Bridge Fund Opportunity - River Bank Estates

River Bank Estates

Project & Location Brief

PROJECT FOCUS RIVER BANK ESTATES A mixed use development opportunity on the banks of River Periyar located at Alwaye, Kerala, based on the theme of 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 km from Trichur 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
Source: MaFoi Talent Pool Mapping Study 2006

PROJECT FOCUS RIVER BANK ESTATES A combination of equable climate, long shoreline, serene beaches, tranquil backwaters, lush hill stations, exotic wildlife, waterfalls, historic and cultural monuments have earned Kerala the name Gods own country Total number of tourists both domestic & foreign to Kerala in 2007 was over 8.7 Mn. Named as one of the "ten paradises of the world" and "50 places of a lifetime" by the National Geographic Traveler magazine, Kerala is especially known for its ecotourism initiatives and ayurvedic health holidays
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Location Alwaye, Kochi

HISTORICAL Birthplace of Adi Shankaracharya, the sage who transformed India to the Vedic school of thought and the Advaita philosophy Home of the Advaita Ashram founded by Sree Narayana Guru, the man who sage and social reformer of India St. Thomas, who was responsible for propagating Christianity, set up a church at the nearby Malayattur UPCOMING PROJECTS IN KOCHI Plan to develop 16 road corridors. A 65 km ring road and a North South road have been planned The coastal highway a 30 meter road that will link Vypeen and Puthuvype islands and other existing roads is planned The airport-seaport highway will connect major industrial hubs to the port The 25 km two way metro rail will run from Alwaye to Tripunithura and have 21 stations Tourism is on the rise and Kochi has attracted investments from both domestic and international markets
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GEOGRAPHICAL Located on the banks of River Periyar the Lifeline of Kerala which is a perennial river Distance from Airport: 6.3 km Distance from Cochin SEZ: 23 km Distance from M.G. Road, Ernakulam: 35 km Distance from Trichur: 50 km

International Airport Alwaye

Airport

Cochin
River Bank Estates, Alwaye

The Airport Seaport road

There are 3 major regions in Cochin where the developments have been pre-dominant in the past Region 1: This is the Central Business Development area. It is densely packed and there is hardly any space for further developments Region 2: This is the old industrial area. It includes industries like Binami cement, Hindalco, BSES, Apollo tires, NeST Region 3: This is the tourism and heritage center of the city. It also includes the retail and residential developments We believe that these 3 regions are already saturated and the next wave of developments are going to be along the Airport Seaport road as shown by the light arrows and towards the International Airport as shown by the dark arrows Region 4: This is the industrial and high end residential area. It includes industries like KRL, FACT, BSES Diesel Power plant, BPCL. Also includes the KINFRA Project, the Cochin SEZ and the proposed Dubai internet city

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Map not to scale

Region 5: The region close to the international airport. It is the next potential IT hub of Cochin and the location of the project

Project status
PROJECT STATUS Kings Group has an agreement with accumulator for the property and has paid upfront consideration Title in the name of the aggregator or his nominees 75 acres registered into the SPV of Kings Group 25 acres agreement with consideration 20 acres under token advances Master planning underway
River Periyar

Project Plot

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Project status
TIE 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 CPGs 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 citizens 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

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SWOT Analysis
STRENGTHS Financially sound development mix with unique theme Ownership of large land area which is contiguous Land bank on the shores of a river Located in a fast growing city, Kochi WEAKNESS Untried concept in the Kochi market Comparable land holdings held by Emaar MGF and Parsvnath Developers Location, Kochi, is in the early growth stage Market for office space is yet to mature in Kochi THREATS Over supply and reduction in demand Development and construction risks Risk to properties & Uninsured losses No consistent policy framework for urban development Political, economic and legal instability Inflation or slowdown in economic growth Land redemption by relevant authorities Natural calamity & Terrorist attacks, civil unrest and hostilities Competition for investments Delay in investment in real property assets Legal risk includes that of clear marketable titles

OPPORTUNITIES Volumes and prices in residential markets have decreased but land values are high Middle income group and low income group residences are undersupplied and show healthy growth Excellent macro-economic conditions in India in general and in Kerala in particular, with high rate of job creation Early mover advantage since this mix has not been previously tried in Kochi, the upcoming IT hub of South India Large 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

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Promoter Background
The 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 Kings 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

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Board of Directors
The 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
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Financials

Area Statement
Development Mix Residence Villa (Gated Community) Office Building Community Retail Hospitality Convention Total % of overall development Total area is 120 acres Permissible FAR is 2.5 Maximum FSI with fees at USD 2.5 per sq m is 4.0 Effective FAR is 1.91 Community development includes Schools, Hospitals, Neighborhood Center, Knowledge Center Area ( Mio Sq Ft ) 4.5 0.5 2.5 1.1 1.0 0.3 0.1 10.0 Phasing % 45% 5% 25% 11% 10% 3% 1% 100% 3.8 38% 0.3 0.1 3.7 37% 2.5 25% I 2.0 0.5 0.5 0.5 1.0 0.6 0.5 0.5 1.0 II 1.5 III 1.0

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Contact Details
T R Srinivas Email: srinivas.tekal@o3capital.com Mobile: +91 9845202187 Vinod Menon Email: vinod.menon@o3capital.com Mobile: +91 99451 99544 Harsha Shastry Email: harsha.shastry@o3capital.com Mobile: +91 98861 58292
OUR OFFICES Mumbai # 4331, Grand Hyatt, Santa Cruz (East) Mumbai 400055 Tel: +91 22 3262 6264 Email: mumbai@o3capital.com Bangalore # 3, Lavelle Road, Bangalore 560001 Tel: +91 80 4112 8111 Email: bangalore@o3capital.com Washington DC 4511 Singer Court, Suite 201 Chantilly, VA 20151 Tel: +1 774 922 2667 Email: washington@o3capital.com

Website: www.o3capital.com
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