THIS IS IT. - MagicBricks · THIS IS IT. THE STARTUP CITY OF THE FUTURE IN BANGALORE Information Memorandum August, 2016. Emprasa Startup City - India’a ﬁrst startup ecosys-tem

THIS IS IT.THE STARTUP CITY OF THE FUTURE IN BANGALORE

Information MemorandumAugust, 2016

Emprasa Startup City - India’a first startup ecosys-tem dedicated to the flourishing startup economy.

Spread across 52 acres, the community is Bangalore’s first Digital City.

Emprasa Startup City will provide 25,000 Working & Living spaces.

Tomorrow will be better than today

INFORMATION MEMORANDUMSTRICTLY PRIVATE & CONFIDENTIALFor discussion purposes ONLY and not for circulation

INDEX

1. Executive Summary ..............................................01

2. The Case Study ....................................................02

3. Startup City Drivers ..............................................03

4. The Features ........................................................04

5. The Team .............................................................06

6. India Story ............................................................07

7. Industries in India .................................................08

8. Housing in India ....................................................09

9. Booming Bangalore .........................................10

10. Neo Bangalore ..............................................11

11. The Startup City ............................................12

12. The Route Map..............................................13

13. The Company................................................14


"Small Is Beautiful" a phrase popularized by British economist E F Schimacher is often used to champion small, appropriate sizes that are believed to empower people more, in contrast with

phrases such as "bigger is better".

ConceptAwarded “Most Innovative Project of the year”, “Most Innovative Marketing Concept of the year” & “Smartest Startup City of the Year”, Emprasa is the catalyst of growth & expansion for the companies of tomorrow in Bangalore and India. It is a place where the passionate minds juggle together to make the world a better place to work & live in, using technology and innovation.

It is the destination for startups with living and working spaces, designed and well appointed to suit the requirements of Innovators, Incubators, VCs, Business Angels and R&D centres.

Emprasa Startup City will provide Infrastructure-as-a-Service (IaaS), by setting up a 300,000 sq ft fully fledged Knowledge Park dedicated to International Universities by offering all common amenities & infrastructure required to run a university including large campus & living spaces

This Startup City is not only for startups but also large MNCs who want to set up their R&D and incubation units.

Emprasa Startup City is a high-tech integrated township dedicated to incubate & facilitate the startup ecosystem in Bangalore along with setting up a fully fledged Knowledge park.

• Collapsing basic infrastructure

• Narrow & un-motorable roads

• Worsening traffic congestion

• Impractical for economies of scale

Office space demand to stay high in 2016 at around 10 Mn sq ft, supply pegged at 8.5 Mn sq ft (JLL study, Source: Bangalore Mirror)

315 Mn student population in India; out of which 40 Mn are persuing higher education, are in need of 1,000 Universities and 45,000 Colleges with in the next decade.

The arduous Bangalore, as it is today

The Perfect WorkingSpace for Startups

Talk to the local startup community and ask what theywant

Find the best location for a working space in town

But also offer quiet spaces where tiredentrepreneurs canlake a nap and shower

Offer social activitieslike after-work drinks,pitches, mentoringor hackathons

Who dosen’t like agarden or at leastsome plants?

How about sharedkichens orcatering?

Provide comfortable chairs, size-adjustabledesks, group work as well as single workstations

High-Spead Wifi is a must & offer wireless printing stations

Offer flexible short term lease contracts with a fair, all inclusive price

The Idea of Working

CommunityShared

Infrastructure

Improvedwork-life andperformance

Flexible Working spaces for startupsBuilding the startup community


EXECUTIVE SUMMARY

01

0

1000

2000

3000

4000

5000

6000

7000

Rate / sq ft in 2004

2 Bed

3 Bed

4 Bed

Penthouse

Rate / sq ft in 2015

Rate

/ sq

ft

Capital Appreciation chart

-

5.0

10.0

15.0

20.0

25.0

2010

2BHK

3BHK

4BHK

Penthouse

2011 2012 2013 2014 2015

Rent

al R

ate

/ sq ft

Rental Appreciation chart

Type Avg area (sq ft)

Rate/sq ft in 2004

Rate/sq ft in 2015

Capital Appreciation

Rent per month

Rental Yield

2 BED3 BED4 BED

Penthouse

1,2002,0003,0004,000

1,8001,8001,8002,600

7,500 317% 30,000 17%6,500 261% 40,000 13%6,000 233% 50,000 11%5,500 112% 60,000 7%

Prestige Shantiniketan: A Case Study

THE CASE STUDY

• Emprasa has cracked the code on the appropriate size

• The Startup City comes with beautifully crafted optimally sized homes that fits the budget

• The appropriate size enables better capital appreciation & superior rental yields

• The theory to optimal size stems from the fact that India is a country with a billion aspiring middle class which leads to more demand for products that are appropriate sized & priced

• Two bed homes for Rs.18.95 attracts more home buyers & equally more tenants thus resulting in better growth & yields


THE CASE STUDY

Create playful and interactive public spaces

Build a globally connected community

The Sweet Spot: Cracking The Code

02


STARTUP CITY DRIVERS

Achieve behaviour change

Manage assets better and

Create new urban services

Drive creativity and collaboration

CO-WORKING SPACES

Design intelligent buildings

Create playful and interactive public spaces

Drive productivity and business performance

Build a globally connected community

EMPRASA STARTUP CITY

Create playful and interactive public

INTELLIGENT HOMESEmpower households with home automation systems centrally or remotely to control energy consumption. Web portals and in-home displays allow consumers to proactively monitor their energy consumption.

DEMAND RESPONSEManagement systems in homes , of-

users to monitor and optimise their energy use

INTELLIGENT OFFICESAdjust cooling and lighting de-pending on real-time cost and needs.

INTELLIGENT ENERGY STORAGE

INTELLIGENT GENERATION Can reduce overall demand on the power grid by mak-ing use of intermittent energy sources eg. solar panels to support the local grid with green energy

INTELLIGENT ELECTRIC VEHICLESCan be recharged from green sources or when energy

zero-tail-pipe-emissions.

INTELLIGENT COMMUNICATIONSUse wireless technologies and powerlines for real-time interactions

SMART METERSRelay energy usage and pricing information between consumers and electricity providers.

SMART ELECTRICITY GRID

SMART DATA GRID

03


THE FEATURES

• Access to Incubators & Accelerators

• Market survey & Assistance

• Hosting & Cloud services

• Working capital & Bridge loans

• Angel funding & Syndicating loans

• Business planning and training

• Assistance in obtaining Statutory approvals

• Legal and IPR services

• Library and Information centre

• Infrastructure-as-a-Service (IaaS)

AdvantagesEmprasa Startup City is the destination environment for everyone who wants to set up a startup and accelerate their business. • Live and work in a healthy and self fulfilling area

• Increase productivity with zero travel time

• Monitor progress effectively

• Work with best minds

Emprasa being the first of its kind in India, is creating indoor and outdoor spatial experiences that will foster exchange of ideas and creative proximity required for innovation. Emprasa Startup City is a place where the smartest human minds foster innovation through state-of-the-art facilities fuelled by world class infrastructural support.

Land

Project Overview

Location

Type

Units

Project Value

52 Acres

Hoskote (Neo Bangalore)

Mixed Use Development

25,000

` 2000Cr; US $ 300 Mn

Units:

Auditorium

Night Clubs

Secured Campus

Sports Facilities

Internet Ready

Smart Transport

Multiplex

Library & Computer Lab

Music Hall

Restaurants & Pubs

Spa, Gym & Pool Convention & Training Center

Banqueting & Expo

Opportunity - Knowledge Park• Indian student population is a gigantic 315 Mn - World’s largest student body

• 150 Mn population in the age group of 18-23 years

• Estimated 40 Mn students pursuing higher education

• Need to open 1,000 universities & 45,000 colleges in the next decade

• Massive impact of an overseas degree - a grand dream of the Indian Students to get a global degree

• 14% of students in US Universities are from India

• 26 million enrolled (compared with 19 M in US and 29 M in China)

• 18% of the eligible population is enrolled in higher education (compared with 95% in the US, 40% in the UK, and 26% in China)

04

Why Partner with us?

Specializations - Knowledge Park

• Award Winning Project

• Conscious urban planning with a fullfilling lifestyle

• Extraordinary convenience in living spaces

• Flexi work spaces for enhanced collaboration

• Work & Live in the same campus there by reducing operating costs

• In-campus Knowledge Park

• First phase of living spaces sold out in record breaking time


“Knowledge is power, community is strength andpositive attitude is everything.” - Lance Armstrong

• Global reach – Indian students prefer US, UK, Australia, Canada

• Understanding this potential, Foreign universities are actively looking to enroll Indian students

• Setting up facilities in India will enable Universities to focus on this largely untapped market that has tremendous opportunities

• British Council research forecasts that India will have the largest student population by 2025. The research shows that India will have the largest 18 to 22 year old population in 10 years – 119 million. The report adds that the trend of the US and the UK facing decreases in their global market share of interna-tional students “looks set to continue” as the provision of education in traditional origin countries expands (Source:https://www.timeshighereducation.com/news/india-will-have-the-largest-student- population-by- 2025-study- predicts)

Liberal Arts, Literature & Humanities

Entrepreneurship Economics & Business Music Journalism

Hospitality Creative Computing Digital Marketing Applications Development Visual CommunicationMedia & Film

Law Logistics & Supply chain Management

Fashion & Design Technology

05

Partners


THE TEAM

Suresh RangarajanManaging Director

Suresh Rangarajan has been a passionate & intense start-up professional. One of the early adopters to the internet world, he was part of the founding team of Citi-Times JV TimesofMoney.com. Under his enterprising leadership, remit2india went on to become World's No.1 Online Money Transfer portal & one of the most successful internet businesses in India. Under his leadership, he steered Artha Group to become a leading real estate company in Bangalore. With innovative products & concepts, he established Artha as a “Power Brand” in the industry. Prior to coming into the internet world, he was at Citibank for a decade working across risk management, product & business development functions. SRK was conferred with prestigious Udyog Rattan award in recognition for his strategic & innovative thinking & success in incubating new age businesses. WCRC and Ernst & Young also awarded him as “Trend Setter in Real Estate” in 2014.

Venkatesh VPresident

Venkatesh is responsible for the day-to-day functioning of the business. He is a strong process oriented professional and has in depth project management experience. Prior to joining the founding team of Artha, he worked with ICICI Bank for several years.

R ChandrasekharChief Operating Officer

Chandrasekhar is a hard core real estate sales & marketing professional with decades of experience in selling properties in Bangalore & Chennai markets. As COO, he is responsible for sales, marketing & CRM functions.

06

• Young Indian – ‘’the emerging middle class” shall be a billion strong by 2034 – (having rising aspirations)

• 65% of Indian population is younger than 35

• Huge opportunity to drive economic growth on the back of rising working-age population

• Working age population to cross 1Bn mark by 2030

Working-age population (15-64 years)

1,200

1950

China

Brazil

India United States

South Korea Forecast

1960 1970 1980 1990 2000 2010 2020 2030

1,000

800

600

400

200

0

C

C

B

I

I

US

US

FSK

B

S

The national ambition

$10.4 trillion

$5.6 trillion

The winning leapBasline2014 2034

$1.9 trillion

Building a $10 trillion economy

If India continues on its present growth course, it could havea US $5.6 trillion economy in 20 years. To create a US $10 trillioneconomy, India will need to accelerate its growth to 9% CAGRover the next 20 years

Real GDP (US$, 2010 prices)

• In its seventh decade of Independence, India stands on the cusp of major change & unprecedented economic growth

• Over the past 2 decades, India’s GDP has risen by more than US$ 1 Tn

• At 9% p.a GDP growth, India to become a US$ 10 Tn economy over the next 2 decades

• India shall create 10-12 Mn jobs every year

• Per capita income set to rise from US$ 1,500 to US$ 7,000 p.a & shall boost quality of life for the 1.25 Bn citizens


INDIA STORY

The Economic Story

Booming India

The Young India

07

“We should dream of a Digital India & transform the country intoa digitally empowered society and knowledge economy.”– Narendra Modi

• The 7 Mn internet users in 2001 has grown to 200 Mn

• India to have > 500 Mn internet users - next 4 years will see additional 350 Mn

• The internet sector to contribute US$ 200 Bn (Source: BCG)

• India to invest Rs 1,200 Bn for Digital India program

• Nearly 100 Mn jobs to be created as part of Digital India

2018

~580

~430

~330~260

~200

600

Internet users (Million)

India Internet Population to Reach Half Billion by 2018

400

200

0

~170

~60

201720162015

Rural Urban Conservative scenarios

20132009

“You see things; and you say ‘Why?’ But I dream things that never were; and I say ‘Why not?’ – George Bernard Shaw

• Indian Diaspora considered one of the most successful entrepreneurial communities in the world

• India has 48 Mn SMEs, the second highest number after China

• SMEs contribute 40% of total exports & employ 40% of India’s work force

• India’s IT exploded from US$ 100 Mn to US$ 86 Bn

• Cost of starting a company averaged US$ 5 Mn in pre-internet era & now it’s under $50,000, attracting more people to start companies


INDUSTRIES IN INDIA

The Startup, IT & Innovation Sector

Digital India - Flourishing

08

• Housing shortage of 60 Mn units, India needs to develop 110 Mn housing units by 2022

• Investment of US$ 3.5 Tn required for urban housing and supporting infrastructure

• 70% of housing needs to be concentrated in 9 states

• 85 to 90 % of total investment shall go in affordable urban housing

• 2 lakh hectare of land required to fulfil urban housing needs

• Mix of rental & ownership housing required to address demand - urban rental housing stock is a mere 27% of total housing stock which is low compared to global standards

Opportunity of the vision‘Housing for all by 2022’

1 crore annual urban populationgrowth expected by 2050

USD2 trillion investment ispossibly required to achieve the vision

2 crore houseslying vacant

11 crore houses will likelybe required by 2022

70 per cent of the urban housingneed is in the afforable segment

78 per cent of investment inhousing gets added to the GDP

30 per cent of the housing needis concentrated in just two states

1.7-2.0 lakh hectare land is likelyrequired to meet urban housing need

30-35 per cent of housingcost consist of fees and taxes


HOUSING IN INDIA

Housing for All by 2022

09

BALLOONING MILLIONS

Banglore distChennaiMumbaiHyderabadDelhiKolkata

Population(millions)

9.594.7012.404.0016.804.50

Growthrate(%)

46.687.654.24.520.96-1.74

• Brilliant job opportunities• Booming IT & Startup sector• Affordable real estate prices• Soothing climate• Fantastic schooling facilities• True cosmopolitan nature• Langauage agnostic

Why are the people heading for Bangalore?• Bangalore - India’s most cosmopolitan city

• Only city expected to see growth in new residential sales in 2014

• Home to affordable prices & burgeoning areas of development, with new communities bolstered by urban development

• Demand from the IT/ITeS workforce leding to an upward pressure on rentals & the expectation is that steady growth in the IT industry is expected to boost residential demand

• The ongoing & planned infrastructure projects such as the Metro Rail, Signal Free Outer Ring Road, Peripheral Ring Road & Aero space SEZ will continue to propel the residential investment market in the city

• Reinforcing the city’s status of being one of India’s premier technology centres, Bangalore features at No. 12 in the top 20 technology-rich cities globally

• Infrastructure investments such as Bangalore Metro & a Bus Rapid Transport system on the Outer Ring Road (ORR), together with a rise in foreign direct investment projects, are also contributing to strong economic \ growth, which is expected to reach 8% this year & make Bangalore among the fastest-growing major cities in the world

20

15

10

5

02010 2011 2012 2013

New Supply (In Mln sqft)

New Supply, Absorption And Vacancy Trends

20%

15%

10%

5%

0%2014 2015F 2016F

Absorption(In Mln sqft) Vacancy(In %)

Average Rental And Capital Value Trend

8,000

10,000

12,000

6,000

4,000

2,000

0

70

60

50

40

30

10

20

0

Forecast

2008

2009

2010

2011

2012

2013

2014

2015

2016

Rent

al V

alue

s IN

R Pe

r sq

ft P

er M

onth

Capi

tal V

alue

s IN

R Pe

r sq

ft

• The market has benefitted from both the increased demand from the IT/ITeS sector & the booming Indian e-commerce sector

• The most significant deals in 2014 include the 3.8 Mn sq ft office space taken by e-commerce giant Flipkart, which alone contributed about 25% in the city’s total absorption

• Moreover, existing tenants such as KPMG, IBM, L&T & CapGemini leased large office spaces to accommodate their growing operations

• Private equity players also showed equal interest in this market

• The market witnessed one of the largest JV deals between Black Stone Group & Embassy Group amounting to INR 1,951 crores for Vrindavan

• Year after year, Bangalore has remained very close to the demand-supply equilibrium in commercial real estate Tech Village spread over 106 acres

• An equivalent of 8.4% of current office stock will be built over 2015 & 9.5% in 2016 – adding up to a cumulative total of about 18% over both years


BOOMING BANGALORE

Bangalore

Offices in Bangalore

10

Satellite Township Ring Road (STRR) and Town ring Road (TRR) project

• Taking its cue from Navi Mumbai, NEO Bangalore, also called Hoskote, is set to recreate the success of its inspiration

• A planned township near established industries & with world class connectivity, NEO Bangalore upholds the notion of developing a new Bangalore with a futuristic vision of a metropolis

• A SEZ for Electronics, hardware & IT at Baglur; the Aero IT SEZ under development at Budigere will create employment for 100,000

• Hoskote, which until recently was a small part of the city. Is now being rated as a good area with great potential by developers & investors thanks to aggressive investment plans & developments

• An Auto Hub of 1,500 acres is coming up in Narsapura, near NEO Bangalore

• Logistics parks are coming up in Kambalipura, NEO Bangalore

• Hoskote industrial area houses around 200 industrial units

• Hoskote is home to the manufacturing units of many corporate giants including VOLVO, Bando & Honda

• In total, around 500 Japanese are expected to work in this corridor

• Mahindra & Mahindra Aero space is also in the process of being setup

• An allocation of 200 acres has been made to IT sector on Malur road

• In the last few years, land prices in Hoskote have witnessed tremendous growth, of more than 40 %

• To cater to such a surging industrial congregation, Residential space of more than 400,000 will be required in the next 3 years


NEO BANGALORE

Hoskote

11

• India to build 100 Smart Cities with an investment of Rs 480 Bn over next 5 years

• Promoting mixed l& use in area based development

• Creating walkable localities & reduce congestion & air pollution

• Preserving & developing open spaces

• Promoting a variety of transportation options

• Making governance citizen-friendly & cost effective

• Giving an identity to the city by applying smart solutions to infrastructure & services

Smart Citizen

Smart Energy

SmartHealthcare

Smart Technology

Smart Infrastructure

Smart Mobility

Smart Building

Smart Governanceand Smart Education


THE STARTUP CITY

Mission Transform - Nation

12


THE ROUTE MAP

2

4

43

5

6

7

7

10

8

7

8

7

9

1

1

2

The Innovation Square/Hub - Resource Centre - Collabrative Spaces - Retail area - Energy Index Display - Amphitheatre Residential 8

9

103

4

5

6

7

Star Hotel

Convention Center

Club House

Residential

Urban Residences

Tree -lined Avenue

Sports/Recreation

*Proposed Layout

The Master Plan

13

Knowledge Park


THE COMPANY

The Company

Product DetailsEmprasa offers large floor plates of new age office spaces designed to suit the requirements of a company and their associates.

• 1.5 Mn sq ft of 20,000 office spaces

• 5,000 residential units spread across the project

• 3,00,000 Sq ft Knowledge park

Emprasa Startup City is a award winning project of Hoskote Neo Homes Limit-ed, wholely-owned subsidiary of Artha Real Estate Corporation Limited.

Artha Real Estate Corporation Limited is 100% held by Bennett Property Hold-ings Company Limited.

With over 225 acres of land & Rs. 3,500 crores of projects under development, Artha is South India’s fastest growing real estate company. Artha is synony-mous with building homes and thereby creating wealth for its customers. Artha has quickly changed the face of the realty market and has become a household name in Bangalore and Chennai. It has entrenched itself deeply as a company that provides innovative concepts and imperiously crafted homes across locations and price segments. Artha has won many accolades and has been conferred the Power Brand status by the prestigious Brand Finance Institute, UK.

“Startup India, Standup India” We should dream of a digital India & transform the country into a digitally empowered society & knowledge economy.

14

In the endwe only

REGRETthe chances

we didn’tTAKE.

Get in touch for more details:

[email protected]

Documents

THIS IS IT. - MagicBricks · THIS IS IT. THE STARTUP CITY OF THE FUTURE IN BANGALORE Information Memorandum August, 2016. Emprasa Startup City - India’a ﬁrst startup ecosys-tem