Sobha Valley View,

Near Banashankari,

South West Bangalore

Researchers:

Sriram R

Guruprasad Bangle

Detailed Pre-Launch Analysis Report

by Properji

16th November 2013

Investor Summary Sheet

Details

Project Sobha Valley View

Builder Sobha Developers

Location

Near Banashankari

behind PESIT, Bangalore

South West Land Holding

100% owned by

Sobha

Complex Type Apartments

Units 2 and 3 bedrooms

Total Area 15 Acres

Number of Units 700+

Water Bore well + BWSSB

Power BESCOM with

backup generators

Amenities Swimming pool, clubhouse, grocery store, badminton courts, gym

Open Space 60%

Carpet Area 75%

Project Status Pre-Launch

Approval Status BDA, BBMP

approved

Expected Launch December 2013

Project Start January 2014

Estimated

Completion December 2017 Construction

Status

Model Apartment

under construction

Expected Pre-

Launch Price Rs. 5000-5500/sqft

Total Price Rs. 75 L to 1.3 Cr

Booking amount Rs. 5 Lakh cheque

submission Unit Allocation On a first come first

serve basis

Properji View

1. Location

Upcoming

Developing

Well Developed 2. Builder

New in market

With good repute

Among Top 5

builders

3. Project

Value Homes

Mid Segment

Luxury

3. Construction

Quality

Low

Standard

High

4. Legal Risk

Pending cases

Litigation expected

Clear titles, approvals

received

5. Completion

expectation

Long delays

Some delays

On time

6. Appreciation

Low

Medium

High

7. Four year

Target Price Rs. 7250 /sqft

8. Rental Income

Low

Medium

High

8. Market

liquidity

Low

Medium

High

Location Banashankari, which derives its name from the temple of Goddess Banashankari is an

upcoming area towards the South and South West Bangalore. It provides a link between

the old Bangalore areas such as Jayanagar, JP nagar, Basavanagudi and the new areas

of Bangalore such as Uttarahalli, Rajarajeshwari Nagar and Kengeri Satellite Town. It’s

well connected through the Outer Ring Road, NICE Road (PESIT College Exit) and also

through the Metro

Location Highlights

The project as such is located strategically as it is very close to the NICE Road-

PESIT exit and the Bangalore-Mysore Highway

The metro station at Nayandahalli junction is about 1.5km away and the

Banashankari station is about 6 kms

The Kengeri railway station is about 5 kms from the project site and a drive to

the Bangalore International Airport takes about 1.5 hours

Very close to all educational institutions such as PESIT, RNSIT, RV College of

Engineering, Jain College, Mount Carmel English School, New Horizon, Baldwin

school and Bangalore University

Malls such as Gopalan mall, Big Bazaar and many other Factory seconds outlets

on Kathriguppe are very good shopping centres

Location is easily accessible from IT parks such as Global Village Tech Park,

Kalyani Magnum Tech Park and other IT companies such as Mascon, Mindtree,

IBM, Oracle, Accenture and Honeywell

Easily accessible from Bidadi industrial area which houses companies such as

Toyota, Featherlite, Hindustan Coca Cola etc

Very Close to Hospitals such as Manipal Super specialty hospital and BGS Global

Hospital

Water supply will be through BWSSB. However, being close to a lake and low-

lying site ground water should be easily available. Ground water pollution is a

issue

One potential negative point is a large BWSSB sewage treatment plant, which is

800 meters away from the project site. We couldn’t source any known report of

ground water contamination due to this plant. Also the plant is far enough for

any foul smell to travel till this site.

Road Expansion Plans from Hosur Road to Mysore Road

According to CDP, the road from Hosur Road starting from the Central Silk Board until

the Mysore Road end at Nayandahalli has been earmarked for conversion to signal free

corridors. This will help in easing the pressure on some areas such as the Devegowda

Petrol Bunk, Kamakhya Theatre signal and the Dayananda Sagar signal and help in

faster traffic movement.

About Builder

Sobha is a very well known builder in Bangalore being in the construction business for

over 18 years. They started with small apartment complexes and over the years built a

strong reputation for themselves for quality. They went public through an IPO in 2006.

Since then they have been land aggregating in Bangalore.

Being a publicly listed company we can gauge their strength by looking at their stock

performance.

Graph Credit: Moneycontrol.com

From the above graph we can see from past 5 years they have greatly out performed

compared to the BSE Realty index.

Sobha is one of the few builders that have adopted backward integration into building

materials to provide quality and timeliness of project completion. This definitely sets

them apart.

The Project

Sobha is targeting the middle and upper-middle class community for this

project. The locality is ideal for this profile. The focus is likely to be utility and

providing value for money as opposed to high-end luxury. However, the builder is

committed to stick to the quality specification like all their other projects.

Re-sale is easy for this kind of projects because of the large number on the

demand side and relatively lower price. The project has roads on 3 of the 4

sides; hence more number of apartments will receive good light and air.

Most amenities including grocery store will be inside the community for day-to-day

needs. In many of Sobha’s big projects they provide water purification plants and

recycling systems. It’s to be seen if a similar facility will be provided here.

The project is approved by BDA and BBMP and the water supply will be predominantly

by BWSSB. The land parcel is fully owned by Sobha with clear titles.

Price Point Analysis

In this section we’ll discuss current price in Bangalore South and West, more specifically

among top-builders. Based on data we will arrive a good price point for this project.

Developers Name of

Project

Location Launch

Date

Possession

Date

Total

Units

Land

Area

Price/sqft

Nitesh Caesars

Palace

Kanakpura

Road

Aug

2010

Dec 2014 516 4.92

acres

4,625

Brigade Brigade

Omega

Kanakpura

Road

Jun

2011

Dec 2016 520 NA 4,740

Sobha Forest

View

Kanakpura

Road

Jun

2011

Dec 2016 889 13.5

acres

4,870

Mantri Mantri

Serenity

Kanakpura

Road

Apr

2011

Oct 2016 2,500 19.6

acres

4,990

Nitesh Nitesh

Hyde

Park

Bannerghatta

Road

Jun

2011

Dec 2014 507 5.17

acres

5,000

Mantri Mantri

Pinnacle

Bannerghatta

Road

Dec

2010

Mar 2014 133 NA 7,990

Prestige Brooklyn

Heights

Banashankari Mar

2013

Sep 2016 94 NA 8,000

Tata

Housing

The

Promont

Banashankari Jul

2011

Jul 2016 320 14

acres

9950

Salarpuria Melody Nagarbhavi Dec

2010

Dec 2013 308 3.3 4750

Mantri Mantri

Alpyne

Uttarahalli Apr

2011

Dec 2014 1,144 10

acres

4,190

Adarsh Premia Banashankari Aug

2013

Dec 2016 330 8300

Looking at the projects of comparable builders within South and South West Bangalore

we see the price varies drastically. The lowest price point is Rs. 4190 of Mantri Alpyne.

However, this project is 6 km away from Sobha Valley View site and doesn’t have the

easy accessibility to well developed area like Banashankari and JP Nagar.

The closest project is Tata Housing’s The Promont, which is located just 1 km away. It’s

marketed as a high segment luxury project at Rs. 9950. Adarsh Premia, which is 5 km

away from this project on Outer Ring road near Devagowda pertrol bunk, is priced at Rs.

8300/sqft. Another completed project nearby is Prestige South Ridge, which is currently

selling at Rs. 6500/sqft on re-sale.

Other good comparison is Salarpuria Melody in Nagarbhavi priced at Rs. 4750. Quality

and specification wise we expect Sobha Valley View to be a notch better than Salarpuria

Melody. Hence, we expect the price definitely to be above Rs. 4750. Among residential

projects Sobha also commands a higher brand value than Salarpuria Sattva Group in

Bangalore.

Being a mid-segment project adding a 15% premium over Salarpuria Melody at price of

Rs. 5460 is a good buy for this project.

On completion the price should at least similar Prestige South Ridge at Rs. 6500/sqft.

That is a minimum 20% appreciation. Taking into account inflation, availability of land

parcel in the region and demand. A price between Rs 7000 to Rs. 7500/sqft can be

expected.

About Us

Properji is combined effort of Ivy League and IIM professionals to inject trust,

transparency and total professionalism in property transactions in India

Our Value Proposition

Trustworthy, objective and professional advisors who:

- Religiously safeguard the interest of the buyer

- Provide unbiased fact-based investment advice

- Guarantee protection against fraud, price decline and illiquidity

- Handhold client from identifying the property to final closing and beyond

Visit us at

www.properji.com/sobha-valley-view for updates on Sobha valley view project

Our website – www.properji.com

Disclaimer

Properji tries its best to ensure clients are provided fact-based research to make an informed decision.

However, investment choices vary across investors subject to their specific needs. Hence, we recommend

investor to not to solely rely upon this report or other such reports provided by Properji. This report contains

information available to the public and has been relied upon by Properji on the basis that it is accurate and

complete. Properji accepts no responsibility if this should prove not to be the case. No warranty or

representation, express or implied, is made to the accuracy or completeness of the information contained

herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions,

withdrawal without notice, and to any special listing conditions imposed by our principals.