PANAMA BLUE SERIES A – Chennai, IN

Residential     FULLY FUNDED
100%
5 Crores100% Funded

PANAMA BLUE SERIES A – Chennai, IN

Residential     FULLY FUNDED
5 Crores100% Funded

Expected IRR

20%*

Expected Yield

NA

Exp Holding Period

2.5 Years

Minimum Investment

10 Lakhs

Expected IRR

20%*

Exp Holding Period

2.5 Years

Expected Yield

NA

Minimum Investment

10 Lakhs

Overview

Panama Blue towers are located in a prime location of Chennai, Kelambakkam. A mixed residential township, with a few hundreds of residents in the previously constructed towers. Located on the OMR, just minutes away from major IT parks these towers are a part of a lively community. With the excellent infrastructure in and around the property, this property is a true definition of an urban lifestyle. Modern in-house amenities like a lot of open spaces, sports arena, educational institutions, and parks are added advantages to the high yield and returns.

Highlights

  • At close proximity to the IT corridor, making the travel easier.
  • World-class amenities and infrastructure.
  • A lot of open spaces and refreshing parks.
  • Easy commute access to every corner of the city.
  • A 40,000 sq ft. Clubhouse, Swimming Pool, Multi Turf Tennis Courts, Library.

Growth Plus

Growth plus product is a fractional ownership investment, helping our investors to invest with a minimum ticket size. This product helps our investors to own a fraction of high net worth investors.

About Builder

Incor has a proven track record of building high-quality townships, delivered on time, and has earned a reputation for creating a great social life for the residents of its townships. It was founded by a cartel of NRI’s returned from the US with a vision to form a premium global conglomerate with a clear focus on diverse businesses within the group. It is anchored by professionals from various backgrounds in Real Estate, IT, Healthcare, and Infrastructure. Incor is a partner in PBEL – which is a JV between Israeli giants Property and Building Corporation (PBC), Electra Real Estate (ERE), and Incor Infrastructure.

Over the last 16 years, Incor has been creating landmark residential and commercial projects across Hyderabad, Chennai, Bangalore, and Rajahmundry. With 7 Mn Sqft of completed and planned projects, Incor has a rich experience in this field, and has a loyal customer base, along with long term business partners. In addition to Real Estate, the Incor group operates a chain of hospitals under the name “OMNI” in 3 cities and a co-living brand called Boston living. The company is set on high values of quality and integrity and is committed to bringing world-class infrastructure to India.

Location

Kelambakkam is a suburban and residential neighborhood in Chennai, India. It is located in the south-eastern portion of the city along the Old Mahabalipuram Road (OMR) and is closely located Siruseri IT Park and Sholinganallur junction in South Chennai. Due to rapid development, good water availability and excellent road infrastructure with easy accessibility to all parts of Chennai, a lot of apartments and villas have come up in Kelambakkam. The area has all the necessary amenities required for comfortable living and is well equipped with social infrastructure.

Chennai the capital state of Tamil Nadu is the biggest cultural, economic and educational center of south India. Chennai also is known as the ‘Detroit of India’ is a bustling metropolis with its supremacy in diverse sectors like IT, education, health care, automobile, etc. More than one-third of India’s automobile industry being based in the city. Chennai is also known as the Health capital of India. Apart from IT/ITeS and financial services, Chennai’s economy is driven by the automotive, manufacturing, telecom and semiconductor sectors. The Quality of Living Survey rated Chennai as the safest city in India. With vast employment opportunities and infrastructural development in Chennai, the city is doing immensely well in the real estate sector.

Connectivity

Kelambakkam is well connected to almost all important destinations in Chennai city like T.Nagar, CMBT, Broadway, Central Railway station, Tambaram through frequent MTC bus services. The new bus depot for Kelambakkam is under process for the MTC bus shelter. The bus terminus being constructed in Vandalur will take 20 minutes to reach through Vandalur-Kelambakkam road. This bus terminus will be the largest bus terminus in Asia and become operational from the year 2020. Metro Train project- Phase 2 is under process which connects Madhavaram with Siruseri IT park. Once Metro train is operational, it will be a game-changer for overall development in OMR road.

UNIT DETAILS

  • Project area42 Acres

  • Project UseMixedResidential

  • Total area:  1.6 million sqft
  • Storeys14 

  • To be constructedBy 2022

  • Asset composition1, 2 & 3 BHK

AMENITIES

Swimming pool  Swimming pool


Basketball  Basketball

cricket stadium  cricket stadium


Tennis court  Tennis court

Open space  Open space


Jogging track  Jogging track

Swimming pool  Swimming pool


Basketball  Basketball


cricket stadium  cricket stadium


Tennis court  Tennis court


Open space  Open space


Jogging track  Jogging track

HIGHLIGHTS

  1. A fully functional sports arena that stays awake 24X7.
  2. A 40,000 sq ft. Clubhouse, Swimming Pool, Multi Turf Tennis Courts, Library.
  3. On-site school to be completed soon.
  4. Located at the close proximity to Chennai international airport.

Overview

Assetmonk team takes pride in the amount of due diligence and risk mitigation steps it takes before taking up any investment opportunity for the investor. Let us get down to analysing different types of risks associated with any real estate transaction, and how this opportunity has those risks addressed.

Execution Risk:

The property is RERA approved. The construction is already in progress and is completed upto 2nd floor, and is expected to be completed in 12-16 months. Since the stipulated time for the product is 30 months, there is a good 1.5 year buffer for construction and also for nearly half of the period, the investors have fully developed assets as collateral.

Title Risk:

Title is one of the main risk factor while considering the investments in real estate. The Chennai property is a 42 acre development where the first phase is already constructed and operational. Also the second phase is also RERA approved. The project also attracted investments from financial institutions like Motilal Oswal and also couple of Israeli firms, and had undergone thorough due diligence already. Also the project is approved by various financial institutions like SBI etc validating the title documents. This makes the title clear and there is no ambiguity with regards to any doubts in terms of ownership.

Financial Risk

The major concern is the overall position of the developer to complete the development of product. The project is already under construction and the developer has already sold units to customers. There are bank loans for these customers which ensures steady cash flow for the developer once particular milestone is reached. Also the developer has initially tied up with investment companies/ Financial institutions for the cash flow. So the probability of the project not completing due to financial constraints is negligible.

Exit Risk:

The major condition for the investment is the risk strategy. Currently the product is already under construction and the current market price is much higher than the offered price. Once the building is completely constructed it will be easier to sell to the customers there by facilitating the exit of the investor. However, in the scenario the security is not sold the developer needs to buy back the security at the average price of last quarter. This ensures the exit for the investor.

Investment Risk:

The product involves a trustee who ensures that the payment of interest is made on time to the investors. This ensures that the interest is received on time by customer. As per the terms mentioned the principal should be returned at the end of the duration along with profit share. The product is offered at a discount compared to the current market rate. This ensures that the principle is guaranteed while exit. Investors also are protected by the fact that for nearly half the term of the tenure, the assets will be fully developed and ready to occupy state, ensuring better security to investment.

Regulation Risk:

The product offered is in a RERA approved development. Also the product offered comes under the purview of Ministry of Corporate affairs and need to be registered with them. There is also a trustee involved to oversee the compliance of the terms specified.

Overview

Cash flow of the investor is mentioned below for a sample investment of 25 lakhs, that attracts 3% payout every quarter.

All figures above are in INR lakhs

Q0Q1Q2Q3Q4Q5Q6Q7Q8Q9Q10
Investment (25)

Quarterly returns

0.750.750.750.750.750.750.750.750.750.75
Repayment of Investment25
Profit share of Investor @ 5000 rs per sqft4.69
Investors Cashflow(25)0.750.750.750.750.750.750.750.750.7530.44
IRR20%

The investment is offered to the customer at the rate of 3100 per sqft.

Current retail price offered to the customer in the product is an all inclusive price of 4300 per sqft

The benefits of the project are

  1. Easy accessibility to IT offices like SIPCOT, TCS Siruseri etc
  2. Educational institutions like SSN Engineering College, Hindustan College etc
  3. Hospitals like Chettinad Health City etc
  4. Part of a 42 Acre gated community
  5. Has a famous Vellamma school inside the community
  6. Amenities like functional Cricket Stadium etc

The above benefits will ensure that the prices of the product will achieve a conservative mark of more than 5000 by the end of the product tenure.

While keeping in mind the continuous cash flow along with the profit share in the end we can expect a minimum IRR of more than 20%

IRR is nothing but the rate of return for the duration of the period.

Compared to returns received from other investments like Equity (9%), Fixed Deposits (6.5%), Saving Accounts (3.5%), Gold (8%) the returns are higher. Also in terms of volatility the current product offered is very attractive as a part of the returns is a fixed return paid quarterly.

The principle is guaranteed only in case of Fixed, Savings and our investment product. In all other products the principle is not guaranteed. We need to balance the risk appetite while calculating the benefits of a particular investment. We should not only look into the benefits but also the risks before investing.

Property

Depending on the type of the underlying asset, there can be specific insurance like construction insurance or building insurance that may be applied by the developer or the asset owner.

Typical documentation involves KYC, AML(Anti-money laundering), and other mandatory financial documents. Apart from these, the additional documentation changes as per the product offerings.

All these investments are paid in full amount, upfront. Since these are considered as investments and not house purchases, you may not be able to avail of home loan benefits, but can go for a business loan or a personal loan, which may come with a slightly higher interest rate.

Yes you will be signing

  • Term Sheet
  • Deed of Adherence
  • Debenture Trustee Agreement

Once the onboarding process is completed,you will be receiving documents of

  1. Debenture Certificate
  2. Term Sheet

Investment

Our exclusive investors portal can be used for tracking the investment, checking regular updates, accessing transactional info, etc. Depending on the product offering investors have chosen, they can contact the asset manager assigned, for any additional queries.

No, the Debenture Holder (holding the NCDs) shall not transfer any of the NCDs, without the written consent of the Company.

In such case, the Company will be obligated to pay

  1. The principal amount outstanding in respect of the NCDs issued; and
  2. The Assured Interest in respect of the outstanding Principal amount

None. All the charges will be mentioned upfront. Assetmonk team discloses all the charges and fees that an investment attracts upfront to avoid any sort of inconveniences.

As an NRI, you can invest through your NRE/NRO account and enjoy the returns. For any custom solution, please get in touch with your relationship manager.

Cashflow

The returns vary from product to product. Typically fixed returns will be to the tune of 10-12% per annum. The expected IRR and yields will be disclosed prior to investment only to avoid any inconvenience.

Initially, returns will be distributed every quarter until the time of completion, and post-handover they are disbursed on a monthly basis. The payout frequency will defer from product to product which will be disclosed by the asset manager during the investment process.

Yes you can get the TDS refund provided

  • IT returns are filed promptly with the government
  • Income for the year is below the prescribed non-taxable amount

As per the norms of the government, TDS of 10% will still be deducted from the investment amount paid by you, for every quarter until the tenure gets completed.

Income tax as per the jurisdiction will be applicable. If you are an NRI, please get in touch with our relationship manager for specific details for your country.

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