Tuesday, December 17, 2013

Here is a typical High Net worth investment idea that you can participate in:-

Hennur Road in North Bangalore has seen a lot of real estate activity in the past 3-4 years. The new Bangalore Airport and the promise of many tech parks and other industries in the vicinity has triggered the demand for residential spaces in and around Hennur road. This road also serves as an alternate route to Bangalore airport for people travelling from the outer ring road area. It is a four lane road and is already chocked with traffic on any normal day. All well known builders in Bangalore, including Mantri, Shobha, Prestige, Brigade have launched projects in this locality. Apartment prices are around Rs. 4000 to 6000 per sq ft.  Land rates depend on the exact location – but typical land rates are around Rs. 4000 psft to 7000 psft.

A group of High Net-worth Individual investors are looking at investing in a 7 acres piece of land off Hennur road - this land is owned for about 4 decades by an erstwhile royal family and the price negotiated is just below 2000 psft.  This land piece is also literally on the proposed Peripheral Ring Road –this proposed road will in fact take a small portion of the land –the work on this road will happen in the next two years.  Needless to say that this road will increase the value of the property tremendously.

This investor group is looking at procuring the land and then getting into a JV with a builder to build residential villas or apartments  and exit the investment with the sale of the built up property. The time frame of investment is appx 5-6 years and I expect the investment to give 250-300% ROI during this period.

I have personally visited this land and I am convinced of the viability of this proposal. The risks in this scheme are the following:

·         the delay in signing the JV with a developer; or

·         the delay by the JV partner to deliver the project; or

·         delay in selling the project and exiting it.

The minimum investment for participating in this Rs 30 lacs – as this investment is for buying the 7 acres of land – you will need to invest this money by Jan end. So if you have this liquidity and have a 5 year time holding power - I would surely recommend this investment.

If you are interested and want more details or want to visit the site and meet the key investor, please reach out to me at rajasekharan.sg@gmail.com  (Ph +91 98452 63000)