Far from the madding crowd - sumangalampropmart.com

Jan. 12, 2011 - PRLog -- The Hebrew Court of Law, called Sanhedrin, has a rule that if every member voted the same way, the decision went the other way. For the simple reason that “Unanimity had to be misguided.” Now what is that one investment theme that the public and/or pros could agree on today? It's a totally subjective question, meaning everyone will have a different answer. But weI figured that would be a great "thought exercise" and came up with one statement we bet virtually everyone would agree with. That is: commercial real estate is something not to be touched with even a bargepole. The odd thing about this statement is that - across the board - commercial real estate is performing like never before. There has never been a better time to make a fast buck investing in commercial projects. Haven’t we all seen the grinning investors of Wave One in Sector-18? Though we can’t be as bullish about JMD Avenue 75 in Sector-75 because we haven’t got any good reports about the project. All those who booked at the launch in July 2010, are yet to get their receipts. “Apparently there is a dispute between Gardenia and JMD over FSI and I’m told receipts will only be given once land is transferred in JMD’s name,” says an investor. In fact, there are two commercial projects planned in Sector-75: JMD Avenue 75 and Noida Business Park. It’s definitely a good location considering these are the only commercial developments amidst dense upmarket residential cluster spanning 400 acre.
JMD Avenue 75 is spread over 2.5 acre (FSI bought from Gardenia) and along with commercial space and retail shops, it will have a luxury hotel within its complex. Ground, first and second floors are available for retail, while 3rd to 12th floors are meant for office space. The minimum size of shop starts at 250 sqft and goes up to 700 sqft.
There is no assured returns scheme as the location is developed already. Plus, they sold 25% of the project (as told to us by various agents) within two weeks of prelaunch. Hence, they have no reasons to offer any assured returns. There is a down payment plan with 6% discount and a CLP with standard payment during phases of construction. As for Noida Business Park, the only hitch is that the Aims Max Gardenia Developers say they will deliver next year, which seems an uphill task. The business park to be spread across 15 acre, boasts over 25 lakh sqft of retail, office and hotel spaces. While retail space starts at 200 sqft and goes up to 2,000 sqft, office space starts at 500 sqft and goes up to 2,000 sqft.
Here, we must add that Noida Authority plans to develop a sub-district centre on the lines of Sector-18 market at Sector-78. So please do not fall in the trap of a dealer, who tells you how the banks will be chasing your space, or how Pizza Hut will want to open a counter in your space and Warren Buffet will praise you for your decision. But yes, one investment that should make you smile could be the new commercial to be launched by The 3C Company in Sector-98. Unlike their previous commercial project, Delhi 1, in Sector-16B, which has two 5-star hotels, this one on Expressway will have office spaces to start with. Spread over 6 acre, the project on Expressway is definitely a good sign and a positive happening for the residential projects nearby. Though a lot of our readers who have either invested in 3C’s or are planning to in near future, are developing cold feet considering the number of projects they have on hand, we must tell them that the company seems to be on a sound footing. Reason: firstly, they are not getting into land banking, unlike several real estate giants who were left licking their wounds during recession. Secondly, they do not have huge land banks to pay for. So we assume they would not have huge debts to pay for that many other builders have due to land banking in the past. Their projects are selling really good, which augers well for the cash flows. They immediately launch the project once they win the bid from NA. Now this plot was a part of the last commercial scheme from NA and 3C’s is off the block first. We guess there are more to come from other developers. Thirdly, they have a successful partnership running with Red Fort, which has a stake in each of their projects except for Lotus Boulevard Espacia, which is in partnership with Sharda Exports of International Home Deco Park fame. Their execution is what needs to be tested now and they seem to be doing reasonably well at least with Lotus Boulevard/Lotus Panache till date. In all, 3C’s has nine commercial/residential projects on in Noida alone, which when combined is less than 250 acre of land, and that should be perfectly manageable. These are:
Lotus Boulevard, Sector-100: 40 acre
Lotus Boulevard Especia, Sector-100: 10 acre
Lotus Panache, Sector-110: 41 acre
Lotus Zing, Sector-168: 17.5 acre
Land in Sector-107 with Lotus 300 on 10 acre: 50-60 acre
Delhi 1, Sector-16B commercial: 15-20 acre
Sector-98 commercial: 6 acre
3C Oxygen - 25 acre
Another SEZ, Sector-143B: 25 acre (yet to start)
Meanwhile, arch rival Logix Group has also started developing Noida City Center at Sector-32, which includes a five-star deluxe hotel with one of the biggest convention centres and banquets in NCR. However, they are not willing to sell it to individuals. You can only get office/commercial space for lease @ Rs 9,000 psf and the smallest size available is 600 sqft and the largest is 2400 sqft.
Also, we must tell our readers that it isn’t as easy taking loan against a commercial property as against a home where you just provide your salary/income, ID proof etc. Almost 80% commercial properties do not get facility of loan or financing. Remember that commercial real estate is valued differently. The income that a piece of commercial real estate produces is directly related to its usable square footage. This isn't always the case with residential. Also, the yield is often higher per square foot and on an initial investment basis than it is in residential. If you lease or rent a multi-unit commercial property, you have more tenants to generate income than you do with a single-family dwelling. And if you own an apartment building and you lose one of your 10 tenants, you only lose one-tenth of the income for that property, instead of the entire rent as you would if you lost a tenant in a single-family house. Once you take the time to understand the ins and outs of commercial real estate investing, it can be extremely rewarding both financially and personally. So, what are you waiting for? Start rounding out that portfolio.


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World Trade Towers
Situated at the end of DND (towards Noida), this project with G + 34 floors is being developed by Ahmedabad based Electrotherm Group, which is into metal business for past three decades. It’s an energy efficient green building and the towers are centrally air-conditioned with 100% power backup. The two-side open plot allows all-round visibility and it will house a 5-star hotel, office spaces starting from 900 sqft, high-end retail, business suites, five-level car parking, lounge-cum-night club, spa, gym, coffee shops, crËche and all modern amenities. Excavation work is nearing completion and if all goes well, you should be working in your office in one of the tallest structures in NCR by 2013.
Landmark Towers:  Another project, which is coming up is Landmark Towers in Sector-15 being developed by Aims Sanya. They are making two towers and tower A will have Marriot Hotel and tower B will have retail shops till 3rd floor and from 4th to 38th floor will be office space. The location is right opposite Metro station and overhead bridge connecting the two is also proposed. The developers are giving 12% assured return.

Source: www.topfloor.in

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