Overseas property

MOUNTAIN VIEW
RUDRAPUR INDIA
INDIA
India is the world’s twelfth largest economy at market exchange rates and the third largest economy in purchasing power. Economic reforms have transformed it into the second fastest growing large economy; A pluralistic, multi-lingual, and multiethnic society, India is also home to a diversity of wildlife in a variety of protected habitats.

Over the last ten years India has become one of the world’s greatest economic success stories. The world’s biggest corporations have been investing in India and this is evident from the booming IT sector.

 
WHY INVEST IN INDIA?
It is not only India’s IT industry that is creating the growth. Almost every other sector in India is booming including tourism, telecommunications, pharmaceutical, financial markets and the property market.

India’s property market has been growing rapidly for several years but it is only recently that the laws were changed making it possible for foreign investors to invest in Indian property. Now is the time to invest. Prices are low but rising fast. Merrill Lynch has predicted a 7 fold increase in the property market from 2005 to 2015. This rapid growth is why so many investors currently are investing in Indian real estate. A report by property consultants Jones Lang LaSalle estimates that US$10 billion will be injected into Indian real estate from overseas in the next 12-18 months.

Economic Growth
Years of financial reforms, investment in infrastructure and huge foreign investment have produced economic growth of over 8% for the last ten years. Growth for the fiscal year ended March 2007 was 9.4%. According to Goldman Sachs (Global Economics Paper No. 99) India will sustain over 8% growth until 2020 and become the second largest economy in the world, ahead of the U.S., by 2050.

The question for business leaders the world over is no longer “Should my company go to India?” but rather “Can my company afford NOT to be in India?”

Shri Kamal Nath, Indian Minister of Commerce & Industry, World Economic Forum, Davos 2005.

Huge Demand for Housing
Years of strong economic growth, increased mortgage lending and a growing middle class have fuelled a huge demand   for property in India. The demand for property is so high that the market is struggling to meet supply. Official Indian government figures put the shortfall in the residential sector at approximately 20 million units. This acute shortage is expected to continue due to
• Strong economic growth which will continue into the future.
• Continued development of the mortgage market in India. Mortgage lending has increased ten fold from 2000 to 2005. However the ratio of mortgages to GDP is still very low at 4%.
• India has the largest and fastest growing middle class in the world and is predicted to reach 300 Million by 2010.
• India has an extremely favourable demographic. A staggering 51% of its 1.1 billion people population is under 25. As a result of this, by 2020, 47% of Indians will be between the ages of 15 and 59, compared with the current figure of 35%. The workingage populations of the U.S. and China are projected to shrink. So India is destined to have the world’s largest population of workers and consumers.
• Urbanization is increasing, creating continued demand for housing.
• Indian society is changing and large families living together is becoming less desirable to the young people who now prefer to live on their own.

Big Increase in Foreign Investment
Since policy changes were introduced by the Government in February 2005, allowing easier foreign direct investment, there has been a large amount of foreign investment in Indian real estate. Currently 25 US investment funds are raising US$3.5 billion for investments in Indian realty. Those raising the funds include Wall Street companies such as
the Blackstone Group (US$1 billion), Goldman Sachs (US$1 billion), Citigroup Property Investors (US$ 125 million) and Morgan Stanley (US$70 million).

WHY RUDRAPUR?
Rudrapur - The 2 Billion Dollar Boom Town?
The Background Story
Even in India eyebrows would have been raised a few years back if one were to ask where Rudrapur is. Not anymore. India Inc. has invested $2 billion in Rudrapur, making it the next big address for industry. What Bangalore is to software, Rudrapur is fast becoming to manufacturing. Rudrapur is situated 250km North East of Delhi in Northern India and is serviced by excellent transport links including rail, air (airport is 11km away) and national roads.

This all began when the government decided to attract manufacturers to the area by putting together a special package of fiscal incentives to encourage economic development. Special economic zones (SEZ) were setup by the state organization SIDCUL (State Infrastructure and Industrial Development Corporation of Uttaranchal).
Units located in these special economic zones were offered
1. 100% excise exemption for 10 years.
2. 100% income tax exemption for the first five years and 30% over the following five years.
3. Central sales tax of 1% for five years, and a capital investment subsidy of 15% with a cap of US$73,000.

Other major selling points included.
• Availability of skilled and semi skilled workers.
• Excellent transport links (well connected by rail, air and road).
• Power in this area is the cheapest in India and is very reliable. This is very important for attracting large manufacturing companies to the area. Furthermore only 9% of the hydroelectric power is currently being utilized.
• Companies can expect to save 25% in manufacturing costs by operating in these special economic zones.

Rudrapur - Special Economic Zone
The biggest and most prestigious of these special economic zones is based in an area 1km outside the city of Rudrapur. This huge 4,200 acre site was marketed to top Indian and international companies. 465 large companies have been allocated plots to date. Construction of 388 factories is in progress, with another 77 units having already begun production of goods.

Leading companies that have bought plots include:
Tata: One of India’s largest car manufacturers - an incredible 1000 acre site
Nestle: The world’s largest food and beverage company – 24 acres
Bajaj: One of India’s leading motorbike companies – 60 acres
Jagson Pal: Among India’s premiere pharmaceutical companies – 11 acres
HCL: Leading global Technology and IT enterprises with annual revenues of US$ 4 billion – 9 acres

50,000 people will be employed directly in the industrial estate when it is fully operational by Dec 2008. Another 250,000 will be employed indirectly. This is a total of 300,000 people moving into the area in the next 2 years. However, only 10,000 new homes will be constructed in Rudrapur over the same time period.

Rudrapur Property Market
Rudrapur is booming. There has been a huge amount of investment in this area. Economic growth is very strong and there has been a large influx of people moving into Rudrapur. All signs point to a long and sustained growth.
• Large amount of investment - US$2 billion invested already in the 4,200 acre special economic zone at Rudrapur.
• The industrial estate will generate billions of dollars in goods each year benefiting the local economy.
• The population is growing rapidly. Current population is estimated at 125,000. The vast majority of the 300,000 newly employed people will be from outside Rudrapur and will move into the area.
• Countless auxiliary industries will move into the area to supply the companies based in the industrial estate. Again, Rudrapur’s general population growth will move even higher.
• Rental demand is extremely strong and people are currently commuting from nearby cities 40 or 50kms away.

THE OPPORTUNITY:
Development: Mountain View
Location: Rudrapur, Uttaranchal
Rudrapur, in the state of Uttaranchal offers the best investment opportunities available anywhere in India today.  Our vision for Rudrapur is long term and we have been strategically landbanking in the area for the last two years and have land set aside for residential.

The first project we are bringing to the market is a high end residential project called Mountain View. Finished to the highest standards with marble throughout Mountain View is a 6 acre community set in the beautiful surroundings of the Sub Himalayan Valley. The grounds have been designed by a leading Indian horticulturist with 65% open area and water bodies. Ranging from 3 to 5 storeys high these low rise apartments are serviced 24-7 so that all tenants needs are taken care of.  Mountain View is close to all amenities with a new commercial centre adjacent. There is also a recreation club within the community for residents. Ideally located only 2.4 kms from the Special Economic Zone, on a new 45 meter wide bypass, Mountain View provides the ideal retreat for the plant managers who can get to and from work in approximately 5 minutes.

FLOOR PLAN
Two bed floor plan at Mountain View
• 1060 sq ft.
• 2 bedroom - 2 balcony - 2 ensuite.
• Unique design means that each apartment only shares one boundary wall with neighbouring apartment.
• Excellent ventilation and lighting throughout.

PAYMENT OPTIONS & PRICING
The Offering
In order to let everyone experience the growth that is happening in Indian real estate we have structured a product that we believe will cater to everyone.

The 3 Different Payment Options
Option 1
25% on signing of agreement to purchase
40% in 6 months
35% on completion
This option is ideally suited to someone that does not want to make an initial large payment.
Option 2
50% on signing of agreement to purchase 50% on completion
This payment option comes with 5% discount.
This option is ideally suited to those that want to sell before completion as the investor only pays 50% and avoids stamp duty and legal fees.
Option 3
100% on signing of agreement to purchase
This payment option comes with a 10% discount. This option is ideally suited to someone that wishes to complete and wants to get the best discount.

Buy Back Guarantee
In order to give investors complete peace of mind the developers are offering a 100% ”Buy Back Guarantee”. This means that the developers will guarantee to buy back the property at the price paid for it by investors.

Rental Guarantee
Furthermore the developers are offering a 2 year 5% rental guarantee for peace of mind.

Should one choose to purchase through a company structure or as an individual owning the Freehold, stamp duty is an additional 10%.
Legal fees are 2%.
A 2 year rental guarantee of 5% per annum will commence after completion and transfer of title deeds.
The developer will offer a 100% buy back guarantee. This guarantee is an offer to buy back the apartment at the purchase price.
In India, ground floor and corner apartments command a premium, hence price difference above.
Parking is an additional £700