City Report Mumbai Office Market Q4 2010

CITY REPORTMUMBAI OFFICE MARKET

Q4 2010

BNP Paribas Real Estate - INDIAAll the building blocks

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

Transaction Advisory, Consulting and Land and Building Valuations.

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CITY REPORTMUMBAI OFFICE MARKET - Q4 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 office market has responded favorably to corrections in rental values across the various markets in Mumbai city. The city witnessed some notable transactions from Extended CBD to PBD micro markets between Q3 2010 to Q4 2010. Significant absorption levels were witnessed across fresh stocks being launched in the market. However, at the same time a significant amount of secondary supply is being created on account of this movement in newer premises. Therefore, the supply continues to outstrip demand. As a development strategy it would be prudent to acquire quality tenants and right through these times of price corrections, where excessive supply is chasing limited demand.

In recent past, a few developers have launched projects with small office configurations and these projects have witnessed excellent demand. In other cases, some property owners have diluted partial stock at very comparative rentals, in hope of averaging prices as markets improve in future. Innovative ideas like these, will help the market sustain these times.

Industries whose businesses are very sensitive to high real estate costs like retail, have been actively looking at expansion as rental and capital values are reasonably affordable.

Good market response due to correction in rentals


CITY REPORTMUMBAI OFFICE MARKET - Q4 2010 5I I

Repo Reverse Repo

Repo & Reverse Repo Rate7

6

3

Perc

ent

1

Gross Domestic Product (GDP)

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

0.00

2.00

4.00

6.00

8.00

10.00

Q32009

Q42009

Wholesale Price Index (WPI)

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

Sept

-06

Dec-

06

Mar

-07

Jun-

07

Sept

-07

Dec-

07

Mar

-08

Jun-

08

Sept

-08

Dec-

08

Mar

-09

Jun-

09

Sept

-09

Dec-

09

Mar

-10

Jun-

10

Source: Confederation of Indian Industries

Q12010

Sept

-10

23-J

ul-0

9

23-A

ug-0

9

23-S

ep-0

9

24-O

ct-0

9

24-N

ov-0

9

25-D

ec-0

9

25-J

an-1

0

25-F

eb-1

0

19-M

ar-1

0

20-A

pr-1

0

20-M

ay-1

0

20-J

un-1

0

27-J

ul-1

0

20-A

ug-1

0

16-S

ep-1

0

2

4

5

0

Dec-

10

Q22010

2-Ju

l-10

MACROECONOMIC CONTEXTGDP growth moderates on account of unanticipated factorsThe Indian economy, continued on the high growth path in 2010-11 despite an uncertain global environment. Though the overall global outlook suggested some moderation in growth in both advanced and emerging economies in 2011, downside risks to India's growth momentum have receded considerably. However, the GDP grew moderately at 8.2 % during the quarter as compared to 8.8% during the previous two quarters. Significant slowdown in the industrial sector along with marginal downward movement in the services sector were primary factors that led to moderation in the GDP growth, despite of sharp increase in agricultural growth.

Modest softening of manufactured products price and pressures aided by past monetary tightening by RBI, led to moderation in Wholesale Price Index (WPI) during August-November 2010 relative to double digit levels of 11% experienced during March-July 2010. However, inflationary pressures revived in December 2010 with WPI inflation increasing to 8.4 percent from 7.5 per cent in November 2010. These were attributed to unanticipated factors such as unseasonal showers and supply chain factors affecting the prices of essential commodities such as vegetables. New drivers such as Fuel and non-fuel international commodity prices and demand-supply imbalances in some food items emerged as factors impacting the inflation rates.

Liquidity conditions remained tight during the third quarter of 2010-11, prompting liquidity easing measures being adopted by the Reserve Bank. Under the Liquidity Adjustment Facility (LAF), the RBI increased the repo rate by 25 basis points from 6.0% to 6.25% and hiked the reverse repo rate by 25 basis points from 5.0% to 5.25%. Conditions for enhancing the efficiency of monetary policy however, improved during the quarter with the tightness in liquidity leading to competition among banks, resulting in higher deposit and lending rates.

Supported by a stable economy, India continued to be high on Global Investment radar. According to The World Prospectus Survey by the United Nations Conference on Trade and Development (UNCTAD), in spite of a dip in the FDI Inflows, India continues to be the second best attractive destination for FDI after China. India witnessed a total FDI inflow of USD 16,039 million dollars (as on Dec 2010) followed by Singapore and USA at third and fourth places.

Overall, robust and broad – based growth is expected to co-exist with elevated inflation in the near term.

DLF Limited 5% 11%

Major Real EstateCompanies in

India

Sales (In INR / In million) Profits (In INR / In million)

Q4 2010 Q3 2010Q on Q

Change % Q4 2010 Q3 2010Q on Q

Change %

Unitech 2% -36%

India Bulls 10% 17%Sobha Developers -15% -17%

Peninsula Land -4% -3%ParsvnathDevelopers 12% -37%

Pheonix 2% 7%

Omaxe Limited -2% -39%

MahindraLifespace 75% 36%

Anantraj -100% 5%

Ackruti City 31% 31%

Ansal Properties 6% 63%

5,414 1,727

4,257 589

1,226 638

443

890 247

1,624 557

3,197 199

221

23,690 4,184

3,544 367

1.329 480

6,445 1,740

1,955 498

24,799 4,657

5,962 2,025

3,629 490

1,178 621

451 238

1,558 334

2,123 678

2-N

ov-1

0

3,378 324

2,198 314

3,480 226

6,598 1,113

2 502

8.80%

7.90%7.60%

5.30%

5.80%6.10%

7.90%

6%

8.60%

8.80%8.20%

8.80%

1.00

3.00

5.00

7.00

9.00

Q32010

Q42010

SLR CRR

CRR & SLR

30

20

10

5

Perc

ent

0

Jan-

09Fe

b-09

Mar

-09

May

-09

Jul-

09

Sep-

09

Nov

-09

Jan-

10

Mar

-10

May

-10

Jul-

10

Sep-

10

15

25

Nov

-10

35

Apr-

09

Jun-

09

Aug-

09

Oct-

09

Dec-

09

Feb-

10

Apr-

10

Jun-

10

Aug-

10

Oct-

10

Dec-

10

Perc

ent

Perc

ent

MUMBAI MAP

6I ICITY REPORTMUMBAI OFFICE MARKET - Q4 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)

CBD continues to see movement of large occupiers to alternate locations which offer better infrastructure and amenities at attractive rental and capital values.


Movement continues to other business districts

Source: BNP Paribas Real Estate - Research, India

Ballard Estate

Nariman Point

Fort

Cuffe Parade

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

2009Q4

2009

250

325

150

200

250

325

150

200

Q22010

Q12010

250

200

150

325


Ballard Estate

Nariman Point

Fort

Cuffe Parade

AVERAGE 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

Q32009

Q42009

Q12010

Q22010

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

45,000

Q42010

Q32010

Q42010

Q32010

Q42010

Q32010

Q42010

Q32010

220 220

200 200

150 150

290 290

35,000

30,000

22,500

40,000

35,000

30,000

22,500

40,000

5,000

15,000

25,000

35,000

EXTENDED CENTRAL BUSINESS DISTRICT(ECBD)

Landmark developments by quality developers like, Penninsula land, Indiabulls Real Estate and Lodha Developers have attracted many high quality occupiers. This is primarily on account of the value propositions that these projects offer vis a vis old stock existing in CBD of Mumbai.Extended CBD continues to witness excessive supply (both primary and secondary), which will continue to exert pressure on rental and capital values.


Pressure on rental values

Mahalaxmi

Lower Parel

Worli

Prabhadevi


Q32009

Q42009

30,000

25,000

15,000

18,000

30,000

25,000

15,000

18,000

Q22010

Q12010

Mahalaxmi

Lower Parel

Worli

Prabhadevi


Q32009

Q42009

300

250

150

180

300

250

150

180

Q22010

Q12010

180

150

225

275

18,000

15,000

25,000

30,000


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

AVERAGE 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

Q32009

Q42009

Q12010

Q22010

Worli Prabhadevi

Lower Parel Mahalaxmi

Capi

tal V

alue

s (IN

R / s

q.ft

)

Q32009

—

5,000

30,000

Worli Prabhadevi

Lower Parel Mahalaxmi

20,000

Q42009

Q12010

Q22010

10,000

15,000

25,000

35,000

Q42010

Q32010

Q42010

Q32010

Q42010

Q32010

Q42010

Q32010

170

150

220

250

20,000

15,000

25,000

30,000

170

150

220

250

20,000

15,000

25,000

30,000

ALTERNATE CENTRAL BUSINESS DISTRICT(ALTERNATE CBD)

Although the market has substantial supply available, most of the options are in the form of small space options in the range of 5,000 sq.ft - 50,000 sq.ft. Tenants looking at larger contiguous floor plates would have to wait till Q2 2011, wherein the market is likely to be infused with fresh supplies from buildings such as The Capital, TCG (FIFC).Rental and Capital values are likely to remain under pressure, in the micro market, however prime projects like Maker Maxity will continue to command higher rental and capital values.


Good demand from corporate occupiers



Bandra - KurlaComplex

Bandra East

Kalina

Q32009

Q42009

250

175

200

250

175

200

Bandra - KurlaComplex

Bandra East

Kalina

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

Q32009

Q42009

Q12010

Q22010

Capi

tal V

alue

s (IN

R / s

q.ft

)

Q32009

—

5,000

20,000

25,000

10,000

15,000

30,000

35,000

Bandra - Kurla ComplexKalinaBandra East

Q42009

Q12010

Q22010

Q42010

Q32010

Q42010

Q32010

Q42010

Q32010

Q42010

Q32010

350

175

190

32,000

20,000

22,500

400

350

175

190

32,000

20,000

22,500

SECONDARY BUSINESS DISTRICT (SBD)

SBD continues to witness downward pressure on achievable values. This area is already witnessing excessive supply (primary and secondary) coupled with ongoing construction activities such as metro rail resulting in heavy traffic congestion, which is acting as a major deterrent.SBD will continue to face challenges for next few quarters till the infrastructure improves. Quality projects within SBD especially those along with the Western Express highway will still command a premium as compared to other projects.


Pressure on rental and capital values



Vile Parle

Andheri W

Andheri E

PowaiVikhroli

Malad

Borivali

120

110

120

9065

90

50

120

110

120

9065

90

50

Vile Parle

Andheri W

Andheri E

PowaiVikhroli

Malad

Borivali

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

120

11060

809075120

12,000

11,0006,500

9,0009,0007,500

12,000


Kurla 65 70 70

Kurla 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

)

Q32009

0

100

Vile Parle

Andheri East

Andheri WestPowai

Malad

Vikhroli

Borivali

40

Q42009

Q12010

Q22010

20

60

80

120

140

160

Kurla

Capi

tal V

alue

s (IN

R / s

q.ft

)

—

4,000

Vile ParleAndheri EastAndheri WestPowai

Malad

VikhroliBorivali

8,000

10,000

Q32009

Q42009

Q12010

Q22010

2,000

6,000

12,000

14,000

16,000

Kurla

Q42010

Q32010

Q42010

Q32010

Q42010

Q32010

100

9060

809070130

90

13,000

12,0008,000

9,0009,5008,000

13,500

9,500

90

9060

809070130

90

12,500

12,0008,000

9,0009,5008,000

13,500

9,500

Q32009

Q42009

Q22010

Q12010

Q42010

Q32010

PERIPHERY BUSINESS DISTRICT (PBD)

The PBD market witnessed maximum transactions in the SEZ developments. Large IT parks in Thane, Navi Mumbai witnessed a few transactions as compared to the SEZ space. IT office market has witnessed corrections in rental values in the last few quarters and are likely to remain under pressure.The market also witnessed a few retail and hospitality transactions, with Navi Mumbai re-enforcing its status as a self sustained market.


Good demand for SEZ space

Thane

Airoli

Vashi



Q32009

Q42009

4,000

3,500

6,000

Thane

Airoli

Vashi

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

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

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

Q42010

Q32010

Q42010

Q32010

Q42010

Q32010

Q42010

Q32010

38

42

70

5,000

4,500

7,500

35

40

70

4,700

4,500

7,500

RENTAL VALUES FOR Q4 2010



CAPITAL VALUES FOR Q4 2010

RentINR/ sq.ft/ month

Ballard Estate

Nariman PointFort

Cuffe Parade

Region Q on QChange

220

290150200 0%

0%

0%

0%

Ballard Estate

Nariman PointFortCuffe Parade

Region INR / sq.ft Q on QChange

0%

0%0%0%

MahalaxmiLower Parel

WorliPrabhadevi

Region RentINR/ sq.ft/ month

Q on QChange

150170

250220

0%0%

0%

0%

MahalaxmiLower Parel

WorliPrabhadevi

Region Q on QChangeINR / sq.ft

15,00020,000

30,00025,000

0%0%

0%

0%

ThaneAiroli

Vashi


Q on QChange

4035

70-5%-8%

0%ThaneAiroli

Vashi

RegionQ on QChangeINR / sq.ft

4,7004,500

7,500

Vile Parle

Andheri WAndheri E

Powai

Region

Vikhroli

Malad

Borivali

RentINR/ sq.ft/ month

Q on QChange

130

9090

9070

80

60

0%

0%-10%

0%

0%0%

0%Kurla 90 0%

Vile Parle

Andheri WAndheri E

PowaiVikhroli

Malad

Borivali


13,500

12,00012,500

9,5008,000

9,000

8,000

0%

0%-4%

0%

0%

0%

0%

Kurla 9,500 0%

Bandra - KurlaComplexBandra EastKalina


Q on QChange

350

175190

0%

0%0%

Bandra - KurlaComplexBandra EastKalina


32,000

20,00022,500

0%

0%0%

CBD CBD

Extended CBD Extended CBD

Alternate CBD Alternate CBD

SBD SBD

PBD PBD

-6%0%

0%

35,00030,00022,50040,000

13I I

KEY TRANSACTIONS


Q4 2010

Building Occupiers Space(in sq.ft)

Micro Market Location

Cumbatta Building Warner Brothers 6,000 CBD Churchgate

Paragon Centre BBDO 8,000 Extended CBD Worli

Paragon Centre OMD 6,500 Extended CBD Worli

One Indiabulls Centre Bloomberg 25,000 Extended CBD Lower Parel

Windsor House Ciena Communications 4,500 Alternate CBD Kalina

Maker Maxity Mcquarie Capital 28,000 Alternate CBD Bandra Kurla Complex

ING Vysya Religare 28,000 Alternate CBD Bandra Kurla Complex

Naman Corporate Link Cholamandlam Insurance 10,000 Alternate CBD Bandra Kurla Complex

IL & FS IBM 62,000 Alternate CBD Bandra Kurla Complex

Grande Palladium DBM Giotech 15,000 Alternate CBD Kalina

Nomura - Hiranandani Teradata 30,000 SBD Powai

Windfall ATC Shipping 6,000 SBD Andheri (East)

Nirlon Citi Bank 77,000 SBD Goregaon

Equinox Business Park Vion Networks 18,000 SBD Kurla

Akruti Center point Diversey 21,000 SBD MIDC, Andheri

Godrej Collosium Powerica 9,000 SBD Sion - Wadala

Nomura Religare 23,000 SBD Powai

Minspace Cognizant 160,000 PBD Airoli

Minspace Globe Op 60,000 PBD Airoli


14I I

KEY PROJECTS


New Supply – Year 2010

Building Location Micro Market Space (in sq.ft)

Completion Date(expected)

Cynergy Prabhadevi Extended CBD 400,000 Q4 2010

Peninsula Business Park Lower Parel Extended CBD 1,300,000 Q4 2010

Wadia Plaza Worli Extended CBD 400,000 Q4 2010

TCG Financial Centre Bandra Kurla Complex Alternate CBD 182,000 Q2 2011

Cresenzo Bandra Kurla Complex Alternate CBD 577,000 Q4 2010

Pooja Constructions Bandra Kurla Complex Alternate CBD 160,000 Ready

Silver Uthopia Andheri East SBD 400,000 Q1 2011

Rustomjee Aspire Sion SBD 124,000 Ready

IT Park, Ajmera Andheri East SBD 1,100,000 Q4 2010

Supreme Chambers Andheri West SBD 240,000 Ready

Ackruti Star Andheri East (MIDC) SBD 400,000 Ready

Boomerang Chandivali SBD 1,000,000 Ready

Western Edge Borivali SBD 400,000 Ready

Times Square Andheri Kurla Road SBD 589,000 Q1 2011

Arena JVLR SBD 170,000 Q2 2011

Ruby Dadar SBD 1,000,000 Q1 2011

Viva Andheri SBD 160,000 Q1 2012

Wealth Space Vidya Vihar/Ghatkopar (W) SBD 150,000 Q4 2011

Futurex by Marathon Parel SBD 800,000 Q2 2011 (Phase I)

Reliable Tech Park Airoli PBD 1,000,000 Q1 2011

Mindspace SEZ Airoli PBD 600,000 Ready

Nitco Business Park Thane PBD 170,000 Ready



GLOSSARYQ4:

Super Built-up Area (SBUA):

Carpet Area:

Sq.mt:

Mn:

New:

Recent:

SEZ:

BFSI:

SLR:

FSI:

MMRDA:

Quarter 4 of the financial year (October - November - December)

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.

.

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

UNITED KINGDOM5 Aldermanbury SquareLondon EC2V 8HRTel.: +44-20-7338 4000Fax: +44-20-7430 2628

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

SERBIA*Danos & associates6, Vladimira Popovica StreetOffice B3111000 BelgradeTel.: +381-11-2600 603Fax: +381-11-2601 571

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

NORTHERN IRELAND*Whelan Commercial LimitedArthur House41 Arthur StreetBelfast BT1 4GBTel.: +44-28-9044 1000Fax: +44-28-9033 2266

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.: +971-44 248 271Fax: +971-44 257 817

BELGIUMBoulevard LouisSchmidtlaan 2 B31040 BrusselsTel: +32 2 646 49 49Fax: +32 2 646 46 50

CZECH REPUBLICPobøežni 3186 00 Praha 8Czech RepublicTel.: +420 224 835 000Fax: +420 222 323 723

DUBAIEmaar SquareBuilding No. 1, 7th FloorP.O. Box 7233Dubai, UAETel: +971-44 248 271Fax: +971-44 257 817

FRANCE167, quai de la Bataillede Stalingrad92867 Issy-les-MoulineauxTel: +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

HUNGARYAlkotas u. 53.H-1123 Budapest,HungaryTel.: +36 1 487 5501Fax: +36 1 487 5542

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

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

POLANDul. Gorczewska 12401-460 WarszawaPolandTel.: +48 22 533 40 03Fax: +48 22 533 40 04

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

JERSEYDialogue HousePO Box 158Anley StreetSt HelierJersey JE4 8RDTel.: +44 (0)1 534 815 300Fax: +44 (0)1 534 629 011

*Alliances

INDIA

For Queries / Commentsemail at:[email protected]

BNP PARIBAS REAL ESTATE& INFRASTRUCTURE ADVISORYSERVICES PVT. LTD.

MUMBAI (HEAD OFFICE)704, Level 7, MMTC House, C-22,Bandra Kurla Complex, Bandra (E),Mumbai - 400 051Tel: +91 22 6138 8088Fax: +91 22 6138 8089

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

BANGALORELevel 15, Concorde Block,UB City, Vittal Mallya Road,Bangalore – 560001Tel: +91 80 4030 0334Fax: +91 80 4030 0400

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City Report Mumbai Office Market Q4 2010

Documents

central business district

repo rate reverse repo

real estate project

mumbai city

rentalsthe office market

high real estatedemand

high growth path

mumbai head office