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SAS iTower 23^rd Floor

Khajaguda, Hyderabad

Project Description

Props{AMC} is offering a rare opportunity to invest in 1,20,000 Sq. Ft. of A+ Grade Office Space situated exactly at Nanakramguda circle, arms away distance from Entry/Exit of ORR. The proposed space spans the entire 23rd floor of an under-constructed Tower A in SAS iTower. It’s a tallest mixed use commercial project located at Nanakramguda, Gachibowli, the nucleus of IT infrastructure in Hyderabad.

Reasons to invest in SAS iTower

Group signed as Development Manager for - SAAS iTower
1.6Mn sqft already sold of the 5Mn Office Block
Most prime location Khajaguda, near Gachibowli, Hyd
85% project completed, no project loans on Developer
WeWork recently signed EOI for 380,000 sqft with this Project
IGBC Green Rating from Godrej & Singapore-Dubai based Architects
5.5Mn+ Grade A development - one of the India's biggest in Hyderabad

Investment Terms

	Upfront	Tranche Wise
Gross Annual Coupon Rate	8%	7.5%
Min. Investment Amount	INR 30,00,000	INR 32,05,500
Payouts	Quarterly	Quarterly
Investment period	6-7 Years	6-7 Years
Target XIRR (Pre – Tax)	13.5%	12.4%
Management Fee	0.5%	0.75%
Performance Fee over hurdle rate of 10% XIRR	20%	20%

*Investor purchasing a minimum of 1,000 sq.ft leasable area can purchase 1 car park for a sum of INR 5 Lakhs

Payment Break Up

Investment - Upfront

Purchase Price	%	INR per Sq.Ft.
Base Price		7,962
Corpus and Development charges	12%	955
GST	6%	478
Stamp Duty + Registration	7.6%	605
Total Cost		10,000
Minimum Built Up Area		300
Total Fraction Value		30,00,000

Investment – Tranchewise Payment

Purchase Price	%	INR per Sq.Ft.
Base Price		8,507
Corpus and Development charges	12%	1021
GST	6%	510
Stamp Duty + Registration	7.6%	605
Total Cost		10,685
Minimum Built Up Area		300
Total Fraction Value		32,05,500

Other Investment Benefits

Flexible Payment

Yes

Loan Available

Yes

Lock In

No

Project Information

Office Space	3.5 msf
Typical Floor Plate	0.12 msf
No. of Floors	6B + GR + 37 Floors
Timelines for Fit outs	January 2023

Developer Overview

SAS Infra is known for creating a revolution in Hyderabad’s real estate market for its innovative designs. It has bought together the experience of multitude of professionals from international arenas and a rock solid local network to create products such as “iTower”. SAS Crown Is A Magnificent Piece Of Contemporary Architecture Laced With Luxury, For People With Lofty Desires To Be At Their Best. Get Ready To Own A Dominion And Rule Your World.

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Frequently asked questions

Fractional Ownership is the owning of a share (Equity Shares and CCDs) of a Special Purpose Vehicle (SPV) or a Company, which owns the property.

One can invest through the SPV in an under construction, ready or rented property which owns the property. The income, expenses and profits from the property are shared by multiple fractional owners managed by the Custodian and the Asset Manager, who runs the SPV on a daily basis for an annual fee.

Any resident or non – resident Indian with an INR denominated bank account with proper KYC can invest in fractional ownership by investing in the SPV (i.e., by owning the Equity Shares and the CCDs of the SPV). NRIs can invest in the SPVs through their NRE / NRO accounts. However, coupon payable and the yields payable and any other amounts payable to the NRIs by the SPVs will have to be paid to the bank account of the NRIs in India and can be repatriated outside of India as per applicable laws.

The minimum investment can vary on the specific investment opportunity and could be INR 30 lacs – INR 50 lacs. In some cases, the investors can have the option to pay the investment amount in traches as well.

The Investors invests directly in a Special Purpose Vehicle (SPV) which owns the property as a shareholder or as a holder of convertible debentures. Investment through a private limited company is a preferred route for investment in our investment opportunities.

The SPV owns the property and appoints the Custodian or a Trustee to hold the title documents and shares certificates or convertible debenture certificates of the Company on behalf of investors. In addition, the Company and the Custodian / Trustee appoints an Asset Manager to run daily operations of the property and the Company/ SPV ("Asset Manager”). The Asset Manager also appoints the law firm, accountants, auditor, valuators, property manager to run the SPV holding the Property. The Investors will have to grant consent for the Custodian to hold the share certificates and debenture certificates of the Investors and this will be recorded in the Share Subscription cum Investor Rights Agreement (“SSIRA”) and the Deed of Adherence to the SSIRA ("Deed of Adherence”).

All income, expenses and profits of the SPV will be shared amongst the shareholders or convertible debenture holders of the SPV, in proportion to their holding in the SPV.

There are various models of the fees in Fractional Ownership. On this platform we charge 1% of Annual Maintenance Cost (AMC) + 3% of Exit Load. No entry loads or share in profits.

Typical cycle of investment in any real estate is 6-8 years to unlock its real value. Fractional Ownership is of no different cycle.

The Asset Manager after a certain point of time (6-8 years), based on the property type (rented/ under construction) decides the best form of exit, which may either be through sale of the SPV to another set of investors or exit through REITs (if rented assets). If it’s an under-construction property, lease of the property to a good tenant and then sale to HNI’s for a yield.

Yes, the SPV generally will provide to the investors quarterly reports or as decided by the SPV from time to time.

Yes, Typically, the SPV distributes the yield or the assured rent as disclosed in the Offer documents. Depending on the SPV’s earnings and expenses from time to time, the SPV will have complete discretion to decide on the rate at which the yield / interest/consideration that will be payable to the Investors as the CCDs holders. The Investors through the definitive agreements, will grant their consent to the SPV to decide on the rate of interest. Further, all the decision in relation to the functioning of the SPV will be taken by the Board of Directors of the SPV in consultation with the Asset Management Company (“AMC”).

Yes, the AMC is free to charge any fees to the Investors and the fees will be deducted from the amounts payable by the SPV to the Investors.

Typically, the Asset Manager doesn’t charge any annual fees if there is no income. However, the Asset Manager shall be entitled to claim the annual fee for the period when there was no income once the SPV starts generating income.

The income generated cannot be considered as Income from house property and is an investment in securities of a Company. Further, the income generated attracts applicable TDS and the gains attracts short term and long-term gains in the hand of the Investors. It is advisable to seek advice from a tax expert or request to the Asset Manager for clarification.

The Asset Level Risks associated with the under-construction Property includes delay in completion of the Project, delay in receipt of Occupation Certificate & Possession, etc. In this case major (approx. 75%) portion of the Project is completed, thereby reducing the time lag for obtaining the Occupation Certificate & Possession.
The Income Risks include non-payment of rent, damage to property or trespassers, or losses due to a pandemic, etc. In this case, the Developer assures a return of 8% per annum paid on a quarterly basis on the amount of the Total Consideration till the receipt of the Occupation Certificate (OC) and the first registered lease. Post receipt of OC the allotted area shall be given out on lease basis by the Developer can generate income to the Allottee.
The Liquidity Risks associated with the Property and the Investment which means for an investor to hold/sell the property with or without profit, is mitigated by the fact that the Property is situated in prominent office locations of Telangana with well-existing communities of residents with health facilities, schools, and amenities in the immediate vicinity, thus, tipping the liquidity risks to a moderate side of the scale.
The Replacement Cost Risks that a property may become functionally or economically obsolete due to the arrival of newer properties is mitigated by the very fact that the Property is located at Nanakramguda, Khajaguda, Gachibowli, a highly sought-after place & at a strategically prime location offering Grade A+ office and is surrounded by elite companies with massive residential developments in the immediate vicinity.
The Structural Risks associated with the Property leading to major repairs due to structural issues including leakages, mechanical, engineering services in the building are mitigated as the Property is a newly constructed Commercial Property and the Developer has ensured that the Construction is of best quality and with high class amenities thus largely reducing the Structural risks associated with the Property.
The Governmental Risks such as the Government demanding a portion of land for the construction of public utility places are mitigated as the Property is located is a Commercial Area that seeks in a lot of Tax for the Government thus the Government will most probably not disturb the Commercial Hub for other purposes which may cause disturbance to the Commercial Properties of the City.

Frequently asked questions

The minimum investment amount for upfront payment option is INR 30,00,000 and INR 32,05,500 for tranche payment option

The gross annual yield / coupon rate for upfront option is 8% whereas 7.5% for tranche option.

The net annual yield / coupon rate for upfront option is 7.26% whereas 6.5% for tranche option. Net annual yield is net of / post property expenses and AMC charges. It is the amount which the investor will actually receive ( pre-tax).

The yield / coupon will be distributed on quarterly basis.

No, there is no lock in period for investors.

As per our forecasted cash flows & seeing the market trends in the commercial market, an investor should typically hold this investment for 6-7 years to maximize the returns. However, it will depend on the Asset Manager who will be actively tracking the investment and then suggest the time of exit depending on the various market trend.

All inclusive per sq. ft. cost is INR 10,000 for upfront payment & INR 10,685 for tranche payment. This includes the unit cost, corpus, GST, Stamp duty & registration charges.

300 sq. ft (Super Built-up Area). Post 300 sq. ft., the investor can invest in multiple of 50 sq. ft. (For example – 300 – 350 – 400 – 450 – 500 sq. ft.)

The AMC charges are 0.5% of the total committed amount per annum for upfront option & 0.75% of the total committed amount for tranche option. GST will be charged on the same.

Investor purchasing a minimum of 1,000 sq. ft. super built up area can purchase 1 car park for an additional sum of INR 5 lacs. Investor will receive 8% gross yield on car parking value as well.

SAS iTower is a mixed used commercial project, proposed to consist of 3 towers viz., Tower A, B & C. It is spread across approx. 11 acres abutting Kjahaguda – Nanakramguda Road at Nanakramguda Circle. Tower A will have commercial office spaces & will consist of 6 basements, ground + 37 floors and will house office space of approx. 3.5 million sq. ft. The typical floor plate is around 1,20,000 sq. ft. Tower B will be built to suit and will consist of 6 basements, ground + 35 floors. It will be approx. 1.2 million sq. ft. The typical floor plate is around 50,000 sq. ft. Tower C will be a mix of retail mall admeasuring approx. 5,00,000 sq. ft. and commercial office space admeasuring approx. 3,00,000. It will consist of 6 basements + ground + 37 floors.

PropsAMC is offering an opportunity to invest in 1,20,000 sq. ft. of A+ grade office space. The proposed space spans the entire 23rd floor in Tower A.

The agreement will be signed between the investor & the developer.

The investor will receive 2 sq. yards (18 sq. ft.) of land area with 300 sq. ft. BUA

Khata is not required for the SAS iTower property. Now it’s only EC i.e. Encumbrance certificate). Earlier it was khata, then Pahanis and now EC.

Tranche payment cannot be delayed – we can put a request to the developer for a delay of 15 days max but will have to pay penalty of 15% per annum.

Yes, there will be a demarcation given to them in the sale agreement.

Yes, the agreement can be registered in joint names. If it is in joint account, then the sale agreement needs to mention the ratio of ownership, then the income can be broken in that ratio.

We have structured the deal with the developer in which the developer has assured gross yield of 8% till our unit is leased and the rent starts. Also, Props{AMC} will be the asset manager for this unit and will manage all the operations, tenant & property related issues. The investor will not have to waste his / her time in managing the property and other tenant related hassles.

Loan can be availed on this investment if the investor is purchasing a minimum of 1,000 sq. ft. The interest rate will be 9.25% - 10% and loan % can maximum be 60% of the total investment based on the individual cibil score.

OC is expected to be received by Q4 2023

It has already been received

Developer will service the yield returns till rental inflow starts.

SAS iTower 23^rd Floor

Project Description

Reasons to invest in SAS iTower

Investment Terms

Payment Break Up

Investment - Upfront

Investment – Tranchewise Payment

Other Investment Benefits

Yes

Yes

No

Project Information

Developer Overview

Location & Connectivity

Contact our Experts

Property Gallery

Real exposure to the real estate market

You Invest. Props{AMC} Does the Rest

Frequently asked questions

Frequently asked questions

Contact our Experts

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Your query has been submitted, our expert will Connect you soon on

SAS iTower 23rd Floor

Project Description

Reasons to invest in SAS iTower

Investment Terms

Payment Break Up

Investment - Upfront

Investment – Tranchewise Payment

Other Investment Benefits

Yes

Yes

No

Project Information

Developer Overview

Location & Connectivity

Contact our Experts

Property Gallery

Real exposure to the real estate market

You Invest. Props{AMC} Does the Rest

Frequently asked questions

What is Fractional Ownership?

What kind of investments does Fractional Ownership cover?

Who is able to invest in Fractional Ownership?

What is the minimum investment in the Fractional Ownership?

How are investments made in the Fractional Ownership?

What is the structure of the Fractional Ownership?

How are earnings, profits & losses allocated in Fractional Ownership?

What are the fees for the Investors in Fractional Ownership?

How long one needs to stay invested in Fractional Ownership?

How do I exit the Fractional Ownership?

Will the SPV provide to the Investors any reports periodically?

Will the SPV have the right to decide the rate at which the interest on the Compulsory Convertible Debentures (CCDs) is to be paid to the Investors?

Will the AMC charge any fees to the Investors?

Will there be any annual fees applicable in case of no income on the investment?

How is the income taxed in the Investors hands?

What are risks and mitigants ?

Frequently asked questions

What is the minimum investment amount required?

What is the gross annual yield / coupon rate?

What is the net annual yield / coupon rate?

How will the yield / coupon be distributed?

Is there any lock in period?

What is the ideal investment period investors should be hold this investment?

What is the per sq. ft cost?

What is the minimum sq. ft. investor have to buy for participating in this opportunity?

How much is the AMC charges?

Can I avail car parking as well?

Tell me more about the property

In which tower & floor will my investment be in?

Between which 2 parties, the agreement will be signed?

How much UDS of land will be given with 300 sq. ft. Built up area?

What will be the khata status of the property?

If there is a delay in tranche payment from the investor side, what are the consequences? Will any payment extension time be granted? What will be the penalty?

Will there be a proper demarcation of space or unit number / nomenclature used in the sale deed to make the area identifiable for the investor?

Can the agreement be registered in joint names?

The Developer is selling at the same price as us, why should the investor invest in our unit?

Can an investor avail loan on this investment?

Till what time the OC is expected to receive?

Whether Fire NOC Received or not?

Who will service the interest till the rental’s inflow start?

Contact our Experts

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SAS iTower 23^rd Floor