PCC SERIES 1 – Chennai, IN

Residential / Co-Living  FULLY FUNDED
100%
5 Crores100% Funded

PCC SERIES 1 – Chennai, IN

Residential / Co-Living  FULLY FUNDED
5 Crores100% Funded

Expected IRR

21%*

Expected Yield

8%

Exp Holding Period

NA

Minimum Investment

25 Lakhs

Expected IRR

21%*

Exp Holding Period

NA

Expected Yield

8%

Minimum Investment

25 Lakhs

Overview

PBEL City is a lively community that brings together luxury and modernity making everyday life more exciting. It has ready-to-move-in apartments built with high-quality materials such as 53 Grade Cement and Virgin Steel. PBEL City is located on the OMR, just minutes away from major IT parks. With work just a short distance away, commute time reduces significantly. From an international-standard cricket ground to a multipurpose clubhouse, PBEL City has it all. The township will soon have an on-site school. A number of excellent hospitals and entertainment centers are also within close proximity to the township.

Highlights

  • PBEL City is at close proximity to the IT corridor, which will make travel easier.
  • Earthquake resistant property.
  • Ample car parking space.
  • A lot of open spaces and parks along with a fully equipped sports arena.

Yield

Yield is a long term investment product offering regular returns and a high capital appreciation. An attractive investment product for investors looking to generate passive income.

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 UseResidential/Co-living

  • 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 part of a 42 acre development. It is part of the 3 phase development. First phase is already completed and second phase is under construction. The company has a track record of completing the projects on time. This ensures that the execution risk is minimum.

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. 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. There is continuous rental income from day 1 leading to less risk for the investor.

Exit Risk:

The major condition for the investment is the risk strategy. There is a tenant in place for the building. This ensures that in the future it is easy to sell the property. A pre-leased apartment is always easier to sell as there is a steady cash flow. There is no hassle in finding the tenant and other problems typically faced by a home owner.

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 tenant has a lock in period ensuring the cash flow in beginning years. The term of investment is 10 years initially and can be extended upto 30 years. The product is offered at a discount compared to the current market rate.

Overview

Cash flow of the investor is mentioned below for a sample investment of 25 lakhs.

The interest payout during the first 3 years is 8% and there is a 15% increment on the rental value for every 3 years. The interest is paid on a quarterly basis till the handover and post that the payout is monthly.

All figures above are in INR lakhs

Q0Y1Y2Y3Y4Y5Y6Y7Y8Y9Y10
Investment (25)

Annual returns

2.002.002.002.302.302.302.642.642.643.04

2.302.302.302.642.642.642.302.302.302.642.642.64

Investors Cashflow

(25)2.002.002.002.302.302.302.642.642.643.04
IRR21%

The investment is offered to the customer at the rate of 2900 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 21%

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

Assetmonk will take care of managing deposits and rental collection will be representing the owner to tenancy, assisting in selling the unit if required, basic maintenance of the unit and tower, being a single point of contact to the owner and tenant.

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.

You are free to visit the property. However, if you want our help in arranging the visit, please make sure you keep us/ your relationship manager informed, to make sure the property access is a smooth process seamlessly.

We pride on the level of due diligence each product undergoes before it makes it to our platform. Our selection criteria include factors like correct valuation, growth potential, clear title, legal compliance, regulatory compliance, risks involved, etc. However, investors are invited to perform their own due diligence, before making any decision, since every investment/ purchase decision is prone to some inherent risk factors.

Yes, the property will be registered in your name. You can resell the property provided the new customer also upholds the rental agreement.

Investment

Accordion Sample DescriptionTypical documentation involves KYC, AML, and other mandatory financial documents. Apart from these, the additional documentation changes as per the product offerings. Yes you will be signing

  • Memorandum of Understanding (MOU)
  • Expression of Interest (EOI
  • Lease Deed

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, the documents will be provided to the investors by the assigned asset manager if asked for. We would like to maintain transparency with our investors.

Each of the offerings come with a force majeure clause, and in the unlikely case of that event, that corresponding clause will come into the picture. Please make sure that all the terms are read properly before the investment.

The tenant will be responsible for all the maintenance, repairs, wear and tear, and general upkeep for all the interiors of the property. The owner will be expected to contribute to any larger external repairs which are relatively rare. Any external repairs such as its exterior walls, doors, windows, the roof, corridor shall be the responsibility of the owner.

Cashflow

Accordion Sample DescriptionWe typically scout for properties with good fundamentals and arrange back-back lease agreements with high-quality tenants having a sound business model, or invest into fully developed properties with an existing tenant and a high probability of renting it out to others at the end of the lease period easily. By proper assessment of property and tenant, we are able to arrange leases giving good rental yields to investors. All tenancy/ lease agreements will be between investors and tenants, with Assetmonk playing the role of a facilitator.

Every product has a different set of returns. Typically, you would receive your rentals on every quarterly basis. 8% is the initial rental return for the property. There is an escalation of 15% on the return every 3 years. i.e. after 3 years returns will be 9.2% (15% appreciation of 8% is 1.2%).

TDS of 10% will be deducted as per the government norms. For every quarter payouts,TDS will be deducted.

Yes you can get the TDS refund provide

  1. IT returns are filed promptly with the governmen
  2. Income for the year is below the prescribed non-taxable amount

8% of the investment amount will be paid by the developer quarterly i.e. in 4 installments of 2 % each quarter as a rental

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