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									                             CBRE Global In-Sights:

                             The India Outlook
                              Presentation by:

                              Anshuman Magazine                     Chairman & Managing Director
                                                                      CB Richard Ellis South Asia

                              Rami Kaushal                  Senior Executive Director, Consulting &
                                                          Valuation, CB Richard Ellis South Asia

                              Andrew Ness                    Executive Director, Research Asia

                              Raymond Torto                  Global Chief Economist

                              September 23, 2008

                              All Global In-Sight presentations are recorded
                              and available at www.cbre.com/research




                                                             Anshuman Magazine
         Mr. Magazine is based in New Delhi, and is the
         Chairman & Managing Director, CB Richard Ellis,
         South Asia. He was instrumental in setting up the India
         operations for CBRE, 14 years ago. Anshuman is
         considered one of the pioneers of Real Estate
         Consultancy in India. Under his guidance the
         company has completed over 850 Consulting &
         valuation assignments undertaken in 85 cities in the
         Indian sub continent, transacted more than 30 million
         sq.ft. of space, has a portfolio of approximately 60
         million sq.ft. of space under Properties & Facilities
         Management and has provided project Management
         services for over 41 million sq.ft. He continues to be a
         key advisor to several large international financial
         institutions and Private Equity funds for their
         investments in the Indian Real Estate Market.

         Today CBRE has a presence in over 50 locations and
         experience of executing projects in over 70 cities in
         India, with a strength of over 1400 employees.

         Anshuman is also a member of the Asia Pacific
         Strategic Group within CB Richard Ellis.


        Anshuman.magazine@cbre.com
CB Richard Ellis | Page 2




                                                                                                      1
                                                              Rami Kaushal


        Mr. Kaushal is based in New Delhi, and is
        currently heading the Consulting and Valuation
        Team at CB Richard Ellis South Asia . He is
        responsible for the team’s activities in the Indian
        subcontinent and has over ten years of
        experience in advising clients across an array of
        real estate projects and sectors. In the past he
        has successfully advised various local
        governments on asset disinvestments, optimal
        utilization of non performing assets etc.

        Over the last few years he has worked very
        closely with various institutional and private
        investors on various facets of real estate
        investments such as assistance in raising funds,
        identification of investment opportunities, pre
        investment due diligence and so on.


        Rami.kaushal@cbre.com


CB Richard Ellis | Page 3




                                                              Andrew Ness


       Andrew Ness is Head of CBRE
       Research for Asia. Andrew has
       direct oversight over CBRE’s
       research operations in the Asian
       region, and in ensuring that
       research is deployed to support the
       Company’s business throughout
       Asia with respect to promoting
       business development, managing of
       client relationships and raising
       corporate media exposure.


        Andrew.ness@cbre.com


CB Richard Ellis | Page 4




                                                                             2
                                    Raymond Torto, PhD, CRE



      Ray Torto is CBRE’s Global Chief
      Economist. He directs CBRE’s
      worldwide team of commercial real
      estate market analysts and serves
      as the firm’s primary spokesperson
      on macro economic issues and the
      global commercial real estate
      market.


      raymond.torto@cbre.com




CB Richard Ellis | Page 5




                                                              Agenda



                                           •   Indian property market in the
                                               context of Asia

                                           •   Macro economics scenario
         India                             •   Real Estate Landscape

                                           •   Real Estate Investment

                                           •   Recent Major Deals




CB Richard Ellis | Page 6




                                                                               3
                                                                                                                                                                                                                                                                                   Section 1




                                                      Indian property market in the
                                                             context of Asia




CB Richard Ellis | Page 7




                                                                Asian Office Rental Levels (Q2 2008)

                                                                                                                                                                                                                                                     Mumbai
                                                                                                                                                                                                                                                                                                                                                 20

                                                                                                                                                                                                                                                                                                                                                 18

                                                                                                                                                                                                                                                                                                                                                 16
                                                                                                                                                                                                  New Delhi
                                                                                                                                                                                                                                                                                                                                                 14
                                                                                                                                                                                                                                                                                                                                                      (US$ psf per month)




                                                                                                                                                                                                                                                                                                                                                 12

                                                                                                                                                                                                                                                                                                                                                 10

                                                                                                                                                                                                                                                                                                                                                 8
                              Bangalore
                                                                                                                                                                                                                                                                                                                                                 6

                                                                                                                                                                                                                                                                                                                                                 4

                                                                                                                                                                                                                                                                                                                                                 2

                                                                                                                                                                                                                                                                                                                                                 0
                               Bangkok




                                                                                          Bangalore




                                                                                                                                          Seoul - Yeouido




                                                                                                                                                                                                                                                   Ho Chi Minh City

                                                                                                                                                                                                                                                                      Hong Kong




                                                                                                                                                                                                                                                                                                    Singapore
                                                                                                      Taipei

                                                                                                               Beijing - Finance Street




                                                                                                                                                                                                                                                                                                                        Mumbai - Nariman Point
                                                                                                                                                                                                            Seoul - G angnam
               Kuala Lumpur
     Jakarta




                                         G uangzhou




                                                                                                                                                                                                                                                                                                                Tokyo
                                                                 Beijing - Zhongguancun




                                                                                                                                                                                                                               Shanghai - Pudong
                                                       Manila




                                                                                                                                                                            Shanghai - Puxi
                                                                                                                                                            Beijing - CBD




                                                                                                                                                                                              Seoul - CBD




                                                                                                                                                                                                                                                                                  New Delhi - CBD




Note: Total occupancy cost on net floor area basis, including all occupation expenses.
Source: CBRE Research
CB Richard Ellis | Page 8




                                                                                                                                                                                                                                                                                                                                                                            4
                                          Asia - Office Rental Trends Overview
                                                                                    Office Rental Cycle as at Q2 2008

                   Rents                           Rents                       Rental Growth                     Rental Growth
                   Falling                     Bottoming Out                    Accelerating                       Slowing
                                                                                                                          Mumbai M
                                                                                                                        Guangzhou G
     Tokyo                                                                                                    Bangalore B Bangkok
T                                                                                                                                 B
                                                                                                                 Hano H      B Beijing
                                                                                                                 i
                                                                                                                 HCMC H      J Jakarta
                                                                                                                             N New Delhi
                                                                                                        Hong Kong H          M Manila
                                                                                                                   S         S Singapo
                                                                                                      Taip    T
                                                                                                                    Shanghai    re
                                                                                                      ei
                                                                                                Kuala Lumpur K
                                                                                                      Seoul   S




 NB. The markets do not necessarily move along the curve in the same direction or at the same speed




CB Richard Ellis | Page 9




Yearly rental growth vs Annualised quarterly growth (Q2 08)

                                                                     60%

                                                                              Ho Chi Minh City

                                                                     50%            Singapore



                                                                     40%
            Yearly growth




                                                                                                              Hong Kong
                                                                                                            Mumbai
                                                                     30%
                                                                                                                                 Cities can
                                                                            Manila                                                 sustain
                                                                                                                                 the growth
                                                                     20%                                                         rate in Q2
                                                                                                       Shanghai
                                                     N ew Delhi                                       Kuala Lumpur
                                                                                   Guangzhou
                                                                     10%               Beijing
                                     Tokyo
                                                                                                                Taipei
                                                     Bangalore                     S eoul
                                                                                     Jakarta
                                                                             Bangkok
                                                                      0%
                            -25%   -20%      -15%   -10%      -5%       0%            5%        10%       15%        20%   25%
                                                            Annualised quarterly growth

CB Richard Ellis | Page 10




                                                                                                                                              5
                      Office Vacancies Largely Remain Low (Q2 2008)

       Vacancy
          20%
                                                                                                                                                                                                      18.0%
          18%
                                                                                                                                                                                         15.5%
          16%

          14%                                                                                                                 New Delhi                                       12.9%
          12%
                                                                                                                               Mumbai
          10%
                                                                                                                                                                   7.5%
            8%                                                                                                                           6.9%
                                         Bangalore                                                                             6.3% 6.6%
            6%
            4%                                                                                 2.8% 2.9% 3.2%
                                                              2.0% 2.2% 2.3%
            2%                0.6%
                    0.0% 0.2%
            0%




                                                                                                                                                    Kuala Lumpur
                      Ho Chi Minh City




                                                                                                                                                                    Bangkok
                                          Seoul




                                                                                                New Delhi




                                                                                                                                           Taipei
                                                  Singapore

                                                               Tokyo

                                                                       Bangalore

                                                                                   Hong Kong




                                                                                                                     Manila




                                                                                                                                                                                          Guangzhou

                                                                                                                                                                                                       Beijing
                                                                                                            Mumbai




                                                                                                                                Shanghai




                                                                                                                                                                               Jakarta
  Source: CBRE Research



CB Richard Ellis | Page 11




                                                                                                                                                                              Section 2




                                          Macro Economic Scenario


                                                                                                                       Continued optimism…



CB Richard Ellis | Page 12




                                                                                                                                                                                                                 6
                                                                  India - A Bird’s Eye View

     4th largest economy as per PPP terms
     Joined the elite club of 12 countries with a trillion
     dollar economy
     220 of the Fortune 500 companies present in
     India
     300 million strong ‘Middle Class’ fueling future
     growth
     50% below the age of 25 years, median age 24
     years
     US$ 27 Billion foreign remittance in 2007 (highest
     in Asia) – World Bank                                                 QUICK FACTS
     Second most attractive Foreign Direct Investment                          Land area – 3.16 million sq.kms.
     (FDI) location globally – A. T Kearney                                    Capital – New Delhi
                                                                               Political System – Bicameral Parliament
     Accounts 65-70 % of the global offshoring pie -
     Gartner                                                                   Population – 1.1 bn (2007 estimate)
                                                                               Literacy rate – 65% (2001 Census)


CB Richard Ellis | Page 13




                                                         Bouyant Economic Growth
                  12


                  10                                                                       9.4        9.6
                                                                         8.5                                       9
                   8
                                 6.8
        Percent




                                         6.1            5.8                        7.5
                   6
                       4.8                     4.4
                                                                3.8
                   4


                   2


                   0
                       1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-
                                                                                                 (QE)  08(AE)

      Source: Central Statistical Organisation                            QE - Quick Estimates AE - Advance Estimates


       The economy has clocked above 8.5% average growth rate for the last 5 years
       Fastest GDP growth in 2006-07 (in the last 18 years, at constant prices)
       Second fastest growing economy, after China in 2006-07
       Recent moderation – a cyclical downturn…?

CB Richard Ellis | Page 14




                                                                                                                         7
                                                  Change in GDP composition

                             1991-92                                                                              2007-08

                                                                                                                                                                    Agriculture
                                                                                                                                                                     17.8%
                                                    Agriculture
   Services                                          34.1%
    42.0%



                                                                  Services
                                                                   55.6%                                                                                                                     Industry
                                                                                                                                                                                              26.6%
                                       Industry
                                        23.9%




       Source: Reserve Bank of India, Economic Survey of India 2006-07




       Rapid transformation from a primary, agriculture-based economy
       Booming services and industry sector providing future growth impetus


CB Richard Ellis | Page 15




                                       Attractive investment destination
                                                                                             Foreign Direct Investment Inflow


                                                                                                                                                                                                            25
                                                                                                                                                                                                   19.4



                                                                                                                                                154%
                                                                                                                                                increase

        Improved performance on PE ratio
                                                                         USD bn.




        and ROE has pulled large
                                                                                                                                                                               7.7




        investments into the country
                                                                                                                  6.1




                                                                                                                                                          6.0
                                                                                                                                      5.0


                                                                                                                                                 4.3
                                                                                              4.0
                                                                                   2.2




        Large FII activity inflow had led to an
                                                                                   1999-00


                                                                                              2000-01


                                                                                                                  2001-02


                                                                                                                                      2002-03


                                                                                                                                                2003-04


                                                                                                                                                          2004-05


                                                                                                                                                                              2005-06


                                                                                                                                                                                                  2006-07


                                                                                                                                                                                                             2007-08




        upsurge in the Sensex
                                                                                                                                                                                                             16.1




                                                                                                                                       Net FII Inflow

        Influx of hot money…?
                                                                         USD bn.




                                                                                                                                                 10.2
                                                                                                                            10.0




                                                                                                                                                                    9.4




                                                                                                                                                                                        6.7
                                                                                                        0.6
                                                                                   1.8
                                                                                   2001-02



                                                                                                        2002-03



                                                                                                                            2003-04



                                                                                                                                                2004-05



                                                                                                                                                                    2005-06



                                                                                                                                                                                        2006-07



                                                                                                                                                                                                            2007-08




CB Richard Ellis | Page 16                                                                                                  Source: Reserve Bank of India, DIPP




                                                                                                                                                                                                                       8
                                                               However, some plaguing concerns…



CB Richard Ellis | Page 17




                                                                                                         Compounding inflation
                         14.00                                            Inflation based on WPI

                         12.00

                         10.00
               percent




                          8.00

                          6.00


                          4.00

                          2.00


                          0.00
                                 March




                                                                          March




                                                                                                                March




                                                                                                                                                      March




                                                                                                                                                                        August
                                         June




                                                                                  June




                                                                                                                        June




                                                                                                                                                                 June
                                                   September


                                                               December




                                                                                         September


                                                                                                     December




                                                                                                                               September


                                                                                                                                           December




                                            2005                                     2006                                  2007                                2008

                                                                                                                                                              Source: Ministry of Finance
     Over 280% escalation in one year
     Largely on the back of high global commodity prices
     External pressures being exacerbated by strong domestic demand pressures
     Inflation management has been a key policy concern for the government
CB Richard Ellis | Page 18




                                                                                                                                                                                            9
                                                                                                                                                          Tightening monetary measures
                       Cash Reserve Ratio
                                                                                                                                                                        During the current FY, CRR increased by 150 basis
  Percent
10.00                                                                                                                                                                   points and repo rate by 100 basis points to reach 9%
 9.00
 8.00
 7.00
                                                                                                                                                                        Tight monetary policy stance to continue till double-
 6.00
 5.00
                                                                                                                                                                        digit inflation is quelled
 4.00
 3.00
 2.00
                                                                                                                                                                        Increase in interest rates foreseen to impact
 1.00
 0.00
                                                                                                                                                                        investment momentum and corporate cash flows
        Dec, 06

                  Feb, 07
                            Mar, 07




                                                                     Nov, 07


                                                                                            May, 08
                                                                                                      May, 08

                                                                                                                     Jul, 08
                                                                                                                                 Jul, 08
                                      Apr, 07

                                                Apr, 07
                                                           Aug, 07



                                                                                  Apr, 08




                                                                                                                                           Aug, 08
                                                          Percent
                                                                                                                                   Avg. Prime Lending Rate                                                                                             Average Deposit Rate
                                                   18.00

                                                   16.00

                                                   14.00

                                                   12.00

                                                   10.00

                                                          8.00

                                                          6.00

                                                          4.00

                                                          2.00
Source: Ministry                                          0.00
of Finance
                                                                               Mar-96

                                                                                             Mar-97

                                                                                                            Mar-98

                                                                                                                               Mar-99

                                                                                                                                             Mar-00

                                                                                                                                                      Mar-01

                                                                                                                                                               Mar-02

                                                                                                                                                                         Mar-03

                                                                                                                                                                                  Mar-04

                                                                                                                                                                                           Mar-05




                                                                                                                                                                                                                                Mar-06




                                                                                                                                                                                                                                                                     Mar-07




                                                                                                                                                                                                                                                                                                          Mar-08
                                                                                                                                                                                                    Jun-05

                                                                                                                                                                                                             Sept-05

                                                                                                                                                                                                                       Dec-05



                                                                                                                                                                                                                                         Jun-06

                                                                                                                                                                                                                                                  Sept-06

                                                                                                                                                                                                                                                            Dec-06



                                                                                                                                                                                                                                                                              Jun-07

                                                                                                                                                                                                                                                                                       Sept-07

                                                                                                                                                                                                                                                                                                 Dec-07



                                                                                                                                                                                                                                                                                                                   Jun-08
   CB Richard Ellis | Page 19




                                                                                                                                                                                                                                                                                                 Section 3




                                                                                            Real Estate Landscape




   CB Richard Ellis | Page 20




                                                                                                                                                                                                                                                                                                                            10
                                         Key Economic & Real Estate Centers
                                                                  Increasing urbanisation
                                                                     India to add 131m people to its urban
                                                                     population over 2007-2020, urbanization
                                                                     reaching 34.3% from 29.2% in 2007

                              National Capital Region (NCR)
                                                                   Addition to urban India population as % of
                                                                   current population of some countries

                                                                      216%      213%
                                                       Kolkata*

                                                                                         159%
Mumbai             Pune


                             Hyderabad
                                                                                                     103%

         Bangalore
                                   Chennai
                                                                                                                43%




                                                                        UK     France   Germany      Japan       US

                                                                   Source: UN Population Division
CB Richard Ellis | Page 21




                                                                  Office Market Overview

    Close to 30% y-o-y growth in absorption over the last 3 years
    Over 75% of the demand emanating from IT/ITeS industry.
    Cumulative demand projection by 2011-12 ~ 250 million sft.

              – However, subdued demand over the last two quarters
    Rentals and prices appreciated by as much as 40% in last 2 years
                                                                                               New Delhi     Mumbai
                                                                                           Bangalore
              – Stable values since last two quarters
                                                                                                  Rental           Rent
                                                                                                  growth
              – Rentals and capital values currently under pressure                               slowing
                                                                                                                  falling




    Improvement in supply conditions in the last 12 months                                   Rental growth
                                                                                              accelerating
                                                                                                                  Rent
                                                                                                                bottoming
                                                                                                                   out
              – Substantial Grade A additions

              – Growth of office stock within Special Economic Zones (SEZs)
    Emergence of alternative locations (tier II-III cities)

CB Richard Ellis | Page 22




                                                                                                                            11
                                                                                            Office Stock and Supply
                                              120
                                                                                                                      Under-construction supply


                                              100                                                                     Office stock as on Q2 '08



                                               80
                             Million sq.ft.


                                                                 59.11

                                               60      14.39
                                                                           38.66


                                               40
                                                                                            21.1
                                                                                                                          21.95
                                                       53.36                                               18.57
                                               20                 38.5
                                                                           33.42
                                                                                            24.72
                                                                                                           18.09          18.5         4.45
                                                                                                                                        5.2
                                                 0
                                                     Bangalore   NCR     Mumbai         Chennai            Pune        Hyderabad     Kolkata
                                                                                                                                          Source: CBRE Research

          Current office space stock (7 cities) ~ 190 million sq.ft.
          Addition to the stock (next 3 years) ~ 178 million sq.ft. (including SEZ supply)
CB Richard Ellis | Page 23




                                                                                                      Prime Office Rentals
                       500


                       450


                       400


                       350
   INR/sft per month




                       300


                       250


                       200


                       150


                       100


                        50


                        0
                                               Q1        Q2       Q3      Q4          Q1             Q2         Q3           Q4          Q1            Q2
                                              2006      2006     2006    2006        2007           2007       2007         2007        2008          2008


                             MG Road, Bangalore                            Anna Salai, Chennai                           Connaught Place, New Delhi
                             Begumpet, Hyderabad                           Park Street, Kolkata                          Nariman Point, Mumbai
                                Bund Garden Road, Pune

                       Note: The above values are quoted rentals for office premises in prime locations
                                                                                                                                               Source: CBRE Research
CB Richard Ellis | Page 24




                                                                                                                                                                       12
                                                                                    Retail Market Overview
           Consumer spending increased by over 75% in last 4 years

           Retail market currently valued at $ 511 bn – to grow to $ 833 bn in next 5 years

           Organised retail currently 5% of the total; 12% by 2013                                                  Mumbai New Delhi
                                                                                                             Bangalore

           Restructuring and new business models
                                                                                                                  Rental
                                                                                                                                  Rent
                                                                                                                  growth
           Luxury retail gaining critical mass                                                                    slowing
                                                                                                                                 falling



           Retail action moving into smaller, less competitive cities
                                                                                                               Rental growth     Rent
                                                                                                                accelerating   bottoming
          FDI in Retail only allowed since 2005                                                                                   out


                                 51% allowed under the automatic route for single brand retail

                                 100% allowed for wholesale cash-and-carry retail

                                                    Challenges for the International Retailer

                                                                    Restrictive regulations
                                                                   Soaring real estate costs
                                                            Competition from the domestic retailers

CB Richard Ellis | Page 25




                                                                            Retail Stock and Supply
                                 45
                                                                                                Under-construction supply
                                 40
                                                                                                Retail stock as on Q2 '08
                                 35

                                 30                 16.76
                Million sq.ft.




                                 25

                                 20

                                 15

                                                     22           11.26
                                 10

                                  5      5.9                                  8.5
                                                                   6                     4.72         3.92           1.92
                                         2.1                                             1.2          1.2             1.6
                                  0                                           0.6

                                      Bangalore     NCR         Mumbai     Chennai      Pune     Hyderabad        Kolkata
                                                                                                                        Source: CBRE Research

                                      Current retail space stock (7 cities) ~ 35 million sq.ft.
                                      Addition to the stock (next 3 years) ~ 52 million sq.ft
CB Richard Ellis | Page 26




                                                                                                                                                13
                                                                                        Prime Retail Rentals
                                       600                                                                                   50

                                                                                           Current Rentals
                                                                                                                             45
                                       500                                                 % change in last one year
                                                                                                                             40

                                                                                                                             35
                                       400
                   INR/sft per month
                                                                                                                             30




                                                                                                                                    percent
                                       300                                                                                   25

                                                                                                                             20
                                       200
                                                                                                                             15

                                                                                                                             10
                                       100
                                                                                                                             5

                                         0                                                                                   0
                                             Bangalore   Mumbai   New Delhi   Chennai   Kolkata   Hyderabad      Pune

                  Note: The above are quoted rentals for ‘last rented’ space in malls in prime locations
                                                                                                                        Source: CBRE Research

    Rental values under pressure on account of incremental supply, subdued demand
              –          Some locations have witnessed a decline between the last 2 quarters

    Well planned malls in key locations unlikely to witness change in values or demand
CB Richard Ellis | Page 27




                                                                          Residential Market Overview

       Accounting for almost 80% of current real estate development (by area) across India
                                                                                                                          Bangalore           New Delhi
                                                                                                                        Mumbai
       Key drivers
                                                                                                                          Values
          •     Rapid urbanization                                                                                        growth
                                                                                                                                                   Values
                                                                                                                                                   falling
                                                                                                                          slowing
          •     Increase in number of households

          •     Rising disposable incomes, improving affordability                                                      Values growth             Values
                                                                                                                         accelerating            bottoming
          •     Increasing availability of housing finance                                                                                          out



      Marked drop in sales for premium housing; Mid-segment demand still robust

      Hardening of mortgage rates and high values have led to a slowdown in transaction volumes

      Demand sentiments muted – buyers have adopted a ‘Wait-and-watch’ stance

      Slowdown in offtake, rising construction costs and inflationary pressures have impacted

      developer’s topline

      Enhanced product offering

CB Richard Ellis | Page 28




                                                                                                                                                             14
                                                                   Prime Residential Values
                 45000                                                                                               40


                 40000                                                                   Current Values
                                                                                                                     35

                                                                                         % change in last one year
                 35000
                                                                                                                     30

                 30000
                                                                                                                     25
                 25000




                                                                                                                          percent
      INR/sft.




                                                                                                                     20
                 20000
                                                                                                                     15
                 15000

                                                                                                                     10
                 10000


                  5000                                                                                               5


                     0                                                                                               0
                             Bangalore   Mumbai     New Delhi     Chennai      Kolkata        Hyderabad     Pune
                 Note: The above are quoted values for residential space in prime locations
                                                                                                               Source: CBRE Research

                   Values have appreciated by as high as 150% in last 2 years
                    However, stabilization or minimal appreciation since the last two quarters
CB Richard Ellis | Page 29




                                                                               Recent Thrust Areas
Free Trade and Warehousing Zones (FTWZs)                                                            Healthcare
                & Logistics
                                                                              Indian healthcare segment growing at a
    Key growth areas due to economic growth                                   CAGR of 16%
    underway
                                                                              ~ 90% of the future investment requirement to
    Low entry barriers for logistics sector - high                            come from the private sector
    interest from foreign entities
                                                                              Emerging segments – Health cities,
    Indian logistics players reorganizing                                     Hospotels, Medical tourism
    operations
                                                                                                  Infrastructure

                                                                              ~$500 bn required for upgradation

                                                                              Opportunity in Greenfield Airports and Mass
                 Special Economic Zones (SEZs)                                Rapid Transport Systems

   Sector specific (particularly IT/ITeS) on the                              Revamping of road networks and advent of
   radar of foreign investors                                                 expressways

   Action witnessed across key office locations                               Increased private sector participation


CB Richard Ellis | Page 30




                                                                                                                                       15
                                                                                                                Section 4




                                        Real Estate Investment




CB Richard Ellis | Page 31




                                        Foreign Direct Investment Guidelines
         FDI allowed up to 100% under the automatic route in townships, housing, built-up
       infrastructure and construction-development projects
   Includes, but is not restricted to

                             - Commercial premises, Special Economic Zones (SEZ), Industrial Parks
                             - Hotels, resorts
                             - Hospitals, educational institutions, recreational facilities, city/regional level infrastructure



                      Development conditions                                             Investment conditions
        Minimum 10 hectares/ 25 acres area to be                               Minimum capitalization of $10 million (wholly
        developed for serviced housing plots                                   owned subsidiary) and $5 million (joint venture
        Other construction-development projects,                               with Indian partner)
        minimum built-up area of 50,000 sq mts                                 Infusion of funds within 6 months of
        prescribed                                                             commencement of business
        Combination project - any one condition to                             Original investment cannot be repatriated prior
        suffice                                                                to 3 years from completion of minimum
        At least 50% of project to be developed within 5                       capitalization - early exit permitted with prior
        years from date of statutory clearances                                Government approval


CB Richard Ellis | Page 32




                                                                                                                                  16
                                                                           Investment Routes
                                                     Equity Partnerships
                                                        (Entity Level)

                                            •    Vipul - Wachovia
                                            •    I-Venture and Tishman Speyer
                                            •    Keppel and Puravankara
                                            •    Emaar and MGF group
                                            •    Oberoi Constructions & Morgan
                                                 Stanley Real Estate

                 Independent Developments                                            Public-Private
                                                                                     Partnerships

              • IJM Group developing                                       • Saleem-Ciputra Group –
              townships across Andhra                                        structured land sale with WB for
              Pradesh                                                        township development

                                                        Joint Venture
                                                        (JV Projects)

                                                • IREO and Panchshil Group
                                                • DLF and Nakheel
                                                • GE Real Estate and Ascendas
                                                  for development of IT Parks
                                                • Unitech and Lehman &
                                                  Deutsche Bank
CB Richard Ellis | Page 33




                                     Macro issues impacting real estate
    High Interest and inflation rates

    Reserve Bank of India (RBI) measures to check speculation

              Increased risk weightage on banks’ exposure to the commercial real estate

              Provisioning requirement raised from 1% to 2%

              Mandatory for commercial banks to advance loans only if all building approvals and
              sanctions have been obtained

    Developers facing severe liquidity issues

              Debt funding is both expensive and difficult to source

              Preference for equity funding over past 6-12 months

    Ban on External Commercial Borrowing (ECB) for the real estate sector (intergrated townships)

        •     Likely to be lifted shortly

    Real Estate Mutual Funds guidelines have been approved ~ most financial institutions in the
    process of setting up REMFs

CB Richard Ellis | Page 34




                                                                                                                17
                                                                 Key Challenges


       Land title and ownership issues

       Complex entity structures

       High transaction costs

       Entry Valuations

       Delay in project completions

       Limited exit options

       Governance issues
                                                                   Picture courtesy : www.reuters.com

       Lack of information – low transparency



CB Richard Ellis | Page 35




                                                                   Looking ahead

        Sector to continue to have long-term perspective and benefits

        Rationalization/ correction in values in the medium term

        Technology sector to continue to fuel office space demand

        Budget/ Mid-segment housing projects to become the new mantra

        Further relaxation of the FDI norms for retail to open avenues for foreign chains

        Persistent foreign interest – investors, developers, funds, etc.

        REMFs & REITs to bring in institutionalization of the sector




CB Richard Ellis | Page 36




                                                                                                        18
                                                                                                 Section 5




                                     Recent Major Deals




CB Richard Ellis | Page 37




                                              Notable Transactions 1H 2008


         Commercial Land, Noida,                                                       Hindustan Composite,

     National Capital Region (NCR)                                                        Vikhroli, Mumbai




                                        Seawoods Railway Station, Navi Mumbai




 Transaction Details                    Transaction Details                     Transaction Details
 Seller:     Noida Development          Seller:     City and Industrial         Seller:     Hindustan Composite
             Authority                  Development Corporation of              Buyer:      K Raheja Universal
 Buyer:      Business Park Town         Maharashtra (CIDCO)
             Planners                   Buyer:      Larsen & Toubro

 Transaction date: March 2008           Transaction date: Feb 2008              Transaction date: May 2008
 Sales price:    US$1246.26 M           Sales price:      US $449.40 M          Sales price:      US $151.34
 Unit Rate:      NA                     Unit Rate:        NA                    Unit Rate:        NA



                                             Integrated Commercial                    Industrial plot with
       Auction, largest land deal
                                           Complex at a railway station                 a good frontage




CB Richard Ellis | Page 38




                                                                                                                  19
                                         CBRE India – Market leader !!



    Year of Establishment: 1994 (The first Real
    Estate Consulting firm to set up operations in India)




    Presence in Cities: 50+ (Full offices in 7 cities)



    No. of full-time employees: 1300 +




CB Richard Ellis | Page 39




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