also added that

the outlay for PMAY (Urban) has been increased by INR 25,000 Crs. in the extra budgetary resources for the implementation of PMAY in the financial year 2018-19. It

will be raised outside general Budget. For 2018-19, PMAY (Urban) got Budgetary support of INR 6,500 Crs., an enhancement of 520% over previous year

Business Line


Corporate News

3

Embassy leases 150,000 sq ft office space in Bengaluru to US firm Anthem

Embassy group has given on lease about 150,000 sq ft of office space in 'Embassy Manyata Business Park' project at Bengaluru to Anthem Inc. Global property

consultant Savills India helped Anthem Inc, which is into health insurance business, for this leasing transaction. Adding that the deal has been done at a rent of about

INR 75-80 per sq ft per month. Anthem is also looking to lease about 200,000 sq ft office space in Hyderabad. Embassy Manyata project is spread across 110.5 acre in

North Bengaluru, with a potential built up area of 18.5 million sq ft of which 10.5 million sq ft is currently built

ET Realty

Ghodawat Enterprises sells Pinehurst building in Bengaluru for INR 350 Crs.

According to Colliers International India, Ghodawat Enterprises has sold its fully-leased building, Pinehurst at Embassy Golf Links in Bengaluru for around INR 350 Crs.

Pinehurst is part of Embassy Golf Links Business Park, which currently houses tenants such as Goldman Sachs, Fidelity, IBM and Microsoft. According to Ghodawat

Group, It was a strategic sale for the Ghodawat where the Company will focus on their vision of rebuilding its real estate portfolio to 2 mn sq ft of pre-leased properties

across India in the next 3 years, with newer assets with better financial returns

ET Realty

Bharti Realty to invest INR 35 bn in Delhi-NCR commercial, housing projects

Bharti Realty plans to invest about INR 35 bn to develop one commercial and a housing project in Delhi-NCR. The company sees a big shift in demand towards organised

real estate developers after the introduction of new real estate law RERA and GST. Bharti Realty currently has ~15 completed projects, having 5 mn sq ft of fully leased

Grade-A commercial space, in Delhi-NCR and other cities, while 1 mn sq ft of an office building is nearing completion in Gurgaon

ET Realty

DLF plans to launch QIP of shares by April; raise INR 45-50 bn

DLF is looking to launch its qualified institutional placement (QIP) of shares by April 2018. The company may raise INR 45 -50 billion from the QIP. The Company has

already received approval from shareholders to sell 173-million equity shares, which will be determined by the formula laid down by SEBI. The company has already

announced that its development arm, which has a debt of INR 130 billion, will be a zero-net debt company by March 31st, 2019. According to CRISIL report, the firm has

already repaid a debt of INR 66 bn from the INR 90 bn that the promoters had infused in December 2017

Business Standard


Fund Raising News

4

Blackstone in talks to buy L&T's commercial property portfolio for INR 23 bn

Blackstone Group is in advanced talks to acquire two commercial properties of L&T Realty (totalling 1.7 million sq ft) in a deal valued at INR 23 bn. This portfolio of the

real estate arm of engineering major Larsen & Toubro includes about 800,000 sq ft of fully-leased commercial tower at the L&T premise in Powai suburb and another

900,000 sq ft office block at the company’s commercial project at Seawoods, in Navi Mumbai. The deal is expected to be inked by late February as due diligence is

currently in its final stages

ET Realty

Indiabulls AMC’s PE arm buys 235,000 sq ft office space in Gurugram

Indiabulls Asset Management Company's private equity arm has acquired an entire commercial building with fully leased 235,000 sq ft office space on NH-8 in Gurgaonfrom Hines India. The project, Sky View Corporate Park, is a multi-phase development planned on a 21-acre land parcel in NCR region. The first phase of the projectconsists of two commercial buildings of 235,000 sq ft each. Indiabulls AMC has acquired 100% equity in the SPV owning the commercial building

ET Realty

Puravankara looking to create up to INR 2,000 Crs. realty fund

Puravankara plans to set up a real estate fund of up to INR 2,000 Crs. to develop affordable housing projects, primarily in key markets of Bengaluru, Mumbai, Pune,Chennai and Hyderabad. Buoyed by healthy sales bookings of over INR 1,100 Crs. till December in the current fiscal, the company has lined up launch of 15 new projectsby March next year entailing an investment of about INR 3,200 Crs. in construction, spread over the next five years. The Bengaluru-based developer is in talks with fewinvestors to set up this platform within six months

ET Realty

Prestige Estates, HDFC Capital create US$ 390 mn platform for low-cost housing

Prestige Estates Projects Ltd has tied up with HDFC Capital Advisors Ltd to create an investment platform for low-cost housing projects in India. The platform will have a

capital base of INR 25 bn (US$390 mn) in equity and debt. The primary focus of this platform will be on expanding the builder's residential business by identifying

strategic land parcels with the potential of developing large-scale residential projects in the mid- income segment

VCCircle

Real Estate deal activity

5

Private market transactions

Recent Private equity and M&A deals

6

0 0

2

0

2

4

M&A Structured Debt PE

0 0

331

0

50

100

150

200

250

300

350

M&A Structured Debt PE

# No. of deals Transaction value (INR cr)# No. of deals Transaction value (INR cr)

Date Target Deal type Sector Buyer/ Investor Deal Value (INR cr) Stake acquired (%)

17-Jan-18Forum Projects Pvt. Ltd., Esplanade Mall

PE Real Estate Blackstone Real Estate Partners 250 75%

16-Jan-18Kumar Properties and Real Estate Pvt. Ltd.

PE Real Estate ASK Real Estate Special Situations Fund-I 81 Undisclosed


Deals since August 2016


29-Dec-17Graceworks Realty and Leisure Pvt. Ltd.

M&A Real Estate The Phoenix Mills Ltd. 10 22.7%

27-Dec-17Kolte-Patil I-Ven Townships Pune Pvt. Ltd.

PE Real Estate KKR India Advisors Pvt. Ltd. 193 Undisclosed

26-Dec-17 DLF Cyber City Developers Ltd. PE Real Estate GIC Pvt. Ltd. 8,880 33.34%

21-Dec-17 HDFC Realty Ltd. M&A Real Estate Quikr India Pvt. Ltd. 102 100%

21-Dec-17 HDFC Developers Ltd. M&A Real Estate Quikr India Pvt. Ltd. 255 100%

4-Dec-17Tata Housing Development Company Ltd., Serein

PE Real Estate Hines India Real Estates Pvt. Ltd. 148 Undisclosed

24-Nov-17 OMR Mall Developers Pvt. Ltd. PE Real Estate Kotak Investment Advisors Ltd. 242 Undisclosed

17-Nov-17 Dtwelve Spaces Pvt. Ltd. PE Real Estate Matrix Partners India II LLC, Accel India V LP 13 33.80%

16-Nov-17 Virtuous Retail South Asia Pte Ltd. PE Real Estate APG Asset Management NV 1126 Undisclosed

06-Nov-17Ashiana Housing Ltd., Housing Project

PE Real Estate International Finance Corp. 148 Undisclosed

18-Oct-17 Prestige Pallavaram Ventures M&A Real Estate Prestige Estates Projects Ltd Undisclosed 49%

18-Oct-17 Moments Mall, Delhi M&A Real Estate Anant Raj Ltd 225 26%

18-Oct-17 DB BKC Realtors Pvt. Ltd. M&A Real Estate DB Realty Ltd. Undisclosed 18.4%

18-Oct-17 Mahindra Happinest Developers PE Real Estate HDFC Capital Affordable Real Estate Fund-1 Undisclosed 49%

16-Oct-17 OMR Mall Developers Pvt Ltd PE Real Estate Kotak Private Equity Group 244 Undisclosed

10-Oct-17Indiabulls Properties Investment Trust

M&A Real Estate Indiabulls Real Estate Ltd 1,388 43%

05-Oct-17 Office Building/Parsvnath PE Real Estate Blackstone Group LP 600 49%

04-Oct-17Puranik Builders Pvt. Ltd., Puranik City Reserva

PE Real Estate Piramal Finance Ltd 280 Undisclosed




03-Oct-17 Nirmal Lifestyles PE Real Estate Piramal Finance Ltd 153 Undisclosed

29-Sep-17 Offbeat Developers Pvt Ltd M&A Real Estate The Phoenix Mills Ltd. 34 100%

25-Sep-17 Worli Office Property/Mumbai M&A Real Estate Whispering Heights Real Estate Pvt Ltd 610 100%

10-Oct-17Indiabulls Properties Investment Trust

M&A Real Estate Indiabulls Real Estate Ltd 1,388 43%

6-Sep-17Classic Mall Development Co. Pvt. Ltd.

PE Real Estate Crest Ventures Ltd. 57 4%

6-Sep-17 Vamona Developers Pvt. Ltd. M&A Real Estate The Phoenix Mills Ltd. 48 5%

4-Sep-17 Alliance Spaces Pvt. Ltd. M&A Real Estate The Phoenix Mills Ltd. 25 37%

14-Aug-17 Pune land Parcel, Kolte-Patil M&A Real Estate CPPIB and The Phoenix Mills Ltd. 161 Undisclosed

27-Jul-17Larsen and Toubro Ltd., Commercial Project

PE Real Estate Blackstone Advisors India Pvt. Ltd. Undisclosed 100%

16-Jul-17Rebel Disruptive Building Technologies

PE Real Estate DivyaSree Developers Pvt. Ltd., Hub6 5 Undisclosed

12-Jul-17ATS Infrastructure Ltd., Gurgaon Residential Project

Structured Finance Real Estate India Realty Excellence Fund II LLP 120 Undisclosed

30-Jun-17Shriram Land Development India Pvt. Ltd., Project

Structured Finance Real Estate Milestone Capital Fund X 21 Undisclosed

9-Jun-17 Mahagun Group Structured Finance Real Estate Piramal Finance 325 Undisclosed

8-Jun-17 RG Residency Pvt. Ltd. PE Real Estate NA 171 Undisclosed

7-Jun-17 Embassy Group Structured Finance Real Estate Piramal Finance 650 Undisclosed

3-Jun-17 GVK Infra- bangalore airport PE Real Estate Fairfax India 1290 10%

2-Jun-17 Leela Chennai PE Real Estate Marigold Capital 700 Undisclosed


Source: VCCEdge, Equirus Research


9


31-May-17 Hiranandani Developers(JV) PE Real Estate Xander and Brookfield 3000 Undisclosed

29-May-17 Key Hotels PE Real Estate Berggruen Holdings 200 Undisclosed

25-May-17 Lodha UKStructuredFinance

Real Estate Cain Hoy 2437 Undisclosed

23-May-17 ATS Heights Pvt. Ltd.StructuredFinance

Real EstateASK Property Investment Advisors Pvt. Ltd.

122 Undisclosed

18-May-17 Real Estate Maximums India M&A Real Estate Franchise India Brands Ltd. 51 51%

16-May-17 Isprava Vesta Pvt. Ltd. PE Real Estate Nadir Burjor Godrej, Anand Piramal 11 Undisclosed

15-May-17 Lodha DevelopersStructuredFinance

Real Estate Piramal Fund 1800 Undisclosed

15-May-17 Indospace Core PE Real Estate CPP Investment Board 3250 Undisclosed

12-May-17 Adarsh DevelopersStructuredFinance

Real Estate Xander Finance 130 Undisclosed

3-May-17 Gumberg India Pvt. Ltd., The North Country Mall M&A Real Estate Virtuous Retail South Asia 707 100%

5-Apr-17 Island Star Mall Developers Pvt. Ltd. PE Real Estate CPP Investment Board 111 Undisclosed

3-Apr-17Aristo Realty Developers Ltd., Mumbai Hotel Project

M&A Real Estate Masa Hotels Pvt. Ltd. 50 100

31-Mar-17 Topvalue Real Estate Development Ltd. M&A Real Estate Peninsula Land Ltd. Undisclosed 86

27-Mar-17 Puravankara Ltd., Three Subsidiaries M&A Real Estate Hetero Drugs Ltd. 73 100

20-Mar-17 Satra Realty And Builders Ltd. M&A Real Estate M J Shah Realty LLP Undisclosed 49

10-Mar-17 Property Share Property Management Pvt. Ltd. PE Real EstateBeenext., Pravega Ventures Trust, Asuka Holdings

- Undisclosed

10-Mar-17 Ashimara Housing Pvt. Ltd PE Real Estate N.A. 3 Undisclosed



Private market transactions – Cont’d

10


8-Mar-17 DLF Cyber City Developers Ltd. PE Real Estate GIC Pte. Ltd. 11,700 40%

7-Mar-17 ATS Heights Pvt. Ltd. SD Real Estate

ASK Real Estate Special Opportunities Fund, ASK India Real Estate Special Opportunities Fund., ASK Investment Managers

78 Undisclosed

28-Feb-17 Bhavya Infra and Systems Pvt. Ltd. M&A Real Estate Dilip Buildcon 1 100%

25-Feb-17 Sukhdham Constructions and Developers M&A Real Estate Innerline Realty Undisclosed 100%

17-Feb-17 Vedica Sanjeevani Projects Pvt. Ltd. M&A Real EstateMcNally Bharat Engineering Company

266 60%

13-Feb-17 ETT Ltd., Express Trade Towers I PE Commercial Xander Finance 291 100%

8-Feb-17 K Raheja Corp. Pvt. Ltd., Commercial Assets PE Commercial Blackstone Advisors India 361 Undisclosed

31-Jan-17 Sobha Highrise Ventures M&A Real Estate Sobha 94 50%

26-Jan-17 Zodiac Properties M&A Real Estate Newluxborg Group 33 Undisclosed

25-Jan-17 Marvel Realtors SD Real Estate Piramal Fund Management 150 Undisclosed

17-Jan-17 Indiabulls Infrastructure M&A Commercial Indiabulls Real Estate 361 74%

17-Jan-172 office properties and Retail mall of Mantri developers, ASF Group and Ambience

SD Real Estate Indiabulls Housing Finance 1,700 Undisclosed

9-Jan-17 Midcity Heights, 2 Residential Redevelopment SD Real Estate Nisus Finance Services Company 24 Undisclosed

2-Jan-17 GCorp Township M&A Real Estate Pudumjee Pulp and Paper Mills Ltd. 1 50.0%

29-Dec-16 Vatika Group SD Real Estate Axis Bank 495 Undisclosed

23-Dec-16 Vatika Group SD Real Estate Altico Capital 700 Undisclosed




11


22-Dec-16 Campus Students Communities PE Real Estate Karvy Capital Ltd. Undisclosed Undisclosed

22-Dec-16 Phoenix Mills‘ arm M&A Real Estate CPPIB Undisclosed 49.0%

19-Dec-16 Offbeat Developers M&A Real Estate The Phoenix Mills Ltd. Undisclosed 3.0%

16-Dec-16 Westend Mall - Pune M&A Real Estate Blackstone Group Undisclosed 50.0%

13-Dec-16 Reliable Tech Park and Empire Towers SD Commercial Piramal Fund Management 700 100%

9-Dec-16 Assetz Property Group PE Residential JP Morgan PE 200 Undisclosed

30-Nov-16 Sare Homes SD Residential KKR & Altico 450 Undisclosed

30-Nov-16 Adarsh Developers SD Residential Piramal 750 Undisclosed

29-Nov-16 Nitesh Estate SD Hospitality Indiabulls 800 73.4%

17-Nov-16 ATS Builders SD Real Estate Milestone Capital (Exit) 133 Undisclosed

04-Nov-16 Burman GSC (Gurgaon Technology Valley) M & A Real Estate Ascendas 300 49%

03-Nov-16 Acme Developers (Various Projects) PE Real Estate HDFC Private Equity 500 Undisclosed

27-Oct-16 Lodha Developers (Lodha World Towers) PE Real Estate HDFC Property Fund (Exit) 1,500 Undisclosed

13-Oct-16 Lodha Group Pre-Sale Real Estate Private Investors 690 Undisclosed

7-Oct-16 Ekta World PE Real Estate Sun Arena 256 Undisclosed

3-Oct-16 Hiranandani M&A Real Estate Brookfield Asset Management 6,700 100%

27-Sep-16 Nirmal Group SD Real Estate Altico Capital 500 Undisclosed




12


19-Sep-16 Residential Project of Alliance Infra Projects PE Real Estate Kotak Realty Fund 155 Undisclosed

16-Sep-16 Mysore Projects M&A Real Estate Brigade Enterprises 5 100%

15-Sep-16 Kumar Urban Ltd (KUL Ecoloch) SD Real Estate Altico Capital 300 Undisclosed

2-Sep-16 Lodha World Towers SD Real Estate Piramal Fund 2,320 Undisclosed

18-Aug-16 Legacy Group SD Real Estate Altico Capital, Varde Partners 200 Undisclosed

12-Aug-16 Ornate Spaces, The Grove Towers SD Real EstatePiramal Fund Management Pvt. Ltd.,

Shapoorji Pallonji Real Estate Fund300 Undisclosed

Budget 2018

Impact on Real Estate Sector

13

Key Highlights: Real Estate Sector

After the regulatory and structural reforms of RERA and GST, the real estate sector was speculating high on Budget 2018

Direct Impact

● NHB, an apex financial institution for housing will setup a dedicated Affordable Housing Fund (AHF) that would invest wholly in the affordable

housing segment. This fund would obtain capital from priority sector lending shortfall and fully serviced bonds authorized by the Government of

India. Under the ‘Housing for all by 2022’ government has set a target to build 1 Crs. houses by 2019.

● For property transactions, no modification while taxing income from capital gains will be made in case where the variation is not more than the

5% of the ready reckoner or circle rate. This would help in reducing the time and cumbersomeness of real estate transaction

● Regarding smart cities, the government has so far completed work amounting to INR 2,235 Crs. Smart City mission aims to enhanced livability

and holistic development of many Tier 2 and Tier 3 cities .A total of 99 smart cities have been selected at an of INR 2.04 lakh Crs.

● This budget has focused highly on the infrastructure development. In terms road, Bharatmala road has already given approval of INR 5.35 lakh

Crs. In rail, 600 major railway stations will be developed. Also, expansion of Mumbai transport system and suburban network of Bangalore is

focused, hence driving the real estate market of these cities. In terms of air connectivity, 56 unserved airports will be connected through UDAN

Indirect Impact

● It is proposed to tax long term capital gains which exceed INR 1 lakh for equity and equity related products. This application of tax on equity

might make it less lucrative and investors may choose to invest in some alternative assets such as real estate

● Government has targeted disinvestment of 1 lakh Crs. in the year 2018. As we know, enormous land parcels are under these PSUs (Public sector

undertakings) and other government bodies, availability or reallocation of the same will boost the realty sector by providing additional land in the

space crunched metropolitan cities

● Government has shown their inclination towards blockchain, the technology behind the famous cryptocurrency bitcoin. With land recording

being digitalized, blockchain can have significant impact on real estate as an asset

Budget 2018

14

Listed market valuations

15

Indices movement vis-a-vis Sensex

Source: BloombergNote: Updated as of 14th Feb 2018

16

Companies Included in Pan India: DLF Ltd., Godrej Properties Ltd.; Western: Oberoi Realty Ltd., Indiabulls Real Estate Ltd., Housing Development and Infrastructure Ltd.; Southern:Prestige Estate Projects Ltd., Sobha Ltd., Brigade Enterprises Ltd., Commercial: The Phoenix Mills Ltd.,Nesco Ltd.

40

60

80

100

120

140

160

180

200

1-Apr-15 15-Jul-15 28-Oct-15 10-Feb-16 25-May-16 7-Sep-16 21-Dec-16 5-Apr-17 19-Jul-17 1-Nov-17 14-Feb-18

Commercial -179

Pan India - 185

Western - 106BSE Realty - 112

Southern - 142

Sensex – 121

17

Real Estate focus

Equirus Group

Over 7 years of experience in Equity research and has covered wide range of sectors

like Chemicals, FMCG, Consumer Durables, Real Estate, Logistics etc. Previously

worked with a Buy side proprietary fund and has also worked in corporate banking. He

has completed his MBA in Finance from SIMSR and is a Chemical Engineering graduate

Dhaval Dama

Research Analyst

Real Estate credentials

18

Key transactions

VBHC Value Homes Pvt. Ltd.

Strategic equity investment by

Daiwa House

October 2015

Poddar Developers Ltd.

Qualified Institutional

Placement of INR1,250mn

January 2015

Ajit is the Head of Investment Banking. He has 25+ years of management and

leadership experience. Successfully handled technology leadership positions at

Citigroup and US Dept. of Defence. 15 years of experience as a successful

entrepreneur in IT and investment banking. Post Graduate from NCST and BE in

Electronics from Mumbai University

Ajit Deshmukh

Managing Director

Highly experienced Real Estate focused team

Vijay has 20+ years of experience in Real Estate, Infra, Pharma, Healthcare, IT sectors.

Previously, he was Group CFO with Shri Krishna Developers and was with BSR & Co.

(KPMG member firm) in taxation and was involved in more than 100 M & A

transactions. Vijay is B. Com, FCA and completed Sr. Management Programme from

IIM Calcutta

Vijay Agrawal

Executive Director

Viceroy Hotels Ltd.

Investment by JPMorgan in

Bangalore Hotel

Daman Hospitality Pvt. Ltd.

Investment by Madison India

Real Estate Fund

Annexure

Sector Trading Comparables

19

Commercial

Trading Comparables

20

Southern India

Source: BloombergNote: Updated as of 14th February, 2018; all figures and multiples considered on the basis of consolidated financials18

CompanyMcap EV EV/Revenue EV/EBITDA P/E P/B

(INR mn) (INR mn) FY17A/E FY18E FY19E FY17A/E FY18E FY19E FY17A/E FY18E FY19E FY17A/E FY18E FY19E

Prestige Estates Projects Ltd 117,113 171,670 3.6x 3.5x 3.3x 18.7x 16.1x 14.2x 43.4x 32.0x 27.9x 2.6x 2.5x 2.3x

Brigade Enterprises Ltd 53,280 73,834 3.3x 2.8x 2.5x 17.6x 14.0x 12.2x 33.1x 26.6x 22.3x 2.0x 1.9x 1.8x

Sobha Ltd 40,380 67,054 3.3x 3.1x 2.8x 11.7x 11.0x 10.0x 24.2x 26.4x 22.9x 2.4x 1.8x 1.7x

Mean 3.4x 3.1x 2.9x 16.0x 13.7x 12.2x 33.6x 28.3x 24.3x 2.3x 2.1x 1.9x

Median 3.3x 3.1x 2.8x 17.6x 14.0x 12.2x 33.1x 26.6x 22.9x 2.4x 1.9x 1.8x



Phoenix Mills Ltd/The 92,612 128,156 7.0x 6.8x 6.1x 15.1x 14.0x 12.4x 55.2x 38.0x 27.6x 4.2x 3.6x 3.8x

NESCO Ltd 41,910 41,134 13.2x 12.3x 12.0x 16.2x 17.1x 16.1x 24.7x 21.6x 20.9x 4.9x 4.1x 3.5x



Western India

Trading Comparables

21



Oberoi Realty Ltd 160,241 162,884 14.6x 9.6x 5.5x 28.2x 18.2x 11.0x 42.3x 27.6x 13.4x 2.8x 2.6x 2.2x

Indiabulls Real Estate Ltd 112,047 195,310 9.1x 4.5x 5.2x 31.7x 16.0x 16.3x 28.2x 25.6x 24.8x 2.8x 2.6x 2.4x

Housing Development & Infrastructure Ltd

23,653 47,615 6.7x 3.8x 3.7x 7.8x 7.8x 7.7x 13.2x 10.5x 8.0x 0.2x 0.2x 0.2x

Poddar Housing and Development Ltd.

6,141 8,607 4.7x 3.8x 3.1x 13.7x 11.2x 9.1x 18.8x 15.3x 12.5x 5.4x 4.0x 3.0x

Arihant Superstructures Ltd 7,260 6,620 12.3x 13.3x 14.4x NM NM NM NM NM NM 3.2x 3.2x 3.1x



Pan-India

Source: BloombergNote: Updated as of 14th February, 2018; all figures and multiples considered on the basis of consolidated financials18



DLF Ltd 412,031 638,423 7.8x 8.0x 7.4x 18.6x 18.1x 16.5x NM NM NM 1.7x 1.6x 1.6x

Godrej Properties Ltd 179,212 218,238 15.3x 11.6x 10.7x NM NM NM NM NM NM NM NM NM

Ashiana Housing Ltd 17,963 16,599 4.6x 2.9x 1.8x 13.4x 8.3x 5.2x 26.8x 16.7x 10.4x 2.5x 2.2x 1.8x



Contact Equirus

Disclaimer:

This presentation has been prepared by Equirus Capital Pvt. Ltd. (Equirus) for restricted distribution. No representation or warranty, either expressed or implied, is made norresponsibility of any kind is accepted by Equirus Group company, its directors or employees either as to the accuracy or completeness of any information stated in this document.Neither Equirus nor any of its affiliates and/or their directors, officers, employees shall in any way be responsible or liable for any losses or damages whatsoever which any person maysuffer or incur as a result of acting or otherwise relying upon anything stated or inferred in or omitted from this presentation.

Opinions and projections found in this presentation reflect our opinion as of the presentation date and are subject to change without notice. This presentation is neither intended norshould be considered as an offer or solicitation, or as the basis for any contract, for purchase of any security, loan or other financial instrument.

22

Equirus Securities Pvt. Ltd. Equirus Capital Pvt. Ltd.

Ahmedabad Hyderabad Mumbai

3rd floor, House No. 9,

Magnet Corporate Park,

Near Zydus Hospital, B/H Intas,

Sola Bridge, S.G. Highway,

Ahmedabad 380 054

Tel: +91-079-6190-9595

Fax: +91-079-6190-9560

Level 1, Midtown Plaza,

Road No. 1, Banjara Hills,

Hyderabad 500 034

Tel: +91-040-44334064/91

12th Floor, C Wing, Marathon Futurex,

N M Joshi Marg, Lower Parel,

Mumbai 400 013

Tel: +91-22-4332-0600

Fax: +91-22-4332-0601

Name: Vijay Agrawal

Email: [email protected]

Mobile: +91 7702699551

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