SterlCent | Omaxe Chandni Chowk

Executive Summary

Overview

SterlCent is proud to announce Omaxe Chowk as our Series 1 investment opportunity.

This investment opportunity holds strong real estate fundamentals mainly due to its location. The total capitalization of the current series of funding is Rs. 70,98,200. SterlCent through its SterlCent Commercial Properties Series 1 Private Limited, is looking forward to co-invest in this opportunity and holding the investment for a considerable amount of time to let the capital appreciation math work. The holding period will be a high-ROI generating phase with an ROI of 12%p.a. from the commencement of the life span of the investment.

Nestled in the head of Delhi - Chandni Chowk adjoining Chandni Chowk metro station, the property is the very first flagship commercial development in the last 300 years. The project is spread across 4.5 acres, probably the largest possible development in the quoted location, which makes it even more attractive.

Chandni Chowk is one of India’s oldest and busiest marketplaces, beautifully designed by Jahanara, daughter of Mughal Emperor Shah Jahan in the 17th century. The location has immense business potential, in 2018, the estimated business turnover was more than $400 billion i.e. approximately ₹28 lakh crores, and the same was expected to cross $700 billion (approximately ₹50 lakh crores) by 2020 in the pre-covid situation based on a report by Walmart. Currently, during the pre-covid times, footfall in the surrounding was as high as 6 lakhs including tourists on a daily basis.

Redevelopment

The investment opportunity addresses all major concerns of the largely unorganized marketplace - bringing together the scattered market, providing parking slots for more than 2100 cars and 81 tourist buses, F&B. area of approx. 1.20 lakh sq. ď. with a seating capacity of 1600, bringing the finest of the amenities and features namely, 10 passengers, 5 service, and 2 car elevators on each door, dedicated space for loading and unloading, direct entry from Chandni Chowk Metro station on the first floor.

Market Overview

Chandni Chowk experiences a minimum of 600,000 of shoppers footfall apart from which there is a heavy engagement of the people coming to roughly 50,000+ business units. Additionally, the marketplace also caters to the food and shopping needs of the workforce at the metro station.
Based on the report of CBRE, since 2010 the rental yields in the area have gone up from ₹550 to ₹1050 till late 2018. Average asking rents have risen consistently since 2010 and are expected to continue trending upward. The market has a strong demand for mid to high-end, “Class B+” rated tenants.

The SterlCent Story

Commercial real estate has always been a safe horse to bet on. After all, as the demand increases so does their value, and the demand for real estate has always been growing. However, even though the investment opportunity is lucrative, it is difficult to go all-in on commercial properties in an individual capacity. SterlCent aims to create sustainable wealth through strategic and collaborative investment. We aim to help individuals who desire to invest in real estate but lack knowledge of the industry and the ability to invest in an individual capacity.

FAQs

Why to invest in Commercial Real Estate?

Investing in commercial real estate in India can be a lucrative opportunity due to the country's strong economic growth, demographic advantage, growing urbanization, government initiatives to boost infrastructure, attractive rental yields, and increasing transparency in the real estate sector. With a rapidly expanding middle class and a young population, there is a growing demand for commercial real estate in India.

What will commercial real estate investment help me achieve?

1. Potential for income: Commercial real estate can generate income through rental income from tenants or through capital appreciation over time. 2. Diversification: Commercial real estate can diversify your investment portfolio, reducing the risk of being overly reliant on one asset class. 3. Inflation protection: Commercial real estate is considered a tangible asset, which can provide protection against inflation by potentially increasing in value over time. 4. Tax benefits: Investing in commercial real estate can provide tax benefits such as depreciation deductions and deductions for property expenses. 5. Strong demand: There is often a high demand for commercial real estate, particularly in desirable locations, which can result in higher rental income and capital appreciation. 6. Long-term stability: Commercial real estate investments are often long-term investments, providing stability and potentially generating consistent income over time.

Why Omaxe Chandni Chowk?

Lack of Supply: Chandni Chowk has limited supply of well organized, property planned and high quality spaces. Newly redeveloped units are expected to be leased out at an average monthly rent of INR 1370 to INR 1512 per sq ft. As Omaxe Chandni Chowk is a Grade A commercial real estate property, investors can expect higher investment returns compared to the prevailing rates. With its modern facilities, prime location, and high-quality construction, the property is likely to attract a premium from tenants, resulting in potential rental income and capital appreciation for investors.

Where is the property?

The current asset is strategically located on the ground floor of the mall, which traditionally offers the best rental income and capital appreciation potential in commercial real estate. Being at the ground floor of the mall, the property is expected to experience high foot traffic, resulting in higher demand and potentially higher rental income for investors. Additionally, the prime location of the property offers the potential for capital appreciation over time, making it a smart investment choice.

How does this deal works?

SterlCent is allowing users to be a part owner with as low as INR 25,000.00 in the asset which promises a 12% p.a. returns till possession (which is expected to be offered by June 2023) and post which a 9% p.a. returns from the tenant.

Is there a lock-in in the investment?

Yes, there is a lock-in period of 24 months in the current investment at Omaxe Chandni Chowk. Wherein, we have been recommending our user to ideally stay invested for a period of 60 to 84 months to gain the most out of the investment opportunity.

What are the expected capital appreciation?

The strategic location of the asset is expected to result in a significant appreciation of approximately 1.8x to 2.3x in the next 24 to 60 months. The property's prime location, coupled with the high demand for commercial real estate in the area, makes it a promising investment opportunity for those looking for potential capital appreciation over the short to medium-term.

What if the funding is not completed, will I still get my returns?

The funds are invested in real-time as they are received, and hence you get to receive the returns based on the deal term.

How will my investment value grow?

The investment value will grow in two fold manner - first in form of a passive monthly income and second in form of capital appreciation associated to the growth of the real estate.

What is the risk associated with the investment?

The primary risk associated with the current investment opportunity is the risk of vacancy, which could lead to a temporary pause in monthly rental income. However, this risk has been mitigated through agreements between SterlCent and Omaxe. Omaxe has committed to managing the leasing of the property for another 25 years, reducing the risk of vacancy and ensuring a steady stream of rental income for investors. This agreement provides investors with added security and peace of mind, making the investment opportunity even more attractive.

Is the investment tax-free?

No, the returns on investment are taxable in accordance to the usual tax norms of the country. SterlCent shall provide assistance to its users to file proper tax returns.

Executive Summary

Overview

Redevelopment

Market Overview

The SterlCent Story

Documents

Company Details

FAQs

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