Thursday, May 1, 2014

Commercial real estate investment idea in NCR





"World trade centre" -when you see these words - I am sure this is what comes to your mind:



 

But did you know that World trade centre is a brand?
A globally recognized brand that is owned by the World trade centre association. This association offers exclusive rights to developers worldwide to use the World trade centre and WTC brand name for their commercial properties.
The WTC brand actually represents an international network of iconic commercial branded properties present in many locations worldwide
Here is the World trade centre in Boston:


And here is the WTC in Amsterdam:



We also have a World trade centre in India in Mumbai operating in Cuffe Parade for many years – here is how it looks.


And recently we have one more World trade centre in India - in Bangalore



And now we have a WTC coming up in Noida and this is where you can own a piece of action as an investor - by owning a part of WTC in Noida.
Please look at the details in the url -  http://www.wtcnoida.org/

The investment proposal broadly is as follows:
  • You can invest by buying 450 sq ft of space or multiples thereof.
  • The developer is offering it at Rs 6550 per sq ft -which means that you need to invest Rs 30 lacs to buy 450 sq ft.
  • There are multiple payment options – but if you pay 100% advance, then the developer is committing 12% per annum of your investment till the property is handed over.
  • Post hand over, the developer is committing to sub lease it for you at a min of 10% per annum return for 3 years
  • Looks good? Well yes at the first instance it does look good.
As my knowledge of Noida real estate is limited – here are things that I suggest you look for (in case you are interested in this investment)
  • Look at the local prices of real estate around that area – I believe that this price is pretty high and the developer has included 3 years of interest in this price. But mentally be prepared to pay a premium - good investments do not come at market price. Make sure that you are comfortable with the premium that you are paying.
  • Study the local developments that are planned in Noida with a view to see 10-15 years ahead – ideally WTC Noida must become the Central Business District in Noida.
  • Look at the legality of the development – use a local lawyer whom you can trust and make sure that it is legally clean.
  • Look at the developer back ground – what have they delivered in the past and have they delivered it well. Something as large a this WTC project cannot be the first project for the developer – make sure that you are convinced that the developer has the ability to complete this project in reasonable time.
If you are able to convince yourself of these four factors, then I think this would be a good commercial property to own. Over time it will give great rental returns and capital appreciation and you would be proud that you own a part of World trade Centre in Noida.