City Report Mumbai Office Market Q2 2010

CITY REPORTMUMBAI OFFICE MARKET

Q2 2010

BNP Paribas Real EstateAll the buildings blocks

In India our specialists bring you our expertise in Transaction Advisory, Valuation, Consulting.With our international scope and on-the-ground presence, you’ll find the perfect partner that can ensure thesuccess of your real estate project. With BNP Paribas Real Estate, all the pieces come together.

Your contact in India: Bangalore: +91 80 4050 8888 - Mumbai: +91 22 6138 8088 - Delhi: +91 11 4959 [email protected]

www.realestate.bnpparibas.com

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CITY REPORTMUMBAI OFFICE MARKET - Q2 2010

Summary p. 4

Macroeconomic Context p. 5

Mumbai Map p. 6

Central Business District (CBD) p. 7

Extended Central Business District (Extended CBD) p. 8

Alternate Central Business District (Alternate CBD) p. 9

Secondary Business District (SBD) p. 10

Periphery Business District (PBD) p. 11

Glossary

p. 13Key Transactions

p. 14Key Projects

p. 15

CONTENTS

Rental Values & Capital Values p. 12

4I I

SUMMARY

The Commercial Real Estate market continue to gain momentum as many new transactions were reported in Q2 2010. The Secondary Business Districts of Andheri and Powai showed renewed interest from occupiers to take up spaces. The property values however, remained stagnant in most of the micro markets. It is expected that many large format transactions in excess of 100,000 sq.ft. will take place in the next quarter which may push up rates especially in the Alternate Business Districts (ACBD) and Periphery Business District (PBD). The demand for office space especially for IT/ITES is picking up gradually. Further, the demand for office space to banking and financial services companies is also increasing. The occupiers also continued their shift from Central Business District (CBD) areas of Nariman Point to ACBD of Bandra Kurla Complex and Extended Business Districts (ECBD) of Lower Parel and Prabhadevi.

On the development side, many new developments are expected to be completed in this quarter which is expected to put additional pressure on rents and capital values. With increase in FSI on certain commercial buildings especially in ACBD of Bandra Kurla Complex and other areas of Mumbai, the gap between demand and supply is increasing further.

There is still high demand for commercial office space land in Mumbai. The key transactions for land in Mumbai included purchase of 6.1 acres of land by Lodha Developers in Wadala, Mumbai. This land was bought by the developer for approx. INR 4,053 crores (USD 85 million) via a government auction. It is well noted in this quarter that the development companies continue to scout for land for IT/ITES development in and around Mumbai. It is expected that the National Textile Mills Corporation, a Government of India company is likely to dispose two prime lands in Extended Business District area of Worli and Lower Parel. These mill lands will generate good interest from certain development companies who are flushed with liquid funds.

In the real estate private equity space, the notable transaction was purchase of majority stake in HCC 247 IT Park by ILFS Milestone income fund. The fund paid approx. INR 574 crores ( USD 120 mn.) for a 74% stake in the property which is 80% leased to key corporate like Dow Chemicals, KEC International, Future group etc. In addition to this, a few transactions are also reported in private equity space for mixed use development in Mumbai.

In the upcoming quarter, it is expected that the demand will pick up and will result in higher transaction volume in the Mumbai Metropolitan region. However, the leasing and the capital values will remain the same.

Markets continue to gain momentum


20-O

ct-0

8

Repo Reverse Repo

Repo & Reverse Repo Rate10

8

6

4

Perc

ent

2


MACROECONOMIC CONTEXTRates hiked further. Well calibrated move to manage growth and inflationThe Reserve Bank of India (RBI), which is the central bank of India in its monetary policy has further raised the CRR, Repo Rate and the Reverse Repo Rate by 25 basis point each. This action by the central bank is seen as a well calibrated move to balance growth, arrest rising inflation and manage liquidity and currency. It is expected that due to rise in rates, the real estate lenders will also increase their rates especially for construction lending. The banking sector also moved to a new “base rate” system of lending effective July 1, 2010, which is expected to enhance transparency in loan pricing, promote competition in the credit market and also improve the transmission of monetary policy. On the credit side, the base rates set by major public sector banks were in the narrow range of 7.25% -8% Further, the RBI also announced two real estate indices for residential and commercial rates. These indices are expected to be updated every quarter. However, it will take some time for these indices to be active.

The economic recovery gained further momentum with the good progress of the monsoon which is expected to yield better agricultural output. The last 6 months has seen substantial rise in foreign cash flows and exports. However, the trade deficit is increasing as imports, especially the oil based imports has risen significantly as well. The economic survey report released by the government of India just ahead of the union budget announced a GDP between 8.25% - 8.75% for the year 2010-11. However, the various industry estimates pegs the GDP growth between 7% -8%.

On the SEZ space, the fate of approved Special Economic Zones, which are yet to become operational, hangs in balance with the proposed Direct Tax Code (DTC) denying tax exemptions to new units in the SEZs. According to the revised DTC draft, the tax exemptions for the SEZs have been provided only for the existing units. The new draft clearly mentions that the profit-linked deductions of units already operating in SEZs for the unexpired period (of 15 years) will be incorporated. This provision would mean end of new investment by promoters, who have received formal approvals from the Commerce Ministry after acquiring land for their projects. The uncertainty will affect even the operational SEZs because not all of them have been occupied by units. At present, SEZ units get 100% income tax exemption on export income for the first five years, 50% for the next five years. They also get exemption on 50% of the ploughed back export profit for the next five years after the first 10 years. The leading SEZ developers of India especially in the IT/ITES space are currently lobbying with the government to reverse certain decisions with respect to exemption for the SEZ units and it will be interesting to see the impact of these revisions of DTC on the decision making process especially of the international corporate occupiers in the IT/ITES services sector.

5I I

SLR CRR

CRR & SLR10

8

6

4

2

Perc

ent

0

May

-08

Jul-

08

Sep-

08

Nov

-08

Jan-

09

Mar

-09

May

-09

Jul-

09

Sep-

09

Mar

-08

Nov

-09

Jan-

10

Mar

-10

Gross Domestic Product (GDP)

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

9.20%

9.30%

8.80%

8.80%

7.90%7.60%

5.30%

5.80%

6.10%

Q22007

Q32007

Q42007

Q32009

7.90%

Q42009

6.00%

Wholesale Price Index (WPI)

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

Jan-

06

Apr-

06

Jul-

06

Oct-

06

Jan-

07

Apr-

07

Jul-

07

Oct-

07

Jan-

08

Apr-

08

Jul-

08

Oct-

08

Jan-

09

Apr-

09

Jul-

09

Oct-

09

Jan-

10

Source: Confederation of Indian Industries

Q12010

8.60%

Apr-

10

May

-10

Jul-

10

DLF Limited 202,853 199,437 2% 41,103 42,638 -4%

Major Real EstateCompanies in

India

Sales (In INR / In Million) Profits (In INR / In Million)

Q2 2010 Q1 2010Q on Q

Change % Q2 2010 Q1 2010Q on Q

Change %

Unitech 82,857 113,248 -27% 18,004 16,341 10%

India Bulls 43,371 49176 -12% 13,358 9,427 42%Sobha Developers 31,560 39,950 -21% 3,430 5,570 -38%

Peninsula Land 14,831 22,474 -34% 4,996 9,627 -48%ParsvnathDevelopers 25,279 35,489 -29% 3,182 3,472 -8%

Pheonix 4,043 3,447 17% 1,826 1,570 16%

Omaxe Limited 25,293 37,820 -33% 2,172 4,511 -52%

MahindraLifespace 6,793 10,096 -33% 1,448 2,369 -39%

Ananthraj 10,342 3,409 203% 4,585 3,095 48%

Ackruti City 17,649 21,731 -19% 4,205 5,420 -22%

Ansal Properties 25,077 21,571 16% 3,686 -633 -682%

20-N

ov-0

8

20-D

ec-0

8

20-J

an-0

9

20-F

eb-0

9

20-M

ar-0

9

20-A

pr-0

9

20-M

ay-0

9

20-J

un-0

9

20-J

ul-0

9

20-A

ug-0

9

20-S

ep-0

9

20-O

ct-0

9

20-N

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9

20-D

ec-0

9

20-J

an-1

0

20-F

eb-1

0

20-M

ar-1

0

20-A

pr-1

0

MUMBAI MAP

6I ICITY REPORTMUMBAI OFFICE MARKET - Q2 2010

ElephantaIsland

ButcherIsland

N

TulsiLake

ViharLake

PowaiLake

DomesticAirport

Sahar Airport(International Airport)

Sanjay Gandhi National Park

knilaeS ilroW ar dnaB

Ar

ab

ia

n

S

ea

4

5

9

3 628

7

12

58

4

1

3

9

7

5

21

18

726

14

2

20

11

25

1

10

9

6

16

12

4

17

3

13

19

24

8

15

6

22

14

6

1

4

9

15

1316

5

11

2

8 12

103

7

12 3

4

yawhgiH sserpxE nretsaE

Chatrapati ShivajiTerminus (CST)

PUNE

Ahmed

abad

23

1. Girgaon2. Grant Road3.4.5.6.7.8.9.

Lower ParelMahalakshmiMumbai CentralPedder RoadPrabhadeviTardeoWorli

Extended CentralBusiness District

Alternate CentralBusiness District

1. Bandra2. Bandra East3. Bandra Kurla

Complex4. Santacruz East

(Kalina)

Periphery BusinessDistrict

1.2.3.4.5.6.7.8.9.10.11.12.13.14.15.16.

AiroliBelapurDombivaliGhansoliJui NagarKalwaKalyanKhargharKoper KhairneMumbraNerulPanvelSanpadaThaneTurbheVashi

Central BusinessDistrict

1.2.

3.4.5.6.7.8.9.

Breach CandyChatrapati Shivaji Terminus (CST)ChurchgateColabaCuffe ParadeFortMalabar HillMarine LineNariman Point

Secondary District

Business

1.2.3.4.5.6.7.8.9.

AndheriBandra WestBhandupBorivaliBycullaChemburDadarGhatkoparGoregaon

19. Powai20. Santacruz21. Sewri22. Sion23. Vidya Vihar24. Vikhroli25. Vile Parle26. Wadala

10.11.12.13.

JogeshwariJuhuKandivaliKanjurmarg

14. Kings Circle15. Kurla16. Malad17. Mulund18. Parel

7I I

CENTRAL BUSINESS DISTRICT (CBD)

There is not much activity in the CBD of Mumbai as no prominent transaction was recorded in this quarter. There are a few small format leasing transactions being reported mainly, by banks and financial institutions in Nariman Point area with the reopening of the Oberoi Hotel and Taj Mahal Hotel. The business activity in the area has increased.. It is expected that in the next 6 months, the occupancy in good quality buildings will improve.

The demand for large format space is slowly shifting to ECBD and ACBD. However, there are still 2-3 ongoing enquires of 100,000 sq.ft. of space in this area which can reinstate the sentiment of this region.


No major activity is recorded

Source: BNP Paribas Real Estate, India

Ballard Estate 275 250

Nariman Point 350 325

Fort 150 150

Cuffe Parade 225 200

Q12009

Q22009

RENTAL VALUES ( INR / SQ.FT / MONTH)Q3

2009Q4

2009

250

325

150

200

250

325

150

200

Q22010

Q12010

250

200

150

325


Q12009

Q22009

Ballard Estate 35,000 35,000

Nariman Point 40,000 40,000Fort 22,500 22,500

Cuffe Parade 30,000 30,000

CAPITAL VALUES (INR / SQ.FT)Q3

2009Q4

2009

35,000

40,000

22,500

30,000

35,000

40,000

22,500

30,000

Q12010

Q22010

35,000

30,000

22,500

40,000

The average headline rentals & capital values for the last 6 quarters are as follows:-

250

200

150

300

35,000

30,000

22,500

40,000

Nariman Point Ballard Estate

Cuffe Parade Fort

Rent

al V

alue

s (IN

R / s

q.ft

/ m

onth

)

0

50

100

150

200

250

300

350

400

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q12009

Q22009

Q32009

Nariman Point Ballard Estate

Cuffe Parade Fort

Capi

tal V

alue

s (IN

R / s

q.ft

)

Q42009

Q12010

Q22010

—

10,000

20,000

30,000

40,000

50,000

EXTENDED CENTRAL BUSINESS DISTRICT(ECBD)

There are new commercial projects on the verge of completion in this area, which will put downward pressure on rents and capital values. The new developments however also offer modern real estate with large floor plates and a choice to within the complex operations.

scaleup


Supply outstrips demand

Q12009

Q22009

Mahalaxmi 15,000

Lower Parel 18,000

Worli 30,000 30,000

Prabhadevi 25,000 25,000

15,000

18,000


Q32009

Q42009

30,000

25,000

15,000

18,000

30,000

25,000

15,000

18,000

Q22010

Q12010

Mahalaxmi 150

Lower Parel 180

Worli 300 300

Prabhadevi 250 250

150

180

Q12009

Q22009


Q32009

Q42009

300

250

150

180

300

250

150

180

Q22010

Q12010

180

150

225

275

18,000

15,000

25,000

30,000


RENTAL VALUES ( INR / SQ.FT / MONTH)

CAPITAL VALUES (INR / SQ.FT)

180

150

225

275

18,000

15,000

25,000

30,000

Rent

al V

alue

s (IN

R / s

q.ft

/ m

onth

)

0

50

100

150

200

250

300

350

400

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Worli Prabhadevi

Lower Parel Mahalaxmi

Capi

tal V

alue

s (IN

R / s

q.ft

)

Q12009

Q22009

Q32009

—

5,000

30,000

40,000

Worli Prabhadevi

Lower Parel Mahalaxmi

20,000

Q42009

Q12010

Q22010

10,000

15,000

25,000

35,000

ALTERNATE CENTRAL BUSINESS DISTRICT(ALTERNATE CBD)

There is a major shift of demand especially from international banks and financial institutions to Bandra Kurla Complex and adjoining areas of Santacruz East (Kalina) and Bandra East.The region has world class projects like Maker Maxity which is attracting attention from the top end international commercial occupiers. Other notable projects which attracted attention include Platina and upcoming projects like First India Financial Centre and The Capital.


The favorite destination



Q12009

Q22009

Bandra - KurlaComplex 250 250

Bandra East 175 175

Kalina 200 200

Q32009

Q42009

250

175

200

250

175

200

Bandra - KurlaComplex 25,000 25,000

Bandra East 17,500 17,500

Kalina 20,000 20,000

Q12009

Q22009

Q32009

Q42009

25,000

17,500

20,000

25,000

17,500

20,000

Q22010

Q12010

Q22010

Q12010

300

175

200

30,000

20,000

22,500




325

175

200

30,000

20,000

22,500

Bandra - Kurla ComplexKalinaBandra East

Rent

al V

alue

s (IN

R / s

q.ft

/ m

onth

)

0

50

100

150

200

250

300

350

400

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Capi

tal V

alue

s (IN

R / s

q.ft

)

Q12009

Q22009

Q32009

—

5,000

20,000

25,000

40,000

10,000

15,000

30,000

35,000

Bandra - Kurla ComplexKalinaBandra East

Q42009

Q12010

Q22010

SECONDARY BUSINESS DISTRICT (SBD)

This region has witnessed renewed interest from commercial space occupiers. The developers are now offering flexible commercial terms which is attracting several occupiers to take up space in this area. However with the increasing supply, there will be downward pressure on property values. Powai and Vikhroli still remains one of the favorite destinations for occupiers.


Demand is coming back



Q12009

Q22009

Vile Parle 120 120

Andheri W 110 110

Andheri E 120 120

Powai 90 90Vikhroli 65

Malad 90

Borivali 50

65

90

50

Q32009

Q42009

120

110

120

9065

90

50

120

110

120

9065

90

50

Vile Parle 12,000 12,000

Andheri W 11,000 11,000

Andheri E 12,000 12,000

Powai 9,000 9,000Vikhroli 6,500 6,500

Malad 9,000 9,000

Borivali 5,000 5,000

Q12009

Q22009

Q32009

Q42009

12,000

11,000

12,000

9,0006,500

9,000

5,000

12,000

11,000

12,000

9,0006,500

9,000

5,000

Q22010

Q12010

Q22010

Q12010

120

11060

809075120

12,000

11,0006,500

9,0009,0007,500

12,000


Kurla 65 60 65 70 70

Kurla 8,500 8,500 8,500 8,000 8,000



110

10060

809075140

80

12,000

11,0006,500

9,0009,0007,500

13,000

8,000

Rent

al V

alue

s (IN

R / s

q.ft

/ m

onth

)

Q12009

Q22009

Q32009

0

100

Vile Parle

Andheri East

Andheri WestPowai

Malad

Vikhroli

Borivali

40

Q42009

Q12010

Q22010

20

60

80

120

140

160

180

Kurla

Capi

tal V

alue

s (IN

R / s

q.ft

)

—

4,000

Vile ParleAndheri EastAndheri WestPowai

Malad

VikhroliBorivali

8,000

10,000

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

2,000

6,000

12,000

14,000

16,000

18,000

Kurla

PERIPHERY BUSINESS DISTRICT (PBD)

There is a good demand for SEZ projects in this region. Many large format occupiers transacted more than 1mn sq.ft of space in the last 6 months. It is expected that the leasing and capital values in this region may go up by the end of the year.


Good demand from IT/ITES sector

Thane 4,000 4,000

Airoli 3,500 3,500

Vashi 6,500 6,000

Q12009

Q22009



Q32009

Q42009

4,000

3,500

6,000

Thane 40 40

Airoli 35 35

Vashi 65 60

Q12009

Q22009

Q32009

Q42009

40

35

60

40

35

60

4,000

3,500

6,000

Q22010

Q12010

Q22010

Q12010

40

40

60

4,500

4,000

6,000




40

40

60

4,500

4,000

6,000

Q12009

Q22009

Q32009

0

10

20

30

40

50

60

70

80

Vashi Thane Airoli

Rent

al V

alue

s (IN

R / s

q.ft

/ m

onth

)

Q42009

Q12010

Q22010

Q12009

Q22009

Q32009

—

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Capi

tal V

alue

s (IN

R / s

q.ft

)

Vashi Thane Airoli

Q42009

Q12010

Q22010

RENTAL VALUES FOR Q2 2010



CAPITAL VALUES FOR Q2 2010

RentINR/ sq.ft/ month

Ballard Estate

Nariman PointFort

Cuffe Parade

Region Q on QChange

250

300150200 0%

0%

0%

-8%

Ballard Estate

Nariman PointFortCuffe Parade

Region INR / sq.ft Q on QChange

35,000

40,00022,50030,000

0%

0%0%0%

MahalaxmiLower Parel

WorliPrabhadevi

Region RentINR/ sq.ft/ month

Q on QChange

150180

275225

0%0%

0%

0%

MahalaxmiLower Parel

WorliPrabhadevi

Region Q on QChangeINR / sq.ft

15,00018,000

30,00025,000

0%0%

0%

0%

ThaneAiroli

Vashi


Q on QChange

4040

600%0%

0%ThaneAiroli

Vashi

RegionQ on QChangeINR / sq.ft

4,5004,000

6,000

Vile Parle

Andheri WAndheri E

Powai

Region

Vikhroli

Malad

Borivali

RentINR/ sq.ft/ month

Q on QChange

140

100110

9075

80

60

17%

-9%-8%

0%

0%0%

0%Kurla 80 14%

Vile Parle

Andheri WAndheri E

PowaiVikhroli

Malad

Borivali


13,000

11,00012,000

9,0007,500

9,000

6,500

8%

0%0%

0%

0%

0%

0%

Kurla 8,000 0%

Bandra - KurlaComplexBandra EastKalina


Q on QChange

325

175200

8%

0%0%

Bandra - KurlaComplexBandra EastKalina


30,000

20,00022,500

0%

0%0%

CBD CBD

Extended CBD Extended CBD

Alternate CBD Alternate CBD

SBD SBD

PBD PBD

0%0%

0%

13I I

KEY TRANSACTIONS


Q2 2010

Building Occupiers Space(in sq.ft) District Location

Express Towers Wells Fargo 6,500 CBD Nariman Point

Udyog Bhavan Oasis Consulting 3,500 CBD Ballard Estate

One India Bulls AMFI 6,000 Extended CBD Lower Parel

Windsor First Data 6,700 Alternate CBD Kalina

Platina Wachovia RE 3,000 Alternate CBD Bandra Kurla Complex

247 Park Siemens 100,000 SBD Vikhroli

Canon Rustomjee Natraj 15,000 SBD Andheri East

Amway Rustomjee Natraj 15,000 SBD Andheri East

Boomerang GPX 35,000 SBD Andheri East

Cepla Raj Plaza 20,000 SBD Vikhroli

Qube Kingfisher Airlines 60,000 SBD Andheri East

Supreme Business Park Fullerton India 60,000 SBD Powai

Boomerang Heurtey Petrochem 30,000 SBD Chandiwali

Kalpataru Square Llyods Register Asia 21,500 SBD Andheri East

Kalpataru Square Indofil Chemicals Company 10,700 SBD Andheri East

Leela Business Park Torm Shipping 20,000 SBD Andheri East

Mindspace Karmic Labs Pvt ltd 11,300 PBD Airoli

Dosti Pinnacle Tata Motors 6,500 PBD Thane

Sun Infotech Park India Infoline 115,000 PBD Thane

Dosti Pinnacle Façade India 6,500 PBD Thane

14I I

KEY PROJECTS


New Supply – Year 2010

Building Location Micro Market Space (in sq.ft)

Completion Date(expected)

One India Bulls Centre Lower Parel Extended CBD 700,000 Ready

India Bulls Financial Centre Lower Parel Extended CBD 500,000 Q2 2010

Cynergy Prabhadevi Extended CBD 400,000 Q3 2010

Peninsula Business Park Lower Parel Extended CBD 1,300,000 Q3 2010

Wadia Plaza Worli Extended CBD 400,000 Q3 2010

Sheth Developers Prabhadevi Extended CBD 350,000 Q4 2010

Cresenzo Bandra Kurla Complex Alternate CBD 577,000 Ready

Grande Palladium Kalina Alternate CBD 150,000 Ready

Ackruti Iris Andheri East Alternate CBD 700,000 Q1 2011

Pooja Constructions Bandra Kurla Complex Alternate CBD 160,000 Ready

Ackruti Gold Bandra Kurla Complex Alternate CBD 100,000 Ready

Rustomjee Natraj Andheri East SBD 286,000 Q2 2010

Silver Uthopia Andheri East SBD 400,000 Q2 2010

Rustomjee Aspire Sion SBD 124,000 Ready

IT Park, Ajmera Andheri East SBD 1,100,000 Q2 2010

Supreme Chambers Andheri West SBD 240,000 Ready

Ackruti Star Andheri East (MIDC) SBD 400,000 Q2 2010

Boomerang Chandivali SBD 1,000,000 Q2 2010

Western Edge Borivali SBD 400,000 Ready

Ruby Dadar SBD 1,000,000 Q4 2010

Suntech Grandeur Andheri West SBD 100,000 Q2 2011

Reliable Tech Park Airoli PBD 1,000,000 Q2 2010

Mindspace Airoli PBD 600,000 Q1 2011

Amruta Thane PBD 42,000 Q2 2010

G Corp Tech Park Thane PBD 700,000 Ready

Mindspace SEZ Airoli PBD 600,000 Ready

Gigaplex Airoli PBD 300,000 Ready

Nitco Business Park Thane PBD 170,000 Ready


GLOSSARYQ2:

Super Built-up Area (SBUA):

Carpet Area:

Sq.mt:

Mn:

New:

Recent:

SEZ:

BFSI:

SLR:

FSI:

MMRDA:

Quarter 2 of the financial year (April - May - June)

Built-up area + common area including lifts area, common passages, utilities, terrace etc. & varies from building to building.

Actual usable area, and does not include any common areas, area occupied by walls etc.

Square Meter

Million

Building built within the last 5 years.

Building less than 10 years old.

Special Economic Zone having special tax exemptions / incentives to corporate occupiers

Banking & Financial Services Industry

Statutory Liquidity Ratio

Floor Space Index

Mumbai Metropolitan Region Development Authority

Absorption:

Bare Shell:

BPO:

BUA:

Completed Stock:

DU:

EPIP:

FAR:

Grade A Space:

Ground Coverage:

Hard Option:

INR:

Pre-lease:

Speculative Stock:

Stock:

Supply:

Transaction Volumes:

Vacancy:

Warm Shell:

Q on Q:

y-o-y:

IT:

ITES:

Repo Rate:

Reverse Repo Rate:

SEC A, B, C & D Socio:

Sq.ft:

Stamp Duty:

Occupied Stock (n) – Occupied Stock (n-1); Where “n” is the specified period (quarter, year etc.)

Premises consisting of basic structure with lifts, power supply to junction box, water supply line, toilets

Business Process Outsourcing

Built up area

Either the building has received occupancy certificate or the client has moved in and occupied space and started working in a particular premises

Dwelling Unit

Export Promotion Industrial Park

Floor Area Ratio (BUA/ Plot Area)

Office Space with efficiency in excess of 75%, floor plate in excess of 15,000 sq. ft., Car Parking ratio of atleast 1 per 1000 sq. ft., Floor-to-ceiling height in excess of 3.75 m, Power provision of 1.25KVA per 100 sq. ft. with 100% power-backup wherever applicable and professionally managed facilities

It is the total covered area on ground by the built component and is expressed as a percentage of the plot area

Real estate space reserved by the lessee for future occupation within a particular time frame and at a pre-decided rental

Indian National Rupees

Space committed for lease before completion of construction

The stock which can be leased and excludes Built-to-Suit (BTS) and Campus facilities.

Cumulative Supply

New construction in a particular specified period

Total number of transaction in a particular specified period

Total vacant space in the completed stock

Premises consisting of power backup, high side A.C., common area fit outs and fitted out toilets

Quarter on Quarter

year-on-year (All growth figures in this report are y-o-y unless otherwise mentioned

Information Technology

Information Technology Enabled Services (includes various services ranging from call centres, claims processing, medical transcription, e-CRM, SCM to back-office operations such as accounting, data processing, and data mining)

Rate that an eligible depository institution (such as a bank) is charged to borrow short term funds directly from the central bank through the discount window

Interest rate that a bank earns for lending money to the Reserve Bank of India in exchange for government securities

Economic Classification; SEC A represents the highest propensity to spend and SEC D represents the lowest propensity to spend.

Square Feet

Form of tax charged on instruments (written documents) requiring a physical stamp (for government legality) to be attached to or impressed.

CRR:

Headline rent:

Average headline rent:

Disclaimer:

Cash Reserve Ratio

Monthly rent per square feet, charged on super built-up area basis, featured on the lease, and expressed excluding fitouts, taxes, deposits, advances, maintenance charges and does not take into account building efficiency (super built up area - carpet area ratio). Further it does not include attached premises such as parking areas, archives, staff canteens, etc. If the rental is progressive, the value applied is the average for the first 3 years or the fixed term of the lease.

Weighted average of rented area. The average featured is a moving average over the quarter, to smooth out the changes, exclusive of all taxes, deposits, advances & maintenance charges.

Major Refurbishment:

Renovated:

Modern:Old:CCI (Cost of construction index):

Demand:

For the occupier:New Supply:

Completed new supply:Under construction:

Planning permission granted:

Planning permission submitted:Pre-letting:

Underlying rent:

Prime rents:

Top rent:

Second hand premises:

Very good condition:Existing state of repair:To be renovated:Supply available within 1 year:

Take-up:

Vacancy rate:

Building which has undergone structural alteration less than 5 years ago, subject to planning permission.

.

Building which has undergone renovation work not requiring for planning permission less than 5 years ago.

High-performance building over 10 years old. Low-performance building over 10 years old.

Index that makes quarterly measurements of construction prices for new house building. It is the price after VAT paid by the owner to construction companies. It excludes land-related prices and costs (site development, special foundations, etc.), fees and financial costs.

A search for premises expressed to BNP Paribas Real Estate. The analysis pertains only to the flow of new demand expressed.

Operation undertaken by an occupier for its own purposes. Any new building and/or heavily refurbished building that adds to the

existing stocks. These are analysed according to progress. Buildings on which construction work is finished.

Buildings on which construction has effectively begun. Prior demolition work is not taken into account.

Authorisation to build obtained, generally booked after settlement of third party claims.

Planning permission requested, being processed.Transaction by an occupier more than 6 months before the delivery of the

building.

Annual rent per square meter expressed free of tax and charges and excluding advantages agreed by the owners (rent incentive building works, etc).

Represents the top headline rent (excluding non significant transactions) for an office unit:- of standard size, of the highest quality and specification, in the best location in each market.

Represents the top headline rent for an office unit. It is not necessarily a prime rent.

Premises that have been previously occupied by an occupier for vacant for more than 5 years.

High-performance premises of high quality. Low-performance premises that can be rented as they are.

Low performance premises that need renovation. All premises and buildings available within 1 year

including the supply available immediately, new supply that has not been pre-let and second hand supply that will be vacated definitively (notable terminated leases).

Rental or sale of a property asset, finalised by the signature of a lease or a bill of sale including turnkey transactions and owner-occupier. The transaction is only taken into account once any existing conditional clauses have been lifted.

Ratio measuring the relationship between the supply immediately available and the existing stock.

This report is released by BNP Paribas Real Estate & Infrastructure Advisory Services and the information in it is dedicated to the exclusive use of its clients. The report and the information contained in it should not be copied or reproduced without prior permission from BNP Paribas Real Estate and Infrastructure Advisory Services. The facts of these reports are believed to be correct at the time of it's release but cannot be guaranteed. Please note the findings, projections, conclusions and recommendations are based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. BNP Paribas Real Estate & Infrastructure Advisory Services cannot be held responsible if, despite it's best efforts, the information contained in the present report turns out to be inaccurate or incomplete.

www.realestate.bnpparibas.com

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ALBANIA*Danos & AssociatesBlvd. Deshmoret e KombitTwin Towers - Building 211th FloorTiranaTel.: +355-4-2280488Fax: +355-4-2280192

AUSTRIA*Dr. Max Huber & PartnerDr. Karl-Lueger-Platz 51010 ViennaTel: +43-1-513 29 39 0Fax: +43-1-513 29 39 14

BULGARIA*

28, Hristo Botev BoulevardSofiaTel: +359-2-9532314Fax: +359-2-9532399

CANADA*Cresa PartnersTel.: +1-617-758 6000Fax: +1-617-742 0643

CYPRUS*Danos & Associates35, I. Hatziosif Ave2027, NicosiaTel.: +357-22 31 70 31Fax: +357-22 31 70 11

Danos & Associates

GREECE*Danos & Associates1, Eratosthenous Str.11635 AthensTel: +30-210 7 567 567Fax: +30-210 7 567 267

JAPAN*RISA Partners5F Akasaka Intercity 1-11-44Akasaka, Minato-ku107-0052 TokyoTel: +81-3-5573 8011Fax: +81-3-5573 8012

RUSSIA*Astera10, b.2 Nikolskaya Str.Moscow, 109012Tel/Fax: +7-495-925 00 05

NETHERLANDS*Holland Realty PartnersJ.J. Viottastraat 33,1071 JPAmsterdam,Tel: +31-20-305 97 20Fax: +31-20-305 97 21

NORTHERN IRELAND*Whelan Property Consultants44 Upper Arthur StreetBelfast Bt1 4GJTel: +44-28-9044 1000Fax: +44-28-9033 2266

POLAND*Brittain Hadley EuropaWarsaw Financial Centre13th floorEmilii Plater 5300-113 WarsawTel.: +48-22-586 31 00Fax: +48-22-586 31 16

SERBIA*6, Vladimira Popovica StreetOffice B3111000 BelgradeTel.: +381-11-2600 603Fax: +381-11-2601 571

SLOVAKIA*Modesta (Dr. Max Huber &Partner Group)Heydukova 12-14811 08 BratislavaTel.: +421-2-3240 8888Fax: +421-2-3214 4777

SWITZERLAND*NaefAvenue Eugène-Pittard 14-16Case Postale 301211 Geneva 17Tel.: +41-22 839 39 39Fax: +41-22 839 38 38

UKRAINE*Astera2a Konstantinovskaya Street04071, KievTel: +38-044-501 50 10Fax: +38-044-501 50 11

USA*Cresa Partners200 State Street13th FloorBoston, Massachusetts 02109Tel.: +1-617-758 6000Fax: +1-617-742 0643

Falcon Real Estate570 Lexington Avenue32nd FloorNew York, NY 10022Tel.: +1-212 271-5445Fax: +1-212 271-5588

ABU DHABIAl Bateen AreaPlot No. 144, W-11New Al Bateen MunicipalityStreet 32P.O. Box 2742Abu Dhabi, UAETel.: +971-505 573 055Fax: +971-44 257 817

BELGIUMBlue TowerAvenue Louise 326B14 Louizalaan1050 BrusselsTel: +32-2-646 49 49Fax: +32-2-646 46 50

DUBAIEmmar SquareBuilding No. 1, 7th FloorP.O. Box 7233Dubai, UAETel: +971-505 573 055Fax: +971-44 257 817

FRANCE13 boulevard du Fort de Vaux75017 ParisTel: +33-1-55 65 20 04Fax: +33-1-55 65 20 00

GERMANYGoetheplatz 460311 FrankfurtTel.: +49-69-2 98 99 0Fax: +49-69-2 92 91 4

IRELAND40 Fitzwilliam PlaceDublin 2Tel: +353-1-66 11 233Fax: +353-1-67 89 981

JERSEY4th Floor, Conway HouseConway StreetSt HelierJersey Je2 3NTTel: +44-15 34-62 90 01Fax: +44-15 34-62 90 11

ITALYCorsa Italia, 15/A20122 MilanTel: +39-02-58 33 141Fax: +39-02-58 33 14 39

LUXEMBOURGAxento BuildingAvenue J.F. Kennedy 441855 LuxembourgTel.: +352-34 94 84Fax: +352-34 94 73

ROMANIAUnion International Center11 Ion Campineanu StreetSector 1Bucharest 010031Tel: +40-21-312 7000Fax: +40-21-312 7001

SPAINMaría de Molina, 5428006 MadridTel: +34-91-454 96 00Fax: +34-91-454 97 65

UNITED KINGDOM90 Chancery LaneLondon WC2A 1EUTel: +44-20-7338 4000Fax: +44-20-7430 2628

*Alliances

Bangalore403, The Estate,121, Dickenson Road,Bangalore - 560 042Tel: +91 80 4050 8888Fax: +91 80 4050 8899

DelhiUpper ground floor, Unit No 7,Mercantile House, 15 KG Marg,New Delhi 110001Tel: +91 11 4959 8800Fax: +91 11 4959 8818

INDIA

Mumbai704, Level 7, MMTC House, C-22,Bandra Kurla Complex, Bandra (E),Mumbai - 400 051Tel: +91 22 6138 8088Fax: +91 22 6138 8089

For Queries / Comments:Tasneem Gandhi at+91 9930141009 or email at [email protected]

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BNP PARIBAS REAL ESTATE& INFRASTRUCTURE ADVISORYSERVICES PVT. LTD.

City Report Mumbai Office Market Q2 2010

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