PCC SERIES 2 – Chennai, IN

Residential / Co-Living  CLOSED
75%
5 Crores75% Funded

PCC SERIES 2 – Chennai, IN

Residential / Co-Living  CLOSED
5 Crores75% 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 infrastructure and entertainment centers are also within close proximity to the township.

Highlights

  • PBEL City is in close proximity to the IT corridor, which will make travel easier.
  • A lot of open spaces and parks along with a fully equipped sports arena.
  • Provided with all the amenities and facilities required for a comfortable life.
  • Earthquake resistant property.
  • Ample vehicle parking space.

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 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. A new bus terminus being constructed in Vandalur will make it only 20 minutes to reach the property 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 & Commercial

  • 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 analyzing 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 factors 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 a couple of Israeli firms, and had undergone thorough due diligence already. Also, the project is approved by various financial institutions like SBI 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 the product. Also, the developer has initially tied up with 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 concern for investors about any 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 homeowner.

Investment Risk:

The product involves a trustee who ensures that the payment of interest is made on time to the investors. This ensures timely interest payments to the investors. As per the terms mentioned the tenant has a lock-in period ensuring the cash flow in the beginning years. The term of investment is 10 years initially and can be extended up to 30 years. The product is offered at a discount compared to the current market rate.

Overview

The 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 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 the case of Fixed, Savings, and our investment product. In all other products, the principle is not guaranteed. The risk appetite while calculating the benefits of a particular investment should be blanced.

Property

pcc-series2-yield-properties

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

The developer shall find a tenant for the entire or a part of the tower. The owner shall lease out a unit for the tenant. The lease can be for residential or coliving or mixed-purpose

We take our investor privacy very seriously and cannot share their contact. You can visit our testimonials section, to understand their experience in a nutshell

From a sale of asset perspective, some offerings come along with minor lock-in periods, and the others are plain products. Also, assets with Long term lease option, requires that the new buyer also enters the lease contract till the term is completed. Apart from these considerations, you are free to exit at any time, through transfer to anyone. You can also approach your asset manager.

Investment

Yes you will be signing

  1. Memorandum of Understanding (MOU)
  2. Expression of Interest (EOI)
  3. Lease Deed

The investment tranches vary from one offering to the other. Some offerings have an option of blocking the inventory with a booking amount (partly refundable as per the terms of that offering), with full tranche payable in 2-4 week. Investment amount will include purchase price for the unit, cost of one covered parking, charges for amenities, charges for electricity and water connections.

We conduct due diligence on the tenant with regard to their prior experience and various factors like financial history before getting into an agreement to ensure our investor’s safety.

The holding period for Yield products is typically 6 years. During the course of the investment, investors get to enjoy rental yield along with additional benefits if applicable. The holding period usually changes from product to product

The maximum tenure as such is not fixed and varies from property to property. The tenure and all important details will be thoroughly conveyed to the investor prior to the investment.

Cashflow

It depends on the type of the product you have chosen to invest. Offerings where the developer offered to bear the construction risk as a part of the returns shared, the periodic returns will not be affected.

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.

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.

The returns vary from product to product. Typically we try to achieve an IRR above 18%

The minimum investment you can invest here is 25 lakhs.

  1. The returns vary from product to product. Typically we try to achieve an IRR above 18%.
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