INTEGRATED TOWNSHIPSA DEVELOPMENT PERSPECTIVE

Project ConceptualizationWhy?How?What?The First step

TOWNSHIP DEVELOPMENT:TRACING THE PATHPATRON DRIVEN- Princely StatesKEY PARAMETERS:Dominance of landmark building- palace, religious precinctIMPACTFlamboyance in select structuresMuted City form spreads around

TOWNSHIP DEVELOPMENT:TRACING THE PATHSTATE AS PROTAGONIST: SOCIALISTIC MODELKEY PARAMETERS:Public money- economy in designUtilitarian model- equitable distribution of land and resourcesIMPACT:City design as infill into overall planning scheme

TOWNSHIP DEVELOPMENT:TRACING THE PATHSTATE AS FACILITATOR: PRIVATE PARTICIPATIONKEY PARAMETERS:Increased Fund availabilityProfit to developer pre-requisite to project developmentIMPACTLarge quantum- reduced development time Enhanced Urban character

Broad Study MethodologyProject Scoping and DefinitionTownship as Economy Driver evolving as Self Sustainable Integrated ProjectTownship as Reservoir for residential demand feeding into the region

Greenfield Planned developments driver based development

Name of developmentDeveloperArea (acres)StatusNavi MumbaiCIDCO47,060 Development started in 1970s. 10% population increase in 1991 census. Final target population of 2 million.14 nodal towns of approx. 3500 acres each. Greater NOIDAGNIDA49,400.0 Development started in 1991. With 1.2 million target population, the development is under construction with 19% Industrial, 25% residential.New Town - KolkataHIDCO9,334.1 With around 1.0 million target population, being developed as satellite township of Kolkata with IT as main driver.Knowledge City - IT & Bio-techBangalore-Mysore corridor BMRDA9,000.0 Planning stageDLF City, GurgaonDLF3,000.0An integrated township in Gurgaon, with significant Retail, Residential and Commercial uses. Progressing since 1981 to 2005

Identification of Demand DriverEdu-CityMedi-City Knowledge CityMedia CityOther Industrial

Study the real-estate growth trends of the cityt Secondary SurveyPrimary Survey Study of the socio-economic profile of the site vicinityStudy of the primary catchment area study the micro real-estate trends of the vicinity and identification of development options

ObjectiveBest-use option study for the land parcelDerivation of preferred product mixAchievable PricingCompetitive BenchmarkingSalient RecommendationDemand Assessment: Analysis of Primary and Secondary SurveySCOT Analysis of the siteTypical MethodologyRegional supply dynamicsResidentialCommercialIT / ITeSRetailHospitalityDemand Supply GapHOMEDESIGN BRIEF MASTER PLANNING

KolkataMicro CatchmentDurgapur ExpresswayNH 34NH 35NH 6NH 2ExtendedCatchmentEast & North--east IndiaPan-IndiaNeighbouring countriesOverseasDemand Assessment: Identification of Target UserWho is the User?Socio-economic groupFrom where will they come?What preferences do they have?

Suburban Sprawl in Developing Countries- Housing precedes infrastructure

Suburban Sprawl in Developed Countries- infrastructure laid out with housing filling into the preplanned pattern

The nature of development in green field sites at the periphery

What competition is there in this sector?What formats have been built?What quantum and typology is being supplied?What is the user response to these formats?What are the selling prices?Analysis of Issues Present scenario:FormatsMajor playersDemand - supply dynamics: Is there un-met demand?Supply Mapping: Mapping of Competition

Organised supply at a disconnect from existing micro catchment characteristics

Quality of open space a function of paying capacity- variations in typologies

What is the best product for a site? The Decision Making Process:Matching Demand with Site Potential

Off site facilitiesOn site facilities

-Location-Accessibility-Natural Resources-Surrounding Land Use-Physical Infrastructure-

Site Potential: macro level

Broad phasing of development:Time frame and sequence of (i) Phasing of Construction(ii) Phasing of SalesPhase 1Phase 2Phase 3

Site Potential: micro level

WEIGHING OPTIONS.HOME

Residential (in acres)Commercial (in acres)Option I (as provided)3020Option II27 (Min)23 (Max)Option III33(Max)17 (Min)

Option I as provided)Option IIOption IIIResidential30 Acres27 Acres (Min)33 Acres (Max)Commercial(Predominantly IT & ITES business) :20 Acres23 Acres (Max)17 Acres (Min)Ground Coverage35%35%35%40%40%40%FAR2.02.02.02.252.252.25BUA2,613,600 sft2,352,240 sft2,962,080 sft1,960,200 sft2,254,230 sft1,568,160 sftTBUA4,573,800 sft4,606,470 sft4,530,240 sft

Suggested Product MixHOME

UsageLand area in acresFARBUA in sftResidential34.02.029.6 LakhsCommercial Offices 12.5 13.02.2512.5 to 13.0 lakhsRetail0.52.2550,0004 star Hotel2.0 2.52.252.0 to 2.5 lakhsBusiness Centres0.32.2530,000

In the subject development with 34 acres of land under residential use, around 2000 dwelling units could be built.Product Mix: ResidentialHOME

Target SectorUnitAvg. Unit size%age Break-upTotal no. of unitsUHIGPenthouse32005% 84UHIGPremium 4 BHK250010% 167 UHIGPremium 3 BHK180015% 251 HIG4 BHK220010% 167 HIG3 BHK160030% 502 UMIG2 BHK130030% 502

4 star hotel with 150 200 room no.sWith average room size (with areas of other facilities loaded) assumed to be 1250 sft TBUA required would be 1.9 to 2.5 lakhs sft.Land area of 1.9 to 2.5 acres is required for this component.30,000 sft of Business Centres with land area of 0.3 acres 12.5 acres to 13 acres for commercial offices. Major Occupants non-IT companies, IT / ITeS end-users, R & D centres, Training centres, etc.

Product MixHospitalityCommercialHOMERetailBUA of 50,000 sft maximum can be allotted, which will require 0.5 acre.Departmental store / Hyper-mart format with some food-court for the commercial offices are recommended

The premium residential products, which are around 500 in no. is expected to be booked within 1 year from the launch date assuming that to be in 3 / 4 Q 2008. The other residential products are expected to be completely booked within 1.5 years.Pricing & PhasingResidential PricingResidential PhasingHOME

Target SectorUnitAvg. Unit sizeTotal no. of unitsPricing (INR/sft)Product Price (INR Lacs)UHIGPenthouse3200843500112.00UHIGPremium 4 BHK2500167325081.25UHIGPremium 3 BHK1800251325058.50HIG4 BHK2200167285062.70HIG3 BHK1600502285045.60UMIG2 BHK1300502285037.05

What are the typologies in the Product Mix?Row Housing in Gated Communities

Apartments in Gated Communities & Plotted Development

Row Housing in Gated Communities

High End Integrated Township

Magarpatta Housing Types

Development pattern and Impact on Quality of Spaces

Sukhobrishti- A MIG-LIG Township

Sukhobrishti- A MIG-LIG Township

MIG High rise towersLIG Walk Up ApartmentsBalancing Technology, Cost and Price

Key TermsNet Present Value (NPV)a method of determining whether expected performance of a proposed investment promises to be adequate.Formula: ( FV/(1+r)n ) I, FV= Future value, I= Investment, r= discount rate, n= time periodExample: A proposed land investment requires Rs. 10,00,000 of cash now, and is expected to be resold for Rs 25,00,000 in 4 years. For the risks involved, the investor seeks a 20% discount rate (same as Compounded Rate Of Return). The Rs 25,00,000 amount to be received in 4 years, when discounted by 20% annually, is worth ___________now. Since the investment costs Rs. 10,00,000, the net present value is _____

Key TermsCapitalization rateA rate of return used to derive the capital value of an income stream . The formula is:Value = annual income/capitalization rate Example: The estimated Net Operating Income of an office building is Rs 120,000 per year. An appraiser decides the appropriate capitalization rate is 12%, comprised of a 10% return on investment and 2% for depreciation . The estimated value of the building is ________________.

Key TermsInternal Rate of Return (IRR) It is the rate of interest that equates the initial investment (I) with the present value (PV) of future cash inflows. The formula is:For I = PV. or NPV (net present value) = 0, the calculated interest rate.Under the internal rate of return method, the decision rule is: accept the project if IRR exceeds the cost of capital

Cost of Capital: minimum desired rate of return, or hurdle rate

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