EMBASSY OFFICE PARKS

DETAILED VALUATION REPORT

Issued To:

Embassy Office Parks Management Services Private Limited in its

capacity as Manager of The Embassy Office Parks REIT

EMBASSY MANYATA, BENGALURU

EMBASSY TECHVILLAGE, BENGALURU

EMBASSY GOLFLINKS, BENGALURU

EMBASSY ONE, BENGALURU

EMBASSY BUSINESS HUB, BENGALURU

EXPRESS TOWERS, MUMBAI

EMBASSY 247, MUMBAI

FIRST INTERNATIONAL FINANCE CENTRE (FIFC), MUMBAI

EMBASSY TECHZONE, PUNE

EMBASSY QUADRON, PUNE

EMBASSY QUBIX, PUNE

EMBASSY OXYGEN, NOIDA

EMBASSY GALAXY, NOIDA

HILTON EMBASSY GOLFLINKS, BENGALURU

EMBASSY ENERGY, BELLARY DISTRICT, KARNATAKA

DATE OF VALUATION: 31 s t March, 2024

DATE OF REPORT: 30 t h May, 2024

Valuer pursuant to the requirements under the SEBI (REIT)

Regulations, 2014: L. Anuradha
EMBASSY OFFICE PARKS REIT

DISCLAIMER

This report is prepared exclusively for the benefit and use of Embassy Office Parks Management Services Private
Limited (“Embassy Office Parks REIT”) (the “Recipient” or the “Company” or “Instructing Party”) and / or its associates
and/or affiliates and for, presentations, research reports, publicity materials, press releases, submission to the stock
exchanges or any other regulatory authority or any notice or communication to the unitholders for the valuation of assets
forming part of the portfolio of Embassy Office Parks REIT. Embassy Office Parks REIT, a Real Estate Investment Trust
under the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014, as amended till
date (“SEBI REIT Regulations”). The Company may share the report with its appointed advisors for any statutory or
reporting requirements. Neither this report nor any of its contents may be used for any other purpose other than the
purpose as agreed upon herein and in the Letter of Engagement (“LOE”) dated 31 st July 2023 without the prior written
consent of the Valuer.

The information in this report reflects prevailing conditions and the view of Valuer as of this date, all of which are,
accordingly, subject to change. In preparation of this report, the accuracy and completeness of information shared by the
REIT has been relied upon and assumed, without independent verification, while applying reasonable professional
judgment by the Valuer.

This report has been prepared upon the express understanding that it will be used only for the purposes set out in the
LOE dated 31st July 2023 and set out herein. The Valuer is under no obligation to provide the Recipient with access to
any additional information with respect to this report unless required by any prevailing law, rule, statute, or regulation.

This report should not be deemed an indication of the state of affairs of the real estate financing industry nor shall it
constitute an indication that there has been no change in the business or state of affairs of the industry since the date of
preparation of this document.

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

TABLE OF CONTENTS

A. INSTRUCTIONS ...............................................................................................................15
[Link] Party ..............................................................................................................15
[Link] Competency of The Valuer ..............................................................................16
[Link] and Conflicts of Interest ................................................................................16
[Link] of Valuation ..........................................................................................................17
[Link] of Valuation..............................................................................................................17
[Link] Approach & Methodology ...................................................................................17
[Link], Departures and Reservations ..........................................................................18
[Link] .........................................................................................................................18
[Link] Comment .............................................................................................................19
[Link] ........................................................................................................................19
[Link] Parties .................................................................................................................19
[Link] of Liability ......................................................................................................20
[Link] .......................................................................................................................20
[Link] and Publication ...............................................................................................20
[Link], Disclaimers, Limitations and Qualifications to Valuation. ...............................23
[Link]-Bribery & Anti-Corruption........................................................................................25
B. VALUATION APPROACH AND METHODOLOGY ....................................................26
[Link] of Valuation ..........................................................................................................27
[Link] Guidelines and Definition ....................................................................................27
[Link] Approach ...........................................................................................................27
[Link] Methodology ......................................................................................................28
[Link] Source for Valuation ........................................................................................30
C. EMBASSY REIT ASSETS ................................................................................................33
[Link] REIT Assets at a Glance .......................................................................................34
[Link] of the Interest of the Embassy REIT ....................................................................35
[Link] Rate Assumptions - Office .......................................................................35
[Link] Rate Assumptions - Hospitality Development ............................................36
[Link] Rate ..............................................................................................................37
D. EXECUTIVE SUMMARY ................................................................................................38
[Link] Manyata ........................................................................................................39
[Link] TechVillage ...................................................................................................42
[Link] GolfLinks ......................................................................................................44
[Link] One ...............................................................................................................46
[Link] Business Hub .................................................................................................48
[Link] Tower .............................................................................................................50
[Link] 247 ...............................................................................................................52
[Link] International Financial Centre ................................................................................54
[Link] TechZone ......................................................................................................56
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[Link] Quadron ......................................................................................................58

[Link] Qubix ..........................................................................................................60
[Link] Oxygen .......................................................................................................62
[Link] Galaxy ........................................................................................................64
[Link] - Embassy GolfLinks ........................................................................................66
[Link] Energy, Bellary District, Karnataka ................................................................68
[Link] Summary ..........................................................................................................70
E. CITY REPORT...................................................................................................................72
[Link] City Report ....................................................................................................73
[Link] Office Market Overview ...............................................................................73
[Link] - Supply, Absorption & Vacancy ....................................................................75
[Link] - Hospitality Market Overview ......................................................................76
[Link] Manyata, Embassy One and Embassy Business Hub - Micro Markets.................77
[Link] Market Overview - Peripheral North ..............................................................77
[Link] Market - Rental Trend Analysis ......................................................................79
[Link] Market - Supply, Absorption & Vacancy .........................................................81
[Link] Market Outlook ............................................................................................83
[Link] Manyata ...................................................................................................84
[Link] One .........................................................................................................85
[Link] Business Hub ...........................................................................................87
[Link] TechVillage Micro Market ..............................................................................88
[Link] Market Overview - Outer Ring Road ..............................................................88
[Link] Market - Rental Trend Analysis ......................................................................90
[Link] Market - Supply, Absorption & Vacancy .........................................................91
[Link] Market Outlook ............................................................................................92
[Link] GolfLinks Micro Market .................................................................................93
[Link] Market Overview - Suburban East..................................................................93
[Link] Market - Rental Trend Analysis ......................................................................95
[Link] Market - Supply, Absorption & Vacancy .........................................................96
[Link] Market Outlook ............................................................................................98
[Link] City Report .......................................................................................................98
[Link] Office Market Overview ..................................................................................98
[Link] Mumbai Micro Market - Supply, Absorption & Vacancy..................................100
[Link] Office REIT’s Micro Market .........................................................................100
[Link] Overview - CBD .......................................................................................100
[Link] Micro Market - Rental Trend Analysis............................................................103
[Link] Micro Market - Supply, Absorption & Vacancy ...............................................104
[Link] Market Outlook ..........................................................................................106
[Link] Market Overview .............................................................................................106
[Link] Overview – Vikhroli ..................................................................................106
[Link] Market – Rental Trend Analysis ...................................................................108
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[Link] Market - Supply, Absorption & Vacancy .......................................................109

[Link] Market Outlook .......................................................................................... 111
[Link] Office REIT’s Micro Market (BKC) .............................................................. 111
[Link] Overview - BKC ....................................................................................... 111
[Link] Market - BKC Rental Trend Analysis............................................................ 113
[Link] Market - Supply, Absorption & Vacancy BKC & Annexe ............................... 115
[Link] Market Outlook .......................................................................................... 116
[Link] City Report ........................................................................................................... 117
[Link] Office Market Overview ..................................................................................... 117
[Link] - Supply, Absorption & Vacancy .......................................................................... 119
[Link] West Micro Market.............................................................................................120
[Link] Market Overview - PBD West ......................................................................120
[Link] Market - Rental Trend Analysis ....................................................................121
[Link] Market - Supply, Absorption & Vacancy .......................................................122
[Link] Market Outlook ..........................................................................................124
[Link] City Report .........................................................................................................125
[Link] Office Market Overview ...................................................................................125
[Link] - Supply, Net Absorption & Vacancy ..................................................................127
[Link] Oxygen Micro Market ..................................................................................127
[Link] Market Overview - Noida - Greater Noida (NGN) Expressway.......................127
[Link] Market - Rental Trend Analysis ....................................................................129
[Link] Market - Supply, Net Absorption & Vacancy .................................................131
[Link] Market Outlook ..........................................................................................132
[Link] Galaxy Micro Market ...................................................................................133
[Link] Market Overview - Sector 62 .......................................................................133
[Link] Market - Rental Trend Analysis ....................................................................135
[Link] Market - Supply, Net Absorption & Vacancy .................................................136
[Link] Market Outlook ..........................................................................................137
[Link] Micro Market ....................................................................................................138
F. EMBASSY MANYATA.....................................................................................................140
[Link] Description - Manyata ........................................................................................141
[Link] ...........................................................................................................141
[Link] .........................................................................................................................141
[Link] .....................................................................................................................141
[Link] ..............................................................................................................143
[Link] Conditions .....................................................................................................143
[Link] Considerations .......................................................................................144
[Link] Planning and Statutory Considerations ................................................................144
[Link] Property - Asset Description .................................................................................144
[Link] Asset Information ................................................................................................145
[Link] Property Inspection ........................................................................................147
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[Link] Expiry Profile ...................................................................................................148

[Link] on Land ...............................................................................................................148
[Link] Methodology ....................................................................................................148
[Link] Statement ..........................................................................................................148
[Link] Timelines ...............................................................................................149
[Link] Assumptions - Office ....................................................................................150
[Link] Assumptions - Hotel .....................................................................................151
[Link] Consideration - Block M3A ........................................................................152
[Link] Considerations - Block M3B.......................................................................153
[Link] Assumptions - Office.....................................................................................153
[Link] Assumptions .....................................................................................................155
[Link] Cost - Hotel................................................................................................155
[Link] Rates ..................................................................................................157
[Link] Rate ..........................................................................................................157
[Link] Value of the Subject Property .........................................................................157
G. EMBASSY TECHVILLAGE ..........................................................................................159
[Link] Description - Embassy TechVillage .....................................................................160
[Link] ...........................................................................................................160
[Link] .........................................................................................................................160
[Link] .....................................................................................................................160
[Link] ..............................................................................................................162
[Link] Conditions .....................................................................................................162
[Link] Considerations .......................................................................................162
[Link] Planning and Statutory Considerations ................................................................162
[Link] Property - Asset Description .................................................................................163
[Link] Asset Information ................................................................................................164
[Link] Property Inspection ........................................................................................166
[Link] Expiry Profile ...................................................................................................167
[Link] Methodology ....................................................................................................167
[Link] Statement ..........................................................................................................167
[Link] Timelines ...............................................................................................167
[Link] Assumptions - Office ....................................................................................168
[Link] Assumptions - Hotel .....................................................................................170
[Link] Assumptions - Office.....................................................................................170
[Link] Assumptions .....................................................................................................172
[Link] Cost- Hotel.................................................................................................172
[Link] Rates ...................................................................................................174
[Link] Rate ............................................................................................................174
[Link] Value of the Subject Property .........................................................................175
H. EMBASSY GOLFLINKS ................................................................................................176
[Link] Description - Embassy GolfLinks ........................................................................177
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[Link] ...........................................................................................................177
[Link] .........................................................................................................................177
[Link] .....................................................................................................................177
[Link] ..............................................................................................................179
[Link] Conditions .....................................................................................................179
[Link] Considerations .......................................................................................179
[Link] Planning and Statutory Considerations ................................................................179
[Link] Property - Asset Description .................................................................................180
[Link] Asset Information ................................................................................................180
[Link] Property Inspection ........................................................................................181
[Link] Expiry Profile ...................................................................................................182
[Link] Methodology ....................................................................................................182
[Link] Statement ..........................................................................................................182
[Link] Timelines ...............................................................................................182
[Link] Assumptions - Office ....................................................................................182
[Link] from Cinnabar Hills Block ............................................................................184
[Link] - Lease Revenue from Saint Andrew Block Sublease ..............................................184
[Link] Assumptions - Office.....................................................................................184
[Link] Assumptions .....................................................................................................185
[Link] Rates ...................................................................................................186
[Link] Rate ............................................................................................................186
[Link] Value of the Subject Property .........................................................................186
I. EMBASSY ONE ................................................................................................................188
[Link] Description - Embassy One .................................................................................189
[Link] ...........................................................................................................189
[Link] .........................................................................................................................189
[Link] .....................................................................................................................189
[Link] ..............................................................................................................191
[Link] Conditions .....................................................................................................191
[Link] Considerations .......................................................................................191
[Link] Planning and Statutory Considerations ................................................................191
[Link] Property - Asset Description .................................................................................191
[Link] Asset Information ................................................................................................192
[Link] Property Inspection ........................................................................................193
[Link] Expiry Profile ...................................................................................................193
[Link] Methodology ....................................................................................................193
[Link] Statement ..........................................................................................................194
[Link] Timelines ...............................................................................................194
[Link] Assumptions - Office ..................................................................................194
[Link] Assumptions - Hotel .....................................................................................195
[Link] Assumptions - Office.....................................................................................196
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[Link] Assumptions .....................................................................................................197

[Link] Cost - Hotel................................................................................................198
[Link] Rates ...................................................................................................199
[Link] Rate ............................................................................................................199
[Link] Value of the Subject Property .........................................................................199
J. EMBASSY BUSINESS HUB............................................................................................201
[Link] Description - Embassy Business Hub ...................................................................202
[Link] ...........................................................................................................202
[Link] .........................................................................................................................202
[Link] .....................................................................................................................202
[Link] ..............................................................................................................204
[Link] Conditions .....................................................................................................204
[Link] Considerations .......................................................................................204
[Link] Planning and Statutory Considerations ................................................................204
[Link] Property - Asset Description .................................................................................204
[Link] Asset Information ................................................................................................205
[Link] Property Inspection ........................................................................................206
[Link] Expiry Profile ...................................................................................................207
[Link] Methodology ....................................................................................................207
[Link] Statement ..........................................................................................................207
[Link] Timelines ...............................................................................................207
[Link] Assumptions - Office ....................................................................................208
[Link] Assumptions - Office.....................................................................................209
[Link] Assumptions .....................................................................................................210
[Link] Rates ................................................................................................... 211
[Link] Rate ............................................................................................................ 211
[Link] Value of the Subject Property ........................................................................... 211
K. EXPRESS TOWERS .......................................................................................................212
[Link] Description - Express Towers ..............................................................................213
[Link] ...........................................................................................................213
[Link] .........................................................................................................................213
[Link] .....................................................................................................................213
[Link] ..............................................................................................................215
[Link] Conditions .....................................................................................................215
[Link] Considerations .......................................................................................215
[Link] Planning and Statutory Considerations ................................................................215
[Link] Asset Information .....................................................................................................216
[Link] Inspection ......................................................................................................216
[Link] Expiry Profile ...................................................................................................217
[Link] Assessment ............................................................................................................217
[Link] Statement ..........................................................................................................217
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[Link] Timelines ...............................................................................................217

[Link] Assumptions - Office ..................................................................................218
[Link] Assumptions - Office.....................................................................................219
[Link] Assumptions .....................................................................................................220
[Link] Rates ...................................................................................................220
[Link] Rate ............................................................................................................220
[Link] Value of the Subject Property ...........................................................................221
L. EMBASSY 247 ..................................................................................................................222
[Link] Description - Embassy 247 .................................................................................223
[Link] ...........................................................................................................223
[Link] .........................................................................................................................223
[Link] .....................................................................................................................223
[Link] ..............................................................................................................225
[Link] Conditions .....................................................................................................225
[Link] Considerations .......................................................................................225
[Link] Planning and Statutory Considerations ................................................................225
[Link] Property - Asset Description .................................................................................226
[Link] Asset Information ................................................................................................226
[Link] Property Inspection: .......................................................................................227
[Link] Expiry Profile ...................................................................................................227
[Link] Methodology ....................................................................................................227
[Link] Statement ..........................................................................................................227
[Link] Timelines ...............................................................................................228
[Link] Assumptions - Office ..................................................................................228
[Link] Assumptions - Office.....................................................................................229
[Link] Assumptions .....................................................................................................230
[Link] Rates ...................................................................................................230
[Link] Rate ............................................................................................................231
[Link] Value of the Subject Property ...........................................................................231
M. FIRST INTERNATIONAL FINANCIAL CENTRE (FIFC) .......................................232
[Link] Description - FIFC .............................................................................................233
[Link] ...........................................................................................................233
[Link] .........................................................................................................................233
[Link] .....................................................................................................................233
[Link] ..............................................................................................................235
[Link] Conditions .....................................................................................................235
[Link] Considerations.....................................................................................235
[Link] Planning and Statutory Considerations ................................................................235
[Link] Property - Asset Description .................................................................................236
[Link] asset Information.................................................................................................236
[Link] Property Inspection ........................................................................................237
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[Link] Expiry Profile ...................................................................................................237

[Link] Methodology ....................................................................................................237
[Link] Statement ..........................................................................................................238
[Link] Timelines ...............................................................................................238
[Link] Assumptions - Office .................................................................................238
[Link] Assumptions - Office.....................................................................................239
[Link] Assumptions .....................................................................................................240
[Link] Rates ...................................................................................................241
[Link] Rate ............................................................................................................241
[Link] Value of the Subject Property ...........................................................................241
N. EMBASSY TECHZONE .................................................................................................242
[Link] Description - Embassy TechZone ........................................................................243
[Link] ...........................................................................................................243
[Link] .........................................................................................................................243
[Link] .....................................................................................................................243
[Link] ..............................................................................................................244
[Link] Conditions .....................................................................................................245
[Link] Considerations .......................................................................................245
[Link] Planning and Statutory Considerations ................................................................245
[Link] Property - Asset Description .................................................................................245
[Link] Asset Information ................................................................................................246
[Link] Property Inspection ........................................................................................248
[Link] Expiry Profile ...................................................................................................248
[Link] Methodology ....................................................................................................249
[Link] Statement ..........................................................................................................249
[Link] Timelines ...............................................................................................249
[Link] Assumptions ................................................................................................250
[Link] Assumptions - Office.....................................................................................251
[Link] Assumptions .....................................................................................................253
[Link] Rates ...................................................................................................253
[Link] Rate ............................................................................................................253
[Link] Value of the Subject Property ...........................................................................254
O. EMBASSY QUADRON ...................................................................................................255
[Link] Description - Embassy Quadron ..........................................................................256
[Link] ...........................................................................................................256
[Link] .........................................................................................................................256
[Link] .....................................................................................................................256
[Link] ..............................................................................................................258
[Link] Conditions .....................................................................................................258
[Link] Considerations .......................................................................................258
[Link] Planning and Statutory Considerations ................................................................258
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[Link] Property – Asset Description.................................................................................258

[Link] Asset Information ................................................................................................259
[Link] Property Inspection ........................................................................................260
[Link] Expiry Profile ...................................................................................................260
[Link] Methodology ....................................................................................................260
[Link] Statement ..........................................................................................................260
[Link] Timelines ...............................................................................................261
[Link] Assumptions - Office ....................................................................................261
[Link] Assumptions - Office.....................................................................................262
[Link] Assumptions .....................................................................................................263
[Link] Rates ...................................................................................................263
[Link] Rate ............................................................................................................264
[Link] Value of the Subject Property ...........................................................................264
P. EMBASSY QUBIX ...........................................................................................................265
[Link] Description - Embassy Qubix ..............................................................................266
[Link] ...........................................................................................................266
[Link] .........................................................................................................................266
[Link] .....................................................................................................................266
[Link] ..............................................................................................................268
[Link] Conditions .....................................................................................................268
[Link] Considerations .......................................................................................268
[Link] Planning and Statutory Considerations ................................................................268
[Link] Property - Asset Description .................................................................................268
[Link] Asset Information ................................................................................................269
[Link] Property Inspection ........................................................................................270
[Link] Expiry Profile ...................................................................................................270
[Link] Methodology ....................................................................................................271
[Link] Statement ..........................................................................................................271
[Link] Timelines ...............................................................................................271
[Link] Assumptions - Office ....................................................................................271
[Link] Assumptions - Office.....................................................................................272
[Link] Assumptions .....................................................................................................273
[Link] Rates ...................................................................................................274
[Link] Rate ............................................................................................................274
[Link] Value of the Subject Property ...........................................................................274
Q. EMBASSY OXYGEN ......................................................................................................275
[Link] Description - Embassy Oxygen ...........................................................................276
[Link] ...........................................................................................................276
[Link] .........................................................................................................................276
[Link] ...................................................................................................................276
[Link] ...........................................................................................................278
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[Link] Conditions ..................................................................................................278

[Link] Considerations.....................................................................................278
[Link] Planning and Statutory Considerations .............................................................278
[Link] Property - Asset Description .................................................................................279
[Link] Asset Information ................................................................................................279
[Link] Property Inspection ........................................................................................280
[Link] Expiry Profile ...................................................................................................281
[Link] Methodology ....................................................................................................281
[Link] Statement ..........................................................................................................281
[Link] Timelines ...............................................................................................281
[Link] Assumptions - Office ....................................................................................282
[Link] Assumptions - Office.....................................................................................283
[Link] Assumptions .....................................................................................................284
[Link] Rates ...................................................................................................284
[Link] Rate ............................................................................................................284
[Link] Value of the Subject Property ...........................................................................285
R. EMBASSY GALAXY ......................................................................................................286
[Link] Description – Embassy Galaxy ............................................................................287
[Link] ...........................................................................................................287
[Link] .........................................................................................................................287
[Link] .....................................................................................................................287
[Link] ..............................................................................................................289
[Link] Conditions .....................................................................................................289
[Link] Considerations .......................................................................................289
[Link] Planning and Statutory Considerations ................................................................289
[Link] Property – Asset Description.................................................................................290
[Link] Asset Information ................................................................................................290
[Link] Property Inspection ........................................................................................291
[Link] Expiry Profile ...................................................................................................292
[Link] Methodology ....................................................................................................292
[Link] Statement ..........................................................................................................292
[Link] Timelines ...............................................................................................292
[Link] Assumptions - Office ....................................................................................292
[Link] Assumptions - Office.....................................................................................294
[Link] Assumptions .....................................................................................................294
[Link] Rates ...................................................................................................295
[Link] Rate ............................................................................................................295
[Link] Value of the Subject Property ...........................................................................295
S. EMBASSY HILTON GOLFLINKS ................................................................................297
[Link] Description - Hilton - Embassy GolfLinks............................................................298
[Link] ...........................................................................................................298
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[Link] .........................................................................................................................298
[Link] .....................................................................................................................298
[Link] ..............................................................................................................300
[Link] Conditions .....................................................................................................300
[Link] Considerations .......................................................................................300
[Link] Planning and Statutory Considerations ................................................................300
[Link] Property – Asset Description.................................................................................301
[Link] Asset Information ................................................................................................301
[Link] Property Inspection ........................................................................................302
[Link] Methodology ....................................................................................................302
[Link] Statement ..........................................................................................................302
[Link] Timelines ...............................................................................................303
[Link] Assumptions - Hotel .....................................................................................303
[Link] Assumptions - Hotel ......................................................................................303
[Link] Cost - Hotel................................................................................................303
[Link] Rates ...................................................................................................304
[Link] Rate ............................................................................................................305
[Link] Value of the Subject Property ...........................................................................305
T. EMBASSY ENERGY, BELLARY DISTRICT, KARNATAKA ...................................306
[Link] Description - Embassy Energy Private Limited .....................................................307
[Link] ...........................................................................................................307
[Link] .........................................................................................................................307
[Link] .....................................................................................................................307
[Link] & Usage.........................................................................................................309
[Link] ..............................................................................................................309
[Link] Conditions .....................................................................................................309
[Link] ..................................................................................................................309
[Link] Considerations .......................................................................................309
[Link] Planning and Statutory Considerations ................................................................310
[Link] Property - Asset Description .................................................................................310
[Link] Asset Information ................................................................................................310
[Link] Property Inspection ........................................................................................310
[Link] on Land Extent..................................................................................................... 311
[Link] and Policies ..................................................................................................... 311
[Link] Energy Policy ........................................................................................... 311
[Link] Solar Industry Overview ................................................................................... 311
[Link] Power Purchase Agreements (PPAs) ..............................................................313
[Link] Utilization Factor (CUF) ...............................................................................315
[Link]/ Industrial Tariff ......................................................................................315
[Link] Life ................................................................................................................316
[Link] in Tariff .....................................................................................................316
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[Link] Assessment ............................................................................................................317

[Link] Statement ..........................................................................................................317
[Link] Assumptions ................................................................................................317
[Link] Assumptions ......................................................................................................318
[Link] Rates ...........................................................................................................319
[Link] Value of the Property.......................................................................................320
U. MATERIAL LITIGATION .............................................................................................321
V. ANNEXURES ....................................................................................................................339
ANNEXURE 1: Embassy REIT Structure ............................................................................................ 340
ANNEXURE 2: Property Master Plan .................................................................................................. 341
ANNEXURE 3: Property Photographs ................................................................................................. 354
ANNEXURE 4: Statutory Approvals .................................................................................................... 367
ANNEXURE 5: Historic Value Summary ............................................................................................ 372

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A. INSTRUCTIONS
1. Instructions Party

Embassy Office Parks Management Services Private Limited (hereinafter referred to as “the Instructing Party” or
“the Client”), in its capacity as the Manager of the Embassy REIT, has appointed Ms. [Link], MRICS,
registered as a valuer with the Insolvency and Bankruptcy Board of India (IBBI) for the asset class Land and
Building under the provisions of the Companies (Registered Valuers and Valuation) Rules, 2017 (hereinafter
referred as the “Valuer”), in order to undertake the valuation of commercial office real estate assets located across
Bengaluru, Pune, Mumbai & Noida as well as affiliated facilities including a solar park, retail spaces and hotels
(together herein referred as subject properties across the report).
C&WI has been instructed by the Client to be the “Value Assessment Service Provider for providing market
intelligence to the Valuer (Ms. L. Anuradha, MRICS) and forecasting cash flows from the respective assets. The
Valuer has utilized market intelligence provided by CWI and independently reviewed the cash flows to arrive at
the Market Value of the respective assets as per the Securities and Exchange Board of India (Real Estate Investment
Trusts) Regulations, 2014. The exercise has been carried out in accordance with the instructions (Caveats &
Limitations) detailed in Part A (Section-15) of this report. The extent of professional liability towards the Client is
also outlined within these instructions.

Details of the subject properties under the purview of this valuation exercise are tabulated below:

S. No. Asset Location

1 Embassy Manyata Bengaluru

2 Embassy TechVillage Bengaluru

3 Embassy GolfLinks Bengaluru

4 Embassy One Bengaluru

5 Embassy Business Hub Bengaluru

6 Express Towers Mumbai

7 Embassy 247 Mumbai

8 First International Financial Center (FIFC) Mumbai

9 Embassy TechZone Pune

10 Embassy Quadron Pune

11 Embassy Qubix Pune

12 Embassy Oxygen Noida

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S. No. Asset Location

13 Embassy Galaxy Noida

14 Hilton at GolfLinks Bengaluru

15 Embassy Energy Bellary District, Karnataka

2. Professional Competency of The Valuer

Ms. L. Anuradha is registered as a valuer with the Insolvency and Bankruptcy Board of India (IBBI) for the asset
classes of Land and Building under the provisions of The Companies (Registered Valuers and Valuation) Rules,
2017 since September 2022. She completed her bachelor’s in architecture in 2002 and master’s in planning from
School of Planning & Architecture in 2004.
L. Anuradha has more than 16 years of experience in the domain of urban infrastructure, valuation, and real estate
advisory. She was working as an Associate Director for Cushman and Wakefield (hereinafter referred to as “C&WI”)
from 2013-2022 and was leading the team for Tamil Nadu, Kerala and Sri Lanka. Prior to joining C&WI, she has
been involved in various strategy level initiatives in Institutional Development and Infrastructure for donor agencies
and various Government and Private Clients. Ms. L. Anuradha worked with SIVA group in the M&A practice where
she was involved with the financial appraisal and valuation of real estate projects. Prior to this she has worked with
PricewaterhouseCoopers in the Government, Real estate, and Infrastructure Development Practice where she was
involved in carrying out financial appraisal and strategies for some of the State Governments in India. Her
foundation in real estate valuation was at Jones Lang LaSalle where she worked for 3 years on multiple valuations
and entry strategies for Indian NBFCs and funds.
Her last employment was at C&WI. As an Associate Director of the Valuation and Advisory team at C&WI, Ms. L.
Anuradha provided support on identified business/ new opportunities, evaluated proposals for new property
investments and/ or dispositions while providing analytical support for Investment recommendations. L. Anuradha
was also key personnel in carrying out the Market study for the Mindspace REIT micro markets in India. She has
undertaken valuations exercises for multiple private equity/real estate funds, financial institutions, developers, and
corporates across asset classes of commercial, retail, residential and hospitality. Her clientele included HDFC,
Xander, DLF, RMZ, CapitaLand, Tata Capital, Tata Realty, TVS group etc.

3. Independence and Conflicts of Interest

The Valuer confirms that there are no conflicts of interest in so far as discharging her duties as a valuer for the
subject properties/ business is concerned and has undertaken the valuation exercise without the presence of any
bias, coercion, or undue influence of any party, whether directly connected to the valuation assignment. There has
not been any professional association with the Client or the Subject Properties in past five years from the date of
this report.
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The Valuer or any of her employees involved in valuing the assets of the REIT have not invested nor shall invest
in securities of the Subject Property being valued till the time she is designated as Valuer and not less than six
months after ceasing to be a Valuer of the REIT.

4. Purpose of Valuation

The Valuer understands that the valuation is required by the Client for financial and investor reporting purposes to
comply with the requirements of Regulations 21 of the SEBI (REIT) Regulations, 2014.

5. Basis of Valuation

It is understood that the valuation is required by the Client for financial and investor reporting purposes to comply
with the requirements of Regulations 21 of the SEBI (REIT) Regulations, 2014, as amended, together with
clarifications, guidelines, and notifications thereunder in the Indian stock exchange and for accounting purposes.
Accordingly, the valuation exercise has been carried out to estimate the “Market Value” of the Subject Property/
Business in accordance with IVS 104 of the IVSC International Valuation Standards effective from 31 January
2022 and allowed to be adopted prior to the effective date.
Market Value is defined as ‘The estimated amount for which an asset or liability should exchange on the date of
valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing
wherein the parties had each acted knowledgeably, prudently and without compulsion.’

6. Valuation Approach & Methodology

The basis of valuation for the subject properties being Market Value, the same may be derived by any of the
following approaches:

Market Approach

In ‘Market Approach’, the Subject Property is compared to similar properties that have actually been sold in an
arms-length transaction or are offered for sale (after deducting for value of built-up structure located thereon). The
comparable evidence gathered during research is adjusted for premiums and discounts based on property specific
attributes to reflect the underlying value of the property.

Income Approach

The income approach is based on the premise that value of an income – producing asset is a function of future
benefits and income derived from that asset. There are two commonly used methods of the income approach in
real estate valuation namely, direct capitalization and discounted cash flow (DCF).

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Income Approach – Direct Capitalization Method

Direct capitalization involves capitalizing a ‘normalized’ single – year net income estimated by an appropriate
yield. This approach is best utilized with stable revenue producing assets, whereby there is little volatility in the
net annual income.

Income Approach – Discounted Cash Flow Method

Using this valuation method, future cash flows from the property are forecasted using precisely stated assumptions.
This method allows for the explicit modelling of income associated with the property. These future financial
benefits are then discounted to a present-day value (valuation date) at an appropriate discount rate. A variation of
the Discounted Cash Flow Method is illustrated below:

Discounted Cash Flow Method using Rental Reversion

The market practice in most commercial/ IT developments involves contracting tenants in the form of pre-
commitments at sub-market rentals to increase attractiveness of the property to prospective tenants typically
extended to anchor tenants. Additionally, there are instances of tenants paying above-market rentals for certain
properties as well (primarily owing to market conditions at the time of contracting the lease). In order to arrive at
a unit value for these tenancies, we have considered the impact of such sub/above market leases on the valuation
of the subject property.
For the purpose of the valuation of Subject Property, Discounted Cash Flow Method using rental reversion has
been adopted.

7. Assumptions, Departures and Reservations

This valuation report has been prepared on the basis of the assumptions within the instructions (Caveats &
Limitations) detailed in Part A (Section-15) of this report. The development mix, built up area, land area and lease
details such as lease rent, lease commencement and lease end date, lock – in period, escalation terms, etc. pertaining
to the Subject Property is based on the appropriate relevant data and documents provided to us by the Client and
the same has been adopted for the purpose of this valuation.

8. Inspection

The Property was visually inspected by the valuer, however no measurement or building survey has been carried
out as part of the valuation exercise and the Valuer has relied entirely on the site areas provided by the Client,
which has been assumed to be correct.

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9. General Comment

A valuation is a prediction of price, not a guarantee. By necessity it requires the valuer to make subjective
judgments that, even if logical and appropriate, may differ from those made by a purchaser, or another valuer.
Historically it has been considered that valuers may properly conclude within a range of possible values.
The purpose of the valuation does not alter the approach to the valuation.
Property values can change substantially, even over short periods of time, and thus the valuation of the subject
property/ business herein could differ significantly if the date of valuation was to change.
This report should not be relied upon for any other purpose other than for which this valuation exercise has been
undertaken for.

10. Authority

The valuation services are being provided solely for the benefit and use of the Reliant Party(ies) by the Valuer. The
report(s) may not be used for any other purpose other than the expressly intended purpose as mentioned in the
LOE and the report(s). They are not to be used, circulated, quoted, or otherwise referred to for any other purpose,
nor are they to be filed with or referred to in whole or in part in any document without the prior written consent of
the Valuer where such consent shall be given at the absolute, exclusive discretion of the Valuer. Where they are to
be used with the Valuer’s written consent, they shall be used only in their entirety and no part shall be used without
making reference to the whole report unless otherwise expressly agreed in writing by the Valuer. Notwithstanding
the above, we consent to the usage of the report or a summary thereof for any filings and communications with the
Manager to the Embassy REIT, the sellers, its unitholders, the trustee, their respective advisers, and representatives,
and in any placement documents as part of the purpose mentioned in the LOE. We further consent to copies or
extracts of the report being used in publicity material, research reports, presentations, and press releases in relation
to the annual /semi-annual reports, financials and any other reporting requirements/disclosures required to be
made. Any reliance by any party other than the Reliant Party on the valuation report will be on their own accord.

11. Reliant Parties

Embassy Office Parks Management Services Private Limited as the manager of the Embassy Office Parks REIT
(“Embassy REIT”) and its unit holders for the purposes of disclosure of valuation of assets forming part of the
portfolio of REIT in presentations, research reports, press releases, any statutory or reporting requirements. The
auditors, chartered accountants, lawyers, Axis Trustee Services Limited, Cushman & Wakefield India Private
Limited, and other advisers of the Embassy Office Parks REIT can also place reliance on the report (including any
summary thereof), however, no liability shall be extended to these parties.

The valuation report will be prepared strictly and only for the use of the Reliant Party and for the Purpose
specifically stated. The instructing party would make all reliant parties aware of the terms and conditions of this
agreement under which this exercise is being undertaken.
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12. Limitation of Liability

The Valuer will provide the Services exercising due care and skill, but the Valuer accepts legal liability arising
from gross negligence or wilful default to any person in relation any breach under the LOE, save and except
possible environmental site contamination or any failure to comply with environmental legislation which may
affect the opinion of value of the properties. Further, the Valuer shall not accept liability for any errors,
misstatements, omissions in the Report caused due to false, misleading, or incomplete information or
documentation provided to The Valuer by the Instructing Party.

The Valuer’s maximum aggregate liability for claims arising out of or in connection with the Valuation Report,
under this contract shall be limited to an aggregate sum not exceeding INR 30 Million.

In the event that any of the Sponsor, Manager, Trustee, Embassy REIT in connection with the report be subject to
any claim (“Claim Parties”) in connection with, arising out of or attributable to the Valuation Report, the Claim
Parties will be entitled to require The Valuer to be a necessary party/ respondent to such claim and The Valuer shall
not object to their inclusion as a necessary party/ respondent. In all such cases, the Manager agrees to reimburse/
refund to The Valuer, the actual cost (which shall include legal fees and external counsel’s fee) incurred by the
Valuer while becoming a necessary party/respondent, save and except where the report of the valuer is proven to
be breach of applicable laws, not accountable to the Instructing Party if the Valuer does not cooperate to be named
as a party/respondent to such claims in providing adequate/successful defence in defending such claims, the Claim
Parties jointly or severally will be entitled to initiate a separate claim against the Valuer in this regard and the
Valuer’s liability shall extend to the value of the claims, losses, penalties, costs, and liabilities incurred by the
Claim Parties.

The Valuer will neither be responsible for any legal due diligence, title search, zoning check, development
permissions and physical measurements nor undertake any verification/ validation of the zoning regulations/
development controls etc.

13. Disclosure

The Valuer must not disclose the contents of this report to a third party in any way, except as allowed under the
Securities Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 along with SEBI (Real
Estate Investment Trusts) (Amendment) Regulations 2016 and subsequent amendments and circulars.
The Embassy REIT may share this report with its appointed advisors for any statutory or reporting requirements
and include it in any notice to the unit holders.

14. Disclosure and Publication

The Valuer declares and certifies that:

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• She is eligible to be appointed as a valuer in terms of the Securities and Exchange Board of India (Real Estate
Investment Trusts) Regulations, 2014, and any rules, regulations, circulars, guidelines, and clarifications
thereunder, each as amended (the “REIT Regulations”), including Regulation 2(1) (zz).

• She is not an associate of the Embassy Office Parks Management Services Limited/Embassy Office Parks REIT,
the Instructing Party or the Sponsors or Sponsor Group of the Embassy Office Parks REIT.

• She is registered with IBBI as registered valuer for asset class Land and Building under the provisions of the
Companies (Registered Valuer and Valuation) Rules, 2017.

• She has more than a decade’s experience in leading large real estate valuation exercises comprising investment
portfolios of various real estate funds, trusts and corporates comprising diverse assets like residential projects,
retail developments, commercial office buildings, townships, industrial facilities, data centres, hotels, healthcare
facilities and vacant land and therefore has adequate experience and qualification to perform Subject Property
valuations at all times.

• She has not been involved in acquisition or disposal within the last twelve months of any of the Subject Properties
valued under this Summary Valuation Report. However, she had provided a valuation report to the Embassy REIT
for the acquisition of Embassy Hub and Embassy Splendid TechZone.

• She has educational qualifications, professional knowledge, and skill to provide competent professional services.

• She has adequate and appropriate experience, qualification, and competence to undertake valuations in accordance
with the Companies (Registered Valuers and Valuation) Rules, 2017 as amended till date and the REIT Regulations.

• She is not financially insolvent or declared bankrupt by any competent authority.

• She has ensured that adequate and robust internal controls are in place to ensure the integrity of the Summary
Valuation Report.

• She has acquainted herself with all the relevant rules, regulations, laws, and statutes relevant for conduct of the
valuation exercise.

• The professional fee being charged for this exercise is not based on the success of any proposed transaction or
value estimated.

• She has conducted the valuation exercise without any influence, coercion, or bias and in doing so rendered high
standards of service, ensured due care, and exercised due diligence and professional judgment.

• She has acted independently and with objectivity and impartiality in conducting this valuation exercise.

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• The valuation exercise that has been undertaken is impartial, true and to her best understanding and knowledge,
fair and in accordance with the Securities and Exchange Board of India (Real Estate Investment Trusts)
Regulations, 2014 along with subsequent amendments.

• She or any of her employees involved in valuing the assets of the Embassy Office Parks REIT have not invested
nor shall invest in the units of Embassy Office Parks REIT or in securities of any of the Subject Properties being
valued till the time she is designated as the Valuer and not less than six months after ceasing to be the Valuer of
the Embassy Office Parks REIT.

• She has discharged her duties towards Embassy Office Parks REIT in an efficient and competent manner, utilising
her professional knowledge, skill, and experience in best possible way to conduct the valuation exercise.

• She has conducted the valuation of the Subject Properties with transparency and fairness and rendered, at all times,
high standards of service, exercise due diligence, ensure proper care and exercised independent professional
judgment.

• She has not and shall not accept any remuneration, in any form, for conducting valuation of any of the Subject
Properties of Embassy Office Parks REIT from any person or entity other than Embassy Office Parks REIT or its
authorised representatives.

• She has no existing or planned future interest in the Client, Trustee, Manager, Embassy Office Parks REIT, the
Sponsor, or the Sponsor Group or the Special Purpose Vehicles (“SPVs”) and the fee for this valuation exercise is
neither contingent upon the values reported nor on success of any of the transactions envisaged or required as part
of the disclosure of valuation of assets, forming part of the portfolio of Embassy Office Parks REIT, in accordance
with the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014, as amended,
together with clarifications, guidelines and notifications thereunder.

• The valuation reported is not an investment advice and should not be construed as such, and specifically she does
not express any opinion on the suitability or otherwise of entering into any financial or other transaction with the
Client or the SPVs.

• She shall, before accepting any assignment from any related party to Embassy Office Parks REIT, disclose to
Embassy Office Parks REIT, any direct or indirect consideration which the Valuer may have in respect of such
assignment.

• She shall disclose to the Trustee of Embassy Office Parks REIT, any pending business transaction, contracts under
negotiations and other arrangements with the Instructing Party or any other party whom the Embassy Office Parks
REIT is contracting with or any other factors which may interfere with her ability to give an independent and

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professional conduct of the valuation exercise; as on date the Valuer has no constraints towards providing an
independent professional opinion on the value of any of the Subject Properties.

• She has not and shall not make false, misleading, or exaggerated claims in order to secure or retain her appointment.

• She has not and shall not provide misleading opinion on valuation, either by providing incorrect information or by
withholding relevant information.

• She has not accepted this instruction to include reporting of the outcome based on a pre-determined opinions and
conclusions required by Embassy Office Parks REIT.

• The valuation exercise has been conducted in accordance with internationally accepted valuation standards as
required by SEBI (REIT) Regulations and The Companies (Registration of Valuers and Valuation) Rules, 2017.

15. Assumptions, Disclaimers, Limitations and Qualifications to Valuation.

The Detail Valuation Report is subject to the following:

• The valuation exercise is based on prevailing market dynamics as on the date of valuation without taking into
account any unforeseeable event or developments, which could impact the valuation in the future.

• The valuation exercise is not envisaged to include all possible investigations with respect to the Subject Properties
and wherein certain limitations to the investigations and inspections carried out are identified so as to enable the
Reliant Party/Parties to undertake further investigations wherever considered appropriate or necessary prior to
reliance. The Valuer is not liable for any loss occasioned by a decision not to conduct further investigation or
inspections.

• Assumptions, being an integral part of any valuation exercise, are adopted as valuation is a matter of judgment and
many parameters utilized to arrive at the valuation opinion may fall outside the scope of expertise or instructions
of the Valuer. The Reliant Parties accepts that the valuation contains certain specific assumptions and acknowledge
and accept the risk that if any of the assumptions adopted to arrive at the valuation estimates turns out to be
incorrect, there may be a material impact on the valuations.

• The valuation exercise is based on the information shared by the Instructing Party or the Client, which has been
assumed to be correct and used to conduct the valuation exercise while applying reasonable professional judgment
by the Valuer. In case of information shared by any third party and duly disclosed in the report, the same is believed
to be reasonably reliable, however, the Valuer does not accept any responsibility should those prove not to be so.

• Any statement regarding any future matter is provided as an estimate and/or opinion based on the information
known at the date of this report. No warranties are given regarding accuracy or correctness of such statements.

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• Any plan, map, sketch, layout, or drawing included in this report is to assist reader in visualizing the relevant
Subject Properties and for representation purposes only with no responsibility being borne towards their
mathematical or geographical accuracy.

• In absence of any specific information shared to contrary, it is assumed that the Subject Properties are free from
any encroachments and available on the date of valuation.

• Unless any specific information is shared, it shall be assumed that the Subject Properties are not contaminated and
not adversely affected by any existing or proposed environmental law and any processes which are carried out on
the Subject Properties which are regulated by environmental legislations are properly licensed by the appropriate
authorities.

• The valuation includes all those items forming or likely to form an integral part of the Subject Properties including
service installations that would in normal course of business shall pass with the sale of property, excluding those
items of plant, machinery, equipment, furnishings that may have been installed by the tenant or occupier or are
used with the enterprise being carried on within the properties.

• Area estimates and product/use mix of Subject Properties adopted for the purpose of valuation exercise shall be
based on the information provided by the Client/Instructing Party. The same shall not be cross verified with any
competent government authority.

• In absence of any contrary information available or shared, it is assumed that there are no abnormal ground
conditions nor archaeological remains present, which might adversely affect the current or future occupation,
development, or value of the Subject Properties. The Subject Properties are assumed to be free from any rot,
infestations, structural or latent defect; no currently known deleterious or hazardous materials or suspect techniques
are used in construction or subsequent alterations or additions to the Subject Properties and comments made in the
Subject Properties details do not purport to express an opinion about an advice upon the conditions of uninspected
parts and should be taken as making an implied representation or statement about such parts. Further, for the
purpose of this valuation exercise, it shall be assumed that the proposed development on the property is physically
achievable from a planning and development perspective.

• No allowances are made with respect to any existing or proposed local legislation relating to taxation on
realization of the sale value of the Subject Properties. Further the Valuer shall not be required to give any testimony
to appear in court by reason of this valuation exercise and deliverables submitted thereof.

• Given the still evolving and maturing real estate markets in India, any comparable evidence (if any) or market
quotes provided has been limited to basic details such as area of asset, general location, price/rate of transaction
or sale and any other specific details that are readily available in public domain only shall be shared.

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• Any factual information such as tenants’ leasable area, rentals, lease/rent commencement date, lock-in period, rent
escalation terms etc. with respect to Subject Properties basis of the rent rolls shared by the Company /Instructing
Party. The same would be assumed to be correct and any changes in any of these relevant parameters may have
material impact on the valuations thereby necessitating a relook to the valuation estimates.

• All measurements, areas and the Subject Properties age quoted/mentioned in the report are approximate and no
measurements shall be undertaken of the said areas with information provided by the Client utilized as such.

• The Valuer is not an advisor with respect to any tax, regulatory or legal matters with respect to by Embassy Office
Parks REIT. No investigation or enquiries on the holding entity or any SPV’s claim on the title of the Subject
Properties has been made and the same is assumed to be valid based on the information shared by the
Client/Instructing Party. No consideration shall be / has been given to liens or encumbrances against the assets
unless specifically disclosed and shared with valuer to be incorporated in the valuation estimates. Therefore, no
responsibility is assumed for matters of a legal nature.

• The Valuer does not have any present or planned future financial interest in the Company/Instructing Party, Trustee,
Investment Manager, or the holding entity as of the date of this engagement letter and the fee for the valuation
exercise is not contingent upon value assessed. The valuation analysis and deliverables should not be construed as
an investment advice and specifically not as any opinion on the suitability or otherwise of entering into any
financial or other transaction with the Company/ Instructing Party or the holding entity.

16. Anti-Bribery & Anti-Corruption

Both Parties represents, warrants, and undertakes that:

They are familiar with applicable Anti-Corruption Laws under this Agreement including but not limited to
Prevention of Corruption Act 1988 and will ensure that neither it nor any of its officers, directors, shareholders,
employees and agents or any other person acting under its implied or express authority will engage in any activity,
practice or conduct which would constitute an offence under, or expose or potentially expose either Party to any
direct or indirect liability, under Applicable Anti-Corruption Laws;

It is further agreed that breach of any of the above undertakings shall be deemed to be a material breach of the
Agreement and in case the Valuer is insisted upon or asserted by Client to violate any of the above said undertakings
including Anti-Corruption regulations in any form or manner, on pretext of business relationship or otherwise, the
Valuer shall have a discretionary right to terminate this Agreement without any liability or obligation on his part.

Such termination of this Agreement shall not in any way prejudice the rights and obligations (including payment
for the services delivered under this Agreement) already accrued to the Valuer, prior to such termination.

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B. VALUATION APPROACH AND METHODOLOGY

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1. Purpose of Valuation

The Report is being prepared to be relied upon by the Reliant Parties and inclusion, as a whole, a summary thereof
or any extracts of the report, in any documents prepared in relation for the disclosure of valuation of assets forming
part of the portfolio of Embassy Office Parks REIT under the Securities and Exchange Board of India (Real Estate
Investment Trusts) Regulations, 2014 [SEBI (REIT) Regulations], as amended, together with circulars,
clarifications, guidelines and notifications thereunder by SEBI and also disclosure as per fair value accounting
under Indian Accounting Standards (Ind AS 40).

2. Valuation Guidelines and Definition

Given the purpose of valuation as mentioned above, the valuation exercise has been carried out to estimate the
“Market Value” of the Subject Properties in accordance with the IVSC International Valuation Standards issued in
2021 and effective from 31 January 2022.

As per IVSC International Valuation Standards, “Market Value” is defined as ‘The estimated amount for which an
asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s-
length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and
without compulsion.’

3. Valuation Approach

The basis of valuation for the Subject Property being Market Value, the same has been derived by the following
approach:

Discounted Cash Flow Method using Rental Reversion

The market practice in most commercial/ IT developments involves contracting tenants in the form of pre-
commitments at sub-market rentals to increase attractiveness of the property to prospective tenants typically
extended to anchor tenants. Additionally, there are instances of tenants paying above-market rentals for certain
properties as well (primarily owing to market conditions at the time of contracting the lease). In order to arrive at
a unit value for these tenancies, we have considered the impact of such sub/above market leases on the valuation
of the Subject Property.

For larger tech parks tenant like Embassy 247, Embassy TechZone, Embassy Quadron, Embassy Qubix, Embassy
Manyata, Embassy TechVillage, Embassy Golflinks and Embassy Galaxy we have factored a 10% discount on the
market rental for anchor tenants post lease expiry.

For the purpose of the valuation of office component of Subject Properties, Income Approach - Discounted Cash
Flow Method using Rental Reversion has been adopted.

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Further, the hotel components at the respective properties and the solar park have been valued using Discounted
Cash Flow Method.

4. Valuation Methodology

In order to compute the Market Value of the Subject Property the following understanding /assessment is required:

• Micro Market Assessment where the Subject Property is located.

• Portfolio Assessment (existing and future supply, demand from occupiers, average office space take up by an
occupier in a particular sector, existing vacancy, and the rentals).

• Situation of the Subject Property (current achievable rentals, vacancy numbers, competing supply in the micro
market etc.) with respect to the micro market.

The details are elaborated below:

Market Assessment:

The Client appointed Ms. L. Anuradha to prepare an independent industry and market research report, which has
been relied upon to develop the understanding and assess the relevant micro-markets of the Subject Property. The
said review, was carried out in the following manner:

• Details study of the market dynamics influencing the rents along with Subject Property rents.

• Assessment of the location setting of the Subject Property in the respective micro-markets.

• Ascertain the transaction activity of office space based on the findings of the industry/market report prepared
by C&WI and readily available information in public domain.

• Review of comparable properties in terms of potential competition (both completed and under-
construction/future developments), comparable recent lease transactions witnessed in the micro-market along
with the trends in leasing within the Subject Property in recent past, wherever available.

The above analysis support to form an opinion on the applicable rental for the micro-market where the respective
Subject Properties are located (market rent) and on achievable rent for the respective Subject Properties for leasing
vacant spaces, as well as upon re-leasing of the existing let out area.

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Portfolio & Rental Assessment:

• Property Documents and architect certificates were reviewed for validation of area details, ownership interests
of the Subject Property.

• Physical site inspections were conducted to assess the current status of the Subject Property.

• The rent rolls along with corresponding leases deeds (on a reasonable sample basis) were reviewed to identify
tenancy characteristics for the Subject Property.

Preparation of Future Cash Flows:

• Computing the monthly rental income projected and translating the same to a quarterly cash flow.

• The operational expenses of the respective properties are reviewed to understand the recurring, non-recurring,
recoverable and non-recoverable nature expenses and accordingly estimate the margins on the common area
maintenance income, which accrues as cash inflows to the Subject Property and normalised for the purpose
of cash flow projections.

• The projected future cash flows from the Subject Property are based on existing lease terms for the operational
area till the expiry of the leases or re-negotiation, whichever is earlier, following which, the lease terms have
been aligned with market rents achievable by the Subject Property.

• The cash flows for the operational, under construction and future development area have been projected
separately for the purpose of estimating and reporting valuation in accordance with the SEBI (REIT)
Regulations.

• For vacant area, under-construction area and future development area, the achievable market rent-led cash
flows are projected factoring appropriate lease-up time frame for vacant/under-construction/future
development area.

• Recurring operational expenses, fit-out income (wherever applicable, however, the same has not been included
in the NOI for the purpose of arriving at the terminal value by capitalisation) and vacancy provision have been
adopted in-line with prevalent market practices and conditions.

• In addition, appropriate rent-free periods have been adopted during lease roll-overs to consider potential rent-
free terms as well as outflows towards brokerage.

• These cash flows have been projected for 10-year duration from the date of valuation wherein 11th year Net
operating income (NOI) is capitalized for the assessment of terminal value. These future cash flows are then

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discounted to present-day value (valuation date) at an appropriate discount rate to arrive at the Market Value
of the Subject Property.

5. Information Source for Valuation

Table below highlights various data points referred throughout the course of this valuation report and the data
sources for the same. Property related documents referred to in the table below have been provided to the
Consultant by the Client unless otherwise mentioned. The Consultants have assumed the documents to be a true
copy of the original. The rent rolls have been cross-checked with the lease deeds on a sample basis to verify the
authenticity.

Particular Details Units Source

Land Area Acres Title report prepared by Legal Counsels

Permissible FSI Ratio / No. Architect Certificate
Achieved FSI No. Architect Certificate
FSI Area sq. ft. Architect Certificate
Built-Up Area sq. ft. Architect Certificate
Leasable Area – Tower Wise sq. ft. Architect Certificate
Leasable Area – Future
AREA DETAILS sq. ft. Architect Certificate
Development
No. of Floors No. Occupancy Certificate
Stacking Plan NA Client/ Lease deeds
Architect Certificate/ Sanctioned Plan/
No. of Basements No.
Occupancy Certificate
Car Parking Area sq. ft. Architect Certificate
Number of car parks No. Architect Certificate
Land Use / Zoning NA Title Report/Zoning Plan
Title Deeds NA Title Report
Approved Sanction Plan NA Copy as applicable
Building Plan / Site Plan NA Copy as applicable
Floor Plans NA Copy as applicable
Height Clearance Approvals
NA Copy as applicable
DOCUMENTS/ (AAI)
APPROVALS Fire NOC NA Copy as applicable
Environment Clearance NA Copy as applicable
Commencement Certificate NA Copy as applicable
Occupancy Certificate NA Block-wise occupancy certificate
Building Certification NA Client (as applicable)
Lease Agreements with Tenants NA Lease deeds
Sample CAM Agreements NA Client
HVAC (Tonnage TR Client
SERVICES
Power Back-up KVA Client
OFFERED
No. of Lifts with capacity No. Client

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Particular Details Units Source

No. of staircase No. Client

Pending Construction Cost (if
INR Mn Client
any)
Total Budgeted Cost – Land Stage
INR Mn Client
Block
Total Budgeted Cost – Under
INR Mn Client
Construction Block
Cost Already Incurred – Under
INR Mn Client
Construction Block
INR per sq. ft. per month
Cost towards fit outs Client
/ INR Mn

COST Cost provisioned towards

INR Mn Client
ASSUMPTIONS refurbishment / renovation
CAM contract between SPVs holding
Maintenance Charges INR sq. ft. per month subject properties & entity undertaking
common area maintenance
Insurance Cost INR Mn Insurance premium receipt
Property Tax INR Mn Property Tax Demand Notice
Margin on Maintenance % of CAM Charges Valuer Assessment
Agreement between Client and SPVs
Asset Management Fee % of revenues
holding subject properties
Brokerage on lease No. of Months Valuer Assessment
Repair & Maintenance Reserve % of lease revenues Valuer Assessment
Capitalization Rate % Valuer Assessment
EXIT Quarter of Capitalization Quarter, Year Valuer Assessment
ASSUMPTIONS Discount Rate % Valuer Assessment
Transaction cost on Exit % Valuer Assessment
Leased Area sq. ft. Rent rolls/ Lease agreements
Vacant Area sq. ft. Rent rolls/ Lease agreements
Pre- Committed Area sq. ft. Rent rolls/ Lease agreements
Lease Dates (Start, End, Lock in, Rent rolls/ Lease agreements
MM/DD/YYYY
Escalation etc.) for existing leases
Rent Achieved INR per sq. ft. per month Rent rolls/ Lease agreements
Pre-Committed Rent INR per sq. ft. per month Rent rolls/ Lease agreements
Security Deposit No. of months/ INR Mn Rent rolls/ Lease agreements
OPERATIONAL INR per car park per Rent rolls / Valuer Assessment / Lease
Parking Rent
ASSUMPTIONS month agreements
Fit out Rent INR per sq. ft. per month Rent rolls/ Lease agreements
Miscellaneous Income INR Mn Rent rolls/ Financial Statements
Interest on Security Deposit NA Valuer Assessment
Market Rent INR per sq. ft. per month Valuer Assessment
Reversion Threshold % Valuer Assessment
Escalation in Rent / CAM % Valuer Assessment
Lease Dates (Start, End, Lock in, Valuer Assessment
MM/DD/YYYY
Escalation etc.) for vacant area

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Particular Details Units Source

Lease escalation on Renewal for Valuer Assessment

%
New/Future Leases
Security Deposit for New/Future Valuer Assessment
No. of months
Leases
CAM Under-recoveries INR per sq. ft. per month Valuer Assessment
Rent Free Period No. of Months Valuer Assessment
Brokerage No. of months Valuer Assessment
Vacancy Provision % Valuer Assessment
Construction Construction Commencement Quarter, Year Client / Valuer Assessment
Timelines Construction Completion Quarter, Year Client / Valuer Assessment
Absorption
Respective spaces in each
Timelines (for Quarter, Year Valuer Assessment
development
vacant space)
Market Opinions expressed on the scale
assessment and of portfolio, relative performance
Not applicable Valuer Assessment
key portfolio of submarkets, asset quality and
characteristics characteristics of assets, etc.

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C. EMBASSY REIT ASSETS

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1. Embassy REIT Assets at a Glance

Nine best-in-class office parks and four

prime city-center office buildings
Affiliated facilities include completed
(4)/under construction (2) hotels and a
solar park (100 MW AC)
Embassy Galaxy
High quality assets built to international
Embassy Oxygen
specifications and standards with best-
(Total Leasable Area- 4.6 msf.)
in-class asset management. NOIDA

Embassy Towers MUMBAI

FIFC Embassy Manyata
PUNE
Embassy 247 Embassy TechVillage

(Total Leasable Area - 2.0 msf.) Embassy GolfLinks

Hilton at GolfLinks

BENGALURU Embassy One

Embassy TechZone
Embassy Business Hub
Embassy Qubix
Embassy Energy
Embassy Quadron
(Total Leasable Area – 30.0 msf.
(Total Leasable Area- 8.8 msf.) /1,614 Keys /100 MW)

Particular Details

Total Leasable Area (msf.) 45.4

Completed Area (msf. ) 36.5

Occupancy (%) 85%

Number of Hotel Keys (including under-construction) 1,614

Embassy Energy 100 MW

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1.1. Nature of the Interest of the Embassy REIT

The Table below highlights the nature of interest of the Embassy REIT:

Remainder of term in
Interest Interest Embassy
Development case of Leasehold
Value REIT holds
(approx.)
Embassy Manyata, Bengaluru Freehold* 100.0% NA
Embassy TechVillage, Bengaluru Freehold^ 100.0% NA
Embassy GolfLinks, Bengaluru Freehold 50.0% NA
Embassy One, Bengaluru Freehold 100.0% NA
Embassy Business Hub, Bengaluru Freehold** 100.0% NA
Express Towers, Mumbai Freehold 100.0% NA
Embassy 247, Mumbai Freehold 100.0% NA
First International Financial Center (FIFC), Mumbai Leasehold 100.0% 64 Years
Embassy TechZone, Pune Leasehold 100.0% 76 Years
Embassy Quadron, Pune Leasehold 100.0% 76 Years
Embassy Qubix, Pune Freehold 100.0% NA
Embassy Oxygen, Noida Leasehold 100.0% 73 Years
Embassy Galaxy, Noida Leasehold 100.0% 71 Years
Hilton at GolfLinks, Bengaluru Freehold 100.0% NA
Embassy Energy, Bellary District, Karnataka Freehold 100.0% NA

* Excluding Block M3A (operational) and Block M3B (under construction) which are situated on a leasehold land parcel approx. 6.6 acres.
^ Total land area under the ownership of Vikas Telecom Private Limited (“VTPL) is approx. 80.05 acres and under Sarla Infrastructure Private Limited
(“SIPL”), is 4.0 acres. Additionally, approx. 1.9 acres out of the total land extent is leasehold.
** In accordance with the terms of the JDA for Phase 1 of the development, the developer and landowner have entered into an area allocation
agreement to identify and allocate the specific constructed area/ units that would fall under the landowner’s 40% entitlement and the developer’s 60%
allocation. The JDA for Phase II of the development contemplates that upon receipt of plan sanction, the parties will enter into an area allocation to
identify and allocate the specific constructed area / units that would fall under the landowners’ 33% allocation and developer’s 67% allocation. The
Client has acquired the Developer’s interests in the Subject Property.

1.2. Capitalization Rate Assumptions - Office

Capitalisation rate (“Cap rate”) is a real estate industry metric referring to the ratio of the Net Operating Income
(NOI) arising rental income to their gross asset value indicating the expected income yield of the investor from
concerned property. It reflects the expectation of the investor on stability of rental income driven by the asset
quality, tenant profile, market demand-supply dynamics and macro-economic expectations on prevailing risk
free/low risk interest rates.

In order to arrive at the capitalization rate for the property, relevant parameters of some key investments in
comparable properties of similar quality, use, tenant profile made by institutional real estate investors were
perused.

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Further, considering the factors such as, asset quality, location of the asset, asset occupancy levels, etc, the cap rate
for the Subject Properties has been assumed to be in the range of 7.5% to 8.25% in line with the available market
information applied on the one year forward NOI in the terminal year.

1.3. Capitalization Rate Assumptions - Hospitality Development

Hotels are undisputedly a combination of business and real estate; the day-to-day operation of a hotel represents a
business over and above the real estate value. The exercise is aimed at assessing the value of the property on the
earnings generating capacity of the hotel. As per instruction from the Client, we understand that the investors are
investing with a view of future earnings and not for the purpose of selling the assets in the present time. Hence the
most appropriate method is the EV/EBITDA Multiple approach.

For this method, we have evaluated the historic data of listed large and medium Hotel Companies and have arrived
at an average/median multiple. This average EV/EBITDA multiple from year 2012 to 2023 is in the range of 14 to
15 times.

Therefore, the EV/EBITDA multiple of 14 to 15 times translates to a capitalization rate range of 7.14% to 6.7%.
We have taken the lower end of the multiple i.e., 14 which translates to 7.14% capitalization rate.

Based on the above highlighted attributes, the following cap rates have been adopted for the purpose of our
valuation:

Asset Name Capitalization Rate

Office- 8.00%
Embassy Manyata
Hotel-7.14% (viz. an EV- EBITDA multiple of 14)
Office- 8.00%
Embassy TechVillage
Hotel-7.14% (viz. an EV- EBITDA multiple of 14)
Embassy GolfLinks 8.00%
Office- 7.75%
Embassy One
Hotel-7.14% (viz. an EV- EBITDA multiple of 14)
Embassy Hub 8.00%
Express Tower 7.50%
Embassy 247 8.00%
First International Financial Centre (FIFC) 7.75%
Embassy TechZone 8.25%
Embassy Quadron 8.25%
Embassy Qubix 8.25%
Embassy Oxygen 8.25%
Embassy Galaxy 8.00%
Hilton at GolfLinks Hotel-7.14% (viz. an EV- EBITDA multiple of 14)
Embassy Energy Not applicable

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1.4. Discount Rate

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

For the purpose of arriving at the Cost Equity, a peer group of listed comparable were studied and suitable
adjustments made therein to reflect the specific opportunities and characteristics of the Subject Property as part of
a listed portfolio. The Cost of Debt is assumed on the basis of the marginal cost of debt that the SPV owning the
Subject Property has been able to avail and the general borrowing rates of similar assets. The Weights attributed
to equity and debt were benchmarked against similar portfolios/properties in the market.

The derived discount rate of 11.75% for operational office segment (including CAM), 13.00% for under
construction Office & Retail segment, 13.50% for under construction Hospitality segment and 12.14% for
operational Hospitality segment has been considered for the valuation exercise.

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D. EXECUTIVE SUMMARY

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1.1. Embassy Manyata

“Embassy Manyata Business Park” is a planned integrated development with

Property Name: commercial, retail and hospitality components located along Outer Ring Road (ORR),
Nagavara, Bengaluru North Taluk, Bengaluru, Karnataka.

Nagavara Village, Kasaba Hobli, Bengaluru North Taluk, Bengaluru District and
Property Address: Rachenahalli and Thanisandra Villages, Krishnarajapuram Hobli, Bengaluru East
View of Subject Property
Taluk, Bengaluru District.

Based on information provided by the Client (viz. title report), the Valuer understands
that the total land area admeasures approx. 121.8 acres and is under the ownership of
Manyata Promoters Private Limited. Basis the site plan & visual inspection it was
Land Area:
observed that the land underlying the Subject Property is irregular in shape with
levelled topography, bounded by compound wall, and has a superior visibility on
account of the multiple accesses via the Outer Ring Road.

View of internal road of Subject

The Subject Property, Embassy Manyata is a planned integrated development with Property
commercial and retail components and 2 operational Hotels (Upscale hotel with a
Convention Centre & Mid-scale hotel comprising of 619 keys in total). The total
leasable area of the office blocks is approx. 15.6 msf., which comprises of completed
Subject Property blocks admeasuring approx. 12.4 msf. and under-construction and proposed blocks
Description: admeasuring approx. 3.2 msf.

The Subject Property offers amenities like food courts, sports zone, day care centre,
medical facilities, multi-level car parks, intra park shuttle, CCTV surveillance, Fire
station, ambulance service, etc. View of food court

Based on verification of title report, architect certificate and rent roll, we understand
that the Subject Property is an operational office park. The operational blocks
admeasure approx. 12.4 msf. of leasable area and has an occupancy of approx. 87% as
on the date of valuation. The table below shows the leasable area for individual blocks
that form part of the subject property:

Components Leasable Area (msf.) Usage Type View of Subject Property (Hilton)

Completed Blocks 12.4 IT/ITeS SEZ & Non-SEZ

Statement of
Assets: Under
Construction/Proposed 3.2 IT/ITeS SEZ & Non-SEZ
Blocks
Total 15.6 --

Components Details

Hilton 266 Keys

Hilton Garden Inn 353 Keys

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Source: Architect certificate, Rent Roll dated 31st March 2024, Lease deeds.

Occupancy 87% in the operational blocks

(Office):

Average Hilton Hotels & Resorts - 53%

Occupancy
(Hotel): Hilton Garden Inn – 63%

Under Construction/
Valuation Approach Completed Blocks
Proposed Block

Discounted Cash Flows Discounted Cash Flows

Office/ Retail Component Method (using rent Method (using rent
Valuation reversion approach) reversion approach)
Approach:
Other Components – Hotel Discounted Cash Flows
NA
& Convention Centre Method

Date of Valuation: March 31, 2024

Date of April 01, 2024

Inspection:

Purchase Date for March 27, 2019

the property:

Ready Reckoner
Rate (As per
documents Land Rate: INR 90,000 per sqm
published by State
Government):

Component Market Value (INR Mn)

Completed Blocks 184,598

Value Conclusion
as of March 31, Under Construction/ Proposed Blocks 27,024
2024:
Hotel 13,868

Total Value of the Property 225,491

This valuation report is provided subject to assumptions, disclaimers, limitations, and

qualifications detailed throughout this report which are made in conjunction with those
Assumptions, included within the Assumption, Disclaimer, Limitation & Qualification sections in
Disclaimers,
Limitations & this report. Reliance on this report and extension of our liability is conditional upon the
Qualification reader’s acknowledgement and understanding of these statements. This valuation is for
the use of the party to whom it is addressed and for no other purpose. No responsibility
is accepted to any third party who may use or rely on the whole or any part of the

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content of this valuation. The valuer has no pecuniary interest that would conflict with
the proper valuation of the property.

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1.2. Embassy TechVillage

“Embassy TechVillage” is a commercial office development with ancillary retail and

Property Name: hospitality component located along Sarjapur Outer Ring Road, Devarabeesanahalli,
Bengaluru, Karnataka.

Devarabeesanahalli Village & Kariyamanna Agrahara Village, Varthur Hobli, View of Subject Property
Property Address:
Bengaluru East Taluk, Bengaluru, Karnataka.

Based on information provided by the Client (viz. title report), the Valuer understands
that the total land area of the larger land parcel admeasures approx. 103.4 acres. Total
Land Area: land area under the ownership of Vikas Telecom Private Limited (“VTPL”) is approx.
80.05 acres and under Sarla Infrastructure Private Limited (‘SIPL”) is approx. 4.0 acres
same is considered for the purpose of this valuation exercise.
View of Subject Property

The Subject Property, Embassy TechVillage is a large mixed-use Development

comprising of Commercial IT/ITeS SEZ & Non-SEZ Office and 2 under construction
Hotels (Upscale hotel with a Convention Centre & Mid-scale hotel comprising of 518
keys in total). The Total Leasable Area of the office block is approx. 9.6 msf., which
comprises of operational office block approx. 7.3 msf., under-construction and
Subject Property proposed office block approx. 2.3 msf. The proposed upscale hotel with a convention
Description: View of Subject Property
centre is expected to comprise of 311 keys whereas midscale hotel is expected to
comprise of 207 keys. Further, the Subject Property offers amenities like Food courts,
sport zone, cult fit gym, Klay day care centre, Columbia Asia Medical Centre and
Pharmacy, Multi-level car parks, Intra Park shuttle, CCTV surveillance, Fire station,
ambulance service, etc.

The Subject Property is an operational Office Park with approx. 7.3 msf. of completed
View of access road
leasable area with occupancy of approx. 96% as on the date of valuation. Table below
highlight the leasable area for individual blocks that form part of the subject
development Table below highlight the leasable area for individual blocks that form
part of the subject development:

Components Leasable Area (msf.) Usage Type

Completed Blocks 7.3 IT/ITeS SEZ & Non-SEZ

Under Construction/
2.3 IT/ITeS Non-SEZ
Statement of Proposed Blocks
Assets:

Total 9.6 --

Components Details

Hotel (5 Star) – Under Construction/

311 Keys
Proposed development
Hotel (3 Star) – Under
207 Keys
Construction/Proposed development

Source: Architect certificate, Rent roll dated 31st March 2024, Lease deeds.

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Note – Hotel includes Convention centre area of total developable area of 0.8 msf.

Occupancy: 96%

Under Construction/
Valuation Approach Completed Blocks
Proposed Block

Discounted Cash Flows Discounted Cash Flows

Valuation Office/ Retail
Method (using rent Method (using rent
Approach: Component
reversion approach) reversion approach)

Other Components – Discounted Cash Flows

NA
Hotel, Convention, etc Method

Date of Valuation: March 31, 2024

Date of April 02, 2024

Inspection:

Purchase Date for December 24, 2020

the property:

Ready Reckoner
Rate (as per Land Rate: INR 111,000 per sqm
documents
published by State
Government):

Component Market Value (INR Mn)

Completed Blocks 103,005
Value Conclusion
as of March 31, Under Construction/ Proposed Blocks 21,565
2024: Hotel (Under Construction) 1,576
Total Value of the Property 126,147

This valuation report is provided subject to assumptions, disclaimers, limitations, and

qualifications detailed throughout this report which are made in conjunction with those
included within the Assumption, Disclaimer, Limitation & Qualification sections in
this report. Reliance on this report and extension of our liability is conditional upon the
Assumptions,
Disclaimers, reader’s acknowledgement and understanding of these statements. This valuation is for
Limitations & the use of the party to whom it is addressed and for no other purpose. No responsibility
Qualification: is accepted to any third party who may use or rely on the whole or any part of the
content of this valuation. The valuer has no pecuniary interest that would conflict with
the proper valuation of the property.

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1.3. Embassy GolfLinks

Embassy GolfLinks is an Office Park located along Intermediate Ring Road,

Property Name:
Bengaluru, Karnataka.

Challaghatta Village, Varthur Hobli, Mahadevapura, Bengaluru East Taluk, Bengaluru,

Property Address:
Karnataka.
View of Fountain Head Block

Based on review of the title report, we understand that the total land area of the Subject
Land Area:
Property under the ownership of the Client is approx. 37.1 acres.

It is an operational commercial Non-SEZ Office park located along the Intermediate

Ring Road, Bengaluru. The total leasable area of the office park is approx. 4.7 msf.
The interest being valued corresponds to approx. 3.1 msf. of office area which forms View of Pine Valley Block
Subject Property part of the economic interest of the Client. It has an operational hotel, and it may be
Description:
noted that the GolfLinks campus along with its commercial towers is considered as
one of the largest tech parks close to the CBD area which is easily accessible to
established locations such as Indiranagar, Koramangala, CV Raman, etc.

The Subject Property is an operational Office Park with approx. 3.1 msf. of completed
leasable area and is approx. 95% committed as on the date of valuation. Table below Internal view of access road
highlights the leasable area for Subject Property that form part of the subject
development:

Components Leasable Area (msf.) Usage Type

Statement of
Assets:
Completed Blocks 3.1 Non-SEZ

Total 3.1 --

Source: Architect certificate, Rent roll dated 31st March 2024, Lease deeds.

Occupancy: 95%

Valuation Approach Completed Blocks

Valuation
Approach: Discounted Cash Flows Method (using
Office/ Retail Component
rent reversion approach)

Date of Valuation: March 31, 2024

Date of April 02, 2024

Inspection:

Purchase Date for The said acquisition was undertaken as part of the ‘Formation Transaction’ as described
the property: in the Final Offer Document dated 27th March 2019. An additional area of 170,930 sq.

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ft was acquired in Q3, FY [Link] an additional area of 185,803 sq. ft. was
acquired in Q1, FY 2023

Ready Reckoner
Rate (as per
documents Land Rate – INR 53,325 per sqm
published by State
Government):

Component Market Value (INR Mn)

Completed Blocks 74,480

Value Conclusion Total Value of the Property 74,480
as of March 31,
2024:
Note:
The valuation presented is for 100% interest in the asset. However, based on inputs
provided by the Client, the REIT hold 50% of the interests in the asset (viz. INR 37,240
Mn)

This valuation report is provided subject to assumptions, disclaimers, limitations, and

qualifications detailed throughout this report which are made in conjunction with those
included within the Assumption, Disclaimer, Limitation & Qualification sections in
Assumptions, this report. Reliance on this report and extension of our liability is conditional upon the
Disclaimers, reader’s acknowledgement and understanding of these statements. This valuation is for
Limitations &
Qualification: the use of the party to whom it is addressed and for no other purpose. No responsibility
is accepted to any third party who may use or rely on the whole or any part of the
content of this valuation. The valuer has no pecuniary interest that would conflict with
the proper valuation of the property.

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1.4. Embassy One

“Embassy One” is a mixed-use development with Office, Residential and Hospitality

Property Name:
development located along Bellary Road, Ganga Nagar, Bengaluru, Karnataka.

Property Address: No.8, Bellary Road, Ganga Nagar, Bengaluru, Karnataka – 560032.

Based on information provided by the Client (viz. title report), the Valuer understands
that the total land area of the Subject Property admeasures approx. 5.6 acres and the
Land Area: View of Four Seasons Hotel
land area under the purview of this exercise admeasures approx. 3.2 acres (Office and
Hospitality Component).

The Subject property, ‘Embassy One’ is an operational mixed-use development,

located along Bellary Road, in Ganga Nagar, Bengaluru. It is strategically located
along the Bellary Road between the Kempegowda International Airport and Central
Business District (CBD) facilitating good connectivity with other parts of the city. The
Subject Property development comprises of Office Space and Hotel – Four Seasons. It also includes
Description:
Residential Apartments as part of the larger development. However, we have Internal view of Pinnacle
considered only Office Block – “Pinnacle” & Hotel – “Four Seasons” for the purpose
of valuation. The Total Leasable Area of the office block is approx. 0.3 msf. The Hotel
– Four Seasons is a 230 Keys 5 Star hotel.

The Subject Property is a Commercial IT office block with a luxury hotel (viz. Four
Seasons) comprising of 230 Keys. The total leasable area of the office block is approx.
0.3 msf. and has an occupancy of approx. 82% as on the date of valuation. Table below
View of basement car parking
highlight the leasable area for office development and total no. of keys for hotel
development that form part of the subject property:

Components Leasable Area (msf.) Usage Type

Statement of
Assets (Embassy Completed Blocks 0.3 Non-SEZ
Office Parks REIT View of access road
Share):
Total 0.3 --

Components Details

Hotel 230 Keys

Source: Architect certificate, Rent roll dated 31st March 2024, Lease deeds.

Occupancy 82%
(Office):

Average
Occupancy 41%
(Hotel):

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Valuation Approach Completed Block

Valuation Office/ Retail Discounted Cash Flow Method (using rent reversion
Approach: Component approach)

Hotel Discounted Cash Flow Method

Date of Valuation: March 31, 2024

Date of April 01, 2024

Inspection:

Purchase Date for March 27, 2019

the property:

Ready Reckoner
Rate (as per Land Rate: INR 123,200 per sqm
documents
published by State
Government):

Component Market Value (INR Mn)

Completed Blocks 5,390

Value Conclusion
as of March 31,
2024: Hotel 9,077

Total Value of the Property 14,467

This valuation report provided is subject to assumptions, disclaimers, limitations, and

qualifications detailed throughout this report which are made in conjunction with those
included within the Assumption, Disclaimer, Limitation & Qualification sections in
Assumptions, this report. Reliance on this report and extension of our liability is conditional upon the
Disclaimers, reader’s acknowledgement and understanding of these statements. This valuation is for
Limitations &
Qualification the use of the party to whom it is addressed and for no other purpose. No responsibility
is accepted to any third party who may use or rely on the whole or any part of the
content of this valuation. The valuer has no pecuniary interest that would conflict with
the proper valuation of the property.

47

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

1.5. Embassy Business Hub

“Embassy Business Hub” a Grade A Tech Park consists of two phases; phase-I is
Property Name: operational, and phase-II is under construction. It is located along Bellary Road (NH-
44), Yelahanka, Bengaluru, Karnataka.

Embassy Business Hub (EBH), Sy. # 25/2, 25/3 & 26, Venkatala village, Bellary Road,
Property Address:
Yelahanka Bengaluru North, Bengaluru.
View of Subject Property

Based on information provided by the Client (viz. title report), the Valuer understands
Land Area: that the total land area of the development admeasures approx. 13.5 acres (Phase I
approx. 4.3 acres and Phase II approx. 9.2 acres).

The Subject property, herein, referred to as ‘Embassy Business Hub’ is a Grade A Tech
Park located along the Bellary Road (NH-44) (one of the most sought after emerging
Commercial IT/ITeS & Residential vector in Bengaluru). The Grade A Tech Park is
being developed in two Phases with a total leasable area of approx. 2.1 msf. (Phase I: Internal view of Subject Property
0.7 msf. and Phase II: 1.4 msf.)
Subject Property
Description: Embassy Business Hub is being developed by Embassy Construction Private Limited
(“ECPL”) under a joint development agreement with a third-party landowner. Phase I
consists of approx. 0.7 msf. of which Embassy Office Parks REIT holds a share of
approx. 0.4 msf. Phase II (including food court), adjacent to Phase I is in under
construction stage consisting of approx. 1.4 msf. of which Embassy Office Parks REIT
holds a share of approx. 1.0 msf. Phase II is expected to be completed by FY 2029.
View of construction progress

The Subject Property has a total leasable area of approx. 0.4 msf., in Phase I and
approx. 1.0 msf., in Phase II. Philips India Limited has pre-leased approx. 0.4 msf.
(Ground to 13th Floor) of Phase I. Table below highlight the leasable area for individual
blocks that form part of the subject development:

Components Leasable Area (msf.) Usage Type

View of access road
Statement of
Assets (Embassy Completed Block 0.4 Non-SEZ
Office Parks REIT
Share):
Under Construction/
1.0 Non-SEZ
Proposed Blocks

Total 1.4 --

Source: Architect certificate, Rent roll dated 31st March 2024, Lease deeds.

Occupancy 100% (This is inclusive of hard option admeasuring approx.31,666 sq. ft. – i.e., 8% of
(Phase-I): the total leasable area).

48

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

Under Construction
Valuation Approach Completed Block
Blocks
Valuation
Approach: Discounted Cash Flows Method (using rent reversion
Office Component
approach)

Date of Valuation: March 31, 2024

Date of April 03, 2024

Inspection:

Purchase Date for March 28, 2023

the property:

Ready Reckoner
Rate (as per
documents Land Rate: INR 31,941 per sqm.
published by State
Government):

Component Market Value (INR Mn)

Completed Block 3,950

Value Conclusion
as of March 31, Under Construction/ Proposed
2024: 1,793
Blocks

Total Value of the Property 5,743

This valuation report provided is subject to assumptions, disclaimers, limitations, and

qualifications detailed throughout this report which are made in conjunction with those
included within the Assumption, Disclaimer, Limitation & Qualification sections in
Assumptions, this report. Reliance on this report and extension of our liability is conditional upon the
Disclaimers, reader’s acknowledgement and understanding of these statements. This valuation is for
Limitations &
Qualification the use of the party to whom it is addressed and for no other purpose. No responsibility
is accepted to any third party who may use or rely on the whole or any part of the
content of this valuation. The valuer has no pecuniary interest that would conflict with
the proper valuation of the property.

49

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

1.6. Express Tower

Property Name: Express Towers.

Plot no. 236, Block III of Back Bay Reclamation Estate, Barrister Rajni Patel Marg,
Property Address:
Nariman Point, Mumbai, Maharashtra.

Based on review of the title report, we understand that the total land area of the Subject
Land Area:
Property under the ownership of the Client is approx. 1.5 acres.

View of Subject Property

Express Towers (hereinafter referred to as Subject Property) is a Grade A commercial
development in Central Business District (CBD). It is one of the prominent
developments in the micro market with superior offerings. Subject Property is located
opposite to Trident Hotel and offers a magnificent view of the Marine Drive and the
Arabian Sea. Subject Property was established in the year 1970 and has been
refurbished in recent years. The Subject Property is accessible via roadways and
Subject Property railways. CBD houses various corporate offices i.e., banks, developers, print media,
Description:
shipping companies, foreign council, etc. Key commercial developments in the vicinity
are Maker Chambers, Free Press House, Hoechst House, Mafatlal Centre, etc. Social
infrastructure includes iconic hotels like The Oberoi and Trident and National Centre
of Performing Arts (NCPA), Brabourne and Wankhede Cricket Stadium. Total Project
area of Subject Property is spread across approx. 1.5 acres and total leasable area is
Internal view of Subject Property
approx. 0.5 msf.

Based on review of various documents (such as rent roll, Architect certificate, lease
deeds, etc.), the Subject Property is an operational office asset with approx. 0.5 msf. of
completed leasable area out of which approx. 96% is leased as on the date of valuation.
Table below highlights the leasable area details for the subject development:

Components Leasable Area (msf.) Usage Type

Statement of
Assets:
Completed Block 0.5 Non-SEZ View of basement car parking

Total 0.5 --

Source: Architect certificate, Rent roll dated 31st March 2024, Lease deeds.

Occupancy: 96%

Valuation Approach Completed Blocks View of access road

Valuation Discounted Cash Flow Method (using rental

Approaches: Office Component
reversion approach)

Date of Valuation: March 31, 2024

50

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

Date of April 16, 2024

Inspection:

27th March 2019

Purchase Date for
the Property: (Formation Transaction as described in the Final Offer Document)

Ready Reckoner
Rate (as per Land Rate: INR 1,75,940 per sqm
documents
published by State Built up Rate: INR 5,18,000 per sqm
Government):

Component Market Value (INR Mn)

Value Conclusion
as of March 31, Completed Block 18,935
2024:
Total Value of the Property 18,935

This valuation report is provided subject to assumptions, disclaimers, limitations, and

qualifications detailed throughout this report which are made in conjunction with those
included within the Assumption, Disclaimer, Limitation & Qualification sections in
this report. Reliance on this report and extension of our liability is conditional upon the
Assumptions,
Disclaimers, reader’s acknowledgement and understanding of these statements. This valuation is for
Limitations & the use of the party to whom it is addressed and for no other purpose. No responsibility
Qualification is accepted to any third party who may use or rely on the whole or any part of the
content of this valuation. The valuer has no pecuniary interest that would conflict with
the proper valuation of the property.

51

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

1.7. Embassy 247

Property Name: Embassy 247

Hariyali Village, Kurla Taluka, Lal Bahadur Shastri Road, Gandhi Nagar, Vikhroli
Property Address:
West, Mumbai.

Based on review of the title report, we understand that the total land area of the Subject
Land Area:
Property under the ownership of the Client is approx. 7.3 acres.

Embassy 247 (hereinafter referred to as Subject Property) is a Grade A commercial

development, in the Eastern Suburbs. Subject Property offers easy access via road and
rail connectivity. It is connected to Jogeshwari Vikhroli Link Road (JVLR) which helps
in connecting to eastern and western suburbs. Railway stations like Vikhroli and View of Subject Property
Kanjurmarg within 1 to 2 km. Subject Property operationally commenced from 2014
Subject Property
Description: and has 3 wings namely A, B & C. Wing A is 2B + G + 11 storey with 9 lifts, Wing B
is 2B* + G + 14 storeys with 9 lifts and Wing C is 2B* + G + 11 storeys with 9 lifts.
Total Project area of Subject Property is spread across approx. 7.3 acres. Total leasable
area is approx.1.2 msf.

*Note: B stands for Basement, G stands for Ground

Based on review of various documents (such as rent roll, Architect certificate, lease
Internal view of Subject Property
deeds, etc.), the Subject Property is an operational office asset with approx. 1.2 msf. of
completed leasable area out of which approx. 100% is leased as on the date of valuation.
Table below highlights the leasable area details for the subject development:

Components Leasable Area (msf.) Usage Type

Statement of
Assets:
Completed Block 1.2 Non-SEZ

Total 1.2 -- Internal view of Subject Property

Source: Architect certificate, Rent roll dated 31st March 2024, Lease deeds.

Occupancy: 100%

Valuation Approach Completed Blocks

Valuation Discounted Cash Flow Method (using rental
Approaches: Office Component
reversion approach)

Date of Valuation: March 31, 2024

View of basement

Date of April 16, 2024

Inspection:

52

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

27th March 2019

Purchase Date for
the Property: (Formation Transaction as described in the Final Offer Document)

Ready Reckoner
Rate (as per Land Rate: INR 84,640 per sqm
documents
published by State Built-up Rate: INR 185,380 per sqm
Government):

Component Market Value (INR Mn)

Value Conclusion
as of March 31, Completed Block 19,075
2024:
Total Value of the Property 19,075

This valuation report is provided subject to assumptions, disclaimers, limitations, and

qualifications detailed throughout this report which are made in conjunction with those
included within the Assumption, Disclaimer, Limitation & Qualification sections in this
report. Reliance on this report and extension of our liability is conditional upon the
Assumptions,
Disclaimers, reader’s acknowledgement and understanding of these statements. This valuation is for
Limitations & the use of the party to whom it is addressed and for no other purpose. No responsibility
Qualification is accepted to any third party who may use or rely on the whole or any part of the
content of this valuation. The valuer has no pecuniary interest that would conflict with
the proper valuation of the property.

53

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

1.8. First International Financial Centre

Property Name: First International Finance Centre is an operational office.

Plot No. C-54 & C-55, G-Block, BKC Road, Bandra Kurla Complex, Mumbai,
Property Address:
Maharashtra.

Based on review of the title report, we understand that the total land area of the Subject View of Subject Property
Land Area:
Property under the ownership of the Client is approx. 2.0 acres 1.

First International Financial Centre (FIFC) (hereinafter referred to as Subject Property)

is a Grade A commercial development, located in the heart of Mumbai’s central
business district, First International Financial Centre at the Bandra Kurla Complex
(BKC) offers easy access to all roads and airports. Subject Property operationally
commenced from 2012 and offers Amenities like Lift, Water Storage, Fire Fighting
Subject Property Systems, Car Parking, CCTV Camera Security, Power Backup, Internet/wi-fi
Description:
connectivity, Maintenance Staff, Security Personnel, Visitors parking facility. Also, Internal view of Subject Property
spacious offices - large floor plates, grand double height entrance lobby and etc. Total
Project area of Subject Property is spread across 2.0 acres 1. Total operational area is
approx.0.7 msf. (Operational Area indicates total area of the development) and total
leasable area is approx. 0.4 msf.

Based on review of various documents (such as rent roll, Architect certificate, lease
deeds, etc.), the Subject Property is an operational office asset with approx. 0.4 msf. of
completed leasable area out of which approx. 100% is leased as on the date of valuation.
Table below highlights the leasable area details for the subject development: View of basement car parking

Components Leasable Area (msf.) Usage Type

Statement of
Assets:
Completed Block 0.4 Non-SEZ

Total 0.4 --
View of access road

Source: Architect certificate, Rent roll dated 31st March 2024, Lease deeds.

Occupancy: 100%

Valuation Approach Completed Blocks

Valuation Discounted Cash Flow Method (using
Approaches: Office Component
rental reversion approach)

1
FIFC has undivided right of 54.2% of the land.

54

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

Date of Valuation: March 31, 2024

Date of April 16, 2024

Inspection:

27th March 2019

Purchase Date for
the Property: (Formation Transaction as described in the Final Offer Document)

Ready Reckoner
Rate (as per Land Rate: INR 161,070 per sqm
documents
published by State Built up rate: INR 345,060 per sqm
Government):

Component Market Value (INR Mn)

Value Conclusion
as of March 31, Completed Block 14,977
2024:
Total Value of the Property 14,977

This valuation report is provided subject to assumptions, disclaimers, limitations, and

qualifications detailed throughout this report which are made in conjunction with those
included within the Assumption, Disclaimer, Limitation & Qualification sections in this
report. Reliance on this report and extension of our liability is conditional upon the
Assumptions,
Disclaimers, reader’s acknowledgement and understanding of these statements. This valuation is for
Limitations & the use of the party to whom it is addressed and for no other purpose. No responsibility
Qualification is accepted to any third party who may use or rely on the whole or any part of the
content of this valuation. The valuer has no pecuniary interest that would conflict with
the proper valuation of the property.

55

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

1.9. Embassy TechZone

“Embassy TechZone” is a commercial office development located along Hinjewadi

Property Name:
Phase 2 Road, Hinjewadi Rajiv Gandhi Infotech Park, Hinjewadi, Pune, Maharashtra.

Plot No.3A, Hinjewadi Phase 2 Road, Hinjewadi Rajiv Gandhi Infotech Park,
Property Address:
Hinjewadi, Pune, Maharashtra. View of Subject Property

Based on information provided by the Client (viz. title report), the Valuer understands
that the total land area admeasures approx. 67.5 acres. Additionally, it is understood
Land Area:
that the land is on a leasehold basis with a remaining lease period of approx. 77 years
and same is considered for the purpose of this valuation exercise.

"Embassy TechZone" has been conceived as an expansive office park spanning approx. Internal view of Subject Property
67.5 acres of land area. This property currently operates as an IT/ITeS SEZ and Non-
SEZ office park, accommodating multiple tenants. It offers a wide array of facilities
and amenities, including a food court, intra-park shuttle service, gymnasium, multi-
level parking, and a sports ground.
Subject Property Completed Blocks: Comprises of SEZ blocks, Colorado, Mississippi, Congo, Mekong,
Description:
Rhine, Nile; Non-SEZ blocks Hudson and Ganges; & Food Court with a total leasable
area of approx. 3.0 msf. View of car parking

Under-Construction & Proposed Blocks – The under construction and proposed blocks
have Block 4, Block 9, Block 10, & Volga. The total leasable area of these blocks
approx. 2.4 msf. These blocks are expected to be completed by FY 2030.

Based on physical verification of various documents, we understand that the Subject

Property is an operational and under construction Office Park with .approx. 5.5 msf. of
leasable area of which completed block comprises of approx. 3.0 msf., and under-
View of access Road
construction and proposed blocks comprises of approx. 2.4 msf. Table below highlight
the leasable area for individual blocks that form part of the subject development:

Components Leasable Area (msf.) Usage Type

Completed Blocks 3.0 IT/ITeS SEZ & Non-SEZ

Statement of
Assets:
Under Construction/
2.4 IT/ITeS SEZ
Proposed Blocks

Total 5.5 --

Source: Architect certificate, Rent roll dated 31st March 2024, Lease deeds.

Occupancy: 78%

56

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

Under Construction/
Valuation Approach Completed Blocks
Proposed Block
Valuation
Approach: Discounted Cash Flows Discounted Cash Flows
Office Component Method (using rent Method (using rent reversion
reversion approach) approach)

Date of Valuation: March 31, 2024

Date of April 10, 2024

Inspection:

Purchase Date for March 27, 2019

the property:

Ready Reckoner
Rate (as per Land Rate: INR 15,860 per sqm
documents
published by State Built- Up Rate: INR 26,620 per sqm
Government):

Component Market Value (INR Mn)

Value Conclusion Completed Blocks 21,792
as of March 31,
2024: Under Construction/ Proposed Blocks 2,345
Total Value of the Property 24,137

This valuation report is provided subject to assumptions, disclaimers, limitations, and

qualifications detailed throughout this report which are made in conjunction with those
included within the Assumption, Disclaimer, Limitation & Qualification sections in
Assumptions, this report. Reliance on this report and extension of our liability is conditional upon the
Disclaimers, reader’s acknowledgement and understanding of these statements. This valuation is for
Limitations &
Qualification the use of the party to whom it is addressed and for no other purpose. No responsibility
is accepted to any third party who may use or rely on the whole or any part of the
content of this valuation. The valuer has no pecuniary interest that would conflict with
the proper valuation of the property.

57

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

1.10. Embassy Quadron

Embassy Quadron is an operational office located along Hinjawadi Phase 2 Rd, Phase
Property Name:
2, Hinjawadi Rajiv Gandhi Infotech Park, Hinjawadi, Pune.

Plot No. 28, Hinjawadi Phase 2 Rd, Phase 2, Hinjawadi Rajiv Gandhi Infotech Park,
Property Address:
Hinjawadi, Pune, Maharashtra. Access road of Subject Property

Based on review of the title report, we understand that the total land area of the Subject
Property under the ownership of the Client is approx. 25.5 acres. Additionally, it is
Land Area:
understood that the land is on a leasehold basis with a remaining lease period of approx.
77 years and same is considered for the purpose of this valuation exercise.

'Embassy Quadron' is envisioned as an Information Technology Special Economic Internal view of Subject Property
Zone (IT/ITeS SEZ) office park catering to a diverse tenant base, spanning approx. 25.5
acres. The Subject Property admeasures approx. 1.9 msf. of leasable area. This property
Subject Property stands out as a premium office park, boasting a range of top-notch facilities and
Description:
amenities. These include meticulously landscaped areas, a cutting-edge food court,
conveniently located ATMs, an indoor sports zone, a well-equipped gymnasium, and
ample parking spaces for both two-wheelers and four-wheelers.
Internal view of Subject Property
Based on review of various documents (such as rent roll, Architect certificate, lease
deeds, etc.), the Subject Property is an operational office asset with approx. 1.9 msf. of
completed leasable area out of which approx. 54% is leased as on the date of valuation.
Table below highlights the leasable area details for the subject development:

Components Leasable Area (msf.) Usage Type

Entrance of Subject Property
Statement of
Assets:
Completed Blocks 1.9 IT/ITeS SEZ

Total 1.9 --

Source: Architect certificate, Rent roll dated 31st March 2024, Lease deeds.

Occupancy: 54%

Valuation Approach Completed Blocks

Valuation
Approaches: Discounted Cash Flow Method (using
Office Component
rental reversion approach)

Date of Valuation: March 31, 2024

Date of April 10, 2024

Inspection:

58

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

Purchase Date for March 27, 2019

the Property:

Ready Reckoner
Rate (as per Land Rate: INR 15,860 per sqm
documents
published by State Built- Up Rate: INR 26,620 per sqm
Government):

Component Market Value (INR Mn)

Value Conclusion
as of March 31, Completed Blocks 11,398
2024:
Total Value of the Property 11,398

This valuation report is provided subject to assumptions, disclaimers, limitations, and

qualifications detailed throughout this report which are made in conjunction with those
included within the Assumption, Disclaimer, Limitation & Qualification sections in this
report. Reliance on this report and extension of our liability is conditional upon the
Assumptions,
Disclaimers, reader’s acknowledgement and understanding of these statements. This valuation is for
Limitations & the use of the party to whom it is addressed and for no other purpose. No responsibility
Qualification is accepted to any third party who may use or rely on the whole or any part of the
content of this valuation. The valuer has no pecuniary interest that would conflict with
the proper valuation of the property.

59

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

1.11. Embassy Qubix

Embassy Qubix is an operational office located in Phase 1, Hinjawadi Rajiv Gandhi

Property Name:
Infotech Park, Hinjawadi, Pimpri-Chinchwad, Maharashtra.

Blue Ridge Town Pune, Phase 1, Hinjawadi Rajiv Gandhi Infotech Park, Hinjawadi,
Property Address:
Maharashtra. Entrance of Subject Property

Based on review of the title report, we understand that the total land area of the Subject
Land Area: Property under the ownership of the Client is approx. 25.2 acres. Additionally, it is
understood that the land is freehold in nature.

‘Embassy Qubix’ is an IT/ITeS SEZ office park spanning over approx. 25.2 acres,
offering office spaces to IT/ITeS companies. The property boasts an array of facilities Internal view of Subject Property
Subject Property and amenities, "Q Court Courtyard", grocery stores and on-site ATMs. In addition to
Description: these conveniences, Embassy Qubix generously provides ample parking spaces for
both two-wheelers and four-wheelers. Notably, the development of this property
occurred in stages, with construction spanning from 2010 to 2012.

Based on review of various documents (such as rent roll, Architect certificate, lease
deeds, etc.), the Subject Property is an operational office asset with approx. 1.5 msf. of View of basement car parking
completed leasable area out of which approx. 68% is leased as on the date of valuation.
Table below highlights the leasable area details for the subject development:

Components Leasable Area (msf.) Usage Type

Statement of
Assets:
Completed Blocks 1.5 IT/ITeS SEZ office
Internal view of Subject Property

Total 1.5 --

Source: Architect certificate, Rent roll dated 31st March 2024, Lease deeds.

Occupancy: 68%

Valuation Approach Completed Blocks

Valuation
Approaches: Discounted Cash Flow Method (using
Office Component
rental reversion approach)

Date of Valuation: March 31, 2024

Date of April 10, 2024

Inspection:

Purchase Date for March 27, 2019

the Property:

60

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

Ready Reckoner
Rate (as per Land Rate: INR 11,990 per sqm
documents
published by State Built- Up Rate: INR 26,620 per sqm
Government):

Component Market Value (INR Mn)

Value Conclusion
as of March 31, Completed Blocks 9,521
2024:
Total Value of the Property 9,521

This valuation report is provided subject to assumptions, disclaimers, limitations, and

qualifications detailed throughout this report which are made in conjunction with those
included within the Assumption, Disclaimer, Limitation & Qualification sections in this
Assumptions, report. Reliance on this report and extension of our liability is conditional upon the
Disclaimers, reader’s acknowledgement and understanding of these statements. This valuation is for
Limitations &
Qualification the use of the party to whom it is addressed and for no other purpose. No responsibility
is accepted to any third party who may use or rely on the whole or any part of the
content of this valuation. The valuer has no pecuniary interest that would conflict with
the proper valuation of the property.

61

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

1.12. Embassy Oxygen

Embassy Oxygen (hereinafter referred to as Subject Property) is a Grade A IT/ITeS

SEZ development along with Tower 1 converted to Non-SEZ- IT/ITeS, located at
Property Name: Sector- 144, Noida, Uttar Pradesh. Embassy Oxygen is located in close proximity
to Noida - Greater Noida Expressway which is one of the established IT/ITeS SEZ
and Non-SEZ office destination of Noida.

Property Address: Plot number 7, Sector 144, Noida, Uttar Pradesh.

View of Subject Property

The Subject Property is spread across a total land area of approx. 24.8 acres. The
tenure of the underlying land of the Subject Property is leasehold with the lessee
being New Okhla Industrial Development Authority (NOIDA). The remaining
Land Area:
tenure of the land is approx. 73 years. Basis the site plan & visual inspection, it was
observed that the land underlying the Subject Property is largely regular in shape,
levelled topography and bounded by compound wall.

The Subject Property is accessible via 24-meter-wide access road on the South and
45-meter-access road on the West (primary access road). The Subject Property is Internal view of Subject Property
well connected to other parts of Noida & Delhi via Noida - Greater Noida
Expressway, DND Expressway & Aqua Line Metro. The Subject Property offers
Subject Property amenities like lift, water storage, firefighting systems, car parking, CCTV camera
Description: security, power backup, internet/wi-fi connectivity, intercom facility, maintenance
staff, security personnel, visitors parking facility. Other facilities offered by the
Subject Property includes landscaped greenspace, a recently revamped food court
and a suite of tenant amenities (such as a sports zone, auditorium, café, fitness centre
and day care facilities) etc.
View of car parking
Based on review of various documents (such as rent roll, Architect certificate, lease
deeds, etc.), we understand that the Subject Property is an operational Office Park with
total leasable area is approx. 3.3 msf. Table below highlights the leasable area details
for the subject development:

Components Leasable Area (msf.) Usage Type

IT/ITeS SEZ /
Statement of Completed Blocks 3.3
Assets: Tower 1 - IT/ITeS Non- SEZ View of access road

Total 3.3 --

Source: Architect certificate, Rent roll dated 31st March 2024, Lease deeds.

Occupancy: 58%

62

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

Valuation Approach Completed Blocks

Valuation
Approach: Discounted Cash Flow Method (using rental
Office/ Retail Component
reversion approach)

Date of Valuation: March 31, 2024

Date of March 19, 2024

Inspection:

Purchase Date for March 27, 2019

the property:

Ready Reckoner
Rate (as per Carpet area Rate: INR 2,04,750 per sqm
documents
published by State Land area Rate: INR 28,000 per sqm
Government):

Component Market Value (INR Mn)

Value Conclusion
as of March 31, Completed Blocks 23,826
2024:
Total Value of the Property 23,826

This valuation report is provided subject to assumptions, disclaimers, limitations,

and qualifications detailed throughout this report which are made in conjunction
with those included within the Assumption, Disclaimer, Limitation & Qualification
Assumptions, sections in this report. Reliance on this report and extension of our liability is
Disclaimers, conditional upon the reader’s acknowledgement and understanding of these
Limitations &
Qualification statements. This valuation is for the use of the party to whom it is addressed and for
no other purpose. No responsibility is accepted to any third party who may use or
rely on the whole or any part of the content of this valuation. The valuer has no
pecuniary interest that would conflict with the proper valuation of the property.

63

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

1.13. Embassy Galaxy

Embassy Galaxy (hereinafter referred to as Subject Property) is a Grade A IT/ITeS

Property Name: development, located at Sector- 62, Noida, Uttar Pradesh, which is a well-established
office district in Noida.

Property Address: A-44 & 45, Sector-62, Noida, Uttar Pradesh.

View of Subject Property

The Subject Property is spread across a total land area of approx. 9.9 acres. The tenure
of the underlying land of the Subject Property is leasehold with the lessee being New
Okhla Industrial Development Authority (NOIDA). The remaining tenure of the land
Land Area:
is approx.71 years. Basis the site plan & visual inspection it was observed that the land
underlying the Subject Property is regular in shape, levelled topography and bounded
by compound wall.

Subject Property is a Grade A IT/ITeS development. The Subject Property is accessible

via 45-meter-wide internal road on the South. The Subject Property is well connected
to other parts of Noida & Delhi via National Highway 24 & Blue Line of Delhi Metro
Internal view of Subject Property
(DMRC). Also, the Subject Property is located approx. 10 kms from Sector-18 which
Subject Property is the CBD of Noida. The Subject Property offers amenities like lift, water storage,
Description:
firefighting systems, car parking, CCTV camera security, power backup, internet/wi-fi
connectivity, intercom facility, maintenance staff, security personnel and visitors
parking facility. The property offers range of amenities including a recently refurbished
food court, cafes and few retail options.

Based on review of various documents (such as rent roll, Architect certificate, lease
deeds, etc.), we understand that the Subject Property is an operational Office Park with
View of basement car parking
total leasable area of approx. 1.4 msf., which is fully constructed. Table below
highlights the leasable area details for the subject development:

Components Leasable Area (msf.) Usage Type

Statement of
Assets:
Completed Blocks 1.4 IT/ITeS Non-SEZ

Total 1.4 --
View of access road

Source: Architect certificate, Rent roll dated 31st March 2024, Lease deeds.

Occupancy: 97%

Valuation Approach Completed Blocks

Valuation
Approach: Office/ Retail Discounted Cash Flow Method (using rental
Component reversion approach)

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Date of Valuation: March 31, 2024

Date of March 19, 2023

Inspection:

Purchase Date for March 27, 2019

the property:

Ready Reckoner Carpet Area Rate: INR 1,94,250 per sqm

Rate (as per
documents Land Rate: INR 65,000 per sqm
published by State
Government):

Component Market Value (INR Mn)

Value Conclusion
as of March 31, Completed Blocks 9,894
2024:
Total Value of the Property 9,894

This valuation report is provided subject to assumptions, disclaimers, limitations, and

qualifications detailed throughout this report which are made in conjunction with those
included within the Assumption, Disclaimer, Limitation & Qualification sections in
Assumptions, this report. Reliance on this report and extension of our liability is conditional upon the
Disclaimers, reader’s acknowledgement and understanding of these statements. This valuation is for
Limitations &
Qualification the use of the party to whom it is addressed and for no other purpose. No responsibility
is accepted to any third party who may use or rely on the whole or any part of the
content of this valuation. The valuer has no pecuniary interest that would conflict with
the proper valuation of the property.

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1.14. Hilton - Embassy GolfLinks

Property Name: “Hilton – Embassy GolfLinks” is an operational hospitality development which is part
of a larger development (Embassy GolfLinks) located along the Intermediate Ring
Road, Bengaluru, Karnataka.

Property Address: Challaghatta Village, Varthur Hobli, Bengaluru East Taluk, Bengaluru, Karnataka. View of Subject Property

Land Area: Based on information provided by the Client (viz. title report), the Valuer understands
that the total land area of the Subject Property admeasures approx. 3.6 acres.

Subject Property Subject property is an operational luxury hospitality development located along
Description: Intermediate Ring Road, Bengaluru. With a developed area of approx. 0.5 msf., the
hotel comprises of 247 keys. It is located near to the vicinity of Indiranagar, External view of Subject Property
Koramangala, CV Raman Nagar, etc. The subject micro market has established
residential and commercial developments.

Statement of Based on information provided by the Client, we understand that Subject Property is
Assets: an operational luxury hotel. Further, the table below highlights the configuration of the
subject property:
External view of Subject Property
Block No. of Keys
247 Keys (Developed area – approx.
Hilton – Embassy GolfLinks
0.5 msf.)

Source: Architect Certificate.

Valuation
Approach: Under Construction/ View of access road
Valuation Approach Completed Blocks
Proposed Block
Discounted Cash Flows
Hotel NA
Method

Date of Valuation: March 31, 2024

Date of April 02, 2024

Inspection:

Purchase Date for March 27, 2019

the property:

Ready Reckoner Land Rate – INR 53,325 per sqm

Rate (as per
documents
published by State
Government):

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Value Conclusion
as of March 31, Component Market Value (INR Mn)
2024:
Hotel 6,341
Total Value of the Property 6,341

Assumptions, This valuation report is provided subject to assumptions, disclaimers, limitations, and
Disclaimers,
qualifications detailed throughout this report which are made in conjunction with those
Limitations &
Qualification included within the Assumption, Disclaimer, Limitation & Qualification sections in
this report. Reliance on this report and extension of our liability is conditional upon the
reader’s acknowledgement and understanding of these statements. This valuation is for
the use of the party to whom it is addressed and for no other purpose. No responsibility
is accepted to any third party who may use or rely on the whole or any part of the
content of this valuation. The valuer has no pecuniary interest that would conflict with
the proper valuation of the property.

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1.15. Embassy Energy, Bellary District, Karnataka

“Embassy Energy Private Limited” is a Solar Electricity generation facility which is

Property Name:
spread across villages Ittigi, Morregeri and Nellukudure, Bellary District, Karnataka.

Villages Ittigi and Mooregeri in Huvin Hadagali Taluka and Nellukudure in Hagri
Property Address:
Bommanhalli Taluka, Bellary District, Karnataka.

View of solar panels

Based on information provided by the Client (viz. title report), the Valuer understands
Land Area:
that the total land area of the larger land parcel admeasures approx. 465.8 acres.

The Subject Property, Embassy Energy Private Limited is Solar Electricity generation
facility Development, is situated in the vicinity of Ittigi and Mooregeri villages in Huvin
Hadagali Taluka, as well as Nellukudure in Hagri Bommanhalli Taluka, within
Subject Property Karnataka's Bellary District. The surrounding landscape is primarily defined by
Description: expansive agricultural plots. Additionally, the subject location has gained attention for
potential solar park developments, with various infrastructure companies like Adani, View of transformers
ReNew, and others currently operating or considering proposals for such projects in the
area.

Valuation Discounted Cash Flow Method

Approach:

Date of Valuation: March 31, 2024

View of Subject Property

Date of October 19, 2023
Inspection:

Purchase Date for March 27, 2019

the property:

View of sub station

Ready Reckoner
Rate (as per
documents INR 130,000 – 200,000 per acre
published by State
Government):

Component Market Value (INR Mn)

Value Conclusion
as of March 31, Embassy Energy Private Limited 7,813
2024: Total Value of the Property 7,813

Assumptions, This valuation report is provided subject to assumptions, disclaimers, limitations, and
Disclaimers, qualifications detailed throughout this report which are made in conjunction with those
Limitations & included within the Assumption, Disclaimer, Limitation & Qualification sections in this
Qualification
report. Reliance on this report and extension of our liability is conditional upon the

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reader’s acknowledgement and understanding of these statements. This valuation is for

the use of the party to whom it is addressed and for no other purpose. No responsibility
is accepted to any third party who may use or rely on the whole or any part of the content
of this valuation. The valuer has no pecuniary interest that would conflict with the proper
valuation of the property.

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EMBASSY OFFICE PARKS REIT

1.16. Value Summary

The following table highlights the summary of the market value of each property part of the said Embassy REIT
portfolio as on March 31, 2024.

Market Value (INR Mn)

Development Asset Type Leasable Area Under

construction Share of
Completed Total
(UC) / Total Value
Proposed
Mixed-use (Office (IT/ Completed office –12.4 msf.
Embassy
ITeS SEZ2 / Non-SEZ), Proposed/ UC3 office – 3.2 msf.
Manyata, Hotel (5 star) – 266 keys 198,467 27,024 225,491 41%
Hotel, Retail,
Bengaluru
Convention Centre Hotel (3 star) – 353 keys
Mixed-use (Office (IT/ Completed office – 7.3 msf.
Embassy
ITeS SEZ/ Non-SEZ), Proposed/ UC office – 2.3 msf.
TechVillage, 103,005 23,142 126,147 23%
Hotel, Retail, UC Hotel (5 star) – 311 keys
Bengaluru
Convention Centre) UC Hotel (3 star) – 207 keys
Mixed-use (Office
Embassy One, Completed office – 0.3 msf.
(Non-SEZ), Hotel, 14,467 - 14,467 3%
Bengaluru Hotel (5 star) – 230 Keys
Retail)
Embassy Business Completed office – 0.4 msf.
Office (Non-SEZ) 3,950 1,793 5,743 1%
Hub, Bengaluru UC office – 1.0 msf.4
Express Towers,
Office (Non-SEZ) Completed office – 0.5 msf. 18,935 - 18,935 3%
Mumbai
Embassy 247,
Office (Non-SEZ) Completed office – 1.2 msf. 19,075 - 19,075 3%
Mumbai
First International
Financial Center Office (Non-SEZ) Completed office – 0.4 msf. 14,977 - 14,977 3%
(FIFC), Mumbai
Embassy Office (IT/ITeS SEZ / Completed office – 3.0 msf.
21,792 2,345 24,137 4%
TechZone, Pune Non-SEZ) Proposed/ UC office – 2.4 msf.
Embassy
Office (IT/ITeS SEZ) Completed office – 1.9 msf. 11,398 - 11,398 2%
Quadron, Pune
Embassy Qubix,
Office (IT/ITeS SEZ) Completed office – 1.5 msf. 9,521 - 9,521 2%
Pune
Embassy Oxygen, Office (IT/ITeS SEZ &
Completed office – 3.3 msf. 23,826 - 23,826 4%
Noida Tower-1 Non SEZ)
Embassy Galaxy,
Office (Non- SEZ) Completed office – 1.4 msf. 9,894 - 9,894 2%
Noida
Hilton Embassy
GolfLinks, Hotel Hotel (5 star) – 247 Keys 6,341 - 6,341 1%
Bengaluru
Embassy Energy,
Installed capacity of 130 MW DC
Bellary District, Solar Park 7,813 - 7,813 2%
(100 MW AC)
Karnataka
Total- 100%
463,462 54,304 517,765 93%
Owned Asset
Embassy
GolfLinks, Office (Non-SEZ) Completed office – 3.1 msf. 37,240 - 37,2405 7%
Bengaluru
Total 500,701 54,304 555,005 100%

2
SEZ- Special Economic Zone
3
UC- Under Construction
4
Client interest based on developer share under the Joint development Agreements in relation to this property.
5
Indicative of Embassy REIT economic interest in the asset, viz. 50%
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BASED ON MARKET VALUE

10%

Completed

Under Construction/Proposed
Development
90%

This Valuation Report is provided subject to a summary of assumptions, disclaimers, limitations, and qualification
detailed throughout this Report which are made in conjunction with those included within the sections covering
various assumptions, disclaimers, limitations, and qualifications within the Valuation Report. Reliance on this
report and extension of the liability of the Valuer is conditional upon the reader’s acknowledgement of these
statements.

Prepared By

(L. Anuradha) MRICS

IBBI Registered Valuer (L&B)
(IBBI/RV/02/2022/14979)

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E. CITY REPORT

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1. Bengaluru City Report

1.1. Bengaluru Office Market Overview

The overall commercial office market in Bengaluru and its key micro markets:

Peripheral North Outer Ring Road

Particulars Bengaluru (Including (KR Puram - Suburban East
Hebbal) Sarjapura)

Total completed stock Q1 2024 (msf.) 190.5 28.5 70.2 21.4

Current occupied stock Q1 2024 (msf.) 171.6 24.6 64.2 20.9
Current Vacancy Q1 2024 (%) 10.0% 13.7% 8.2% 2.2%
Future Supply – Q2 2024 E – 2026 E (msf.) 28 – 29 5–6 9 – 10 2–3
Market Rent – Q1 2024 (INR per sq. ft. per month) 94 88 96 137
Source: Consultant Research.
Peripheral North – Bellary Road, Thanisandra Road, Tumkur Road, Hebbal.
Outer Ring Road – Sarjapur, Marathahalli, KR Puram.
Suburban East – Indira Nagar, Old Airport Road, CV Raman Nagar.
Note:
a) The future supply is considered after analysing each of the project based on the physical progress of the project, available information
on approvals and interactions held with various stakeholders.
b) The data represented is on calendar year basis.

Bengaluru is the capital of the State of Karnataka, India and is located in the southeast of the state. Bengaluru
region is spread over a total area of over 709 sq. km. (conurbation area) with a population estimated of around
13.61 Mn as of 20236, with a population density of over 4000 per sq. km. according to census 2011.

The city, known as Silicon Valley of India, has emerged as a favourite IT/ITeS destination. Bengaluru stands as a
pioneering force in attracting and accommodating these technology giants. The city’s ability to magnetize such
corporations underscores its significance as a dynamic hub for technological innovation and business
advancement.

The growth and prominence have propelled Bengaluru into a remarkable position in the global technological
landscape, further cementing its reputation as an incubator of cutting-edge enterprises. Apart from successfully
attracting IT/ITeS companies, Bengaluru is a Biotech destination as well. Bengaluru houses some of the most
prominent biotechnology research institutions of India like Indian Institute of Science and National Centre for

6 Source: [Link]
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Biological Resources. Industries related to manufacturing of aircraft, earthmoving equipment, watches, garments,
silk, machine tools amongst others also have presence in Bengaluru.

The city has the presence of prominent educational institutions like Indian Institute of Management (IIM),
International Institute of Information Technology (IIIT), National Law School, and several engineering/medical
colleges which makes availability of skilled talent pool easy for the corporations.

The key drivers of demand for office space in Bengaluru are as follows:

Information Technology (IT) and ITeS sector growth: Bengaluru which is referred as India’s information
technology capital hosts a significant portion of the country’s IT and technology firms such as Microsoft, Yahoo,
Wipro, Infosys, International Business Machines (IBM), General Electric (GE), Google, Accenture, Tata
Consultancy Services (TCS), etc. The expansion and establishment of these companies drive demand for office
spaces in the city.

Startup Ecosystem: Bengaluru has a vibrant startup ecosystem, with numerous new ventures emerging regularly.
These startups require office space for their operations, contributing to the overall demand.

Globalization and Outsourcing: Many multinational corporations outsource their operations to Bengaluru due
to its skilled workforce and cost-effectiveness. This globalization trend increases the demand for office space,
particularly in tech parks and business districts.

Biotechnology Centres: Bengaluru is a hub for biotechnology centres and houses some of the most prominent
biotechnology research institutions of India like Indian Institute of Science and National Centre for Biological
Resources.

Infrastructure: Infrastructure projects such as metro rail expansion, road projects, and improved connectivity
enhance the attractiveness of Bengaluru as a business destination. Improved infrastructure encourages businesses
to set up operations, leading to increased demand for office space. Further, availability of impeccable social
infrastructure such as educational institutions and colleges, malls, hospitals, and hotels make it an attractive
destination for both the corporations and workforce.

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1.2. Bengaluru - Supply, Absorption & Vacancy

A snapshot of the Supply, Absorption and Vacancy trend for Bengaluru is as below:

Supply, Absorption & Vacancy - Bengaluru

14.0 12.0%
10.0% 10.0%
12.0 9.5%
9.0% 10.0%
8.1%
10.0
8.0%
Area in msf.

Vacancy %
8.0 6.2%
7.5%
6.0%
6.0 5.3%
4.9% 4.0%
4.0

2.0 2.0%
12.1
11.1

11.2

10.0

11.9

13.3
11.1
7.9
8.8

9.2
7.0

8.7
9.4

6.2

7.8

9.7

2.9
2.7
0.0 0.0%
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Supply Net Absorption Vacancy%

Source: Consultant Research.

Note:
a) The Net absorption value refers to the net additional leasing activity which has occurred in the year. This does not include any pre-
commitments, renewals etc. The pre-commitments are recorded as absorption in the year in which the tenant occupies the building.
b) The data represented is on calendar year basis.

• Bengaluru is the largest office market in India with a total stock of 190.5 msf. as of Q1 CY 2024.

• Bengaluru offers a mix of IT, IT SEZ and Non-IT office supply. Average supply of approx. 11.6 msf. was
delivered in the CY 2020 – CY 2023 whereas the average net absorption in the same time period was approx.
8.7 msf. Further, the city witnessed net absorption 11.1 msf. as of CY 2023 which is in line with 2016 levels
and is also the highest since then. Net absorption as on Q1 CY 2024 is 2.7 msf. which majorly comprised of
fresh leasing.

• Vacancy in the city was 10.0% as of 2023 and Q1 CY 2024 primarily due to inventory overhang.

• Approx. 28-29 msf. of supply is expected to be delivered in the next 2-3 years.

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1.3. Bengaluru - Hospitality Market Overview

Bengaluru, a vibrant city in southern India serves as a major hub for business, technology, and tourism. The city’s
hospitality sector plays a crucial role in accommodating the diverse needs of travellers, ranging from business
executives to tourists and expatriates.

Bengaluru offers a wide range of accommodation options to suit every budget and preference. With numerous
multinational corporations, IT parks, and tech startups, Bengaluru sees a constant influx of professionals visiting
the city for business purposes. The hospitality sector caters to this demographic by providing accommodation near
major business districts and tech parks. Further, Bengaluru hosts numerous events, conferences, and expos
throughout the year, attracting delegates and attendees from various industries. The hospitality sector plays a
crucial role in accommodating these events by providing conference venues, accommodation, and catering
services.

Most of the hotels launches in the upscale / upper upscale / luxury categories in the past 5 – 6 years, are located in
micro-markets away from the city centre. The occupancy and the Average Room Rates (ARRs) have stabilised in
most of these micro markets over the last few years. Some of the latest entrants in the upscale / upper upscale /
luxury categories include Four Seasons, Moxy Hotels, Hyatt Centric, The Renaissance, Conrad, among others.

The list of few of the prominent hotels in Bengaluru is as under:

Hotel Location Keys

The Leela Palace Old Airport Road 357

Hilton Challaghatta 247

Radisson Blu Marathahalli 218

Novotel Outer Ring Road 215

Aloft Outer Ring Road 191

DoubleTree Suites by Hilton Outer Ring Road 172

Courtyard by Marriott Outer Ring Road 170

Fairfield by Marriott Outer Ring Road 166

Hilton Garden Inn Nagavara 353

Hilton Hotels & Resorts Nagavara 266

Marriot Whitefield 391

Four Seasons Bellary Road 230

Source: Consultant Research.

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Some of the upcoming hotels in Bengaluru are as below:

Hotel Name Keys Expected Year of Opening Location

Hilton Hotels & Resorts 311 FY 2026 Marathahalli-Sarjapur Outer Ring Road

Hilton Garden Inn 207 FY 2026 Marathahalli-Sarjapur Outer Ring Road

Hyatt Hotels & Resorts 400 FY 2028 Whitefield

Source: Consultant Research.

Note: The estimated year of opening is based on general information available in the market.

Further, Bengaluru’s hospitality market thrives due to rising demand from corporate hubs like Outer Ring Road,
Electronic City, Whitefield, Sarjapur, and North Bengaluru. Business executives, tourists, and expatriates frequent
these areas for work and leisure. These locations benefit from strategic positioning within Bengaluru’s economic
landscape, offering convenience and connectivity. As a result, hospitality establishments are expected to sustain
strong performance, appealing to investors and operators capitalizing on Bengaluru’s dynamic business and
tourism sectors.

1.4. Embassy Manyata, Embassy One and Embassy Business Hub - Micro Markets

1.4.1. Office Market Overview - Peripheral North

The Peripheral North Bengaluru micro-market can be classified into 3 distinct sub micro-markets – Hebbal and
surrounding areas, Yelahanka, Devanahalli and its surrounding areas.

Embassy Manyata, Embassy One and Embassy Business Hub falls under Peripheral North micro-market. The
Hebbal stretch is the established vector in the Peripheral North micro market while Yelahanka, Devanahalli and its
surrounding areas are still in nascent stage of development. Development of Outer Ring Road in 2004 fuelled the
growth of real estate activity along the ring road and on the arterial roads emanating from the same, by improving
accessibility and connectivity. Further, the establishment of Manyata Tech Park on ORR triggered the development
of organized real estate in the micro market. The development emerged as one of the most prominent and successful
IT/ITeS development in the city and transformed the micro market into a prominent commercial hub of North
Bengaluru. Furthermore, with the establishment of the Kempegowda International Airport at Devanahalli, North
Bengaluru micro market witnessed enhanced activity on the stretch from Hebbal junction to the airport including
the Subject Property sub micro-market.

Due to the relatively higher land prices and limited availability of land in Hebbal vector, developers are launching
commercial office projects in the latter stretches of this micro market emanating from Jakkur to Devanahalli.
However, the vector is yet to witness overwhelming preference from the occupiers owing to limited social
infrastructure in the vector, resulting in high vacancy levels among office developments.

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The Kempegowda International Airport at Devanahalli serves as a major growth driver for real estate developments
in the region. The existing and upcoming commercial developments are driving demand for residential, retail,
hospitality, and ancillary segments in the micro-market. In the last 9 – 10 years, the North Bengaluru micro– market
has witnessed land banking by several established developers and the same is expected to continue.

North Bengaluru is increasingly witnessing substantial residential development by a variety of developers. The
typology of residential developments includes apartments, row-houses, villas, and plotted developments.
Locations like Hebbal, Amrutahalli and Sahakar Nagar are established residential corridors of the micro market
comprising independent houses and apartments; similarly, the typology of residential developments in areas such
as Thanisandra, Horamavu and Hennur Road is largely independent housing and apartments. Areas located
northwards of Yelahanka till Devanahalli and beyond have apartments along with row-houses, villas and plotted
developments developing at a rapid pace due to increasing prices in the neighbourhood markets of Hebbal,
presence of airport and upcoming infrastructure initiatives such as metro connectivity, Peripheral ring road, etc.

Commercial developments in the form of campus styled developments in North Bengaluru is majorly concentrated
around Outer ring road and the segment of Bellary Road closer to Hebbal. Some of the prominent commercial
developments in North Bengaluru include Manyata Embassy Business Park (Hebbal), RMZ Latitude, Brigade
Magnum, Brigade Opus, Kirloskar Embassy Business Park (Hebbal), Karle Town Centre, amongst others. The
expected upcoming supply in the Peripheral North including Hebbal in the next 2-3 years is approx. 5-6 msf.

Currently, the organized retail activity in North Bengaluru is concentrated around Hebbal, Thanisandra main road
and Sahakar Nagar. The retail activity in the micro market is predominantly limited to standalone developments
mostly relating to automobile segment, eateries, gyms, departmental stores amongst others. The large retail
developments in close vicinity to the subject micro market includes Elements Mall (0.3 msf.) on Thanisandra Main
Road, Esteem Mall (0.1 msf.) in Hebbal, RMZ Galleria Mall (0.5 msf.) in Yelahanka, Bhartiya City (0.9 msf.) in
Thanisandra and Phoenix Mall of Asia (1.2 msf.) in Byatarayanapura.

Some of the residential projects from Hebbal to Airport stretch include Embassy Lake Terraces, L&T Raintree
Boulevard, Century Horizon, Godrej Aqua, Godrej Platinum, Sobha Dream Garden, Sobha Palm Court, etc.

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1.4.2. Micro Market - Rental Trend Analysis

Average quoted market rentals in Peripheral North micro market are in the range of INR 72 to 88 per sq. ft. per
month. Further, we understand that for commercial development in the stretch of Yelahanka to Devanahalli, quoted
rentals are in the range of INR 55-65 per sq. ft. per month, whereas the developments in Hebbal stretch tend to
command higher rentals of INR 65-100 per sq. ft. per month, depending on size, location, grade of the building,
amenities offered, type of tenant, lease terms, etc.

CAGR for Peripheral North micro market from the year CY 2016 – Q1 CY 2024 is approx. 2.7%. However, CAGR
in the same time period of commercial developments closer to Hebbal are in the range of 4.0% - 5.0%. Further,
we understand that traction in the buildings quoting lower rentals in the range of INR 55-65 per sq. ft. per month
is expected to gradually increase, thereby leading to higher rentals on account of the increased demand for the
good quality commercial developments.

The below table lists down some of the recent transactions for developments located closer to Hebbal:

Area Leased Date of Rental (INR per Type of

Tenant Development Location
(msf.) Transaction sq. ft. per month) Deal
Embassy
Tenant 1 Manyata Nagavara 0.14 Q1 2024 102 Fresh
Business Park
Embassy
Tenant 2 Manyata Nagavara 0.17 Q1 2024 105 Fresh
Business Park
Tenant 3 Brigade Triumph Bellary Road 0.019 Q1 2024 84 Fresh
Brookfield
Tenant 4 Bellary Road 0.018 Q1 2024 85 Fresh
Azure
Karle Town
Tenant 5 Nagavara 0.05 Q4 2023 82 Fresh
Centre
Karle Town
Tenant 6 Nagavara 0.05 Q3 2023 82 Fresh
Centre
Source: Consultant Research; Peripheral North.
Note: The data represented is on calendar year basis.

The below table lists down some of the recent transactions for developments located beyond Yelahanka, towards
Devanahalli:

Rental (INR per Type of

Area Leased Date of
Tenant Development Location sq. ft. per
(msf.) Transaction Deal
month)
Prestige Tech
Tenant 1 Devanahalli 0.1 Q1 2024 49 Fresh
Cloud
Bhartiya Centre
Thanisandra
Tenant 2 for Information 0.04 Q3 2023 65 Fresh
Road
Technology

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Rental (INR per Type of

Area Leased Date of
Tenant Development Location sq. ft. per
(msf.) Transaction Deal
month)
Brookfield
Tenant 3 Yelahanka 0.04 Q1 2023 48 Fresh
Northstar
Bhartiya Centre
Thanisandra
Tenant 4 for Information 0.02 Q4 2023 58 Fresh
Road
Technology
Tenant 5 Umiya Velociti Bellary Road 0.02 Q1 2023 64 Fresh
Brookfield
Tenant 6 Bellary Road 0.02 Q1 2023 73 Fresh
Azure
Bhartiya Centre
Thanisandra
Tenant 7 for Information 0.02 Q1 2023 65 Fresh
Road
Technology
Tenant 8 Umiya Velociti Bellary Road 0.4 Q1 2023 78 Fresh

Source: Consultant Research; Peripheral North.

Note: The data represented is on calendar year basis.

The following graph depicts the rental trend in Peripheral North micro market (CY 2016-Q1 CY 2024):

Rental Trend Analysis - Peripheral North

95
90 90 89
89
90 87 88
INR per [Link]. per month

85

80 77
74
75 72

70

65

60
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Source: Consultant Research.

Note:
a) The rentals are basis the prevailing quotes in the micro market. Actual achievable rent may vary +/- 10% depending upon area take
up, negotiations, final structuring of the lease agreement and other parameters.
b) The data represented is on calendar year basis.

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1.4.3. Micro Market - Supply, Absorption & Vacancy

A snapshot of the Supply, Absorption & Vacancy trends for Peripheral North micro-market is as below:

Supply, Absorption & Vacancy - Peripheral North

4.0 25%

3.5 20.6%
20%
3.0 17.0%
10.4% 15.3% 14.5%
Area in msf.

2.5 13.7%

Vacancy %
8.1% 15%
2.0 10.0%
1.5 7.7% 10%

1.0 0.4 5%
0.5
2.3
1.9

1.0
1.0

2.8
2.1

0.4

1.4
0.2

3.6
1.8

1.3
1.9

2.3
2.6

1.2
1.3
0.0 0%
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Supply Net Absorption Vacancy

Source: Consultant Research.

Note:
a) The Net absorption value refers to the net additional leasing activity which has occurred in the year. This does not include any pre-
commitments, renewals etc. The pre-commitments are recorded as absorption in the year in which the tenant occupies the building.
b) The data represented is on calendar year basis.

• The total stock of commercial office space in Peripheral North micro market as on Q1 CY 2024 is approx.
28.5 msf. (Grade A office space).

• The total net absorption of commercial office space in the micro market during CY 2023 was approx. 2.6 msf.,
which is an all-time high in the last 8 years. The net absorption witnessed as of Q1 CY 2024 is approx. 1.3
msf. Which is approx. 50% of the net absorption levels of CY 2023.

• The supply in this micro market has been consistent with an average supply of approx. 1.5 – 2.0 msf. Since
2016. Supply in the micro market as of Q1 CY 2024 is 1.2 msf. Future supply of approx. 5.0 – 6.0 msf. Is
expected in this micro market from CY 2024E to CY 2026E.

• The vacancy level for office space in Peripheral North micro market have witnessed a decreasing trend since
2021. The vacancy levels dropped to 13.7% in Q1 CY 2024 from 14.5% in CY 2023 owing to healthy leasing
activity in the micro market.

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Some of the prominent operational commercial developments in Peripheral North including Hebbal are:

*Quoted
Vacancy as
Year of Leasable Rentals (INR
Building Name Developer Location on Q1 2024
Completion Area (msf.) per sq. ft. per
(msf.)
month)
Embassy Manyata Embassy Office
Nagavara 2006-2023 12.4 1.6 95-120
Business Park Properties – REIT
Bhartiya Centre for Thanisandra
Bhartiya Group 2015-2022 2.6 0.2 65-75
Information Technology Main Road
Modern Asset North Gate Modern Asset Bellary Road 2018-2021 1.9 0.5 55-65
Karle Town Centre Karle Group Hebbal 2014-2021 1.9 0.1 80-95
Umiya Velociti Umiya Group Bellary Road 2021 0.8 0.3 60-65
Hinduja SEZ Block 3 Hinduja Developers Bellary Road 2016 0.8 0.8 50-55
Brigade Magnum Brigade Group Bellary Road 2015 0.5 - 80-85
Brigade Senate Brigade Group Hebbal 2020 0.4 0.2 75-90
Brookfield Azure Brookfield Bellary Road 2019 0.4 - 80-85
Brookfield North Star Brookfield Yelahanka 2011 0.3 0.1 60-65
Salarpuria Galleria Salarpuria Sattva Bellary Road 2018 0.3 0.1 75-80
Embassy Kirloskar Embassy Property
Bellary Road 2000 0.3 0.03 95-100
Business Park Developments Limited

RMZ Latitude RMZ Corp Bellary Road 2017 0.2 - 85-90

Brigade Triumph Brigade Group Bellary Road 2022 0.2 0.08 85-90
M S Ramaiah
MSR North Tower Developers and Hebbal 2022 0.4 0.1 90-95
Builders
Brigade Opus Brigade Group Bellary Road 2018 0.4 - 85-90
Source: Consultant Research.
*Warm Shell Space.
Note: The data represented is on calendar year basis.

Key Statistics for Peripheral North micro market are as below:

Particulars Details

Total completed stock Q1 2024 (msf.) 28.5

Current occupied stock Q1 2024 (msf.) 24.6

Current Vacancy Q1 2024 (%) 13.7%

Future Supply – Q2 2024 E – 2026 E (msf.) 5.0-6.0

Source: Consultant Research.
Note:
a) The future supply is considered after analyzing each of the project based on the physical progress of the project, available
information on approvals and interactions held with various stakeholders.
b) The data represented is on calendar year basis.

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1.4.4. Office Market Outlook

The total commercial stock in Peripheral North as of Q1 CY 2024 is approx. 28.5 msf. (approx. 14.9% of the
Bengaluru’s commercial office stock). Micro market beyond Yelahanka is currently an emerging submarket and
the development activity in this submarket was a result of spill over real estate activity from Hebbal and Outer
Ring Road. Further, in the recent years, Peripheral North has started witnessing interests from prominent
companies on account of the improved infrastructure initiatives, connectivity to the International Airport,
availability of larger spaces, etc. Some of the prominent companies who have expanded to Peripheral North
includes IBM Technologies Private Limited, Philips, Kyndryl, etc.

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1.4.5. Embassy Manyata

The location map of Embassy Manyata is set out below:

Under construction Commercial

Key Commercial Developments Social Infrastructure Lifestyle Infrastructure
Developments

1. Bhartiya Centre of 13. Bhartiya Mall of

7. REVA University 19. DivyaSree Avance
Information Technology Bengaluru

8. KNS Institute of
2. Embassy Hub 14. Elements Mall 20. Century Downtown
Technology

21. Modern Asset North

3. Karle Town Centre 9. Leela Bhartiya City [Link] Gardens
Gate Phase -3

10. REGAL Kidney and

4. Kirloskar Business Park 16. Esteem Mall 22. Phoenix Asia Towers
Multi-Specialty Hospital

5. RMZ Latitude 11. Hilton Garden Inn 17. Phoenix Mall of Asia 23. CapitaLand

6. Brigade Magnum 12. Manipal Hospital Hebbal 18. The Galleria Mall 24. Sattva Horizon

Source: Consultant Research.

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1.4.6. Embassy One

The location map of Embassy One is set out below:

Key Commercial Under construction Commercial

Social Infrastructure Lifestyle Infrastructure
Developments Developments

1. Bhartiya Centre of
7. REVA University 13. Bhartiya Mall of Bengaluru 19. DivyaSree Avance
Information Technology

2. Embassy Manyata Business

8. KNS Institute of Technology 14. Elements Mall 20. Century Downtown
Park

21. Modern Asset North Gate

3. Karle Town Centre 9. Leela Bhartiya City [Link] Gardens
Phase -3

10. REGAL Kidney and Multi-

4. Kirloskar Business Park 16. Esteem Mall 22. Phoenix Asia Towers
Specialty Hospital

5. RMZ Latitude 11. Hilton Garden Inn 17. Phoenix Mall of Asia 23. CapitaLand

6. Brigade Magnum 12. Manipal Hospital Hebbal 18. The Galleria Mall 24. Sattva Horizon

Source: Consultant Research.

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Further, Embassy One, though forms part of Peripheral North micro market, is located between Hebbal and
CBD/off – CBD micro market of Bengaluru. The appropriate comparable properties for Embassy One would be
Prestige Emerald, Prestige Minsk Square, RMZ Icon, etc. The quoted rental rates for comparable properties are in
the range of INR 145 to INR 165 per sq. ft. per month.

The below table lists down some of the recent transactions for comparable developments for Embassy One:

Rental (INR per Type of

Area Leased Date of
Tenant Development Location sq. ft. per
(msf.) Transaction Deal
month)
Tenant 1 Prestige Emerald Lavelle Road 0.01 Q1 2024 145 Fresh
Tenant 2 HM Icon Residency Road 0.04 Q1 2024 145 Fresh
Tenant 3 RMZ Pinnacle Ashok Nagar 0.09 Q1 2024 165 Fresh
Vittal Mallya
Tenant 4 Prestige UB City 0.01 Q1 2023 160 Fresh
Road
Tenant 5 Prestige Khoday Towers Raj Bhavan Road 0.01 Q1 2024 162 Fresh
Tenant 6 Brigade South Parade MG Road 0.03 Q2 2023 141 Fresh
Vittal Mallya
Tenant 7 Prestige UB City 0.007 Q2 2023 180 Fresh
Road
Tenant 8 Prestige Summit St. Johns Road 0.01 Q2 2023 135 Fresh
One Trade Tower (Prestige
Tenant 9 Palace Road 0.02 Q1 2023 190 Fresh
Trade Tower)
Source: Consultant Research.
Note: The data represented is on calendar year basis.

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1.4.7. Embassy Business Hub

The location map of Embassy Business Hub is set out below:

Key Commercial Under construction Commercial

Social Infrastructure Lifestyle Infrastructure
Developments Developments

1. Bhartiya Centre of 13. Bhartiya Mall of

7. REVA University 19. DivyaSree Avance
Information Technology Bengaluru

2. Embassy Manyata 8. KNS Institute of

14. Elements Mall 20. Century Downtown
Business Park Technology

21. Modern Asset North Gate

3. Karle Town Centre 9. Leela Bhartiya City [Link] Gardens
Phase -3

10. REGAL Kidney and

4. Kirloskar Business Park 16. Esteem Mall 22. Phoenix Asia Towers
Multi-Specialty Hospital

5. RMZ Latitude 11. Hilton Garden Inn 17. Phoenix Mall of Asia 23. CapitaLand

6. Brigade Magnum 12. Manipal Hospital Hebbal 18. The Galleria Mall 24. Sattva Horizon
Source: Consultant Research.

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1.5. Embassy TechVillage Micro Market

1.5.1. Office Market Overview - Outer Ring Road

The Outer Ring Road micro market can be divided into two corridors:
1. Outer Ring Road (Sarjapur-Marathahalli)
2. Outer Ring Road (Marathahalli-KR Puram)

ORR emerged as an alternative commercial destination in early 2003 due to poor connectivity of other peripheral
micro-markets such as Whitefield and Electronic City. Since then, the micro-market has grown to become an
established commercial corridor of the city. The micro-market is connected to the suburban micro-markets of Old
Airport Road and Domlur towards its west, K R Puram towards its North, Varthur towards its East, and Sarjapur
Road towards its South. Bellandur lake lies in the West of the subject micro-market. The micro-market has a mix
of commercial, residential, and retail activities.

Some of the well-established commercial developments in the micro market of ORR includes Brookfield
Ecospace, Brookfield Ecoworld, Prestige Tech Park, Cessna Business Park, Embassy Tech Square, Bagmane
World Technology Centre, DivyaSree Technopolis, Embassy TechVillage (Subject Property), Global Technology
Park, Bagmane Constellation Business Park, Pritech Park amongst others. The upcoming under construction
supply in the micro market of ORR in the next 2-3 years is approx. 9-10 msf.

The micro market has the presence of prominent educational institutions and hospitals such as New Horizon
College of Engineering, New Horizon Gurukul, Lowry Educational Institutions, Sakra World Hospital, Manipal
Hospital, Brookfield Hospital, Aayug Multi Speciality Hospital and VIMS Super Specialty Hospital amongst
others. In terms of retail developments, the micro market has predominantly presence of standalone retail
developments along the Outer Ring Road to cater to the demand generated by the commercial and residential
catchments. Some of the standalone retail stores include, Croma, More Hypermarket, Westside, Hometown,
Ironhills, Yokohama Club Network, BlueStone, etc.

The micro-market has presence of many residential projects by well-known developers like Prestige group,
Sterling, DivyaSree, Sobha developers, Vaswani, etc. Few of the residential projects in the locality includes Sobha
Iris, Soul Space Arista, Alpine Eco, Vajram Esteva, Sterling Ascentia, The Central Regency Address, Prestige
Silver Crest, Vaswani Reserve, Sobha Royal Pavilion, etc.

Additionally, there are multiple hospitality projects at various stages of development in the locality. In terms of
presence of hospitality catchment, the micro market has presence of prominent hotels such as Radisson Blu,
Novotel, Ibis, Aloft, Courtyard by Marriott, Fairfield by Marriott, Double tree by Hilton, etc. to cater the needs of
existing corporates & MNC’s.

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The location map of the Subject Property is set out below:

Subject Property
Source: Consultant Research (Map not to scale).

Key Commercial Under Construction Commercial

Social Infrastructure Hospitality Developments
Developments Developments

9. New Horizon College of 17. Courtyard & Fairfield by 22. Gopalan Fortune City 1, 2 & 3
1. Brookfield Eco World
Engineering Marriott
2. Brookfield Eco Space 10. Patel Group of Institutions 18. Novotel & Ibis 23. Eco World (Campus 20, 21, 30 & 33)
11. Geetanjali Olympiad 24. Bagmane Capital Troy & Apollo
3. Prestige Tech Park 19. Aloft
School
4. Global Technology Park 12. SGR Dental College 20. Radisson Blu 25. Prestige Lakeshore Drive
5. Bagmane Constellation 26. Bagmane Constellation Business Park
13. Sakra World Hospital 21. Double Tree by Hilton
Business Park (Taurus Block-4)
6. Bagmane World 14. Lowry Educational 27. Bren Prominus
Technology Centre Institutions
7. DivyaSree Technopolis 15. Brookfield Hospital
8. Kalyani Tech Park 16. Manipal Hospital

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1.5.2. Micro Market - Rental Trend Analysis

The ORR micro market is one of the most sought-after commercial office micro markets and has witnessed
consistent supply and high absorption. On account of the high demand from Fortune 500 tenants, other global
tenants, domestic corporates, etc., the micro market is witnessing an increasing trend in rentals. The quoted rental
in the micro-market is in the range of INR 90 to 120 per sq. ft. per month, basis grade of development, developer
profile, amenities, tenant type, other lease terms, etc.

The Subject Property falls under the submarket stretch of Sarjapur-Marathahalli of the ORR micro market. Quoted
rentals in this submarket are in the range of INR 95 to 120 per sq. ft. per month.

The following graph depicts the rental trend in ORR micro market (CY 2016-Q1 CY 2024):

Rental Trend Analysis - ORR

100.0
95 96 96
94
93
92

90.0
INR per [Link]. per month

84
80
79
80.0

70.0

60.0
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Source: Consultant Research.

Note:
a) The rentals are basis the prevailing quotes in the micro market. Actual achievable rent may vary +/- 10% depending upon area
take up, negotiations, final structuring of the lease agreement and other parameters.
b) The data represented is on calendar year basis.

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Some of the prominent transactions along Outer Ring Road are tabulated below:

Area Leased Date of Rental (INR per Type of

Tenant Development Location
([Link].) Transaction sq. ft. per month) Deal
Tenant 1 Pritech Park ORR 43,421 Q1 2024 95 Fresh
Prestige Tech Pacific
Tenant 2 ORR 110,162 Q4 2023 95 Fresh
Park
Bagmane World
Tenant 3 ORR 21,400 Q4 2023 100 Fresh
Technology Center
Bagmane Constellation
Tenant 4 ORR 124,290 Q1 2023 99 Fresh
Business Park
Bagmane World
Tenant 5 ORR 22,511 Q1 2023 96 Fresh
Technology Center
Source: Consultant Research; ORR – Outer Ring Road.
Note: The data represented is on calendar year basis.

1.5.3. Micro Market - Supply, Absorption & Vacancy

A snapshot of the Supply, Absorption & Vacancy trends for ORR is as below:

Supply, Absorption & Vacancy - ORR

8.0 10.0%
8.2%
7.0 7.5% 7.4%
7.3% 8.0%
6.0 5.6%
Area in msf.

Vacancy %
5.0 0.9%
4.3% 4.4% 6.0%
4.0
3.0 2.8% 4.0%
2.0
2.0%
6.9
4.6

5.2
5.7

3.9
4.3

2.3
4.0

2.4
1.4

3.0
2.0

6.3
4.1

4.2
3.9

1.6
0.9
1.0
0.0 0.0%
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Supply Net Absorption Vacancy%

Source: Consultant Research.

Note:
a) The Net absorption value refers to the net additional leasing activity which has occurred in the year. This does not include any
pre-commitments, renewals etc. The pre-commitments are recorded as absorption in the year in which the tenant occupies the
building.
b) The data represented is on calendar year basis.

• The total stock of commercial office space in the ORR micro market as on Q1 CY 2024 is approx. 70.2 msf.
(Grade A office space).

• The average net absorption of commercial office space in the ORR micro market from CY 2016 to CY 2020
is approx. 4.0 msf. Net absorption levels in the CY 2020 and CY2021 remained subdued due to the COVID-
19 pandemic. The net absorption witnessed as of CY Q1 2024 is approx. 0.9 msf.

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• The vacancy level for office space in ORR micro market increased to 8.2% in Q1 CY 2024 from 7.4% in CY
2023 owing to addition of the new supply in the micro market in Q1 CY 2024.

• The supply for office space in ORR has been consistent. Supply in the micro market as of Q1 YC 2024 is 1.6
msf. Future supply of approx. 9.0-10.0 msf. Is expected in this micro market from CY 2024E to CY 2026E.

Some of the prominent operational commercial developments in ORR micro market include:

Vacancy as Quoted Rentals

Year of Leasable
Building Name Developer Location on Q1 2024 (INR per sq. ft.
Completion Area (msf.)
(msf.) per month) *
ORR,
Eco-World Brookfield 2008-2023 8.8 0.7 115
Bellandur
ORR,
Eco-Space Brookfield 2006 3.3 0.1 100
Bellandur
ORR,
Bagmane Capital Bagmane 2020-2023 3.9 0.03 105
Marathahalli
Cessna Business ORR,
NOP 2007-2020 3.9 - 100
Park Bellandur
Salarpuria ORR,
Salarpuria Softzone 2006 0.8 - 122
Sattva Bellandur
Global Technology ORR,
Maple Tree 2009-2017 2.0 0.05 98
Park Bellandur
Bagmane
Bagmane ORR,
Constellation 2006-2021 4.6 0.1 110
Developers Marathahalli
Business Park
Source: Consultant Research.
* Warm Shell Space
Note: The data represented is on calendar year basis.

Key statistics for ORR micro market are as below:

Particulars Details

Total completed stock Q1 2024 (msf.) 70.2

Current occupied stock Q1 2024 (msf.) 64.5

Current Vacancy Q1 2024 (%) 8.2%

Future Supply – Q2 2024 E – 2026 E (msf.) 9.0-10.0

Source: Consultant Research.
Note:
a) The future supply is considered after analysing each of the project based on the physical progress of the project, available information on
approvals and interactions held with various stakeholders.
b) The data represented is on calendar year basis.

1.5.4. Office Market Outlook

The Outer Ring Road micro market is one of the best performing commercial IT/ITeS micro markets in India.
ORR micro market constitutes approx. 35% to 40% of Bengaluru’s office supply stock i.e., approx. 70.2 msf. as

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on CY Q1 2024. Post 2005, the micro market has witnessed many significant campus styled tech parks like Intel,
Eco-space, Eco-world, ETV, Cessna Business Park, Prestige Tech Park, Exora Business Park, etc.

The tenant profile for ORR is largely characterized by Fortune 500 firms and other global & domestic tenants from
various sectors such as IT/ITeS, E-commerce, BFSI, etc. Oracle, Goldman Sachs, KPMG, BCG, Wells Fargo,
Morgan Stanley, All State, Danske, Standard Chartered, etc.

The demand from global & domestic tenants has been consistently high for this micro market. This has resulted in
various top commercial developers such as Embassy, Bagmane, Salarpuria Sattva, etc. and global investors such
as Blackstone, Brookfield, Maple Tree, etc. investing in the micro market. Further, the micro market is expected
to witness future office supply of approx. 9.0-10.0 msf.

1.6. Embassy GolfLinks Micro Market

1.6.1. Office Market Overview - Suburban East

The Subject Property lies in the Suburban East stretch which is an established commercial micro-market. The
micro-market located in the non-CBD area of Bengaluru’s commercial office space market is a prominent
commercial hub with good connectivity through the Intermediate Ring Road. Enhanced connectivity due to the
Intermediate Ring Road led to development of organized real estate activity in this micro market. The first notable
development in the region was Diamond District by India Builders Corporation, a mixed-use development
including commercial offices, residential apartments, and support retail. Starting from 2003, commercial
developments like Embassy GolfLinks Business Park (the subject property), DivyaSree Greens, and Maruthi Info
Tech have emerged. The location is anticipated to experience limited real estate activity due to a lack of
developable land, with a large proportion of vacant land currently owned by the Defence services.

Some of the well-established commercial developments in the micro market of Suburban East includes Bagmane
Tech Park, RMZ Infinity, DivyaSree Greens, DivyaSree Technopolis, RMZ Millenia, Maruthi Infotech Centre
amongst others. The upcoming under construction supply in the micro market of Suburban East in the next 2-3
years is approx. 2-3 msf.

The micro market has the presence of prominent educational institutions and hospitals such as Nalapad Academy,
Air Force School ASTE, Vishweshwara College, Sir M. Visvesvaraya Pre University College, National Public
School, New Horizon Public School, Manipal Hospital, HOSMAT Hospital, Acura Speciality Hospital, OJUS
Multi-speciality Hospital amongst others. In terms of retail developments, the micro market has predominant
presence of standalone retail developments in the near vicinity of the Subject Property which caters to the demand
generated by the commercial and residential catchments. Some of the retail developments include, Kempfort Mall,
Gilly’s, Nandhana Palace, Cult Fit, Westside, Pepperfry, etc.

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The micro-market has presence of residential projects by well-known developers like Prestige group, K Raheja
Realty, Salarpuria, Total Environment, etc. Few of the residential projects in the locality includes Prestige
Casablanca, Prestige Leela Residences, Salarpuria Ashoka, Raheja Residencies, Prestige Philadelphia, The Good
Earth, etc. However, residential activity is witnessed in the form of independent dwelling units/ bungalows or
apartments of smaller scale.

In terms of presence of Hospitality catchment, the micro market has presence of prominent hotels such as Hilton
(within subject development), The Leela Palace, Sterling’s Mac Hotel, Royal Orchid, The Paul, Lazdana Hotel,
The Golden Palm Hotel and Spa, etc. which emerged owing to the demand from MICE (Meetings, Incentives,
Conferences and Exhibitions) segment.

The location map of the Subject Property is set out below:

Subject Property

Source: Consultant Research (Map not to scale).

Subject Property

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Under construction Commercial

Key Commercial Developments Social Infrastructure Hospitality Developments
Developments

1. Bagmane Tech park 7. National Public School 13. The Leela Palace Hotel 18. Bagmane Cosmos – Vesta
2. RMZ Infinity 8. Sishu Griha Senior School 14. The Sterling’s Mac Hotel 19. Bagmane Cosmos Ariel
20. DivyaSree TechNopolis (77
3. Divya Sree Greens 9. New Horizon Public School 15. Royal Orchid
town centre), Block 8
4. Divya Sree Technopolis 10. Air Force 16. Lazdana Hotel 21. Cornerstone Phase 1
17. The Golden Palms Hotel &
5. RMZ Millenia 11. Manipal Hospital
Spa
6. Maruthi infotech Centre 12. HOSMAT Hospital

Source: Consultant Research.

1.6.2. Micro Market - Rental Trend Analysis

The weighted average quoted rentals in the micro-market have witnessed an uptick since CY 2016 and stabilized
in the years CY 2023 and Q1 CY 2024 at INR 137 per sq. ft. per month. The rentals witnessed a growth resulting
in a CAGR of approx. 3.6% from the years CY 2016 – Q1 2024.

The following graph depicts the weighted average quoted rental trend in Suburban East micro market (CY 2016-
Q1 CY 2024):

Rental Trend Analysis - Suburban East

150.0
137 138 138 137 137
140.0
129
130.0
INR per [Link]. per month

120.0
110 109
110.0
100
100.0

90.0

80.0

70.0

60.0
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Source: Consultant Research.

Note:
a) The rentals are basis the prevailing quotes in the micro market. Actual achievable rent may vary +/- 10% depending upon area take up,
negotiations, final structuring of the lease agreement and other parameters.
b) The data represented is on calendar year basis.

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Some of the prominent transactions along Suburban East are tabulated below:

Rate (INR per

Area Leased Date of Type of
Tenant Development Location sq. ft. per
([Link].) Transaction Deal
month)
Bagmane Tech CV Raman
Tenant 1 8,260 Q1 2024 158 Fresh
Park Nagar
Bagmane CV Raman
Tenant 2 120,800 Q4 2023 138 Fresh
Cosmos Nagar
Bagmane Tech CV Raman
Tenant 3 37,004 Q4 2023 138 Fresh
Park Nagar
Bagmane CV Raman
Tenant 4 120,200 Q3 2023 130 Fresh
Cosmos Nagar
Bagmane CV Raman
Tenant 5 182,600 Q3 2023 130 Fresh
Cosmos Nagar
Bagmane CV Raman
Tenant 6 247,200 Q3 2023 130 Fresh
Cosmos Nagar
Source: Consultant Research; Suburban East.
Note: The data represented is on calendar year basis.

1.6.3. Micro Market - Supply, Absorption & Vacancy

A snapshot of the Supply, Absorption & Vacancy trends for Suburban East is as below.

Supply, Absorption, Vacancy - Suburban East

1.6 5.0%
1.4 4.5%
1.2 4.7%
4.0%
1.0 1.8% 3.5%
2.7% 3.8%
Area in msf.

Vacancy %
0.8
3.0%
0.6 3.2% 3.3%
2.2% 2.5%
0.2

0.4
2.0%
0.5
0.8

0.7
0.6

0.5

0.0
0.1

0.7

0.3
0.5

1.0
1.3

0.0

0.0
0.3
0.2
0.2

0.0 1.5%
-0.5

1.6% 1.0%
-0.2 1.2%
-0.4 0.5%
-0.6 0.0%
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Supply Net Absorption Vacancy%

Source: Consultant Research.

Note:
a) The Net absorption value refers to the net additional leasing activity which has occurred in the year. This does not include any pre-
commitments, renewals etc. The pre-commitments are recorded as absorption in the year in which the tenant occupies the building.
b) The data represented is on calendar year basis.

• The total stock of commercial office space in the Suburban East micro market as on Q1 CY 2024 is approx.
21.4 msf. (Grade A office space).

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• Due to unavailability of supply, traction in the micro market has remained limited leading to minimal net
absorption in the Suburban East micro market. The net absorption witnessed as of Q1 CY 2024 is approx.0.3
msf.

• Availability of limited supply and healthy traction, the vacancy level for office space in Suburban East micro
markets remained sub 5.0% since CY 2016. Vacancy as of Q1 CY 2024 was approx. 2.2%.

• The supply in this micro market since CY 2016 – CY 2022 was in the range of approx. 0.4 – 0.5 msf. No new
supply was witnessed in the years CY 2019, CY 2023, and Q1 CY 2024. Future supply of approx. 2.0 – 3.0
msf. is expected in this micro market from CY 2024E to CY 2026E.

Some of the prominent operational commercial developments in Suburban East include:

Leasable
Year of Vacancy as on *Quoted Rentals (INR
Building Name Developer Location Area
Completion Q1 2024 (msf.) per sq. ft. per month)
(msf.)
Bagmane Tech Bagmane
CV Raman Nagar 2021 8.3 0.03 150
Park Developer
Salarpuria
Salarpuria Sattva Inner Ring Road 2006 0.3 - 120
Techpoint
Fairway Business AR & L
Inner Ring Road 2017 0.3 0.06 135
Park Lifespaces
Diamond District IBC Builders Old Airport Road 2002 0.5 - 110
DivyaSree
DivyaSree Greens Inner Ring Road 2018 0.6 - 150
Developers
DivyaSree DivyaSree
Old Airport Road 2022 3.1 0.3 95
Technopolis Developers
Maruthi Infotech
Maruthi Group Inner Ring Road 2005 0.4 - 125
Centre
RMZ Infinity RMZ Corp Old Madras Road 2008 1.2 - 110
Source: Consultant Research.
* Warm Shell Space.
Note: The data represented is on calendar year basis.

Key Statistics for Suburban East micro market are as below:

Particulars Details

Total completed stock Q1 2024 (msf.) 21.4

Current occupied stock Q1 2024 (msf.) 20.9

Current Vacancy Q1 2024 (%) 2.2%

Future Supply – Q2 2024 E – 2026 E (msf.) 2.0 – 3.0

Source: Consultant Research.

Note:
a) The future supply is considered after analysing each of the project based on the physical progress of the project, available information on
approvals and interactions held with various stakeholders.
b) The data represented is on calendar year basis.
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1.6.4. Office Market Outlook

The Suburban East micro market constitutes approx. 10-15% of Bengaluru’s Office Supply Stock i.e., approx. 21.4
msf. The region has presence of few large technology parks couples with a number of small and medium sized
commercial office developments. Despite availability of few large campus-styled developments such as the
Embassy GolfLinks (subject property), occupiers have since migrated their operations from CBD into this region.
Further, the micro market is expected to witness future office supply of approx. 2 – 3 msf.

Prominent developments in the micro market include Embassy GolfLinks on the Intermediate Ring Road,
Bagmane Tech Park in CV Raman Nagar, DivyaSree Technopolis Off Old Airport Road and RMZ Infinity on Old
Madras Road, etc.

2. Mumbai City Report

2.1. Mumbai Office Market Overview

The overall commercial office market in Mumbai and its key micro markets:

Particulars CBD Eastern Suburbs BKC & Annexe

Total completed stock Q1 2024 (msf.) 2.1 6.1 10.8

Current occupied stock Q1 2024 (msf.) 1.9 5.5 9.7

Current Vacancy Q1 2024 (%) 7.8% 10.1% 10.0%

Future Supply – Q2 2024 E –2026 E (msf.) 0.0 3.2 4.2

Market Rent – Q1 2024 (INR per sq. ft. per month) 235.3 140.3 286.0
Source: Consultant Research.
Note:
a) CBD stands for Central Business District.
b) The future supply is considered after analysing each of the project based on the physical progress of the project, available information
on approvals and interactions held with various stakeholders.
c) The data represented is on calendar year basis.

Mumbai is India’s financial and commercial capital. The presence of vibrant capital and money markets makes the
city the first choice of entry for financial services firms. Mumbai houses the headquarters of major corporates &
financial institutions such as ICICI Bank, HDFC Bank, Life Insurance Corporation of India, etc. India's main stock
exchanges & capital market and commodity exchanges (National Stock Exchange – NSE, Bombay Stock
Exchange – BSE and Multi Commodity Exchange – MCX) are also located in Mumbai. It is also home to
Bollywood, the Indian Television and Film Industry.

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The key drivers of demand for office space in Mumbai Region are as follows:

• Financial Capital and Services Hub: Mumbai which is referred as India’s financial capital and houses
corporate head offices of many Indian banks It is also home to global consultancy firms, legal and professional
services, media houses, accounting professionals, etc.
• Global In-house Centres/ Global Capability Centers: Mumbai is a hub for Global In-house centres (GICs)
/ Capability centres (GCCs) of many Investment Banks mainly from the North American and European
markets such as Deutsche Bank, Bank of America, JP Morgan, etc.
• Social Infrastructure: Mumbai has established educational institutions and colleges, Malls, Hospitals, and
hotels.
• Transport infrastructure: Mumbai is well connected via road with availability of infrastructure like the
Eastern Express Highway, Western Express Highway, Eastern Free Way, Bandra-Worli Sea Link, etc. It also
provides good railway connectivity with three railway lines, an operational metro line and a monorail line.
Mumbai is also well connected via air with other cities in India and other global cities with the help of 2
operational passenger terminals (Domestic and International) and one cargo terminal at Chhatrapati Shivaji
Maharaj International Airport.
• Ongoing/Planned Infrastructure Projects: Key initiatives include multiple metro lines, various road
projects (Goregaon Mulund Link Road), monorail and the Navi Mumbai International Airport.

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2.2. Embassy Mumbai Micro Market - Supply, Absorption & Vacancy

A snapshot of the supply, absorption and vacancy trend for Mumbai is as below:

Supply, Net Absorption & Vacancy Trend Analysis

8.0 23.4% 25%
20.2% 21.0%
17.6% 18.0% 18.4% 18.4% 20%
6.0 16.8% 16.8%
Area in msf.

Vacancy %
15%
4.0
10%

2.0
5%
5.6
4.3

5.8
4.5

5.0
3.8

5.1
5.5

5.6
1.4

5.8
1.4

2.8
4.7

2.0
4.3

1.4
2.8
0.0 0%
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Supply Net Absorption Vacancy %

Source: Consultant Research.

Note:
a) The net absorption value refers to the net additional leasing activity which has occurred in the year. This does not include any pre-
commitments, renewals etc. The pre-commitments are recorded as absorption in the year in which the tenant moves in.
b) The data represented is on calendar year basis.

• Mumbai is the second largest office market in India by total stock (108.1 msf.) following Bengaluru.
• Mumbai offers a mix of IT, IT SEZ and Non-IT office supply.
• Approx. 28.1 msf. Supply is expected to be delivered by 2026. IT and Non-IT office developments contribute
to 33% and 67% of the total upcoming supply in Mumbai.

2.3. Embassy Office REIT Micro Market

2.3.1. Market Overview - CBD

South Mumbai is the southern-most precinct of the city of Mumbai, India. It is the richest urban precinct in India,
and houses most of the city’s elite.

Geographically, South Mumbai lies at the southern corner of Island. Although the constituency of South Mumbai
extends from Bombay Central to Colaba, Mumbai City is referred to be extending from Colaba to Mahim. The
areas from Bandra and beyond form a part of Suburban Mumbai.

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South Mumbai is home to the Reserve Bank of India and the Bombay Stock Exchange. Its business districts are
Fort, Nariman Point, Ballard Estate, Worli and Lower Parel (Upper Worli). Most of the consulates, museums and
old theatres are located in South Mumbai. Many leading Indian and multi-national companies are headquartered
here. A few of the city’s prestigious schools and colleges are also located in South Mumbai. Chhatrapati Shivaji
Terminus and Churchgate serve as headquarters and starting point for the city’s Central and Western Railway lines
respectively.

In South Mumbai, all utility services, and civic amenities necessary for smooth commercial trade – such as an
uninterrupted supply of power – are available around the clock. It houses a significant proportion of prime
upmarket residential neighbourhoods of Mumbai including: Peddar Road, Nepean Sea Road, Breach Candy,
Malabar and Walkeshwar Road. Many distinctive sporting clubs have been an integral part of South Mumbai
landscape like the Willingdon Golf Club, the Turf Club at racecourse, the Bombay Gymkhana, the N.S.C.I, the
W.I.A.A. South Mumbai is also home to sporting grounds like the Brabourne Stadium, Wankhede Stadium,
Cooperage, etc.

Although land reclamation has allowed the southern-most tip of the district to double in size since the 1970s, the
district faces an acute shortfall of real estate. As a result, the real estate prices are among the highest in India. As a
ratio to average per capita income, real estate prices in the business districts remain the most expensive in the
world.

The key demand drivers in this micro market are:

1. Proximity to the Commercial Business District.

2. Proximity to the road connectivity.
3. Well-developed public transportation system and power infrastructure.

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The location map of the Subject Property is set out below:

Source: Consultant Research. Subject Property

Key Commercial Developments Social Infrastructure Hospitality Developments

5. National Centre of Performing

1. Free Press House 8. The Oberoi
Arts

2. Hoechst Towers 6. Mantralaya 9. Trident Hotel

3. Maker Chambers VI 7. HP Fuel Station 10. Brabourne Cricket Stadium

4. Mafatlal Centre 11. Wankhede Cricket Stadium

12. Queen’s Necklace – Marine

Drive

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2.3.2. CBD Micro Market - Rental Trend Analysis

Commercial rental values in CBD are in the range of INR 228-235 per sq. ft. per month on leasable area from CY
2016 to Q1 CY 2024 for Grade-A buildings in South Mumbai. CBD micro market have witnessed an upward trend
in rentals from 2018 onwards. Due to sustained leasing activities from high value tenants who are looking to
establish their head office or corporate office in this micro market, the rentals in this micro market are amongst the
highest in Mumbai region.

Premium Grade A supply in the micro market such as Express Towers, Maker Chambers IV, Maker Chamber VI,
Hoechst House, Free Press House, Mafatlal House etc. command rentals in the range of INR 240 to INR 300 per
sq. ft. per month on leasable area. These rentals are at a premium to the market benchmarks primarily due to the
locational advantage, the quality of construction, amenities, and an elite tenant list.

There is no supply since CY 2016 and sustained demand led to an increase in the rentals until the year CY 2018.
As the markets have opened up post the pandemic, demand for the commercial office space in the micro-market
has witnessed significant uptick. Correspondingly, the rentals in good quality grade A buildings with grade A
landlord profile have witnessed significant improvement over the last few quarters.

The following graph depicts the rental trend in CBD and Annexe micro-market (CY 2016 – Q1 CY 2024):

Rental Trend Analysis - CBD

236 235 235

234 233 233

INR per [Link]. per month

232
232
230
230

229 229
228 228

226

224
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Source: Consultant Research

.
Note:
a) The rentals are basis the prevailing quotes in the micro market. Actual achievable rent may vary +/- 10% depending upon area take up,
negotiations, final structuring of the lease agreement and other parameters.
b) The data represented is on calendar year basis.

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Some of the prominent transactions along CBD are tabulated below:

Area Leased Date of Rental (INR per Type of

Tenant Development Location
(sq. ft.) Transaction sq. ft. per month) Deal
Tenant 1 Maker Chamber VI Nariman Point 3,132 Q1 2024 301 Renewal
Tenant 2 Maker Chamber VI Nariman Point 3,300 Q1 2024 236 Renewal
Tenant 3 Bakhtawar Nariman Point 9,200 Q1 2024 230 Renewal
Tenant 4 World Trade Centre - 1 Nariman Point 3,643 Q4 2023 250 Renewal
Tenant 5 World Trade Centre - 1 Nariman Point 16,469 Q4 2023 237 Renewal
Tenant 6 Maker Chamber VI Nariman Point 5,325 Q4 2023 220 Renewal
Tenant 7 World Trade Centre - 1 Nariman Point 24,584 Q3 2023 265 Renewal
Tenant 8 Maker Chamber IV Nariman Point 7,668 Q2 2023 260 Renewal
Tenant 9 Bakhtawar Nariman Point 3,600 Q2 2023 283 Renewal
Tenant 10 Maker Chamber IV Nariman Point 3,500 Q2 2023 240 Renewal
Tenant 11 World Trade Centre - 1 Nariman Point 2,170 Q2 2023 272 Renewal
Tenant 12 Maftlal Centre Nariman Point 10,307 Q1 2023 310 Renewal
Tenant 13 World Trade Centre - 1 Nariman Point 3,921 Q1 2023 239 Renewal
Tenant 14 Maker Chamber VI Nariman Point 2,090 Q1 2023 235 Fresh
Source: Consultant Research.
Note: The data represented is on calendar year basis.

2.3.3. CBD Micro Market - Supply, Absorption & Vacancy

A snapshot of the Supply, Absorption & Vacancy trends for CBD is as below:

Supply, Absorption & Vacancy - CBD

9.9%
0.08 8.2% 8.7% 8.6% 5.7% 9.0%
7.4% 8.2% 7.8%
0.06 7.0%
0.0

0.04
Area in msf.

Vacancy %
0.0

0.1

0.0

0.02 2.0%
0.00
0.0

0.0

0.0

-0.02 -3.0%
0.0

0.0

-0.04
-0.06 -8.0%
2016 2017 2018 2019 2020 2021 2022 2023 Q1
2024

Supply Net Absorption Vacancy %

Source: Consultant Research.

Note:
a) The Net absorption value refers to the net additional leasing activity which has occurred in the year. This does not include any pre-
commitments, renewals etc. The pre-commitments are recorded as absorption in the year in which the tenant occupies the building.
b) The data represented is on calendar year basis.

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• Consistent demand and controlled supply had led to a declining vacancy trend during CY 2016 - CY 2019.
Vacancy declined from 8.2% in 2016 to 5.7% in CY 2019. However, due to limited fresh leasing activity in the
micro-market during the pandemic struck period of CY 2020 – CY 2021, the vacancy increased to 8.2% in CY
2021. Vacancy has further increased to 9.0% in 2023 but the year started with a positive note and vacancy
decreased to 7.8% in Q1 CY 2024. Due to the demand for space in the micro-market from various tenants and
limited supply of good quality Grade-A developments with Grade-A landlords, in CBD, is expected to further
drive absorption in the micro-market.

• This micro market has witnessed tenant demand from various sectors such as Banking and Financial Services
(BFSI), Technology, Engineering & Manufacturing, Flexible Workspace, etc.

Some of the prominent operational commercial developments in CBD include:

*Quoted Rentals
Year of Leasable Vacancy as on
Building Name Developer Location (INR per sq. ft.
Completion Area (msf.) Q1 2024 (msf.)
per month)
Bakhtawar Bakhtawar Nariman Point 1974 0.1 0.02 200
Free Press Dipco Ltd/ Free
Nariman Point 1987 0.2 0.01 240
House Press House
Dugal
Hoechst House Engineering Nariman Point 1975 0.1 0.03 240
Company
Mafatlal Mafatlal
Nariman Point 1972 0.2 0.03 235
Centre Industries
Maker
Maker
Development Nariman Point 1981 0.2 0.02 240
Chambers IV
Corporation Ltd
Maker
Maker
Development Nariman Point 1980 0.2 0.03 240
Chambers VI
Corporation Ltd
World Trade Shapoorji
Nariman Point 1970 0.5 0.01 175
Centre – 1 Pallonji
Source: Consultant Research.
*Warm shell space.
Note: The data represented is on calendar year basis.

Key Statistics for CBD micro market are as below:

Particulars Details

Total completed stock Q1 2024 (msf.) 2.1

Current occupied stock Q1 2024 (msf.) 1.9

Current Vacancy Q1 2024 (%) 7.8%

Future Supply – Q2 2024 E – 2026 E (msf.) 0

Source: Consultant Research.

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Note:
a) The future supply is considered after analysing each of the project based on the physical progress of the project, available information on
approvals and interactions held with various stakeholders.
b) The data represented is on calendar year basis.

2.3.4. Office Market Outlook

The current market rentals in the CBD micro market are in the range of INR 230-240 per sq. ft. per month. Further
over CY 2016 – CY 2018 the rents in CBD dropped by 2% whereas from CY 2019 onwards the rentals have
increased from INR 230 – 235 per sq. ft. per month in Q1 CY 2024. CBD has limited good quality Grade A supply
and with no new supply in the micro market in the near future will help in declining the vacancy rate and
commissioning of Metro Line 3 and 11, which is likely to further boost the demand for office space in the micro-
market and thereby on market rental, the long-term average annual growth rate of 5% in the market rentals appears
achievable.

2.4. Office Market Overview

2.4.1. Market Overview – Vikhroli

The prominent eastern suburb commercial micro-market of Mumbai is emerging as an important commercial hub
over the past few years considering the land scarce market of Mumbai. The micro market offers excellent road
connectivity to both western and eastern suburbs of Mumbai. While Jogeshwari – Vikhroli Link Road connects
Vikhroli to western suburbs of Andheri and Malad, LBS Marg offers connectivity to eastern suburbs of
Kanjurmarg, Bhandup and Thane towards the north and Kurla, Sion and Chembur in the south.
Eastern suburb micro market has IT and commercial developments (Grade A) like Embassy 247 Park, Godrej IT
Park, Ackruti Corporate Park, Empire Plaza, Godrej One & Two etc. Many companies including IT/ITeS
enterprises have moved their offices to Vikhroli attracted by the availability of space with reasonable rentals,
coupled with easy access to the Eastern and Western Express Highways, International Airport, and proximity to
several commercial complexes such as Bandra-Kurla Complex, MIDC and Andheri Kurla Road. It also has
convenient access to other important commercia hubs such as Powai, Thane, Navi Mumbai etc.
Social Infrastructure in and around the Subject Property:
The two largest retail destinations, R City (Ghatkopar West) & Phoenix Market City (Kurla West) is situated close
to the subject micro market. Also, there are reputed educational institutes in neighbouring micro markets like
Indian Institute of Technology, Bombay in Powai & KJ Somaiya College of Arts & Commerce in Ghatkopar. There
is a good presence of hospitals in and around the subject micro market like L H Hiranandani Hospital & Godrej
Memorial Hospital.
The upcoming Metro line 4 and 6 will further enhance the connectivity for commuters. The micro-market houses
some of the marquee tenants in Financial Services and consulting space and has head offices of multiple MNCs,
Indian Private Sector Companies and Public Sector Undertakings. Vikhroli is located towards the centre of the city

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and lies in proximity to residential catchment areas. As a result, it has been a preferred location for commercial
establishments to set-up their base, as it is easy to commute.
247 Park is a Grade-A city-centre office building located in the Vikhroli west, Mumbai and one of the most
prominent office districts in India.

The location map of the Subject Property is set out below:

Source: Consultant Research. Subject Property

Under construction Commercial

Key Commercial Developments Social Infrastructure Hospitality Developments
Developments

1. Ackruti Corporate Park 7. KJ Somaiya 10. IBIS 11. Mapletree Kanjurmarg

2. Empire Plaza 8. Modern high School

3. Godrej One, Two 9. R City

4. Lodha I Think Campus

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Under construction Commercial

Key Commercial Developments Social Infrastructure Hospitality Developments
Developments

5. Godrej IT Park

6. The Deutsche Park

Source: Consultant Research.

2.4.2. Micro Market – Rental Trend Analysis

Commercial rental values in Eastern Suburbs are in the range of range of INR 114 – 140 per sq. ft. per month on
leasable area for Grade-A buildings in Eastern Suburbs have seen an increasing trend since the year CY 2016. Due
to sustained leasing activities from tenants who are looking to establish their head office or corporate office in this
micro market, the rentals in this micro market are amongst the highest in Mumbai region.
Premium Grade A supply such as Godrej, Lodha I Think Campus, Empire Plaza etc. command rentals in the range
of INR 100 to 180 per sq. ft. per month on leasable area. These rentals are at a premium to the market benchmarks
primarily due to the locational advantage, the quality of construction, amenities, and an elite tenant list.
Limited supply since 2016 and sustained demand led to an increase in the rentals until the year 2019. As the
markets have opened up post the pandemic, demand for the commercial office space in the micro-market has
witnessed significant uptick. Correspondingly, the rentals in good quality grade A buildings with grade A landlord
profile have witnessed significant improvement over the last few years.

The following graph depicts the rental trend in Eastern Suburbs micro-market (CY 2016 – Q1 CY 2024):

Rental Trend Analysis - Eastern Suburbs

150

140
140 137 137
INR per [Link]. per month

129
130 126

121
120 116
114 115

110
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Source: Consultant Research.

Note:
a) The rentals are basis the prevailing quotes in the micro market. Actual achievable rent may vary +/- 10% depending upon negotiations,
final structuring of the lease agreement and other parameters.
b) The data represented is on calendar year basis.
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Some of the prominent transactions in the Eastern Suburbs are tabulated below:
Tenant Development Location Area Leased Date of Rate (INR per Type of
(sq. ft.) Transaction sq. ft. per month) Deal
Tenant 1 Godrej IT Park Vikhroli West 50,000 Q1 2024 158 Renewal
Tenant 2 Godrej Two Vikhroli East 30,000 Q1 2024 169 Fresh
Tenant 3 Godrej Two Vikhroli East 48,000 Q4 2023 165 Fresh
Tenant 4 Godrej Two Vikhroli East 22,000 Q4 2023 170 Fresh
Tenant 5 Godrej Two Vikhroli East 23,000 Q4 2023 170 Fresh
Tenant 6 Godrej One Vikhroli East 14,932 Q3 2023 167 Fresh
Tenant 7 Godrej Two Vikhroli East 11,590 Q3 2023 167 Fresh
Tenant 8 Godrej Two Vikhroli East 8,802 Q3 2023 170 Fresh
Tenant 9 Godrej Two Vikhroli East 15,027 Q2 2023 165 Fresh
Tenant 10 Godrej One Vikhroli East 5,848 Q1 2023 171 Fresh
Tenant 11 Godrej IT Park Vikhroli West 20,764 Q1 2023 150 Renewal
Tenant 12 Godrej One Vikhroli East 31,414 Q1 2023 165 Renewal
Source: Consultant Research.
Note: The data represented is on calendar year basis.

2.4.3. Micro Market - Supply, Absorption & Vacancy

A snapshot of the supply, absorption & vacancy trends for Eastern Suburbs is as below:

Supply, Absorption & Vacancy Analysis - Eastern Suburbs

0.7 25.0%
15.9% 22.5%
0.6
20.0%
0.5 20.9%
Area in msf.

Vacancy %
0.4 15.0%
16.0% 6.8%
0.3 13.3%
12.3% 12.0% 10.0%
0.2 10.1%
5.0%
0.0

0.0

0.1
0.2

0.0
0.1

0.0

0.2
0.4

0.6
0.1

0.5

0.1

0.5

0.0
0.1
0.0

0.0 0.0%
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024
Supply Net Absorption Vacancy
Source: Consultant Research.
Note:
a) The Net absorption value refers to the net additional leasing activity which has occurred in the year. This does not include any pre-
commitments, renewals etc. The pre-commitments are recorded as absorption in the year in which the tenant occupies the building.
b) The data represented is on calendar year basis.

• Eastern Suburbs micro market has witnessed tremendous amount of demand which has helped to decline the
vacancy trend from 16.0% in CY 2016 to 10.1% in Q1 CY 2024. Due to COVID and infusion of 1.4 msf. Of
leasable area between CY 2019 to CY 2021, vacancy had shot up to 22.5% in CY 2021 but post covid the

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vacancy has come down to the level of 2017-18 i.e., of 10.1% in Q1 CY 2024. Strong demand for space in the
micro-market from prime tenants and limited supply of good quality Grade-A developments with Grade-A
landlords, Vikhroli, is expected to further drive absorption in the micro-market.

• This micro market has witnessed continuous tenant demand from various sectors such as Banking and Financial
Services (BFSI), Professional Services, Technology, Healthcare & Pharmaceutical etc.

Some of the prominent operational commercial developments in Eastern Suburbs include:

Vacancy as *Quoted Rentals
Year of Leasable
Building Name Developer Location on Q1 2024 (INR per sq. ft.
Completion area (msf.)
(msf.) per month)
Ackruti
Hubtown Kanjurmarg 2008 0.2 0.01 110
Corporate Park
2011
Avior Nirmal Lifestyle Ltd Mulund 0.1 0.00 100

Empire Plaza 1 Empire Estate Vikhroli West 2019 0.2 0.00 100
Empire Plaza 2 Empire Estate Vikhroli West 2014 0.2 0.00 100
Filix Axis Realty Bhandup 2012 0.3 0.04 100
Godrej 2 – Phase Godrej Fund
Vikhroli East 2020 0.6 0.10 180
I Management
Godrej 2 – Phase Godrej Fund
Vikhroli East 2021 0.5 0.29 180
II Management
Godrej Fund 2011
Godrej IT Park Vikhroli West 0.9 0.00 180
Management
Godrej One Godrej Properties Vikhroli East 2014 0.5 0.15 180

Lodha, I Think
Lodha Group Kanjurmarg 2009 0.6 0.00 100
Campus – Alpha

Lodha, I Think
Lodha Group Kanjurmarg 2009 0.3 0.00 100
Campus – Beta
The Deutsche Raycon Infrastructure 0.3
Nahur 2015 0.00 120
Park Pvt Ltd
Source: Consultant Research.
*Warm Shell Space.
Note: The data represented is on calendar year basis.

Key Statistics for Eastern Suburb micro market are as below:

Particulars Details

Total Completed Stock Q1 2024 (msf.) 6.1

Current Occupied Stock Q1 2024 (msf.) 5.5

Current Vacancy Q1 2024 (%) 10.1%

Future Supply – Q2 2024 E – 2026 E (msf.) 3.2

Source: Consultant Research.
Note:
a) The future supply is considered after analysing each of the project based on the physical progress of the project, available information on
approvals and interactions held with various stakeholders.
b) The data represented is on calendar year basis.

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2.4.4. Office Market Outlook

The current market rentals in the Eastern Suburbs micro market are in the range of INR 100- 180 per sq. ft. per
month. Further over 2016 – 2018 the rentals increased by approx. 1% on CAGR basis whereas rentals from CY
2019 – Q1 CY 2024 has grown at a CAGR by approx. 4%. Given the limited good quality supply with Grade A
landlords in the Eastern Suburbs continuing strong demand for commercial office spaces in the micro-market and
commissioning of Metro Line 4 and 6, which is likely to further boost the demand for office space in the micro-
market and thereby on market rental, the long-term average annual growth rate of 5% in the market rentals appears
achievable.

2.5. Embassy Office REIT Micro Market (BKC)

2.5.1. Market Overview - BKC

The BKC & Annexe micro-market has emerged as Mumbai’s financial hub and as one of the most established
commercial micro-markets in Mumbai and has witnessed substantial development over the last decade. This
growth can be attributed to the fact that the assets are in among the best performing micro markets and are
distinguished by scale and infrastructure. The micro market enjoys good connectivity with South Mumbai, Western
Suburbs (Bandra, Andheri, Goregaon etc.), Central Suburbs (Chembur, Ghatkopar, Kurla etc.) and International
and Domestic Airports along with major business and social hubs. The upcoming Metro line 3 and 2B will further
enhance the connectivity for commuters. The micro-market houses some of the marquee tenants in Financial
Services and consulting space and has head offices of multiple MNCs, Indian Private Sector Companies and Public
Sector Undertakings. The Bandra-Kurla Complex is located towards the centre of the city and lies in proximity to
residential catchment areas in the suburban district. As a result, it has been a preferred location for commercial
establishments to set-up their base, as it is easy to commute by the Mumbai Suburban train network from Bandra
railway station as well as Kurla railway station and by road via the Western Express Highway, the Eastern Express
Highway, and the Bandra Worli Sea Link.
First International Financial Centre (FIFC) is a Grade-A city centre office building located in the Bandra Kurla
Complex (“BKC”), Mumbai’s Alternate Business District and one of the most prominent office districts in India.
BKC also houses the front offices of various banks and corporate headquarters and commands the highest rent in
the city due to its well-planned infrastructure, connectivity to residential hubs and availability of modern high-
quality office space.
Some of the prominent commercial projects in the micro market include Maker Maxity, The Capital, Raheja Tower,
Platina, IL&FS Finance Centre and One BKC. This micro market has gained traction from some of the most high-
valued and marquee tenants such as Deutsche Bank, Bank of America, Merrill Lynch, Standard Chartered Bank,
BNP Paribas, TPG (Texas Pacific Group), Bain & Company etc. It also has presence of National Stock Exchange
(NSE) and Securities & Exchange Board of India (SEBI) along with self-occupied commercial buildings by
companies like ICICI Bank, Punjab National Bank, Bank of Baroda, Dena Bank, State Bank of India, Bank of

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India, etc. Government companies such as ONGC, Mahanagar Gas Limited, NABARD, IDBI, etc. also have set
up their base in BKC & Annexe.
The BKC & Annexe micro market Is ”lso ’ hub for the international institutions such as Consulate General of the
United States and New Zealand Consulate General. BKC & Annexe is also characterized by the excellent social
and lifestyle infrastructure such as Trident Hotel, Sofitel Hotel, Asian Heart Institute, Michelin stars restaurants
etc. BKC today qualifies to be the next Commercial Business District of Mumbai.

The location map of the Subject Property is set out below:

19

1
22
14 10

15 11
18

12
20

2 3
4
22

21 6
16
5
7 13
8

17

Subject Property
Source: Consultant Research.

Proposed Commercial
Key Commercial Developments Social Infrastructure Hospitality Developments
Developments
10. American School of
1. TCG Financial Centre 14. Sofitel Hotel 19. Kalpataru Infinia
Bombay
11. Dhirubhai Ambani
2. Adani Inspire 15. Trident Hotel 20. Prestige BKC Phase 1
International School
16. Mumbai Cricket
3. The Capital 12. Asian Heart Hospital 21. Sumitomo BKC
Association (MCA)

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Proposed Commercial
Key Commercial Developments Social Infrastructure Hospitality Developments
Developments
4. IL&FS Finance Centre 13. Indian Oil Petrol Pump 17. MMRDA Grounds 22. Adani Inspire Annexe
18. Nita Mukesh Ambani
5. One BKC
Cultural Centre
6. Parinee Crescenzo
7. Raheja Tower
8. Godrej BKC
9. Maker Maxity

2.5.2. Micro Market - BKC Rental Trend Analysis

Commercial rental values in BKC and Annex has been in the range of INR 250-325 per sq. ft. per month on
leasable area from CY 2016 to Q1 CY 2024 for Grade-A buildings in G-Block, BKC and are in the range of INR
175-250 per sq. ft. per month on leasable area for Grade-A buildings in the periphery or alternate markets of G-
Block, BKC and have seen an increasing trend since the year 2017. Due to sustained leasing activities from high
value tenants who are looking to establish their head office or corporate office in this micro market, the rentals in
this micro market are amongst the highest in Mumbai region.
Premium Grade A supply such as Maker Maxity, Godrej BKC, One BKC etc. command rentals in the range of
INR 300 to INR 550 per sq. ft. per month on leasable area. These rentals are at a premium to the market benchmarks
primarily due to the locational advantage, the quality of construction, amenities, and an elite tenant list.
Limited supply since CY 2017 and sustained demand led to an increase in the rentals until the year CY 2019. As
the markets have opened up post the pandemic, demand for the commercial office space in the micro-market has
witnessed significant uptick. Correspondingly, the rentals in good quality grade A buildings with grade A landlord
profile have witnessed significant improvement over the last few quarters.

The following graph depicts the rental trend in BKC and Annexe micro-market (CY2016 – Q1 CY 2024):

Rental Trend Analysis - BKC & Annexe

290 286
INR per [Link]. per month

280 275 275

268 271 270
270
260
250 249 251
250
240
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Source: Consultant Research.

Note:
a) The rentals are basis the prevailing quotes in the micro market. Actual achievable rent may vary +/- 10% depending upon negotiations,
final structuring of the lease agreement and other parameters.
b) The data represented is on calendar year basis.
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Some of the prominent transactions in the Bandra Kurla Complex are tabulated below:
Rental (INR
Area Leased Date of Type of
Tenant Development Location per sq. ft. per
(sq. ft.) Transaction Deal
month)
Tenant 1 Godrej BKC BKC 69,000 Q1 2024 349 Renewal
Tenant 2 Adani Inspire BKC 36,000 Q1 2024 240 Fresh
Tenant 3 Trade Centre BKC 36,500 Q1 2024 177 Renewal
Tenant 4 Godrej BKC BKC 68,600 Q4 2023 313 Renewal
Tenant 5 Adani Inspire BKC 49,000 Q4 2023 219 Renewal
Tenant 6 Adani Inspire BKC 35,000 Q4 2023 200 Fresh
TCG Financial
Tenant 7 BKC 13,797 Q3 2023 335 Fresh
Center
Tenant 8 Maker Maxity BKC 13,872 Q3 2023 400 Renewal
Tenant 9 Maker Maxity BKC 3,771 Q3 2023 510 Renewal
Tenant 10 INS Tower BKC 3,088 Q3 2023 365 Fresh
Tenant 11 INS Tower BKC 3,050 Q3 2023 365 Fresh
Tenant 12 Maker Maxity BKC 9,268 Q2 2023 500 Renewal
Tenant 13 Maker Maxity BKC 6,071 Q2 2023 400 Renewal
TCG Financial
Tenant 14 BKC 5,000 Q2 2023 350 Fresh
Center
Tenant 15 One BKC BKC 4,514 Q2 2023 315 Fresh
Tenant 16 Parinee Crescenzo BKC 60,111 Q1 2023 205 Fresh
Tenant 17 The Capital BKC 28,546 Q1 2023 310 Fresh
Tenant 18 Parinee Crescenzo BKC 15,028 Q1 2023 213 Fresh
Tenant 19 The Capital BKC 10,829 Q1 2023 249 Fresh
Tenant 20 Godrej BKC BKC 8,203 Q1 2023 315 Fresh
Tenant 21 Maker Maxity BKC 7,955 Q1 2023 475 Fresh
Tenant 22 Maker Maxity BKC 7,955 Q1 2023 515 Fresh
Tenant 23 Parinee Crescenzo BKC 15,769 Q1 2023 248 Renewal
Tenant 24 One BKC BKC 7,512 Q1 2023 260 Fresh
TCG Financial
Tenant 25 BKC 7,318 Q1 2023 301 Fresh
Center
TCG Financial
Tenant 26 BKC 6,479 Q1 2023 300 Fresh
Center
Tenant 27 Maker Maxity BKC 6,023 Q1 2023 475 Fresh
Tenant 28 The Capital BKC 7,092 Q1 2023 234 Renewal
Tenant 29 VIBGYOR BKC 6,462 Q1 2023 230 Renewal

Source: Consultant Research.

Note: The data represented is on calendar year basis.

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2.5.3. Micro Market - Supply, Absorption & Vacancy BKC & Annexe

A snapshot of the supply, absorption & vacancy trends for BKC & Annexe is as below:

BKC & Annexe - Supply, Absorption & Vacancy Analysis

23.3% 22.7%
1.4 24.0%
1.2 20.1%
1.0 17.3% 20.0%
15.6% 15.6%
0.8 16.0%
Area in msf.

Vacancy %
0.6 11.9%
0.4 10.8% 12.0%
10.0%
0.1

0.2
0.5

0.9
0.7

0.0
0.6

1.0
1.3

0.3

0.7
0.3

0.0
0.5

0.1
0.4

0.2
0.3
0.0 8.0%

-0.4
-0.2 4.0%
-0.4
-0.6 0.0%
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024
Supply Net Absorption Vacancy

Source: Consultant Research.

Note:
a) The Net absorption value refers to the net additional leasing activity which has occurred in the year. This does not include any pre-
commitments, renewals etc. The pre-commitments are recorded as absorption in the year in which the tenant occupies the building.
b) The data represented is on calendar year basis.

Due to good presence of A grade buildings coupled with strong connectivity and well-developed social and lifestyle
infrastructure BKC & Annexe has witnessed continuous traction from tenants who provide high-value services or
tenants having their corporates offices in this micro market.
This micro market has witnessed continuous tenant demand from various sectors such as Banking and Financial
Services (BFSI), Technology, Healthcare & Pharmaceutical, Medial and Telecom etc.
Consistent demand and controlled supply had led to a declining vacancy trend during CY 2016 – CY 2019.
Vacancy declined from 23.3% in CY 2016 to 10.8% in CY 2019. However, due to limited fresh leasing activity
and infusion of approx.1.0 msf. Of new supply in the micro-market during the pandemic struck period of 2020-
2021, the vacancy increased to 20.1% in CY 2021. The markets have witnessed strong traction during Q1 CY
2024, thereby vacancy declined to 10.0% as on Q1 CY 2024. Strong demand for space in the micro-market from
prime tenants and limited supply of good quality Grade-A developments with Grade-A landlords, especially in the
G-Block, BKC, is expected to further drive absorption in the micro-market. New supply of 4.2 msf. is expected in
this micro market by the year 2026 (Kalpataru Infinia: 0.3 msf. by CY 2024, and Adani Inspire Annexe: 0.4 msf.,
Prestige BKC: 2.3 msf., Sumitomo BKC: 1.2 msf.) by CY 2026.

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Some of the prominent operational commercial developments in BKC & Annexe include:

*Quoted Rentals
Year of Leasable Area Vacancy as on
Building Name Developer Location (INR per sq. ft.
Completion (msf.) Q1 2024 (msf.)
per month)
One BKC A Radius
BKC 2015 0.94 0.0 325
wing Developers
Parinee
Parinee BKC 2009 0.90 0.11 250
Crescenzo
TCG Financial TCG Urban
BKC 2012 0.21 0.01 330
Center Infrastructure
The Capital Vijay Associates BKC 2012 0.96 0.07 290
Naman Centre Naman BKC 2008 0.15 0.01 250
Adani Inspire –
Adani Group BKC 2017 0.56 0.00 250
Phase I
Adani Inspire –
Adani Group BKC 2021 0.23 0.09 250
Phase II
The Square K. Raheja Corp BKC 2020 0.12 0.00 260
VIBGYOR K. Raheja Corp BKC 2008 & 2023 0.22 0.00 250
Source: Consultant Research.
*Warm Shell Space.
Note: The data represented is on calendar year basis.

Key statistics for BKC & Annexe micro market are as below:

Particulars Details

Total completed stock Q1 2024 (msf.) ~ 10.8

Current occupied stock Q1 2024 (msf.) ~ 9.7

Current Vacancy Q1 2024 (%) ~ 10.0%

Future Supply – Q2 2024 E – 2026 E (msf.) 4.2

Source: Consultant Research.

Note:
a) The future supply is considered after analysing each of the project based on the physical progress of the project, available information on
approvals and interactions held with various stakeholders.
b) The data represented is on calendar year basis.

2.5.4. Office Market Outlook

The current market rentals in the Bandra Kurla Complex micro market are in the range of INR 260-290 per sq. ft.
per month. Further over CY 2016 – CY 2018 the rents in Bandra Kurla Complex were steady before increasing
significantly in CY 2019 and continue to increase in Q1 CY 2024. Rentals have taken a major jump in Q1 CY
2024 due to continuous demand and renewals happening at a higher rate. Going forward, given the limited good
quality supply with Grade A landlords in the Bandra Kurla Complex, continuing strong demand for commercial
office spaces in the micro-market and commissioning of Metro Line 3 and 2B, which is likely to further boost the

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demand for office space in the micro-market and thereby on market rental, the long-term average annual growth
rate of 5% in the market rentals appears achievable.
The commercial real estate sector has shown significant resilience during the Covid struck period. Majority of the
markets have started to open-up and corporates have started to encourage the employees to return to office. This
is also driven by record high levels of attrition witnessed across industries, which has led to strong hiring trends in
terms of fresher and lateral hires. New Gen-Z (born between 1997 –2012) employees are in high demand by the
employers, however, work from home period has significantly dented their wellbeing as they struggle to bond with
teams. This has led to employers revisiting the need for training, interaction etc, thereby increasing the relevance
of office infrastructure for such corporates.
While some organizations have been contemplating strategies with respect to the hybrid work models - flexible
arrangement, allowing employees to combine onsite and offsite work as required, we expect the strong growth in
the IT - BPM sector, increased interests into Indian offshore centres by several IT/ITeS corporates and GCCs is
expected to drive significant demand for the commercial real estate sector.

3. Pune City Report

3.1. Pune Office Market Overview

The overall commercial office market in Pune and its key micro markets:

Particulars Pune PBD West

Total completed stock Q1 2024 (msf.) 72.5 16.3

Current occupied stock Q1 2024 (msf.) 63.9 12.6
Current Vacancy Q1 2024 (%) 11.9% 22.4%
Future Supply – Q2 2024 E – 2026 E (msf.) 25.1 3.5
Market Rent – Q1 2024 (INR per sq. ft. per month) 88 60

Source: Consultant Research.

PBD West – Hinjewadi, Wakad, Pimpri, Bhosari, Chinchwad, Bavdhan, Mulshi, Talawade, Tathawade, Nanded, Pimple Saudagar, etc.
Note:
a) The future supply is considered after analysing each of the project based on the physical progress of the project, available information
on approvals and interactions held with various stakeholders.
b) The data represented is on calendar year basis.

Pune, often referred to as the "Oxford of the East" and the "Detroit of India," is a thriving city in the state of
Maharashtra. Over the years, Pune has evolved into a multifaceted hub, hosting various industries and educational
institutions. Here are some key aspects that drive the demand for office space in the Pune region.

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The key drivers of demand for office space in Pune are as follows:

•Automobile and Manufacturing Industry: Known as the "Detroit of India," Pune has a robust presence in the
automobile and manufacturing sectors. Several automotive giants and manufacturing units have established their
operations in the city. This sector's growth contributes significantly to the demand for office spaces accommodating
corporate offices, research and development centers, and production facilities.

•IT Parks and Special Economic Zones (SEZs): Pune has witnessed a surge in the development of IT parks and
SEZs, providing a conducive environment for IT and business process outsourcing (BPO) companies. These zones
foster innovation, collaboration, and business growth, attracting both domestic and international firms.

•Strategic Location: Pune's strategic location, situated between Mumbai and Bengaluru, two major economic
hubs, enhances its accessibility and connectivity. The city is well-connected by road, rail, and air, making it an
attractive location for businesses seeking a central presence in India.

•Infrastructure Development: Pune has witnessed significant infrastructure development initiatives, including
metro rail projects, road expansions, and the expansion of Pune International Airport. These ongoing and planned
projects enhance the city's connectivity and make it more conducive for business operations.

•Educational and Social Infrastructure: Pune boasts a well-developed social infrastructure, including reputed
educational institutions, healthcare facilities, shopping malls, and recreational spaces. This creates a desirable
living and working environment, attracting professionals and their families.

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3.2. Pune - Supply, Absorption & Vacancy

A snapshot of the Supply, Absorption and Vacancy trend for Pune is as below:

Supply, Net Absorption and Vacancy Trend Analysis

8.0 13.0% 14%
3.5% 12.2% 11.9%
7.0 12%
6.0 9.6%
8.8% 8.9% 10%
Area in msf.

Vacancy %
5.0 7.6%
7.0% 8%
4.0
6%
3.0
2.0 4%

0.5
1.0 2%
2.8
2.9

2.0
2.2

3.1
3.8

4.1
5.6

2.9

2.1
1.1

6.9
3.6

5.8
5.7

1.7
1.6
- 0%
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Supply Net Absoption Vacancy %

Source: Consultant Research.

Note:
a) The Net absorption value refers to the net additional leasing activity which has occurred in the year. This does not include any pre-
commitments, renewals etc. The pre-commitments are recorded as absorption in the year in which the tenant occupies the building.
b) The data represented is on calendar year basis.

Pune's ascent as a prominent office market has been noteworthy, positioned as a viable alternative to Mumbai. Its
development trajectory showcases diverse patterns, transitioning from individual office spaces to
integrated/campus-style setups. Recent supply aligns closely with demand dynamics, emphasizing quality and
versatility to accommodate occupiers' preferences. The city is actively catering to the growing need for larger
integrated developments, facilitating consolidation and expansion opportunities. Micro markets within Pune have
distinct characteristics, reflecting varied developer ecosystems. With government-backed infrastructure
enhancements and urban expansion, office spaces offering enhanced amenities gain prominence, meeting the
evolving demands of businesses and professionals alike.

• As of Q1 CY 2024, approx. 72.5 msf. of Grade A inventory is present in Pune, approx. 1.7 msf. of new Grade
A supply was completed in Q1 CY 2024; and approx.1.6 msf. were absorbed during the same period.

• Pune offers a mix of IT, IT SEZ and Non-IT office supply.

• Approx. 25.1 msf. supply is expected to be delivered in the next 3 years.

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3.3. PBD West Micro Market

3.3.1. Office Market Overview - PBD West

Embassy TechZone, Quadron and Qubix, all are located in Hinjewadi which is a part of PBD West micro market
of Pune. This micro market houses Grade – A, IT/ ITeS space within established IT Parks at competitive rentals
with large floor plates and availability of MIDC (Maharashtra Industrial Development Corporation) infrastructure.
This micro-market hosts state sponsored Rajiv Gandhi Info Tech Park in dedicated MIDC area. PBD-West micro-
market houses Grade A commercial developments by CapitaLand, Embassy, Global Group, Kohinoor Group etc.
Major tenants include IT/ITeS, Engineering and Manufacturing companies are operational in this micro-market
such as Infosys, Cognizant, Wipro, Volkswagen, Mercedes etc.

The location map of the Subject Property is set out below:

Source: Consultant Research (Map not to scale). Subject Property

Proposed Commercial
Key Commercial Developments Social Infrastructure Hospitality Developments
Developments
7. Blue Ridge Public
1. Embassy TechZone 11. Grand Tamanna Hotel 15. EON Free Zone West
School

2. Embassy Quadron 8. Apollo Pharmacy 12. ibis Pune Hinjewadi 16. Global SEZ tech Park

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Proposed Commercial
Key Commercial Developments Social Infrastructure Hospitality Developments
Developments
9. Mahindra 13. Courtyard by Marriott
3. Embassy Qubix
International School Pune Hinjewadi
14. Hyatt Place Pune
4. Nalanda SEZ IT Park 10. Hinjewadi Hospital
Hinjewadi

5. Panchshil Tech Park

6. Ascendas ITTP

3.3.2. Micro Market - Rental Trend Analysis

Current quoted market rentals in PBD West are in the range of INR 40 – 60 per sq. ft. per month. Hinjewadi which
forms a part of PBD West have rentals in the range of INR 45 – 55 per sq. ft. per month. The rental escalations
from the years CY 2016 – Q1 CY 2024 have witnessed moderate growth resulting in a CAGR of approx. 3.5%. In
addition, it has been observed that there is high demand for Commercial Office Developments by Grade A
developers (viz. Embassy, CapitaLand, Global Group, Kohinoor Group etc.) Further, the upcoming Grade A
developments like upcoming buildings by Kohinoor Group, Global Group, Panchshil Realty etc are going to
improve absorption in this micro market and rentals are expected to witness an upward trend.

The following graph depicts the rental trend in PBD micro-market (CY 2016 – Q1 CY 2024):

Rental Trend Analysis - PBD West

65

60 60
60
INR per [Link]. per month

57

54 54
55 53

50
50 47
46

45

40
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Source: Consultant Research.

Note:
a) The rentals are basis the prevailing quotes in the micro market. Actual achievable rent may vary +/- 10% depending upon area take up,
negotiations, final structuring of the lease agreement and other parameters.
b) The data represented is on calendar year basis.

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Some of the prominent transactions in subject micro market are tabulated below:

Rate (INR per

Area Leased Date of Type of
Tenant Development Location sq. ft. per
(sq. ft.) Transaction Deal
month)
Embassy Hinjewadi
Tenant 1 160,000 Q1 2024 52 Renewal
TechZone Phase-II
Embassy Hinjewadi
Tenant 2 42,600 Q1 2024 54 Renewal
TechZone Phase-II
International Hinjewadi
Tenant 3 30,000 Q1 2024 55 Fresh
Tech Park Pune Phase-III
Nalanda SEZ IT Hinjewadi
Tenant 4 27,800 Q1 2024 51 Fresh
Park Phase-I
India Land
Hinjewadi
Tenant 5 Global Tech 61,200 Q4 2023 43 Fresh
Phase-I
Park
Nalanda SEZ IT Hinjewadi
Tenant 6 37,700 Q4 2023 53 Fresh
Park Phase-I
Source: Consultant Research.
Note: The data represented is on calendar year basis.

3.3.3. Micro Market - Supply, Absorption & Vacancy

A snapshot of the Supply, Absorption & Vacancy trends for PBD West is as below:

Supply, Absorption & Vacancy Analysis - PBD West

3.0 27.0% 30%
25.0%
2.5 22.4% 25%
2.0 17.6% 20%
Area in msf.

Vacancy %
1.5 15.3%
13.4% 13.1% 13.3%
15%
1.0

0.4
8.9%
10%
0.5
0.2
0.6
0.4

0.2

1.2
1.0

0.0
0.5

0.6

0.1

2.6
0.7

0.8
0.9

0.0

- 5%
-0.2
-0.2

(0.5) 0%
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Supply Net Absorption Vacancy %

Source: Consultant Research.

Note:
a) The Net absorption value refers to the net additional leasing activity which has occurred in the year. This does not include any pre-
commitments, renewals etc. The pre-commitments are recorded as absorption in the year in which the tenant occupies the building.
b) The data represented is on calendar year basis.

• The total stock of commercial office space in the PBD West as on Q1 CY 2024 is approx. 16.3 msf. (Grade A
office space)

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• The total net absorption of commercial office space in the PBD West market as on Q1 CY 2024 is approx. 0.4
msf.

• Vacancy levels in PBD West have decreased from 27.0% in CY 2022 to 22.4% in Q1 CY 2024, post COVID
the micro market has seen a net absorption of approx. 2.1 msf. From CY 2022 to Q1 CY 2024.

• Developers have shown interest in constructing new supply in this micro market. PBD West has witnessed a
total new supply of 3.4 msf. in the last 2 years. An upcoming supply of 3.5 msf. is expected in the next 3 years
in PBD West.

Some of the prominent operational commercial developments in PBD West include:

*Quoted Rentals
Year of Leasable Area Vacancy (as on
Building Name Developer Location (INR per sq. ft.
Completion (msf.) Q1 2024 msf.)
per month)

Ascendas ITPP CapitaLand India Hinjewadi Phase-III 2013 -2020 2.3 - 60

Trust

Nalanda Shelter CapitaLand India Hinjewadi-Phase-I 2022 1.3 0.7 60

Tower A Trust

India Land Global Park Hinjewadi Phase-I 2022 0.4 - 55

Global Tech Park

Panchshil Tech Panchshil Realty Hinjewadi 2007 0.3 - 65

Park Phase-I
Source: Consultant Research.
*Warm Shell Space.
Note: The data represented is on calendar year basis.

Key Statistics for PBD West micro market are as below:

Particulars Details

Total completed stock Q1 2024 (msf.) 16.3

Current occupied stock Q1 2024 (msf.) 12.6

Current Vacancy Q1 2024 (%) 22.4%

Future Supply – Q2 2024 E – 2026 E (msf.) 3.5

Source: Consultant Research.
Note:
a) The future supply is considered after analysing each of the project based on the physical progress of the project, available information on
approvals and interactions held with various stakeholders.
b) The data represented is on calendar year basis.

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3.3.4. Office Market Outlook

The PBD West micro market is a growing back-office micro market. The total stock of PBD West micro market
has grown at a CAGR of approx. 6% from 2016 to Q1 CY 2024. PBD West micro market is expected to deliver
approx. 3.5 msf. of new Grade A supply until 2026. Vacancy levels have decreased from approx. 25.0% in CY
2023 to approx. 22.4% in Q1 CY 2024. Approx. 2.9 msf. on net absorption is expected by CY 2026 against a new
supply of approx. 3.5 msf. By CY 2026. Rentals in this micro market has grown at a CAGR of approx. 3.5% since
CY 2016, showing growing traction for this micro market especially by IT and Engineering and Manufacturing
companies.

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4. Noida City Report

4.1. Noida Office Market Overview

Noida, located in the State of Uttar Pradesh, is an integral part of the NCR. It is a planned city located in Gautam
Buddha Nagar district. Further, it is located at about 25 km South-East of Central Delhi and can be accessed from
Central Delhi via: Delhi – Noida Direct (DND) Flyway or Toll Bridge; Sarita Vihar or Kalindi Kunj Road; and the
Nizamuddin Flyover. The primary office clusters in Noida are concentrated towards sector 16, 18, 32 and 57 – 65
and also on the belt running along Noida-Greater Noida (NGN) Expressway. The office developments in these
sectors constitute a mix of investment grade and sub-investment grade developments. NGN Expressway primarily
constitutes investment grade developments. Sector 16, 18, and 32 house commercial developments, however the
other two office clusters (sector 57 – 65 and NGN Expressway) predominantly offer IT/ITeS and SEZ
developments. To name a few, established players like Embassy, Brookfield, Logix Group and Advant Group etc.
have their footprint in Noida. Along with prominent office spaces, NGN Expressway has recently become a hub
for international schools as well. Some well-known schools operational on NGN Expressway are Lotus Valley
International School, Gyanshree School, Mayoor School, Pathways International, Amity International etc.

Traditionally, retail cluster in Noida had remained confined to Sector 18 which is also known as the “Atta Market”.
Gradually, as the development activity in the city progressed a number of malls got developed in sector 16, 18 and
32. Few of the prominent retail malls in the city are Great India Place, DLF Mall of India (one of the largest in
NCR with leasable area of approx. 2 msf.), Centre Stage Mall, Gardens Galleria, Spice Mall, Logix City Center
Mall etc. Together, all these retail malls contribute to a significant percentage of organized retail supply of the city.

Residential supply of the city can be divided under established and upcoming sectors. The established sectors of
Noida such as 14, 15, 21, 22, 45, 55, 56, etc. constitute plotted developments through government or unorganized
players and high-rise developments primarily under cooperative group housing schemes. Central Noida,
comprising sectors 72 – 79, the sectors along the under-construction FNG expressway and sectors in Noida
Extension are highly dense sectors. Hence, most of the projects in these micro markets comprise high-rise group
housing projects. These sectors are being developed by organized players/ developers and primarily cater to Middle
Income Group. The sectors along Noida-Greater Noida Expressway have residential projects along both sides.
Residential developments in this micro market comprise both plotted developments and high-rise group housing
projects. These sectors are being developed by organized players/ developers and cater to all segments viz. Middle-
Income Group, Upper Middle-Income Group and High-Income Group.

Noida has ample talent pool to cater the office occupants present in the city. Amity University, Jaypee Institute of
Information & Technology and Sharda University are few of the renowned educational campuses present in Noida.

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The key drivers of demand for office space in Noida are as follows:

Connectivity and Linkages: Noida is well connected to other nodes of NCR via. Robust road and metro network.
Hence, efficient management of commuting by public and private mode of communication makes it a conducive
location for workforce travelling for work. Noida is the only city in NCR where the physical infrastructure was
planned ahead of real estate development. Hence, the city enjoys superior physical infrastructure and planned
architectural layout.

Lower Occupation Cost: Noida has availability of residential and office spaces with rentals and capital values
significantly lower than those of Gurugram and Delhi. Hence, the city stands out as it offers quality living at a
much lower occupation cost.

Access to educated talent pool from Delhi, Haryana, Punjab, Rajasthan, and Uttar Pradesh: Noida is accessible
through multiple modes of transportation and offers residential spaces across various price categories; it attracts
talent pool from all adjoining locations.

Noida has been divided into three micro markets:

• Noida-Greater Noida (NGN) Expressway – refers to the geographical expanse of NGN expressway.

• Sector – 62, Noida – refers to the Northern part of Noida, abutting NH 24 and covering the surrounding sectors
of 57, 58, 59 and 60 towards South and sectors 63 and 64 towards East.

• Rest of Noida – refers to office clusters in Sectors 16 – 18, Sectors 32 – 34 and Greater Noida West.

The overall office market in Noida and its key micro markets:

Noida-Greater
Particulars Noida Noida (NGN) Sector 62, Noida
Expressway

Total completed stock Q1 CY’2024 (msf.) 23.3 15.0 7.4

Current occupied stock Q1 CY’2024 (msf.) 17.8 10.3 6.9
Current Vacancy Q1 CY’2023 (%) 23.7% 31.3% 6.3%
Future Supply – Q2 2024 E – 2026 E (msf.) 4.1 2.9 1.3
Market Rent – Q1 CY’2023 (INR per sq. ft. per month) 54.4 54.5 54.2
Source: Consultant Research.
Notes:
a) Only the relevant stock has been considered for this analysis excluding the buildings which are less than 1 lakh square feet, excluding
Non-IT buildings and applying certain other criteria.
b) The future supply is considered after analysing each of the project based on the physical progress of the project, available information
on approvals and interactions held with various stakeholders.
c) Embassy Oxygen Tower -1 has been considered as under construction building as of Q1 CY 2024, as the OC has been received post Q1
CY 2024.
d) The data represented is on calendar year basis.

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4.2. Noida - Supply, Net Absorption & Vacancy

Noida has emerged as a preferred IT / ITeS destination over the years due to excellent physical infrastructure,
affordable rentals, and availability of large office spaces. The growth is backed by availability of large talent pool
and residential spaces across all price points. The overall perception of Noida has also evolved as an office
destination. A snapshot of the Supply, Net Absorption and Vacancy trend for Noida is as below:

Supply, Net Absorption & Vacancy Trend Analysis

2.50 27.0% 30.0%
25.0% 25.5%
23.7%
2.00 25.0%

14.7% 18.7%
20.0%

Vacancy %
1.50
In msf.

12.8% 12.7% 12.9% 15.0%

1.00
10.0%

0.7
0.50 5.0%
0.1
0.9
1.5

0.6
0.8

1.1
1.0

1.9
1.6

1.4

2.1

1.6

1.2
1.2

0.0
0.4
0.4
0.00 0.0%
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Supply Net Absorption Vacancy %

Source: Consultant Research.

Notes:
a) Only the relevant stock has been considered for this analysis excluding the buildings which are less than 1 lakh square feet, excluding
Non-IT buildings and applying certain other criteria.
b) The Net absorption value refers to the net additional leasing activity which has occurred in the year. This does not include any pre-
commitments, renewals etc. The pre-commitments are recorded as absorption in the year in which the tenant occupies the building.
c) The data represented is on calendar year basis.

Over the past 8.25 years, Noida has seen an average additional supply of approx. 1.3 msf. And an annual average
net absorption of approx. 0.9 msf. The city has always benefited from the presence of superior infrastructure as
compared to other cities of NCR. With improvement in intercity connectivity, and supply of quality developments,
the net absorption is likely to go in upwards direction. The shift in development status of the city from being
dominated by sub-investment grade structures to good campus / large integrated park-based developments has
resulted in the city to grow exponentially in office segment. With increasing occupier base, and major infrastructure
getting developed viz. Jewar Airport in Noida, the same trend is likely to continue in future.

4.3. Embassy Oxygen Micro Market

4.3.1. Office Market Overview - Noida - Greater Noida (NGN) Expressway

The Subject Property lies in Noida-Greater Noida (NGN) Expressway (hereinafter referred to as ‘subject micro
market’), which is one of the fastest growing office clusters of Noida. This micro market is located in South-
Eastern part of Noida and is being developed as an integrated vector with presence of residential, institutional,
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commercial, and IT/ITeS developments along both sides of NGN Expressway. The micro market possesses
excellent physical infrastructure and is one of the established IT /ITeS destinations of Noida. This micro market is
dotted with presence of both nationalized and local developers and the office supply here primarily constitutes
investment grade structures.

Some of the well-established commercial developments in the micro market includes Candor TechSpace N2,
Advant Navis Business Park, Express Trade Tower 2, Assotech Business Cresterra and the Subject
Property(Embassy Oxygen). The micro market also houses the office of various corporates such as Axis Bank,
Adobe, Samsung etc. The Subject Property is within close proximity to some of the renowned hotels like Sandal
Suite by Lemon Tree etc.

Noida-Greater Noida Expressway, which is a 23.5 km long 6–lane expressway connects the micro market to rest
of the city and other parts of NCR. This micro market is also connected to other parts of the city through Aqua line
of DMRC with nearest metro station located at Sector 142 on NGN expressway. Further, the under-construction
Faridabad Noida Ghaziabad (FNG) Expressway and a proposed 75-meter-wide expressway starting from Noida
Sector 150 up till Faridabad will enhance the connectivity of micro market with Ghaziabad and Faridabad.

The location map of the Subject Property is set out below:

13
6
7
15

12
11 10
3
9 5 1 17
2
14 4 8

Source: Consultant Research (Map not to scale). Subject Property

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Proposed Commercial
Key Commercial Developments Social Infrastructure Hospitality Developments
Developments

1. Advant Navis Business Park (3.0 14. Sandal Suites by Lemon

8. Shiv Nadar School (3.3 km) 16. Stellar 1423 (2.7 km)
km) Tree (4.6 km)
9. Police Station, Sector 135 (4.2 15. Hide Away Suites (10.4 17. ORD Towers Sector 132 (7.7
2. Candor TechSpace N2 (4.0 km)
km) km) km)
3. Sovereign Corporate Tower (4.2 10. Genesis Global School (6.8
km) km)
4. Assotech Business Cresterra (4.5
11. DPS, Sector 132 (7.5 km)
km)
5. Express Trade Tower 2 (6.8 km) 12. Jaypee Hospital (7.8 km)
13. Pathways School Noida
6. Logix Techno Park (11.0 km)
(10.0 km)
7. Windsor Grand (11.5 km)

4.3.2. Micro Market - Rental Trend Analysis

The subject micro market is a preferred destination for IT/ITeS occupier base. It is the largest office micro market
of Noida, offering superior infrastructure, and office developments which offer world class amenities. The rental
quote in the micro-market is in the range of INR 47 to INR 65 per sq. ft. per month, basis grade of development,
developer profile, amenities, tenant type, other lease terms, etc. The Noida-Greater Noida Expressway is one of
the fastest growing office clusters of Noida. The micro market enjoys superior connectivity with Delhi and other
parts of Noida. With continuous improvement in infrastructure, occupiers are willing to expand across the city.
The micro market has thus witnessed entry of many such occupiers. With significant differential in rentals as
compared to micro markets of Gurugram and other micro markets of NCR, the subject micro market offers
competitive rentals to occupiers.

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The following graph depicts the rental trend in NGN Expressway micro market (2016 – Q1 CY 2024):

Rental Trend Analysis - Noida-Greater Noida Expressway

65

60
INR per [Link]. per month

54 54 54 54 55
55 53
49
50 47
46
45

40

35
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Source: Consultant Research

Notes:
1. Only the relevant stock has been considered for this analysis excluding the buildings less than 1 lakh square feet, excluding Non-IT
buildings, and applying certain other criteria.
2. The rentals are basis the prevailing quotes in the micro market. Actual achievable rent may vary +/- 10% depending upon area take
up, negotiations, final structuring of the lease agreement and other parameters.
3. Rentals presented above are weighted average values on completed stock.

Some of the prominent transactions along NGN Expressway are tabulated below:
Rent
Area Leased Date of Type of
Tenant Development Location (INR per sq. ft.
(msf.) Transaction facility
per month)
Sovereign
NGN
Tenant 1 Corporate 0.02 Q3 2023 55 Warm shell
Expressway
Tower
Sovereign
NGN
Tenant 2 Corporate 0.02 Q3 2023 55 Warm shell
Expressway
Tower
Advant Navis NGN
Tenant 3 0.03 Q2 2023 65 Warm shell
Business Park Expressway
Advant Navis NGN
Tenant 4 0.06 Q2 2023 60 Warm shell
Business Park Expressway
Assotech
NGN
Tenant 5 Business 0.01 Q2 2023 55 Warm shell
Expressway
Cresterra
Candor NGN
Tenant 6 0.13 Q1 2023 62 Warm shell
Techspace N2 Expressway
Candor NGN
Tenant 7 0.04 Q1 2023 58 Warm shell
Techspace N2 Expressway
Windsor NGN
Tenant 8 0.05 Q4 2022 53 Warm shell
Grand Expressway
Windsor NGN
Tenant 9 0.07 Q4 2022 52 Warm shell
Grand Expressway
Logix Techno NGN
Tenant 10 0.01 Q2 2022 50 Warm shell
Park Expressway
Source: Consultant Research.
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4.3.3. Micro Market - Supply, Net Absorption & Vacancy

As of Q1 CY 2024, the net absorption in the subject micro market is approx. 0.1 msf, with vacancy levels at
approximately 31.3%.approximately 31.3%. A snapshot of the Supply, Net Absorption & Vacancy trends for
Noida-Greater Noida Expressway is as below:

Supply, Net Absorption & Vacancy Trend Analysis -

Noida-Greater Noida Expressway
2.50 40.0%
34.6%
30.6% 31.8% 31.3% 35.0%
2.00
30.0%
1.50 13.3% 21.7% 25.0%
Area in msf.

Vacancy %
19.2%
16.8% 16.6% 20.0%
1.00
15.0%
0.50 10.0%

0.3
0.7
0.8

0.3

0.7
0.6

1.4
1.4

0.9

2.1
0.5

1.3

1.2
1.2

0.0
0.1
0.4

5.0%
0.00
0.0%
-0.1

-0.50 -5.0%
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Supply Net Absorption Vacancy %

Source: Consultant Research

Note:

1. Only the relevant stock has been considered for this analysis excluding the buildings which are less than 1 lakh square feet, excluding
Non-IT buildings and applying certain other criteria.
2. Absorption refers to the Net absorption. The Net absorption value refers to the net additional leasing activity which has occurred in the
year. This does not include any pre-commitments, renewals etc. The pre-commitments are recorded as absorption in the year in which
the tenant occupies the building.

Some of the prominent operational commercial developments in Noida – Greater Noida Expressway include:
Quoted Rentals
Year of Leasable Area Vacancy as on
Building Name Developer Location (INR per sq. ft.
Completion (msf.) Q1 2024 (msf.)
per month) *
Candor Brookfield NGN 2009-22 3.81 0.86 60 - 65
TechSpace N2 India Real Expressway
Estate Trust
Advant Navis Advant Group NGN 2010-19 1.15 0.08 58 - 62
Business Park Expressway
Assotech Assotech NGN 2016-22 1.67 0.04 40 - 45
Business Expressway
Cresterra
DLF Tech DLF NGN 2023 0.43 0.18 55 - 60
Park Phase 1 Expressway
Express Trade ETT Group NGN 2014 0.68 0.13 45 - 50
Tower II Expressway

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Quoted Rentals
Year of Leasable Area Vacancy as on
Building Name Developer Location (INR per sq. ft.
Completion (msf.) Q1 2024 (msf.)
per month) *
Windsor IT Windsor NGN 2007 0.24 0 58 - 60
Park Group Expressway
Windsor Grand Windsor NGN 2022 0.35 0 58 - 60
Group Expressway
Source: Consultant Research *
Warm Shell Space
Note: The data represented is on calendar year basis.

Key Statistics for Noida-Greater Noida (NGN) Expressway micro market are as below:

Particulars Noida-Greater Noida (NGN) Expressway

Total completed stock Q1 CY 2024 (msf.) 15.0

Current occupied stock Q1 CY 2024 (msf.) 10.3

Current Vacancy Q1 CY 2024 (%) 31.3%

Future Supply – Q2 CY 2024 E– 2026 E (msf.) 2.9

Source: Consultant Research.
Notes:
a) Only the relevant stock has been considered for this analysis excluding the buildings which are less than 1 lakh square feet, excluding
Non-IT buildings and applying certain other criteria.
b) The future supply is considered after analysing each of the project based on the physical progress of the project, available information
on approvals and interactions held with various stakeholders.
c) Embassy Oxygen Tower -1 has been considered as under construction building as of Q1 CY 2024, as the OC has been received post Q1
CY 2024.
d) The data is on calendar year basis.

4.3.4. Office Market Outlook

The Noida-Greater Noida (NGN) Expressway micro market comprises of some of the well-established office
developments i.e., Subject Property, Candor TechSpace N2, Advant Navis Business Park, Express Trade Tower 2,
Assotech Business Cresterra, etc.

The vacancy in the Micro Market has shown a declining trend from 19.2% in 2016 to 13.3% in CY 2019. Since
CY 2019 the vacancy level has increased owing to continuous supply addition in the market. As on Q1 CY 2024,
the REIT Micro Market has witnessed the absorption of 0.1 msf. As on Q1 CY 2024, the vacancy of the REIT
Micro Market is 31.3%.

According to the market assessment provided, the current weighted average quoted market rentals of the micro
market is INR 55 per sq. ft. per month and may vary +/- 10% depending upon area take up, negotiations, final
structuring of the lease agreement and other parameters.

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Considering the well-maintained infrastructure, key location, and increasing trend of return to office, the
occupancy and rental trend is expected to show a positive trend in the coming future.

Additionally, the micro market constitutes large IT Parks which fit well with the requirement of technology sector
(largest contributor to demand of office spaces in Noida). We expect that the factors including growth in the IT-
BPM sector, increased interests into Indian offshore centers by several IT/ITeS corporates and GCCs will further
drive significant demand in the commercial real estate sector.

4.4. Embassy Galaxy Micro Market

4.4.1. Office Market Overview - Sector 62

The Subject Property lies in Sector 62, Noida (hereinafter referred to as ‘subject micro market’) which is
characterized by the presence of large public and private sector institutions like Indian Academy of Highway
Engineers, The Institute of Chartered Accountants of India, Jaipuria Institute of Management, Jaypee Institute of
Information Technology, Symbiosis Law School, Bank of India Staff Training College and Indian Institute of
Management, Lucknow (Noida Campus).

As per Noida master plan 2031, Sector-62 is zoned as institutional sector. The micro market is located in Northern
part of Noida and abuts National Highway – 9. The surrounding sectors of the micro markets are sector 57, 58, 59
and 60 towards South and sector 63 and 64 towards East. Further, Sector 62 shares its boundaries with Village
Khora and Sector – 62 A towards West.

In terms of office space, Sector – 62, Noida constitutes a mix of investment grade and sub-investment grade
structures. Further, the office supply is primarily IT/ ITeS in nature. Few of the prominent IT/ITeS developments
in the micro market are Candor TechSpace N1, Knowledge Boulevard, Green Boulevard, Stellar IT Park, Logix
Cyber Park, Okaya Blue Silicon, etc. and the Subject Property(Embassy Galaxy).

National Highway – 9 (Erstwhile NH – 24) is the primary road connecting this micro market to rest of Delhi NCR.
Widening of NH – 9 and development of signal free elevated corridor from Nizamuddin in Delhi up till UP border
on NH – 9 has significantly enhanced the connectivity of Sector – 62 with rest of NCR. The micro market is also
connected through blue line of Delhi Metro Rail. The nearest metro station is Noida Electronic City metro station,
which is at a distance of approx. 0.7 km from the subject property. Further, Sector – 62 enjoys a signal free
connectivity from Sector – 18, Noida (through underpass at Sector – 18 which joins to a 4.8 km elevated corridor
from Sector – 28 up till Sector 61). This has significantly improved traffic and vehicular movement for commute
to Sector – 62. Additionally, the 750-meter-long underpass in Sector – 71 further brings traffic relief to those
travelling from Noida Extension towards Noida City Centre and going further towards Delhi.

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The location map of the Subject Property is set out below:

11

12

Subject Property
Source: Consultant Research (Map not to scale).

Proposed Commercial
Key Commercial Developments Social Infrastructure Hospitality Developments
Developments

1. Logix Cyber Park (1.8 3. Fortis Hospital (0.8 km) 9. Park Ascent Hotel (1.6 11. Maaster’s Capitol
km) km) Avenue (1.2 km)
2. Stellar IT Park (2.1 km) 4. KLAY Prep School and Day- 10. Radisson Noida (3.9 12. Ithums Heights (1.7
care (0.8 km) km) km)
3. Candor TechSpace N1 6. Global Business School (1.1
(2.2 km) km)
7. SJM Hospital & IVF Centre
(2.8 km)
8. AmiCare Hospital (3.9 km)

Source: Consultant Research.

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4.4.2. Micro Market - Rental Trend Analysis

The office space in Sector-62, Noida micro market constitutes a mix of investment grade and sub-investment grade
developments. Further, the office supply is primarily IT/ ITeS in nature. The rental quote in the micro-market is in
the range of INR 47 to INR 65 per sq. ft. per month, basis grade of development, developer profile, amenities,
tenant type, other lease terms, etc. The rentals in the micro market have witnessed rapid growth during the period
CY 2016 – Q1 CY 2024 resulting in a CAGR of approx. 5.3%.

The following graph depicts the rental trend in Sector-62, Noida micro market (CY 2016 – Q1 CY 2024):

Rental Trend Analysis - Sector 62, Noida

65
INR per [Link]. per month

60
54 54
55 52
49
50 47 47

45 42
41
40 38

35
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Source: Consultant Research.

Notes:
a) Only the relevant stock has been considered for this analysis excluding the buildings which are less than 1 lakh square feet, excluding
Non-IT buildings and applying certain other criteria.
b) The rentals are basis the prevailing quotes in the micro market. Actual achievable rent may vary +/- 10% depending upon area take up,
negotiations, final structuring of the lease agreement and other parameters.
c) The data represented is on calendar year basis.

Some of the prominent transactions along Noida Sector - 62 are tabulated below:

Rent
Area Leased Date of
Tenant Development Location (INR per sq. Type of Deal
(msf.) Transaction
ft. per month)
Knowledge Sector-62,
Tenant 1 0.01 Q3 2023 64 Fresh
Boulevard Noida
Candor Sector-62,
Tenant 2 0.02 Q2 2023 48 Fresh
TechSpace N1 Noida
Green Sector-62,
Tenant 3 0.01 Q2 2023 50 Fresh
Boulevard Noida
Candor Sector-62,
Tenant 4 0.01 Q1 2023 63 Fresh
TechSpace N1 Noida
Candor Sector-62,
Tenant 5 0.05 Q1 2023 59 Fresh
TechSpace N1 Noida
Candor Sector-62,
Tenant 6 0.04 Q1 2023 62 Fresh
TechSpace N1 Noida
Candor Sector-62,
Tenant 7 0.03 Q1 2023 62 Fresh
TechSpace N1 Noida

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Rent
Area Leased Date of
Tenant Development Location (INR per sq. Type of Deal
(msf.) Transaction
ft. per month)
Candor Sector-62,
Tenant 8 0.04 Q1 2023 53 Fresh
TechSpace N1 Noida
Knowledge Sector-62,
Tenant 9 0.01 Q1 2023 64 Fresh
Boulevard Noida
Sector-62,
Tenant 10 Stellar IT Park 0.01 Q1 2023 60 Fresh
Noida
Source: Consultant Research.
Note: The data represented is on calendar year basis.

4.4.3. Micro Market - Supply, Net Absorption & Vacancy

The demand in the subject micro market is dominated by technology occupiers. Sector-62, Noida micro market is
attractive to tenants due to the availability of larger floor plates, affordable rentals, and good connectivity. The
technology occupiers in this micro market are involved in the activities of software development, research, and
Cloud base services etc. As Noida continues to attract the technology sector, the micro market is expected to grow.

A snapshot of the Supply, Absorption & Vacancy trends for Sector 62 is as below:

Supply, Net Absorption & Vacancy Trend Analysis -

Sector 62 - Noida
0.60 13.3% 15.0%
9.3% 11.5% 11.5% 11.3%
0.50
7.8%
0.40 8.7% 10.0%
7.6% 6.3%
Area in msf.

0.30

Vacancy %
0.20 5.0%
0.1

0.10
0.0
0.5

0.3
0.4

0.3
0.3

0.0

0.5
0.2

0.0

0.3
0.4

0.0
0.0

0.0
0.4

0.00 0.0%
-0.1

-0.10

-0.20 -5.0%
2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024

Supply Net Absorption Vacancy %

Source: Consultant Research.

Note:
a) Only the relevant stock has been considered for this analysis excluding the buildings which are less than 1 lakh square feet, excluding
Non-IT buildings and applying certain other criteria.
b) The Net absorption value refers to the net additional leasing activity which has occurred in the year. This does not include any pre-
commitments, renewals etc. The pre-commitments are recorded as absorption in the year in which the tenant occupies the building.
c) The data represented is on calendar year basis.

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Some of the prominent operational commercial developments in Sector 62, Noida include:
Quoted Rentals
Year of Leasable Area Vacancy as on
Building Name Developer Location (INR per sq. ft.
Completion (msf.) Q1 2024 (msf.)
per month) *
Brookfield
Candor
India Real Noida 62 2010-20 1.99 0.07 60 - 65
TechSpace N1
Estate Trust
The 3C
Green
Company & Noida 62 2008 0.62 0.15 50 - 55
Boulevard
New Vernon
Logix Cyber
Logix Group Noida 62 2007-08 1.17 0.25 45 - 50
Park
Stellar IT Park Stellar Group Noida 62 2008 0.62 0.06 57 - 62
Knowledge
Majestic Group Noida 62 2008 0.66 0.09 55 - 59
Boulevard
Okaya Blue Okaya
Noida 62 2014 0.64 0.00 62 - 67
Silicon Lifespaces
Note: The data represented is on calendar year basis.

Key Statistics for Sector 62, Noida micro market are as below:

Particulars Details

Total completed stock Q1 CY 2024 (msf.) 7.4

Current occupied stock Q1 CY 2024 (msf.) 6.9

Current Vacancy Q1 CY 2024 (%) 6.3%

Future Supply – Q2 CY 2024 E – CY 2026 E (msf.) 1.3

Source: Consultant Research.
Notes:
a) Only the relevant stock has been considered for this analysis excluding the buildings which are less than 1 lakh square feet, excluding
Non-IT buildings and applying certain other criteria.
b) The future supply is considered after analysing each of the project based on the physical progress of the project, available information
on approvals and interactions held with various stakeholders.
c) The data represented is on calendar year basis.

4.4.4. Office Market Outlook

Sector-62, Noida comprises some of the well-established office developments i.e., the Subject Property, Stellar IT
Park, Candor TechSpace N1, Okaya Blue Silicon etc.

The Micro Market has been observing a declining vacancy trend since CY 2021 owing to limited supply addition.
Since CY 2016 till CY 2019 the Competitive REIT Micro Market witnessed range bound vacancy levels between
approx.7% to approx.9%. As on Q1 CY 2024, the vacancy of the Micro Market is approx.6.3% with 0.36 msf.
(i.e., Q1 CY 2024) of net absorption.

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According to the market assessment provided, the current weighted average quoted market rental of the micro
market is INR 54 per sq. ft. per month, and it may vary +/- 10% depending upon area take up, negotiations, final
structuring of the lease agreement and other parameters.

Preference for work from home has reduced significantly and many organisations have started calling their
workforce back to office. Considering the well-maintained infrastructure, key location, improved connectivity
(through Sector 71 underpass and expansion of Delhi Metro Corridor) and increasing trend of return to office, the
occupancy and rental trends are expected to show a positive trend in the coming future. Additionally, the micro
market constitutes large IT Parks which fit well with the requirement of technology sector (largest contributor to
demand of Noida). We expect that the factors including growth in the IT-BPM sector, increased interests into
Indian offshore centres by several IT/ITeS corporates and GCCs will further drive significant demand in the office
real estate sector.

5. Bellary Micro Market

The Subject Property is an operational solar park and owned by 'Embassy-Energy Private Limited (EEPL) and is
strategically situated in the Bellary District, spanning three villages—Ittigi, Mooregeri, and Nellukudure. Despite
its distance of over 300 km from Bengaluru City, the region lacks development in terms of real estate activity.
Characterized by vast expanses of agricultural land, particularly with black cotton soil, it stands out as a unique
area with distinctive natural features.

The potential for development in the area has got attention due to the establishment or proposed development of
solar parks by major players such as Adani and ReNew, indicating a shift in the economic landscape. This influx
of renewable energy projects positions the location as a hub for sustainable initiatives, contributing to its growing
significance in the broader energy sector. In addition to its geographical advantages, the property holds significance
in the context of power generation and distribution.

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The location map of the Subject Property is set out below:

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F. EMBASSY MANYATA

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1. Property Description - Manyata

Embassy Manyata - Comprising of completed & under-construction commercial IT/ITeS SEZ and
Property Name
Non-SEZ office blocks, hotel & convention centre.

Nagavara Village, Kasaba Hobli, Bengaluru North Taluk, Bengaluru District and Rachenahalli and
Address
Thanisandra Villages, Krishnarajapuram Hobli, Bengaluru East Taluk, Bengaluru District.

Ownership & Title Details Manyata Promoters Private Limited

Total operational area – approx.12.4 msf.

Leasable Area Total under construction/ proposed area – approx. 3.2 msf.
Hotel – 619 keys (developable area of hotel & convention centre – approx. 0.8 msf.)

Source: Information received from Client, Architect Certificate, Title Report.

1.1. Encumbrances

Unless disclosed and recorded in the Property Report, the Subject Property is considered to possesses a good and
marketable title and is free from any unusually onerous encumbrances with no option or pre-emption rights in
relation to the assets except for those created in favour of the lenders as mentioned below, based on the information
given in the Title Reports prepared by King & Partridge. We have not checked and verified the title of the Subject
Property.

2. Location

2.1. General

Embassy Manyata is located along the ORR and forms part of the Peripheral North micro market. Good
connectivity of Embassy Manyata to the Kempegowda International Airport facilitates convenient travel for
business, while its access to the Outer Ring Road streamlines intra-city commuting. It enjoys good connectivity to
other established micro markets such as Yeshwanthpur, KR Puram, Whitefield, Sarjapur Outer ring road, etc. Since
its inception in 2006, Embassy Manyata has been a catalyst for development in the subject micro-market and the
location has emerged as a prominent real estate growth vector. Furthermore, with the available infrastructure
projects such as the elevated expressway, the Subject Property will continue to play a pivotal role in the evolution
of the vector as a growth corridor.

The location is well supported by social infrastructure with educational institutions like REVA University, KNS
Institute of Technology, etc., hospitality developments like Courtyard by Marriott, Country Inn Suites by Radisson,
The Leela Bhartiya City, Orchid Suites & Food, Royal Orchid Resort & Convention Centre, etc. and hospitals like
Regal Kidney and Multi-Specialty Hospital, Manipal Hospital Hebbal, etc. The locality is easily accessible to other

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parts of the city via the ORR and the completion of the under-construction metro line (Blue Line) which is expected
to be completed by June 2026 will further improve the connectivity & traffic condition of the location.

The Subject Property offers amenities like food courts, sport zone, day care centre, medical facilities, multi-level
car parks, Intra Park shuttle, CCTV surveillance, Fire station, ambulance service, etc.

The location map of the Subject Property is set out below:

6
4 3

1 2

1 4
2 5
3 6

Source: Consultant Research (Map not to Scale).

The total land area of the Subject Property admeasures approx. 121.8 acres. Basis the site plan & visual inspection
during site visit, it was observed that the subject land is irregular in shape. The Subject Property enjoys good
frontage and has a levelled topography. It commands superior visibility on account of multiple accesses via the
Outer ring road.

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Site Boundaries:

The site boundaries for the Subject Property are as under:

• North: Private Property (Residential Development).

• South: Primary access road (Outer Ring Road).
• East: Private Property (Residential Development).
• West: Karle Town Centre (Commercial Development).

2.2. Accessibility

The Subject Property is well connected to major locations in the city via road network. The distance of the Subject
Property from major landmarks in the city is as follows:

• Approx. 3-4 km from Hebbal Junction.

• Approx. 9-10 km from M G Road Metro Station.
• Approx. 11-12 km from Bengaluru Railway Station.
• Approx. 25-27 km from Kempegowda International Airport.

The completion of under construction ORR – Airport Metro (Blue line) would further improve the connectivity of
subject property.

Embassy Manyata has proven to be one of the most prominent landmarks in Peripheral North micro market in
particular and the city in general. The establishment of the International Airport has tremendously improved
connectivity and has hence, provided a huge impetus to its status as the premier tech park in the city. Continuous
supply of office area within the tech park provides flexibility and multiple options to current tenants who want to
expand and occupy additional space.

Embassy Manyata also has access to basic urban infrastructure in terms of power, water supply and municipal
sewerage system.

The property photographs of the Subject Property are attached in Annexure 3.

2.3. Ground Conditions

Based on visual inspection, there were no evidence of adverse ground conditions at the property or immediate
vicinity.

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2.4. Environment Considerations

We have not carried out any investigations or tests or been supplied with any information from Client or from any
relevant expert that determines the presence or otherwise of pollution or contaminative substances in the subject
or any other land (including any ground water). For the purpose of assessing the vulnerability of the Subject
Property to any natural or induced disaster the location of the Subject Property with respect to risks pertaining to
earthquakes, high winds/ cyclone and flooding was studied. The city faces low risk in terms of high winds or
cyclones too. The Subject Property is not likely to face any higher risk than the overall risk profile of the city. No
hazardous activity was noted in the vicinity of the Subject Property which may expose it for any induced disaster.

2.5. Town Planning and Statutory Considerations

We have not made formal search but have generally relied on readily available information to general public. Our
Report is on current use/ current state basis of the property, and we have not considered any Government proposals
for road widening or compulsory purchase/ acquisition, or any other statute in force that might affect the Subject
Property.

3. Subject Property - Asset Description

Embassy Manyata comprises of a total land area admeasuring approx. 121.8 acres under the ownership of Manyata
Promoters Private Limited. A detailed summary of Embassy Manyata office blocks at various stages of
development is as follows:

Completed Blocks– Jacaranda (C1), Cedar (C2), ELM (C4), Redwood (D3), Cypress (D4), Beech (E1&FC),
Ebony (G2), Aspen (G4), Rosewood (K), Magnolia (B), Silver Fir (L6), Mahogany (F2), Silver Oak (E2), Pine
(L5), Eucalyptus (H1), Mulberry (G1), Palm (F3), G1-G2 Bridge (G1G2), Mountain Ash (H2), Hazel (L3), MFAR
(MFAR Green), Teak (G3), Philips (Philips), Banyan & Willow (Block L1-L2), NXT (Tower-1 and Tower-2),
Front Parcel (Retail) additionally recently completed Block M3A with a total leasable area of approx. 12.4 msf.

The completed buildings and parts thereof with Occupancy Certificate (OC) collectively admeasure approx. 12.4
msf. of leasable area. Out of which, Beech (E1&FC), Jacaranda (C1), Magnolia (B), MFAR (MFAR Green),
Philips (Philips), Pine (L5), Redwood (D3), Rosewood (K), Silver Fir (L6), Silver Oak (E2), NXT (Tower-1 and
Tower-2), Front Parcel (Retail) are Non-SEZ buildings.

Under Construction/Proposed Blocks– Block M3B, Block D1 & D2, Block L-4, and Block F-1 with a total
leasable area of approx. 3.2 msf.

The under construction building Blocks collectively admeasuring approx. 3.2 msf. of leasable area is expected to
be completed by Q1 FY 2029.

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3.1. Key Asset Information

Completed Blocks

Particulars: Details

Entity: Manyata Promoters Private Limited1

Building Leasable Area

Block Name SEZ/ Non-SEZ Age (Years)
Elevation (msf.)
Block C1–-
2B+G+4 Non-SEZ 14 0.3
Jacaranda
Block C2–- Cedar B+G+8 SEZ 14 0.5
Block C4–- Elm B+G+6 SEZ 14 0.4
Block D3–-
B+G+10 Non-SEZ 16 0.4
Redwood
Block D4–- Cypress B+G+10 SEZ 16 0.5
Block E1, FC–-
B+G+3 Non-SEZ 15 0.2
Beech
Block G2–- Ebony 2B+G+8 SEZ 11 0.4
Block G4–- Aspen 2B+G+10 SEZ 11 0.4
Block K–-
B+G+4 Non-SEZ 17 0.3
Rosewood
Block B–- Magnolia B+G+3 Non-SEZ 17 0.3
Block L6–- Silver
B+G+10 Non-SEZ 12 0.4
Fir
Block F2–-
B+G+10 SEZ 14 0.8
Mahogany
Block E2–- Silver
Age of Building based G+7 Non-SEZ 15 0.5
Oak
on the date of
Block L5–- Pine B+G+10 Non-SEZ 14 0.4
Occupancy Certificate:
Block H1–-
B+G+6 SEZ 15 0.4
Eucalyptus
Block G1–-
2B+G+8 SEZ 13 0.4
Mulberry
Block F3–- Palm 2B+G+10 SEZ 10 0.7
Block G1G2–-
5 SEZ 11 0.0
Bridge
Block H2–-
2B+G+10 SEZ 10 0.7
Mountain Ash
Block L3–- Hazel 2B+G+10 SEZ 8 0.5
Block MFAR 3B+G+11 Non-SEZ 8 0.2
Block G3–- Teak 2B+G+10 SEZ 8 0.8
Block Philips B+G+4 Non-SEZ 17 0.1
Block L1 L2–-
2B+G+10 SEZ 6 0.9
Banyan Willow
Block A–- NXT B+G+10 Non-SEZ 3 0.8
Front Parcel–-
Ground Floor Non-SEZ 2 0.1
Retail
3B+G+4MLCP OC Received
Block M3A SEZ 1.0
+10 Q2 FY 2024
Total 12.4

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Particulars: Details

In addition to the blocks mentioned above in the table, the Subject Property also has two operational
hotels – Hilton & Hilton Garden Inn – constructed over a developable area of approx. 0.8 msf.
(Including convention centre) having a total of 619 keys.

Asset Type: Tech Park with 15 operational SEZ blocks and 12 operational Non-SEZ blocks.

Sub-Market: Peripheral North micro-market

Approved and Existing IT/ITeS SEZ & Non-SEZ

usage:

Land Area: approx. 121.8 acres.

Freehold (excluding Block M3A (operational) and Block M3B (under construction) which are
Freehold/Leasehold:
situated on a leasehold land parcel approx. 6.6 acres with remaining lease term of approx. 54 years). *

Leasable Area: 12.4 msf.

Occupied Area: 10.8 msf.

Occupancy (%) 87%

Current Effective Rent

INR 82 per sq. ft. per month (Office, Retail Tenants & Other Income)
(excluding Parking)

Source: Title Report, Rent Roll dated 31st March 2024, Architect Certificate, Occupancy Certificate.
* In Block M3A & Block M3B, the Lessor is Embassy Property Developments Private Limited (EPDPL), and the Lessee is Manyata Promoters Private
Limited (MPPL) as per the Co-Developer Agreement and Development Management Agreement dated 8th March 2017.

Note:

1. Refer company structure set out in Annexure 1.

2. Occupancy refers to proportion of area leased which is actively occupied by the tenants out of the total area that has received OC.

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Under Construction/ Proposed Blocks

Particulars: Details

Office
Construction
Building SEZ/ Non- Leasable
Block Name Completion
Elevation SEZ Area (msf.)
Timeline*

Block M3B NA SEZ FY 2025 0.6

Building Area:
Block D1 & D2 NA Non-SEZ FY 2026 1.4

Block L-4 NA Non-SEZ FY 2026 0.8

Block F-1# NA SEZ FY 2029 0.4

Total 3.2

Source: Rent roll, Architect Certificate, #Proposed block.

*the timelines are mentioned as per financial year from April to March.

Asset Type: IT/ITeS SEZ and Non SEZ

Approved Usage: IT/ITeS, Hotel and Retail portion

Leasable Area: 3.2 msf.

Status of Construction: Block M3B, D1 & D2, L-4 & F-1 – Under construction.

Approvals received and

pending as on Valuation List of approvals detailed in Annexure 4.
Date

3.2. Subject Property Inspection

Particulars: Description

The Subject Property comprising of 27 operational blocks along with 4 under-construction/proposed

Date of Inspection:
developments was physically inspected on 1st April 2024.

The inspection comprised of visual inspection of:

• Operational buildings

Inspection Details: • Visits to their key utility areas such as LT electric room, DG Room, Pump room, HVAC
installations, power back up, STP, etc.
• Area provisioned for Future development.

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Particulars: Description

• Subject Property has STP, safety features and power back-up facilities.
• The visual inspection of the buildings did not reveal any cause of concern with no visible
Key Observation
signs of any disrepair or ill maintenance.
• The Subject Property has been awarded LEED Platinum Rating for sustainability.

Source: Architect Certificate, Rent Roll dated 31st March 2024, Valuer assessment.
Note: The Subject Property inspection did not comprise any structural survey, technical/ engineering review or safety audit and the assessment of the
condition of the building, its utilities and campus infrastructure are based completely on visual survey.

3.3. Lease Expiry Profile

The Weighted Average Lease Expiry (WALE) of Embassy Manyata operational asset is approx. 7 years, with
approx. 98% of occupied area expiring between CY 2024 and CY 2034.

4. Details on Land

As the first step, the rent rolls (and the corresponding lease deeds on a sample basis) were reviewed to identify
tenancy characteristics for the asset. As part of the rent roll review, agreements belonging to tenants with pre-
committed area were reviewed on a sample basis.

Physical site inspections were undertaken to assess the current status of the Subject Property.

As per the Title Report shared by the Client, we understand that the Subject Property is freehold in nature
(excluding Block M3A (operational) and Block M3B (under construction) which are situated on a leasehold land
parcel of approx. 6.6 acres, with remaining lease term of approx. 54 years).

5. Valuation Methodology

For the purpose of the valuation of office component of Subject Property, Income Approach – Discounted Cash
Flow Method using Rental Reversion has been adopted.

Further, the hotel components at the respective properties and the solar park have been valued using Discounted
Cash Flow Method.

5.1. Area Statement

Based on information, rent roll, lease deeds, architect certificate provided by the Client, we understand that Subject
Property is an Office Park. Further, the table below highlights the area configuration of the subject property:

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Block Leasable Area (msf.)

Completed Blocks 12.4

Under Construction/Proposed Blocks 3.2

Total 15.6

Block No of Keys

Hilton 266 Keys

Hilton Garden Inn 353 Keys

st
Source: Rent roll dated 31 March 2024, Architect certificate, lease deeds.
Note – Hotel includes Convention centre area of total developable area of 0.8 msf.

5.2. Construction Timelines

Completed Blocks

The Subject Property has approx. 12.4 msf. Of completed development with no pending cost to be incurred as of
date of valuation.

• As per the rent roll dated 31st March 2024 provided to us by Client, it was observed that the operational block
is approx. 87% occupied (includes office and retail).

• The vacant area lease-up has been started from Q2 FY 2025.

Under Construction/ Proposed Blocks

Based on visual inspection during the site visit and information provided by the Client, the following timelines for
construction have been adopted for the purpose of this valuation exercise:

Block Leasable/ Developable Area (msf.) Construction Completion Timeline*

Block M3B 0.6 FY 2025

Block D1 and D2 1.4 FY 2026

Block L-4 0.8 FY 2026

Block F-1 0.4 FY 2029

Source: Information received from Client; *the timelines are mentioned as per financial year from April to March.

• Under construction area details are provided to us by Client and same has been considered for the purview
of this exercise.
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• Block M3B and Block L-4 have pre-committed leases for their total leasable area and the lease terms
provided by the Client have been relied upon for the purpose of valuation post completion of construction.

• The vacant area lease-up for Block D1-D2 and Block F-1 has been started from Q2 FY 2027 and Q4 FY
2029 respectively.

5.3. Revenue Assumptions - Office

Revenue Assumptions - Office

Property Details Unit Value

In Place Rent INR per sq. ft. per month 82

Market Rent -Office^ INR per sq. ft. per month 96

Market Rent- Retail^ INR per sq. ft. per month 96

Market Rent- Anchor^ INR per sq. ft. per month 86

Rent Escalation % Every 3 years 15%

Parking Income INR per month per bay 5,500

Effective Parking Income INR per month per INR per month per bay 4,125
bay

Other Income % Of lease rentals 1%

O&M Income INR per sq. ft. per month 15

Note: ^Market Rent for Completed blocks and under-construction/proposed blocks F1, L4, D1-D2 and Block M3B.

• Market Rent Office: The Subject Property is located in the Hebbal stretch which commands higher rentals
of INR 65-100 per sq. ft. per month, depending on size, location, grade of the building, amenities offered, type
of tenant, lease terms, etc. Further, we understand that the Subject Property commands a premium over
neighbouring commercial developments owing to the developer brand, amenities offered, accessibility, and
its flagship positioning as the premier tech park in the micro-market, etc. This is further supported by our
analysis of the rent roll wherein new leases within the Subject Property are getting transacted in the range of
INR 90 to 100 per sq. ft. per month.

Following are some of the recent transactions in the Subject Property and other properties in the micro market:

Area Leased Rate (INR per sq. ft. Type of

Tenant Location Date of Transaction
(sq. ft.) per month) Deal
Tenant 1 Nagavara 0.02 Q1 2024 84 Fresh
Tenant 2 Nagavara 0.02 Q1 2024 85 Fresh
Tenant 3 Nagavara 0.12 Q1 2024 95 Fresh
Tenant 4 Nagavara 0.04 Q1 2024 96 Fresh
Tenant 5 Nagavara 0.17 Q1 2024 105 Fresh
Tenant 6 Nagavara 0.09 Q1 2024 104 Fresh
Tenant 7 Nagavara 0.09 Q1 2024 98 Fresh
Tenant 8 Nagavara 0.14 Q1 2024 102 Fresh

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Area Leased Rate (INR per sq. ft. Type of

Tenant Location Date of Transaction
(sq. ft.) per month) Deal
Tenant 9 Bellary Road 0.05 Q4 2023 82 Fresh
Tenant 10 Bellary Road 0.05 Q3 2023 82 Fresh
Source: Consultant Research.
Note: The data represented is on calendar year basis.

Accordingly, we have assumed market lease rent as INR 96 per sq. ft. per month for office space and INR 86 per
sq. ft. per month for anchor office space. Further, we have assumed parking rent as INR 5.5 per sq. ft. per month
and market CAM income as INR 15 per sq. ft. per month for vacant/under construction/proposed space as per
market standards.

• Market Rent Retail: Basis our market research & rent roll analysis, we understand that the retail premises
are transacted in the range of INR 80 to 100 per sq. ft. per month depending upon leasable area occupied,
positioning within the retail complex (e.g., floor, front or back, corner etc.), time of transaction among others.
Hence, we have assumed a market rent of INR 96 per sq. ft. per month on leasable area for retail premises.

• Rent Escalation: We have assumed market rent escalation of 15% every 3 years for vacant area & for area
reversing to the market in line with the market norms.

• Fit Out Rent: As per the information (rent roll) provided by the Client, we understand that in addition to the
lease rent, there is rent towards fit outs for few of the tenants. The weighted average fit-out rent is INR 5 per
sq. ft. per month. For the purpose of this valuation, we have adopted the tenant wise fit-out details as provided
in the rent roll. Further, once the expiry of the existing lease tenure, we have assumed same space will reverse
to market on warm-shell basis. Further, we have assumed the under-construction/proposed blocks leasable
area would get leased on warm shell basis.

• Parking Income: We have assumed a car park ratio of 1:750 to arrive at total number car park slots. Further,
we assume that approx.75% of total car park slots will be paid slots.

• Other Income: Other income typically includes income generated from Signage, ATM, Telecom Tower,
Vending Machine, food court etc. We have assumed these incomes to be approx.1% of the total lease revenue.

5.4. Revenue Assumptions - Hotel

3 Star
Operating Revenues Units 5 Star

ARR (INR/Room/Night) 10,000 7,500

Increase in ARR (YoY) 5% 5%

Stabilized Occupancy % 72% 72%

Food & Beverage Revenue % of Rooms Revenue 100% 40%

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3 Star
Operating Revenues Units 5 Star

Minor Operating Department (MOD) 5% 5%

% of Rooms Revenue
Revenue

Revenue Assumptions - 5 Star

• Average Room Rent (ARR): ARR for 5-star hotel has been considered in line with the ARR for comparable
hotels in the northern part of Bengaluru. Based on the location of the development, performance of comparable
hotels, positioning and given that the hotel is part of a larger development, we have considered ARR at INR
10,000/ Room/ Night. Keeping in mind the historical trend of ARR and the limited upcoming supply in the
micro market, the ARR growth rate is assumed at 5% Y-O-Y from April 2024 onwards.

• Stabilized Occupancy: Based upon our analysis of occupancy trend in the 5-star hotel, occupancy is expected
to stabilize at 72% in FY 2026.

• F&B Revenue: We have assumed F&B revenue of 100% of room revenue.

• Minor Operating Department (MOD) Revenue: We have assumed a MOD revenue of 5% of room revenue.

Revenue Assumptions - 3-Star

• Average Room Rent (ARR): ARR in today’s price for 3-star hotel has been considered in line with the ARR
for comparable hotels in the northern part of Bengaluru. Based on the location of the development,
performance of comparable hotels, positioning and given that the hotel is part of a larger development, we
have considered ARR at INR 7,500/ Room/ Night. Keeping in mind the historical trend of ARR and the limited
upcoming supply in ORR micro market, the ARR growth rate is assumed at 5% Y-O-Y from April 2024
onwards.

• Stabilized Occupancy: Based upon our analysis of occupancy trend in the 3-star hotel, occupancy is expected
to stabilize at 72% in FY 2026.

• F&B Revenue: We have assumed a F&B revenue of 40% of room revenue.

• Minor Operating Department (MOD) Revenue: We have assumed a MOD revenue of 5% of room revenue.

5.5. Additional Consideration - Block M3A

• Annual Lease Payment: As Block M3A is a leasehold development, an annual lease payment of INR 0.1 Mn
is to be paid till end of the leasehold period i.e., Q1 FY 2079 (without any escalation).

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5.6. Additional Considerations - Block M3B

• Delay Compensation: Based on the information received from the Client, we understand that in case of any
delay in completing the project, Embassy Office Parks REIT will receive delayed compensation at the interest
rate of 9.25% p.a. till the project gets completed i.e., Q4 FY 2025.

• One-Time True Up Expense: We understand that the Client has signed an Agreement dated December 30,
2019, with Embassy Property Developments Private Limited (EPDPL) wherein the Client will receive the
rights to contract the lease term at NOI of INR 95 per sq. ft. per month. As per the terms of the Agreement, if
there is complete leasing of the facility with a weighted average NOI greater than INR 95 per sq. ft. per month,
then EPDPL has the right to receive the difference which will be capitalized at an interest rate of 9.25% for
the total leasable area of Block M3B (0.6 msf.).

• Annual Lease Payment: As Block M3B is a leasehold development, an annual lease payment of INR 0.1
Mn is to be paid till end of leasehold period i.e., Q1 FY 2079 (without any escalation).

5.7. Expense Assumptions - Office

Development Cost

The following table highlights the assumptions towards the development cost for the under construction/proposed
blocks at the subject development:

Block Pending Cost to be Spent (INR Mn)

Block M3B 983

Block D1 & D2 6,300

Block L-4 2,592

Block F-1 1,634

Source: Information received from Client.

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Major repair and Improvement

The following table highlights the assumptions towards the refurbishment/upgradation expenses in the subject
development:

Expense head Total Pending Cost (INR Mn) Quarter of Completion

Infrastructure expenses 2,122 Q1 FY 2029

Source: Information received from Client. Valuer assessment, the pending infrastructure expenses for refurbishment/upgradation expenses has
been pro-rated across the different blocks.

Operating Cost

In addition to capital expenditure, a development typically has few recurring operational expenses required for the
up-keep and running of the development. Based on information provided by the Client and market assessment,
following recurring expense assumptions have been adopted for the purpose of this valuation exercise (applicable
to both completed and under construction blocks):

Nature of Expense Units Details

Insurance INR per sq. ft. per month 0.4

Property Tax INR per sq. ft. per month 4.0

Property Tax and Insurance Escalation p.a. 3%

Other Operating Expenses % of Lease Rental & Parking Income 2%

Property Management Fees % of Total Income 3%

Transaction cost on Exit % of Terminal Value 1%

Source: Information received from Client; Valuer assessment; * Asset Management fees has been considered a below the NOI line item.

• Other Operating Expenses: It is assumed at 2% of the lease rental and parking income. The other expenses
account for minor repairs and maintenance to the buildings, legal and professional fees, rates and taxes and
other such expenses.

• Property Management: Based on information received from the Client, Property Management fees is
assumed at 3% of lease rentals, parking income, fitout, and other operating income.

• Transaction Cost On Exit: It is assumed at 1% of the terminal value and is expected to be incurred towards
brokerage/transaction fees, etc.

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5.8. Other Assumptions

Nature Units Details

Vacancy Provision % 2%

New Lease- 4 Months

Rent Free Period No. of Months
Renewal Lease- 2 Months

New Lease- 2 Months

Brokerage No. of Months
Renewal Lease- 1 Months

Source: Valuer assessment.

• Stabilized Vacancy: We have assumed a stabilized vacancy of 2% during cashflow period & terminal year.

• Rent-Free Period: In accordance with market benchmarks for Grade A office & retail premises, rent-free
period of 2 month has been considered for existing lease rollovers and 4 months for new leases.

• Brokerage: As per prevailing market trend, we have assumed a brokerage of 1 month for existing lease
rollovers and 2 months for new leases.

5.9. Operating Cost - Hotel

Expenses Unit 5 Star 3 Star

Room Cost (Including employee cost) % of Rooms Revenue 12% 14%
Food & Beverage Cost % of F&B 40% 40%
Minor Operating Department (MOD) Cost % of MOD Revenue 50% 50%
Payroll % of Total Revenue 10% 8%
Administration & General Cost % of Total Revenue 2% 2%
Operating Expenses % of Total Revenue 8% 8%
Sales & Marketing Expenditure % of Total Revenue 5% 5%
Repairs & Maintenance % of Total Revenue 4% 4%
Base Management Fee % of Total Revenue Ref 1 Ref 1
below below
Management Incentive Fee % GOP Ref 2 Ref 2
below below
FF&E Reserve % of Total Revenue 2% 2%

Source: Valuer assessment & Information received from Client.

Ref 1–- Base Management Fee: 1.25% for year 1 & 2, 1.5% for year 3 & 4, 1.75% for year 5 & 6 and 1.9% thereafter.

Ref 2 – Management incentive Fee: For GOP 30 - 35% = 4.5%, GOP 35 – 40% = 5.0%, GOP > 40% = 5.5%.

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Operating Cost - 5-Star

• Departmental Expenses: We have assumed the Room Cost, F&B cost & MOD cost at 12%, 40% & 50%
respectively.

• Property Taxes & Insurance: We have assumed the property tax & insurance as per Information received
from Client.

• Undistributed Cost: We have assumed undistributed costs like Payroll, Administration, Sales & Marketing,
operating expenses basis on prevailing trends in the similar comparable hotels.

• Base Management Fee (% of Total Revenue): Base fee of 1.25% for year 1 & 2, 1.5% for year 3 & 4, 1.75%
for year 5 & 6 and 1.9% thereafter is considered as informed by the Client.

• Management Incentive Fee: As per the management terms shared by the Client the incentive fee of 4.5% is
applicable if the GOP % is between 30% to 35%. It is 5% if the GOP is between 35% to 40% and it is 5.5%
if the GOP is more than 40%.

• FF&E Reserve (% of GOP): FF&E reserve of 2% is considered which is in line with the market trends of
hospitality industry.

Operating Cost -3-Star

• Departmental Expenses: We have assumed the Room Cost, F&B cost & MOD cost at 14%, 40% & 50%
respectively.

• Undistributed Cost: We have assumed undistributed costs like Payroll, Administration, Sales & Marketing,
operating expenses basis on prevailing trends in the similar comparable hotels.

• Base Management Fee (% of Total Revenue): Base fee of 1.25% for year 1 & 2, 1.5% for year 3 & 4, 1.75%
for year 5 & 6 and 1.9% thereafter is considered as informed by the Client.

• Management Incentive Fee: As per the management terms shared by the Client the incentive fee of 4.5% is
applicable if the GOP % is between 30% to 35%. It is 5% if the GOP is between 35% to 40% and it is 5.5%
if the GOP is more than 40%.

• FF&E Reserve (% of GOP): FF&E reserve 2% is considered which is in line with the market trends of
hospitality industry.

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5.10. Capitalization Rates

In order to arrive at the capitalization rate for the property, relevant parameters of some key investments in
comparable properties of similar quality, use, tenant profile made by institutional real estate investors were
perused. Further, considering that these investments have been made through private equity and the subject
valuation is being carried out for a potential public listing with better liquidity/marketability of ownership interest,
the cap rate for the subject properties has been assumed to be 8% for office and Retail developments and 7.14%
for hospitality developments which is in line with the available market information applied on the one year forward
NOI in the terminal year.

5.11. Discount Rate

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

For the purpose of arriving at the Cost Equity, a peer group of listed comparable were studied and suitable
adjustments made therein to reflect the specific opportunities and characteristics of the Subject Property as part of
a listed portfolio. The Cost of Debt is assumed on the basis of the marginal cost of debt that the SPV owning the
Subject Property has been able to avail and the general borrowing rates of similar assets. The Weights attributed
to equity and debt were benchmarked against similar portfolios/properties in the market.

The derived discount rate of 11.75% for operational segment (including CAM), 13.00% for under construction
Office & Retail segment and 12.14% for Hospitality segment. The discount rate for Block M3B has been
considered as 12% as it is a leasehold development with cashflows extending to the end of its leasehold period.

5.12. Market Value of the Subject Property

The Valuer is of the opinion that subject to the overriding stipulations contained within the body of this report and
to there being no onerous restrictions or unusual encumbrances of which she has no knowledge, the opinion of
value of the complete ownership interest in the Subject Property comprising land and improvements thereon, as
explained above, on 31st March 2024, is as follows:

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Market Value of the Subject Property

Components Value in (₹Mn)

Completed Blocks 184,598

Under Construction/ Proposed Blocks 27,024

Hotel 13,868

Total Value of Embassy Manyata 225,491

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G. EMBASSY TECHVILLAGE

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1. Property Description - Embassy TechVillage

Embassy TechVillage - Comprising of Completed & Under-Construction/ Proposed commercial

Property Name
IT/ITeS office blocks, Under-construction Hotel (Including Convention Center)

Devarabeesanahalli Village & Kariyamanna Agrahara Village, Varthur Hobli, Bengaluru East Taluk,
Address
Bengaluru, Karnataka

Vikas Telecom Private Limited (approx. 80.05 acres land) and Sarla Infrastructure Private Limited
Ownership & Title Details
(approx. 4.0 acres land)

Total Operational Area – approx. 7.3 msf.

Leasable Area Total Under-construction/ Proposed Area – approx. 2.3 msf.

Hotel - 518 keys (Developable area of hotel and convention – approx. 0.8 msf.)

Source: Architect Certificate, Title Report.

1.1. Encumbrances

Unless disclosed and recorded in the Property Report, the Subject Property is considered to possesses a good and
marketable title and is free from any unusually onerous encumbrances with no option or pre-emption rights in
relation to the assets except for those created in favour of the lenders as mentioned below, based on the information
given in the Title Reports prepared J. Sagar Associates. We have not checked and verified the title of the Subject
Property.

2. Location

2.1. General

ETV is located along the Outer Ring Road (ORR) in the Bellandur-Marathahalli region, Bengaluru, and forms part
of the ORR micro market. This micro market is considered as the most sought-after office destinations in the city
for its concentration of SEZ & Non-SEZ’s IT parks, corporate offices, and its proximity to residential areas like
HSR Layout, Sarjapura Road, BTM Layout, Koramangala, etc. transportation hubs, and entertainment centres
make it a desirable location for businesses and professionals.

The Immediate vicinity is very well supported by social infra with educational institutions like New Horizon
College of Engineering, Orchids the International School, hospitality developments like Courtyard by Marriott,
Fairfield by Marriott, Ibis, Novotel, Aloft hotel, Double tree, etc. and hospitals like SAKRA, Manipal hospitals &
others have their presence. The locality is very well connected to other parts of the city via the ORR and completion
of under construction metro will further improve the connectivity & traffic condition.

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The location map of the Subject Property is set out below:

Source: Consultant Research (Map not to Scale)

The larger land parcel is admeasuring approx. 103.4 acres. However, the Subject Property is envisaged across
approx. 84.05 acres of land parcel located on the Outer Ring Road, the Subject Property enjoys good frontage and
has a relatively flat topography with no significant variations in the height of the land.

Site Boundaries:

The site boundaries for the Subject Property are as under:

• North: New Horizon College of Engineering.

• South: Country Club.
• East: Secondary Access – Doddakannalli Kadubeesanahalli Road.
• West: Primary Access Road- Sarjapur Outer Ring Road.
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2.2. Accessibility

The Subject Property is well connected to major locations in the city via road network. The distance of the Subject
Property from major landmarks in the city is as follows:

• Approx. 9-10 km from K R Puram Railway Station.

• Approx. 15-16 km from M G Road.
• Approx. 19-20 km from Bengaluru Railway Station.
• Approx. 47-48 km from Kempegowda International Airport.

The Subject Property is well accessible to different parts of the city through the Outer Ring Road and the
completion of under construction ORR-Airport Metro (Blue line) would further improve the connectivity of
subject property. It also has access to basic urban infrastructure in terms of power, water supply and municipal
sewerage system.

The property photographs of the Subject Property are attached in Annexure 3.

2.3. Ground Conditions

Based on visual inspection, there were no evidence of adverse ground conditions at the property or immediate
vicinity.

2.4. Environment Considerations

We have not carried out any investigations or tests or been supplied with any information from Client or from any
relevant expert that determines the presence or otherwise of pollution or contaminative substances in the subject
or any other land (including any ground water). For the purpose of assessing the vulnerability of the Subject
Property to any natural or induced disaster the location of the Subject Property with respect to risks pertaining to
earthquakes, high winds/ cyclone and flooding was studied. The city faces low risk in terms of high winds or
cyclones too. The Subject Property is not likely to face any higher risk than the overall risk profile of the city. No
hazardous activity was noted in the vicinity of the Subject Property which may expose it for any induced disaster.

2.5. Town Planning and Statutory Considerations

We have not made formal search but have generally relied on readily available information to general public. Our
Report is on current use/ current state basis of the property, and we have not considered any Government proposals
for road widening or compulsory purchase/ acquisition, or any other statute in force that might affect the Subject
Property.

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3. Subject Property - Asset Description

Embassy TechVillage is envisaged across total land area of approx. admeasuring 103.4 acre and the land area under
purview of this exercise is 84.05 acres under the ownership of Vikas Telecom Private Limited (VTPL) & Sarla
Infrastructure Private Limited (SIPL). Basis on the site plan & visual inspection it was observed that the land under
lying the Subject Property is irregular in shape, levelled topography, bounded by compound wall, and has excellent
visibility as it has access via the Outer Ring Road. Further, the detailed summary of ETV office blocks at various
stages of development is as follows:

i. Development by Vikas Telecom Private Limited (“VTPL”) consisting of approx. 6.1 msf. distributed
across 15 blocks of completed office area, approx. 2.3 msf. of under-construction and proposed
development area and 518 proposed hotel keys along with the associated business of common area
maintenance scale services (ETV).

ii. Development by Sarla Infrastructure Private Limited (“SIPL”) consists of 1.2 msf. distributed across 3
block of leasable area which has been developed as build to suit (BTS model) to JP Morgan Services
India Private Limited, along with the associated business of common area maintenance services (ETV
Parcel 9).

Completed Blocks – Block-1A- Carnation, Block 2A-Aster, Block 2A-West Wing, Block 2B-Hibiscus, Block 2C-
Lilac, Block 2D-Gardenia, Block 7B- Primrose Block 5- ABC (Alyssa, Begonia and Clover), Block 5-D (Daffodil),
Block 5-E (Orchids), Block 5- F (Flora), Block 5 – G&H (Tulips), Block 5- I & J (Trillium), Block 5- K (Marigold),
Block 5-L (Lavender) and Block 9 (JPMC block) of SEZ & Non-SEZ usage with total leasable area of approx.
7.3 msf.

Under Construction/ Proposed Blocks – Parcel 8 (A, B, C & D), Hospitality block along with Convention centre
Retail block & Parcel 6.

The under construction building total leasable area of the under construction & proposed office blocks is approx.
2.3 msf. Block 8 (A, B, C & D) and Retail block collectively admeasuring approx. 1.9 msf. of leasable area are
expected to be completed by FY 2025. The Hospitality Block along with Convention centre collectively
admeasuring approx. 0.8 msf. and same is expected to be completed by FY2026. Further, the parcel 6 office block
is still in land stage and the same is expected to complete by FY 2027.

Embassy TechVillage is planned as an integrated development with commercial, retail and hospitality
developments. The Tech Park offers various quality amenities to its employees including Food Courts, F&B
outlets, Gym, Sports Facilities, Medical Centre, and Recreation Centres.

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3.1. Key Asset Information

Completed Blocks

Particulars: Details

Entity: Vikas Telecom Private Limited (VTPL) & Sarla Infrastructure Private Limited (SIPL)1

SEZ/ Non- Age Leasable Area

Block Name Building Elevation
SEZ (Years) (msf.)
Block 1A – Carnation 2 Towers 2B+G+10 SEZ 7 0.9
Block 2A – East Wing 2B+G+UG+6 SEZ 13 0.5
Block 2A – West Wing 2B+G+UG+6 SEZ 10 0.4
Block 2B – Hibiscus B+G+7 SEZ 15 0.7
Block 2C – lilac B+G+4 SEZ 14 0.03
Block 2D – Gardenia B+G+6 SEZ 15 0.3
2B+G+10 MLCP:
Block 7B – Primrose SEZ 6 0.9
2B+G+11
A – 2B+G+9
Age of Building Block 5 – ABC
B – 2B+G+8 Non-SEZ 5 0.8
based on the date of (Alyssa, Begonia, Clover)
C– 2B+G+10
Occupancy
Block 5 – D (Daffodils) 2B+G+1 Non-SEZ 5 0.03
Certificate:
Block 5 – E (Orchids) 2B+G+4 Non-SEZ 5 0.1
Block 5 – F (Flora) 2B+G+4 Non-SEZ 5 0.1
G – 2B+G+10
Block 5 – G and H (Tulips) Non-SEZ 5 0.5
H – 2B+G+8
I – 2B+G+6
Block 5 – I and J (Trillium) Non-SEZ 4 0.7
J – 2B+G
Block 5 – K (Marigold) 2B+G+10 Non-SEZ 5 0.03
Block 5 – L (Lavender) 2B+G+5 Non-SEZ 5 0.2
1A – G+10
Block 9 – JPM Pre – Lease /
1B – G+5 Non-SEZ 2 1.2
BTS
2 – G+7
Total 7.3

Asset Type: Tech Park with 5 SEZ blocks and 13 Non-SEZ blocks.

Sub-Market: Outer Ring Road (Sarjapura- Marathahalli)

Approved and IT/ITeS SEZ & Non-SEZ

Existing usage:

Land Area: approx. 84.05 acres

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Particulars: Details

Freehold/Leasehold: Freehold

Leasable Area: 7.3 msf.

Occupied Area: 7.0 msf.

Occupancy (%) 96%

Current Effective
Rent (excluding INR 81 per sq. ft. per month (Office, Retail and Other Income Tenants Only)
Parking)

Source: Title Report, Rent Roll dated 31st March 2024, Architect Certificate, Occupancy Certificate.

Note:

1. Refer company structure set out in Annexure 1.

2. Occupancy refers to proportion of area leased which is actively occupied by the tenants out of the total area that has received OC.

Under Construction/ Proposed Blocks

Particulars: Details

Office
Construction
Leasable Area
Block Name Building Elevation SEZ/ Non-SEZ Completion
(msf.)
Timeline*

Parcel 8 – Block A, B,
NA Non-SEZ FY 2025 1.9
C, D & Retail

Parcel 6 NA Non-SEZ FY 2027 0.4

Total 2.3
Building Area:

Hospitality

Construction Completion Developable area (msf.)/

Block Name Building Elevation
Timeline* No. of Keys

Parcel 8 – Hotels NA FY 2026 0.7 (518 Keys)

Parcel 8 – Convention
NA FY 2026 0.1
Centre

Total 0.8
Note:*the timelines are mentioned as per financial year from April to March.

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Particulars: Details

Asset Type: Commercial Office/IT Non-SEZ

Approved Usage: Commercial office, Hotel and Retail portion

Approx. 2.3 msf. leasable area of office and ancillary retail (along with approx. 0.8 msf. of developable
Leasable Area:
area of Hospitality and Convention Centre).

Status of Parcel 8 (Office & retail), Hospitality & Parcel 6 – Under construction/ Proposed
Construction:

Approvals received
and pending as on List of approvals detailed in Annexure 4.
Valuation Date

Source: Information received from Client.

3.2. Subject Property Inspection

Particulars: Description

The Subject Property comprising 18 operational buildings blocks along with Parcel 8 and Parcel 6

Date of Inspection: office blocks with 5 star and 3-star hospitality future development areas was physically inspected on
2nd April 2024.

The inspection comprised of visual inspection of:

• Operational buildings.
Inspection Details:
• Visits to their key utility areas such as LT electric room, DG Room, Pump room, HVAC
installations, power back up, STP, etc.
• Area provisioned for Future development.

• Subject Property has STP, safety features and power back-up facilities.

• The visual inspection of the buildings did not reveal any cause of concern with no visible signs

Key Observation of any disrepair or ill maintenance.

• No instances of any major logging or water accumulation were observed during the inspection.

• The Subject Property has been awarded LEED Platinum Rating for sustainability.

Source: Architect certificate, Rent Roll dated 31st March 2024, Valuer assessment.

Note: The Subject Property inspection did not comprise any structural survey, technical/ engineering review or safety audit and the assessment of the
condition of the building, its utilities and campus infrastructure are based completely on visual survey.

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3.3. Lease Expiry Profile

The Weighted Average Lease Expiry (WALE) of ETV operational asset of office is working out to approx. 8.1
years, with approx. 79% of occupied area expiring between CY 2024 and CY 2034.

4. Valuation Methodology

For the purpose of the valuation of office component of Subject Property, Income Approach - Discounted Cash
Flow Method using Rental Reversion has been adopted.

Further, the hotel components have been valued using Discounted Cash Flow Method.

4.1. Area Statement

Based on information, rent roll, lease deeds provided by the Client, we understand that Subject Property is an
Office Park. Further, the table below highlights the area configuration of the subject property:

Block Leasable Area (msf.)

Completed Block 7.3

Under- Construction/ Proposed Block 2.3

Total 9.6

Block No of Keys

Hotel (5 Star) – Under Construction/

311 Keys
Proposed development

Hotel (3 Star) – Under

207 Keys
Construction/Proposed development

Source: Rent roll dated 31st March 2024, Architect certificates, lease deeds.

Note – Hotel includes Convention centre area of total developable area of 0.8 msf.

4.2. Construction Timelines

Completed Blocks

As highlighted earlier, the Subject Property has approx. 7.3 msf. of completed development and no pending cost
to complete is remaining as of date of valuation for the completed blocks.

• As per the rent roll dated 31st March 2024 provided to us by Client, it was observed that the operational block
is approx. 96% occupied (including all category spaces). Further the kiosk area totally admeasuring 9,653 sq.

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ft. is not considered while projecting the cash flows as the same has been considered as a part of other income.
Further, the above mentioned area includes the share both of SIPL & VTPL.

• The vacant area lease-up has been started from Q2 FY 2025.

Under Construction/ Proposed Blocks

Based on visual inspection during the site visit and information provided by the Client, the following timelines for
construction have been adopted for the purpose of this valuation exercise:

Leasable/ Developable Area

Block^ Construction Completion Timeline*
(msf.)

Parcel 8 – Block A,B,C,D – Office &

1.9 FY 2025
Retail

Parcel 8 – Hotels/ Convention Centre# 0.8 FY 2026

Parcel 6 - Office 0.4 FY 2027

Source: Information received from Client; *the timelines are mentioned as per financial year from April to March; #indicates developable
area and rest are leasable area, ^ Parcel 8 is under various stages of construction; for Parcel 6, the construction has commenced with the
site clearing work underway.

• Under construction area details are provided to us by Client for Parcel 8 comprising office block A, B, C & D
along with ancillary retail block & Parcel 6 same has been considered for the purview of this exercise.

• The vacant area lease-up has been started from Q3 FY 2025 for Parcel 8 & Q1 FY 2028 for Parcel 6..

4.3. Revenue Assumptions - Office

Revenue Assumptions - Office

Property Details Unit Value

In Place Rent INR per sq. ft. per month 81
Market Rent -Office INR per sq. ft. per month 96
Market Rent- Retail INR per sq. ft. per month 90
Rent Escalation % Every 3 years 15%
Parking Income INR per month per bay 6,000
Effective Parking Income INR per month per bay 4,500
Other Income (Income from Cell Sites) % 1%

Note: The other income consists of income from kiosks, telecom towers, signages, other fests & events, etc. However, same has been
considered for under construction & proposed asset cashflows.

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• Market Rent Office: The outer ring road micro market has the highest office stock amongst other micro
markets of Bengaluru. Basis on our market research and rent roll analysis it was observed that, new leases
are getting transacted in the range of INR 95 to 100 per sq. ft. per month and the common area maintenance
in the range of INR 14 to 18 per sq. ft. per month listed are few latest transactions in the Subject Property
and comparable properties.

Following are the lease transactions in the micro market:

Rent
Area Leased Date of
Tenant Location (INR per sq. ft. Type of Deal
(msf.) Transaction
per month)
Tenant 1 ORR, Bellandur 0.02 Q1 2024 98 Fresh
ORR,
Tenant 2 0.04 Q1 2024 95 Fresh
Marathahalli
ORR,
Tenant 3 0.11 Q4 2023 95 Fresh
Mahadevapura
Tenant 4 ORR, Bellandur 0.01 Q4 2023 95 Fresh
Tenant 5 ORR, Bellandur 0.02 Q4 2023 100 Fresh
Source: Consultant Research.
Note: The data represented is on calendar year basis.

Hence, we have assumed market lease rent as INR 96 per sq. ft. per month, parking rent as INR 6 per sq. ft. per
month and CAM income as INR 15 per sq. ft. per month for vacant/under construction/proposed development.

• Market rent Retail: Based on market research & also analysis of rent roll in the subject property, the retail
spaced in the micro market are being transacted in the range of INR 80 to 100 per sq. ft. per month. Hence
for the purpose of valuation, we have assumed a market rent of INR 90 per sq. ft. per month on leasable area
for retail premises.
• Rent Escalation: We have assumed market rent escalation of 15% every 3 years for vacant area & for area
reversing to the market.

• Fit Out Rent: As per the information in rent roll provided by the Client, we understand that in addition to the
lease rent, there is rent towards fit outs for few of the tenants. The rent is in the range of INR 28.0 to 45.0 per
sq. ft. per month. For the purpose of this valuation, we have adopted the tenant wise fit-out details as provided
in the rent roll. Further, once the expiry of the existing lease tenure, we have assumed same space will reverse
to market on warm-shell basis. Also, it may be noted that the under-construction/proposed blocks leasable
area would get leased on warm shell basis.

• Parking Income: We have assumed 1:750 ratio to arrive at total number of slots & applied with 25% as free
slots & 75% as paid slots. We have assumed the car parking income is INR 6 per sq. ft. per month.

• Other Income: In office asset there are additional source of revenue from the lease rent cell site, seating
area etc. We have assumed other income is 1 % as per the market norms.
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4.4. Revenue Assumptions - Hotel

Operating Revenues Units 5 Star 3 Star

ARR (INR/Room/Night) 9,250 6,500

Increase in ARR (YoY) 5% 5%

Stabilized Occupancy % 72% 72%

Food & Beverage Revenue % of Rooms Revenue 100% 40%

Minor Operating Department (MOD)

% of Rooms Revenue 5% 5%
Revenue

Revenue Assumptions - 5 Star

• Average Room Rent (ARR): ARR for 5-star hotel has been considered in line with the ARR for comparable
hotels in the micro market at INR 9,250/ Room/ Night. Keeping in mind the historical trend of ARR, the
limited upcoming supply in the micro market, the ARR growth rate is assumed at 5% Y-O-Y from April 2024
onwards.

• Stabilized Occupancy: Based upon our analysis of comparable hotels, occupancy is expected to stabilize at
72% in FY 2029.

• F&B Revenue: We have assumed F&B revenue of 100%.

• Minor Operating Department (MOD) Revenue: We have assumed a MOD revenue of 5%.

Revenue Assumptions - 3-Star

• Average Room Rent (ARR): ARR for 3-star hotel has been considered in line with the ARR for comparable
hotels in the micro market at INR 6,500/ Room/ Night. Keeping in mind the historical trend of ARR, the
limited upcoming supply in the micro market, the ARR growth rate is assumed at 5% Y-O-Y from April 2024
onwards.

• Stabilized Occupancy: Based upon our analysis of comparable hotels, occupancy is expected to stabilize at
72% in FY 2029.

• F&B Revenue: We have assumed F&B revenue of 40% of room revenue.

• Minor Operating Department (MOD) Revenue: We have assumed a MOD revenue of 5% of room revenue.

4.5. Expense Assumptions - Office

Development Cost
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The following table highlights the assumptions towards the development cost for the under construction/proposed
blocks at the subject development:

Block Pending Cost to be Spent (INR Mn)

Parcel 8 – Block ABCD – Office & Retail 5,195

Parcel 8 – Hotel 5 star, 3 star & Convention Centre 7,485

Parcel 6 – Office 1,987

Source: Information received from Client.

Major repair and Improvement

The following table highlights the assumptions towards the refurbishment/upgradation expenses in the subject
development:

Expense head Total Pending Cost (INR Mn) Quarter of Completion

Infrastructure Expenses 1,463 Q3 FY 2027

Source: Information received from Client, Valuer assessment.

Operating Cost- Office

In addition to capital expenditure, a development typically has few recurring operational expenses required for the
up-keep and running of the development. Based on information provided by the Client and market assessment,
following recurring expense assumptions have been adopted for the purpose of this valuation exercise (applicable
to both completed and under construction blocks):

Nature of Expense Units Details

Insurance INR per sq. ft. per month 0.4

Property Tax INR per sq. ft. per month 3.9

Other Operating Expenses % of Lease Rental and Parking Income 2%

Property Management Fees % of Total Income 3%

Transaction cost on Exit % of Terminal Value 1%

Source: Information received from Client; Valuer assessment; * Property management fees has been considered a below the NOI line item.

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• Other Operating Expenses: It is assumed at 2% of the lease rentals and parking income. The other expenses
account for minor repairs and maintenance to the buildings, legal and professional fees, rates and taxes and
other such expenses.

• Property Management: Based on information received from the Client, Property Management fees is
assumed at 3% of lease rentals, parking income, fitout, and other operating income.

• Transaction Cost On Exit: It is assumed at 1% of the terminal value and is expected to be incurred towards
brokerage/transaction fees, etc.

4.6. Other Assumptions

Nature Units Details

Vacancy Provision % 2%
New Lease -4 Months
Rent Free Period No. of Months
Renewal Lease- 2 Months
New Lease -2 Months
Brokerage No. of Months
Renewal Lease- 1 Months

Source: Valuer assessment.

• Stabilized Vacancy: We have assumed a stabilized vacancy of 2% during the cashflow period and in the
terminal year.

• Rent-Free Period: In accordance with market benchmarks for Grade A office and retail premises, rent-free
period of 2 month has been considered for existing lease rollovers and 4 months for new leases.

• Brokerage: As per prevailing market trend, we have assumed a brokerage of 1 month for existing lease
rollovers and 2 months for new leases.

4.7. Operating Cost- Hotel

The following operating costs have been considered based on benchmarks available in the markets on various
heads to arrive at the net cash flows for the purpose of this valuation exercise:

Expenses Unit 5 Star 3 Star

Room Cost (Including employee cost) % of Rooms Revenue 14% 14%
Food & Beverage Cost % of F&B 40% 40%
Minor Operating Department (MOD) Cost % of MOD Revenue 50% 50%
Payroll % of Total Revenue 10% 10%
Administration & General Cost % of Total Revenue 3% 3%
Operating Expenses % of Total Revenue 8% 8%

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Expenses Unit 5 Star 3 Star

Sales & Marketing Expenditure % of Total Revenue 5% 5%
Repairs & Maintenance % of Total Revenue 4% 4%
Base Management Fee % of Total Revenue 1.50%Ref 1 1.50%Ref 1
Management Incentive Fee % GOP 5.50%Ref 2 5.50%Ref 2
FF&E Reserve % of Total Revenue 2% 2%

Source: Valuer assessment & Information received from Client; Ref 1 - Base Management Fee: 1.25% for year 1 & 2, 1.5% for year 3 & 4,
1.75% for year 5 & 6 and 1.9% thereafter; Ref 2 – Management incentive Fee: For GOP 30 - 35% = 4.5%, GOP 35 – 40% = 5.0%, GOP >
40% = 5.5%.

Operating Cost -5-Star

• Departmental Expenses: We have assumed the Room Cost, F&B cost & Minor Operating Department
(MOD) cost at 14%, 40% & 50% respectively.

• Property Taxes & Insurance: We have assumed the property tax & insurance as per information received
from Client.

• Undistributed Cost: We have assumed undistributed costs like Payroll, Administration, Sales & Marketing,
operating expenses basis on prevailing trends in the similar comparable hotels.

• Base Management Fee (% of Total Revenue): Base fee of 1.25% for year 1 & 2, 1.5% for year 3 & 4, 1.75%
for year 5 & 6 and 1.9% thereafter is considered as informed by the Client.

• Management Incentive Fee: As per the management terms shared by the Client the incentive fee of 4.5% is
applicable if the GOP % is between 30% to 35%. It is 5% if the GOP is between 35% to 40% and it is 5.5%
if the GOP is more than 40%.

• FF&E Reserve (% of GOP): FF&E reserve of 2% is considered which is in line with the market trends of
hospitality industry.

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Operating Cost - 3-Star

• Departmental Expenses: We have assumed the Room Cost, F&B cost & MOD cost at 14%, 40% & 50%
respectively.

• Undistributed Cost: We have assumed undistributed costs like Payroll, Administration, Sales & Marketing,
operating expenses basis on prevailing trends in the similar comparable hotels.

• Base Management Fee (% of Total Revenue): Base fee of 1.25% for year 1 & 2, 1.5% for year 3 & 4, 1.75%
for year 5 & 6 and 1.9% thereafter is considered as informed by the Client.

• Management Incentive Fee: As per the management terms shared by the Client the incentive fee of 4.5% is
applicable if the GOP % is between 30% to 35%. It is 5% if the GOP is between 35% to 40% and it is 5.5%
if the GOP is more than 40%.

• FF&E Reserve (% of GOP): FF&E reserve 2% is considered which is in line with the market trends of
hospitality industry.

4.8. Capitalization Rates

In order to arrive at the capitalization rate for the property, relevant parameters of some key investments in
comparable properties of similar quality, use, tenant profile made by institutional real estate investors were
perused. Further, considering that these investments have been made through private equity and the subject
valuation is being carried out for a potential public listing with better liquidity/marketability of ownership interest,
the cap rate for the subject properties has been assumed to be 8% for office and Retail developments and 7.14%
for hospitality developments which is in line with the available market information applied on the one year forward
NOI in the terminal year.

4.9. Discount Rate

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

For the purpose of arriving at the Cost Equity, a peer group of listed comparable were studied and suitable
adjustments made therein to reflect the specific opportunities and characteristics of the Subject Property as part of
a listed portfolio. The Cost of Debt is assumed on the basis of the marginal cost of debt that the SPV owning the
Subject Property has been able to avail and the general borrowing rates of similar assets. The Weights attributed
to equity and debt were benchmarked against similar portfolios/properties in the market.
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The derived discount rate of 11.75% for operational office segment (including CAM), 13.00% for under
construction Office & Retail segment, 13.50% for under construction Hospitality segment has been considered for
the valuation exercise.

4.10. Market Value of the Subject Property

The Valuer is of the opinion that subject to the overriding stipulations contained within the body of this report and
to there being no onerous restrictions or unusual encumbrances of which she has no knowledge, the opinion of
value of the complete ownership interest in the Subject Property comprising land and improvements thereon, as
explained above, on 31st March 2024, is as follows:

Market Value of the Subject Property

Components Value in (₹Mn)

Completed Blocks 103,005

Under Construction/ Proposed Blocks 21,565

Hotel 1,576

Total Value of Embassy TechVillage 126,147

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H. EMBASSY GOLFLINKS

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1. Property Description - Embassy GolfLinks

Property Name Embassy GolfLinks - Comprising of Completed office blocks

Embassy GolfLinks (EGL) Challaghatta Village, Varthur Hobli, Mahadevapura, Bengaluru East
Address
Taluk, Bengaluru, Karnataka – 560 071.

Ownership & Title Details GolfLinks Software Park Private Limited (approx. 37.1 acres)

Leasable Area Total Operational Area – approx. 3.1 msf.

Source: Architect Certificate, Title Report.

1.1. Encumbrances

Unless disclosed and recorded in the Property Report, the Subject Property is considered to possesses a good and
marketable title and is free from any unusually onerous encumbrances with no option or pre-emption rights in
relation to the assets except for those created in favour of the lenders as mentioned below, based on the information
given in the Title Reports prepared (King & Partridge). We have not checked and verified the title of the Subject
Property.

2. Location

2.1. General

The Embassy GolfLinks is close to CBD area of Bengaluru city, accessible by Intermediate Ring Road which
further connects to Old Airport Road thereby providing connectivity to the city centre and other locations such as
Marathahalli, Outer Ring Road, Whitefield, etc. Surrounded by the residential and commercial developments the
Subject Property is located near the vicinity of Indiranagar, Koramangala, CV Raman etc. Prominent hotels in the
micro-market include Leela Palace, Royal Orchid, Ramada Encore by Wyndham, The Paul, Hilton Embassy
GolfLinks (part of subject property), etc. Prominent healthcare developments include Manipal Hospitals,
HOSMAT hospital, etc.

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The location map of the Subject Property is set out below:

Source: Consultant Research (Map not to Scale).

The Embassy GolfLinks is spread on a land area of approx. 37.1 acres. It is an operational office park with a total
leasable area of approx. 3.1 msf. (Embassy Office Parks REIT). Located on the Intermediate Ring Road, the
Subject Property enjoys good frontage and has a relatively flat topography with no significant variations in the
height of the land.

Site Boundaries:

The site boundaries for the Subject Property are as under:

• North: Private Property (Residential Development and KGA Golf Course).

• South: Defence Land.
• East: KGA Golf Course.
• West: Primary Access Road (Intermediate Ring Road).

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2.2. Accessibility

The Subject Property is well connected to major locations in the city via road network. The distance of the Subject
Property from major landmarks in the city is as follows:

• Approx. 6-7 km from Bengaluru CBD.

• Approx. 3-4 km from Indiranagar Metro Station.
• Approx. 11-12 km from Bengaluru Railway Station.
• Approx. 41-42 km from Kempegowda International Airport.

The Subject Property is accessible by the Intermediate Ring Road, which acts as the primary access and connects
to major parts of the city. The Subject Property can also be accessed by the Wind Tunnel Road, which acts as a
secondary access for the development. It also has access to basic urban infrastructure in terms of power, water
supply and municipal sewerage system.

The property photographs of the Subject Property are attached in Annexure 3.

2.3. Ground Conditions

Based on visual inspection, there were no evidence of adverse ground conditions at the property or immediate
vicinity.

2.4. Environment Considerations

We have not carried out any investigations or tests or been supplied with any information from Client or from any
relevant expert that determines the presence or otherwise of pollution or contaminative substances in the subject
or any other land (including any ground water). For the purpose of assessing the vulnerability of the Subject
Property to any natural or induced disaster the location of the Subject Property with respect to risks pertaining to
earthquakes, high winds/ cyclone and flooding was studied. The city faces low risk in terms of high winds or
cyclones too. The Subject Property is not likely to face any higher risk than the overall risk profile of the city. No
hazardous activity was noted in the vicinity of the Subject Property which may expose it for any induced disaster.

2.5. Town Planning and Statutory Considerations

We have not made formal search but have generally relied on readily available information to general public. Our
Report is on current use/ current state basis of the property, and we have not considered any Government proposals
for road widening or compulsory purchase/ acquisition, or any other statute in force that might affect the Subject
Property.

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3. Subject Property - Asset Description

The Subject Property is under the ownership of GolfLinks Software Park Private Limited with total leasable area
of approx. 3.1 msf. Basis the site plan & visual inspection it was observed that the land underlying the Subject
Property is irregular in shape, levelled topography, bounded by compound wall, and has a superior visibility on
account of the accessibility via the Intermediate ring road.

The entire IT/ ITeS park is completed and comprises of Augusta, Blue Bay, Cinnabar Hills, Crystal Downs, Eagle
Ridge, Fairwinds, Fountain Head, Pacific Dunes, Peach Tree, Pine Valley, Prince Ville, Rivera FC, St. Andrews,
Sunningdale, Sunriver, Torrey Pines blocks with a total leasable area of approx. 3.1 msf.

3.1. Key Asset Information

Completed Blocks

Particulars: Details

Entity: GolfLinks Software Park Private Limited1

Building SEZ/ Non- Age Leasable Area

Block Name
Elevation SEZ (Years) (msf.)

Augusta B+G+5 Non-SEZ 17 0.2

Blue Bay B+G+3 Non-SEZ 18 0.2

Cinnabar Hills B+G+6 Non-SEZ 17 0.1

Crystal Downs B+G+3 Non-SEZ 19 0.2

Eagle Ridge B+G+3 Non-SEZ 18 0.2

Fairwinds B+G+5 Non-SEZ 18 0.2

Age of Building Fountain Head B+G+2 Non-SEZ 18 0.1

based on the date of
Occupancy Pacific Dunes B+G+7 Non-SEZ 20 0.3
Certificate: Peach Tree B+G+8 Non-SEZ 19 0.4

Pine Valley B+G+4 Non-SEZ 17 0.4

Prince Ville 2B+G+9 Non-SEZ 17 0.0

Rivera FC B+G+1 Non-SEZ 19 0.1

St. Andrews 2B+G+7 Non-SEZ 18 0.1

Sunningdale B+G+3 Non-SEZ 18 0.1

Sunriver 2B+G+5 Non-SEZ 15 0.3

Torrey Pines B+G+5 Non-SEZ 17 0.3

Total 3.1

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Particulars: Details

Asset Type: Tech Park with 16 Non-SEZ blocks

Sub-Market: Suburban East

Approved and
Non-SEZ
Existing usage:

Land Area: approx. 37.1 acres

Freehold/Leasehold: Freehold

Leasable Area: 3.1 msf.

Occupied Area: 2.9 msf.

Occupancy (%) 95%

Current Effective
Rent (excluding INR 149 per sq. ft. per month (Office/food court spaces plus other income)
Parking)
Source: Rent Roll dated 31st March 2024, Architect Certificate, Occupancy Certificate.
Note:
1. Refer company structure set out in Annexure 1.
2. Occupancy refers to proportion of area leased which is actively occupied by the tenants out of the total area that has received OC.

3.2. Subject Property Inspection

Particulars: Description

Date of Inspection: The Subject Property comprising of 16 operational buildings was inspected on 2nd April 2024.

The inspection comprised of visual inspection of:

• Operational buildings
Inspection Details:
• Visits to their key utility areas such as LT electric room, DG Room, Pump room, HVAC
installations, power back up, STP, etc.

• Subject Property has STP, safety features and power back up facilities
• The Visual inspection of the building did not reveal any cause of concern with no visible signs
Key Observation of any disrepair or ill maintenance.
• No instances of any major logging or water accumulation were observed during the inspection.
• The Subject Property has been awarded LEED Platinum Rating for sustainability.
Source: Architect certificate, Rent Roll dated 31st March 2024, Valuer assessment.

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Note:
The Subject Property inspection did not comprise any structural survey, technical/ engineering review or safety audit and the assessment of the condition of
the building, its utilities and campus infrastructure are based completely on visual survey.

3.3. Lease Expiry Profile

The Weighted Average Lease Expiry (WALE) of Embassy GolfLinks operational asset is approx. 7.4 years, with
approx. 95% of occupied area expiring between CY 2024 and CY 2034.

4. Valuation Methodology

For the purpose of the valuation of office component of Subject Property, Income Approach – Discounted Cash
Flow Method using Rental Reversion has been adopted.

4.1. Area Statement

Based on information, rent roll, lease deeds, provided by the Client, we understand that Subject Property is a
completed Office Park with an operational hotel. Further, the table below highlights the area configuration of the
office development:

Block Leasable Area (msf.)

Completed Block 3.1

Source: Rent roll dated 31st March 2024, Architect certificates, lease deeds.

4.2. Construction Timelines

Completed Blocks

As highlighted earlier, the Subject Property has approx. 3.1 msf. of completed development and no pending
capital expenditure is remaining as of date of valuation for the completed blocks.

4.3. Revenue Assumptions - Office

Revenue Assumptions - Office

Property Details Unit Value

In Place Rent INR per sq. ft. per month 149
Market Rent -Office INR per sq. ft. per month 155
Market Rent- Retail INR per sq. ft. per month 55
Rent Escalation % Every 3 years 15%
Parking Income INR per month per bay 6,000

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Property Details Unit Value

Effective Parking Income INR per month per bay 4,500
Other Income (Income from Cell Sites) % 1%

Note: The other income consists of income from kiosks, telecom towers, signages, other fests & events, etc.

• Market Rent Office: The Suburban East micro market is witnessing lease transactions in the range of INR
135 to 150 per sq. ft. per month. Basis on our rent roll analysis, it was observed that, new leases are getting
transacted in the range of INR 150 to 170 per sq. ft. per month in the Subject Property. Further, the common
area maintenance charges are in the range of INR 20 to 30 per sq. ft. per month.

Following are the lease transactions in the micro market:

Rent
Area Leased
Tenant Location Date of Transaction (INR per sq. ft. per Type of Deal
(msf.)
month)
Tenant 1 CV Raman Nagar 0.08 Q1 2024 158 Fresh
Tenant 2 CV Raman Nagar 0.12 Q4 2023 138 Fresh
Tenant 3 Koramangala 0.14 Q4 2023 135 Fresh
Tenant 4 CV Raman Nagar 0.03 Q4 2023 138 Fresh
Tenant 5 CV Raman Nagar 0.12 Q3 2023 130 Fresh
Tenant 6 CV Raman Nagar 0.18 Q3 2023 130 Fresh
Tenant 7 CV Raman Nagar 0.24 Q3 2023 130 Fresh
Source: Consultant Research.
Note: The data represented is on calendar year basis.

Hence, we have assumed market lease rent as INR 155 per sq. ft. per month, parking rent as INR 6 per sq. ft. per
month and CAM income as INR 24 per sq. ft. per month for vacant space and reversion to the market.

• Market rent Retail: Basis our market research & rent roll analysis, it was understood that the retail premises
are transacted in the range of INR 40 to 75 per sq. ft. per month. Hence, we have assumed a market rent of
INR 55 per sq. ft. per month on leasable area for the retail premises.

• Rent Escalation: We have assumed market rent escalation of 15% every 3 years for vacant area & for area
reversing to the market in line with market norms.

• Fit Out Rent: As per the information (rent roll) provided by the Client, we understand that in addition to the
lease rent, there is rent towards fit outs for few of the tenants. The rent is in the range of INR 15 to 69 per sq.
ft. per month. For the purpose of this valuation, we have adopted the tenant wise fit-out details as provided in
the rent roll. Further, once the expiry of the existing lease tenure, we have assumed same space will reverse
to market on warm-shell basis. Further, we have assumed the under-construction/proposed blocks leasable
area would get leased on warm shell basis.

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• Parking Income: We have assumed car park ratio of 1:750 to arrive at total number of car park slots. We
further assume that approx. 75% of the car park slots shall be paid slots. Car parking income of INR 6 per sq.
ft. per month is taken for the purpose of valuation.

• Other Income: Other income typically includes income generated from Signage, ATM, Telecom Tower,
Vending Machine, food court, etc. We have assumed these incomes to be approx.1% of the total lease revenue.

4.4. Revenue from Cinnabar Hills Block

As per the information provided by the Client, it is understood that the Client has leased 56,014 sq. ft. in one of
the landowner’s blocks “Cinnabar Hills” and have subleased the same to another tenant. The terms of lease are
highlighted in the table below:

Nature of Income Details Escalation Terms

Rent Outflow to Landowner INR 57.25 per sq. ft. per month* 7% every 3 years

Rent Inflow from Tenant INR 100.00 per sq. ft. per month* 12% every 3 years

Source: Client; cash flows from the space considered till lease expiry i.e., October 2030; * Additional outflow of INR 142,500 per month
towards car parking rental.

4.5. Sub - Lease Revenue from Saint Andrew Block Sublease

As per the information provided by the Client, it is understood that the Client has leased 119,554 sq. ft. in one of
the landowner’s block “St. Andrews” and have subleased the same to another tenant. The terms of lease are
highlighted in the table below:

Nature of Income Details Escalation Terms

Rent Outflow to Landowner INR 135.5 per sq. ft. per month* 15% every 3 years

Rent Inflow from Tenant INR 140.4 per sq. ft. per month* 15% every 3 years

Source: Client; cash flows from the space considered till lease expiry i.e., December 2033; * includes car parking rental.

4.6. Expense Assumptions - Office

Major repair and Improvement

The following table highlights the assumptions towards the refurbishment/upgradation expenses in the subject
development:

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Expense head Total Pending Cost (INR Mn) Quarter of Completion

Infrastructure Expenses 957 Q2 FY 2026

Source: Information received from Client, Valuer assessment.

Operating Cost

In addition to capital expenditure, a development typically has few recurring operational expenses required for the
up-keep and running of the development. Based on information provided by the Client and market assessment,
following recurring expense assumptions have been adopted for the purpose of this valuation exercise (applicable
to both completed and under construction blocks):

Nature of Expense Units Details

Insurance INR per sq. ft. per month 0.5

Property Tax INR per sq. ft. per month 2.0

Other Operating Expenses % of Lease Rental and Parking Income 2%

Property Management Fees % of Total Income 3%

Transaction cost on Exit % of Terminal Value 1%

Source: Information received from Client; Valuer assessment; * Property Management Fees has been considered a below the NOI line item.

• Other Operating Expenses: It is assumed at 2% of the lease rentals and parking income. The other expenses
account for minor repairs and maintenance to the buildings, legal and professional fees, rates and taxes and
other such expenses.

• Property Management: Based on information received from the Client, Property Management fees is
assumed at 3% of lease rentals, parking income, fitout, and other operating income.

• Transaction Cost On Exit: It is assumed at 1% of the terminal value and is expected to be incurred towards
brokerage/transaction fees, etc.

4.7. Other Assumptions

Nature Units Details

Vacancy Provision % 2%
New Lease -4 Months
Rent Free Period No. of Months
Renewal Lease- 2 Months
New Lease -2 Months
Brokerage No. of Months
Renewal Lease- 1 Months
Source: Valuer assessment.

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• Stabilized Vacancy: We have assumed a stabilized vacancy of 2% during cashflow period & terminal year.

• Rent-Free Period: In accordance with market benchmarks for Grade A office & retail premises, rent-free
period of 2 month has been considered for existing lease rollovers and 4 months for new leases.

• Brokerage: As per prevailing market trend, we have assumed a brokerage of 1 month for existing lease
rollovers and 2 months for new leases.

4.8. Capitalization Rates

In order to arrive at the capitalization rate for the property, relevant parameters of some key investments in
comparable properties of similar quality, use, tenant profile made by institutional real estate investors were
perused. Further, considering that these investments have been made through private equity and the subject
valuation is being carried out for a potential public listing with better liquidity/marketability of ownership interest,
the cap rate for the subject properties has been assumed to be 8% for office and Retail developments which is in
line with the available market information applied on the one year forward NOI in the terminal year.

4.9. Discount Rate

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

For the purpose of arriving at the Cost Equity, a peer group of listed comparable were studied and suitable
adjustments made therein to reflect the specific opportunities and characteristics of the Subject Property as part of
a listed portfolio. The Cost of Debt is assumed on the basis of the marginal cost of debt that the SPV owning the
Subject Property has been able to avail and the general borrowing rates of similar assets. The Weights attributed
to equity and debt were benchmarked against similar portfolios/properties in the market.

The derived discount rate of 11.75% for operational segment (including CAM).

4.10. Market Value of the Subject Property

The Valuer is of the opinion that subject to the overriding stipulations contained within the body of this report and
to there being no onerous restrictions or unusual encumbrances of which she has no knowledge, the opinion of
value of the complete ownership interest in the Subject Property comprising land and improvements thereon, as
explained above, on 31st March 2024, is as follows:

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Market Value of the Subject Property

Components Value in (₹Mn)

Embassy GolfLinks 74,480

Note:
*The Valuation presented is for 100% interest in the asset. However, based on inputs provided by the Client, the REIT hold 50% of the
interests in the asset (viz. INR 37,240 Mn).

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I. EMBASSY ONE

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1. Property Description - Embassy One

Property Name Embassy One – Comprising of Completed Commercial IT/ITeS office block and Hotel – Four Seasons.

Address Embassy One, Bellary Road, Ganga Nagar, Bengaluru, Karnataka.

Ownership & Title

Quadron Business Park Private Limited – 100% Owned.
Details

Office Leasable Area – approx. 0.3 msf.

Leasable Area
Hotel – 230 keys

Source: Information received from Client, Architect Certificate, Title Report.

1.1. Encumbrances

Unless disclosed and recorded in the Property Report, the Subject Property is considered to possesses a good and
marketable title and is free from any unusually onerous encumbrances with no option or pre-emption rights in
relation to the assets except for those created in favour of the lenders as mentioned below, based on the information
given in the Title Reports prepared by Jayashree Sridhar. We have not checked and verified the title of the Subject
Property.

2. Location

2.1. General

Embassy One is located along Bellary Road, in Ganga Nagar, Bengaluru and forms part of the Peripheral North
micro market. It is strategically located along the Bellary Road between the Kempegowda International Airport
and Central Business District (CBD) facilitating good connectivity with other parts of the city. The NH-44 connects
Bengaluru city to Kempegowda International Airport, Devanahalli in the North and Outer Ring Road in the South
of the micro-market which further enhances the connectivity to other parts of the city. The micro market, which
already has good social and physical infrastructure is expected to witness further growth upon completion of the
proposed infrastructural expansions such as Metro (blue line) to Airport emanating from the Outer Ring Road.

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The location map of the Subject Property is set out below:

Source: Consultant Research (Map not to Scale).

The land area of the Subject Property admeasures approx. 5.6 acres and the land area under the scope of this
valuation exercise admeasures approx. 3.2 acres (Office and Hospitality Component).

Site Boundaries:

The site boundaries for the Subject Property are as under:

• North: HMT Bhavan.

• South: Secondary Access Road.
• East: Private Property.
• West: Primary Access–- Bellary Road.

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2.2. Accessibility

The Subject Property is well connected to major locations in the city via road network. The distance of the Subject
Property from major landmarks in the city is as follows:

• Approx. 4-5 km from Hebbal Junction.

• Approx. 7-8 km from M G Road Metro Station.
• Approx. 6-7 km from Bengaluru Railway Station.
• Approx. 31-32 km from Kempegowda International Airport.

The Subject Property is well accessible to different parts of the city through the Bellary Road. It also has access to
basic urban infrastructure in terms of power, water supply and municipal sewerage system.

The property photographs of the Subject Property are attached in Annexure 3.

2.3. Ground Conditions

Based on visual inspection, there were no evidence of adverse ground conditions at the property or immediate
vicinity.

2.4. Environment Considerations

We have not carried out any investigations or tests or been supplied with any information from Client or from any
relevant expert that determines the presence or otherwise of pollution or contaminative substances in the subject
or any other land (including any ground water). For the purpose of assessing the vulnerability of the Subject
Property to any natural or induced disaster the location of the Subject Property with respect to risks pertaining to
earthquakes, high winds/ cyclone and flooding was studied. The city faces low risk in terms of high winds or
cyclones too. The Subject Property is not likely to face any higher risk than the overall risk profile of the city. No
hazardous activity was noted in the vicinity of the Subject Property which may expose it for any induced disaster.

2.5. Town Planning and Statutory Considerations

We have not made formal search but have generally relied on readily available information to general public. Our
Report is on current use/ current state basis of the property, and we have not considered any Government proposals
for road widening or compulsory purchase/ acquisition, or any other statute in force that might affect the Subject
Property.

3. Subject Property - Asset Description

Embassy One is located along Bellary Road, in Ganga Nagar, Bengaluru and forms part of the Peripheral North
micro market. It is strategically located between the Kempegowda International Airport and Central Business
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District (CBD) facilitating good connectivity with other parts of the city. The development comprises of office
space and hotel – Four Seasons. It also includes Residential Apartments (Four Seasons branded and serviced) as
part of the larger development. However, we have considered only office block – “Pinnacle” & hotel – “Four
Seasons” for the purpose of valuation. The land area of the Subject Property admeasures approx. 5.6 acres and the
land area under the scope of this valuation exercise admeasures approx. 3.2 acres (office and hospitality
component). The total leasable area of the office block is approx. 0.3 msf. The hotel – Four Seasons is a 230 Keys
– 5 Star Hotel.

Completed Block – Office & Hospitality Development.

The Subject Property comprises of a completed Non-SEZ Office Building and an operational 5-star hotel – Four
Seasons.

3.1. Key Asset Information

Completed Block

Particulars: Details

Entity: Quadron Business Park Private Limited.1

Leasable
Building SEZ/ Non- Age
Block Name Area
Elevation SEZ (Years)
Age of Building (msf.)
based on the date of
Occupancy Office – Pinnacle Tower 3B+G+14 Non-SEZ 7 0.3
Certificate:
Hotel – Four Seasons (230
3B+G+19 NA 4 NA
Keys)

Total 0.3

Asset Type: Mixed use development with office and hospitality component.

Sub-Market: Peripheral North

Approved and
Non-SEZ and Hospitality Component
Existing usage:

Land Area: approx. 3.2 acres

Freehold/Leasehold: Freehold

Leasable Area: 0.3 msf.

Occupied Area: 0.2 msf.

Occupancy (%) 82%

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Particulars: Details

Current Effective
Rent (Including INR 144 per sq. ft. per month
Parking)

Source: Title Report, Rent Roll dated 31st March 2024, Architect Certificate, Occupancy Certificate.

Note:

1. Refer company structure set out in Annexure 1.

2. Occupancy refers to proportion of area leased which is actively occupied by the tenants out of the total area that has received OC.

3.2. Subject Property Inspection

Particulars: Description

The Subject Property comprising an operational office tower and 5 star hotel was physically inspected on
Date of Inspection:
April 01, 2024.

The inspection comprised of visual inspection of:

Inspection Details: • Operational buildings – Pinnacle Tower and Four Seasons Hotel
• Visited key utility areas such as LT electric room, DG Room, HVAC installations, power back up,
etc.

• Subject Property has STP, safety features and power back-up facilities.
• The visual inspection of the buildings did not reveal any cause of concern with no visible signs of
Key Observation any disrepair or ill maintenance.
• No instances of any major logging or water accumulation were observed during the inspection.
• The Subject Property has been awarded LEED Platinum Rating for sustainability.

Source: Architect certificate, Rent Roll dated 31st March 2024, Valuer assessment.

Note: The Subject Property inspection did not comprise any structural survey, technical/ engineering review or safety audit and the assessment of the
condition of the building, its utilities and campus infrastructure are based completely on visual survey.

3.3. Lease Expiry Profile

The Weighted Average Lease Expiry (WALE) of Embassy One Office is approx. 8.6 years, with approx. 82% of
occupied area expiring between CY 2024 and CY 2034.

4. Valuation Methodology

For the purpose of the valuation of office component of Subject Property, Income Approach – Discounted Cash
Flow Method using Rental Reversion has been adopted.

Further, the hotel components have been valued using Discounted Cash Flow Method.

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4.1. Area Statement

Based on information, rent roll, lease deeds, architect certificate provided by the Client, we understand that Subject
Property is a mixed-use development comprising of an Office Block and a Luxury Hotel. Further, the table below
highlights the area configuration of the subject property:

Block Leasable Area (msf.)

Completed Block 0.3

Total 0.3

Block No. of Keys

Hotel 230 Keys

Source: Rent roll dated 31st March 2024, Architect certificates, lease deeds.

4.2. Construction Timelines

Completed Blocks – Office and Hotel

• The Subject Property has approx. 0.3 msf. of completed office development and a completed luxury hotel –
Four Seasons with 230 Keys. As per the rent roll dated 31st March 2024 provided to us by Client, the office
block is approx. 82% occupied.

• The vacant area lease-up has been started from Q2 FY 2025.

4.3. Revenue Assumptions - Office

Revenue Assumptions - Office

Property Details Unit Value

In Place Rent INR per sq. ft. per month 144
Market Rent -Office INR per sq. ft. per month 147
Rent Escalation % Every 3 years 15%
CAM Income INR per sq. ft. per month 16

• Market Rent Office - The subject property, Embassy One, is located between Hebbal and CBD/off – CBD
micro market of Bengaluru. The quoted rental rates for comparable properties are in the range of INR 145 to
165 per sq. ft. per month.

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The below table lists down some of the recent transactions for comparable developments of Embassy One:

Rent
Area Leased Date of
Tenant Location (INR per sq. ft per Type of Deal
(msf.) Transaction
month)
Tenant 1 Lavelle Road 0.01 Q1 2024 145 Fresh
Tenant 2 Ashok Nagar 0.04 Q1 2024 145 Fresh
Tenant 3 Residency Road 0.09 Q1 2024 165 Fresh
Vittal Mallya
Tenant 4 0.01 Q1 2023 160 Fresh
Road
Tenant 5 MG Road 0.03 Q2 2023 141 Fresh
Tenant 6 Lavelle Road 0.01 Q1 2024 145 Fresh
Source: Consultant Research.
Note: The data represented is on calendar year basis.

The below table lists down some of the recent transactions in Embassy One:

*Rent
Area Leased Date of
Tenant Location (INR per sq. ft. Type of facility
(msf.) Transaction
per month)
Tenant 1 Bellary Road 0.01 Q1 2024 137 Fresh
Tenant 2 Bellary Road 0.01 Q1 2024 120 Fresh
Tenant 3 Bellary Road 0.06 Q2 2023 147 Fresh

Source: ^Rent Roll dated 31st March 2024.

Note:
a) * The rental rates do not include parking rent.
b) The data represented is on calendar year basis.

Considering our subject property’s location, grade of the building, amenities offered, tenant profile, lease terms,
etc. we have assumed market lease rent as INR 147 per sq. ft. per month inclusive of parking rent and CAM income
as INR 16 per sq. ft. per month.

• Rent Escalation: We have assumed market rent escalation of 15% every 3 years for vacant area & for area
reversing to the market in line with market norms.

4.4. Revenue Assumptions - Hotel

Four Seasons
Operating Revenues Units

ARR (INR/Room/Night) 14,000

Increase in ARR (YoY) 5%

Stabilized Occupancy % 72%

Food & Beverage Revenue % Of Rooms Revenue 100%

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Four Seasons
Operating Revenues Units

Spa Revenue % Of Rooms Revenue 10%

Minor Operating Department (MOD) Revenue % Of Rooms Revenue 10%

• Average Room Rent (ARR): ARR for the hotel has been considered in line with the ARRs for comparable
hotels at INR 14,000/ Room/ Night. Keeping in mind the historical trend of ARR, the upcoming supply in the
micro market, the ARR growth rate is assumed at 5% Y-O-Y from April 2024 onwards.

• Stabilized Occupancy: Based upon our analysis of occupancy trends in the hotel, occupancy is expected to
be stabilized at 72% in FY 2026.

• F&B Revenue: We have assumed F&B revenue of 100% of room revenue.

• Spa Revenue: We have assumed a SPA revenue of 10% of room revenue.

• Minor Operating Department (MOD) Revenue: We has assumed a MOD revenue of 10% of room revenue.

4.5. Expense Assumptions - Office

Development Cost

The office block is operational in nature with no pending capital expenditure to be incurred.

Major Repair and Improvement

No major repair and Improvement costs are to be incurred in relation to the office block.

Operating Cost

In addition to capital expenditure, a development typically has few recurring operational expenses required for the
up-keep and running of the development. Based on information provided by the Client and market assessment,
following recurring expense assumptions have been adopted for the purpose of this valuation exercise (applicable
to completed block:

Nature of Expense Units Details

Insurance INR per sq. ft. per month 0.4

Property Tax INR per sq. ft. per month 3.9

Other Operating Expenses % of Lease Rental & Parking Income 2%

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Nature of Expense Units Details

Property Management Fees % of Total Income 3%

Transaction cost on Exit % of Terminal Value 1%

Source: Information received from Client; Valuer assessment; * Asset Management fees has been considered a below the NOI line item.

• Other Operating Expenses: It is assumed at 2% of the lease rentals and parking income. The other expenses
account for minor repairs and maintenance to the buildings, legal and professional fees, rates and taxes and
other such expenses.

• Property Management: Based on information received from the Client, Property Management fees is
assumed at 3% of lease rentals, parking income, fitout, and other operating income.

• Transaction Cost On Exit: It is assumed at 1% of the terminal value and is expected to be incurred towards
brokerage/transaction fees, etc.

4.6. Other Assumptions

Nature Units Details

Vacancy Provision % 5%

New Lease -4 Months

Rent Free Period No. of Months
Renewal Lease- 2 Months

New Lease -2 Months

Brokerage No. of Months
Renewal Lease- 1 Months

Source: Valuer assessment.

• Stabilized Vacancy: We have assumed a stabilized vacancy of 5.0% during cashflow period & terminal year.

• Rent-Free Period: In accordance with market benchmarks for Grade A office & retail premises and rent roll
analysis, rent-free period of 4 months has been considered for existing lease rollovers for Year 1 from and 2
months for Year 2. For new leases rent-free period of 4 months has been considered from Year 1.

• Brokerage: As per prevailing market trend, we have assumed a brokerage of 1 month for existing lease
rollovers and 2 months for new leases.

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4.7. Operating Cost - Hotel

Expenses Unit Four Seasons

Room Cost (Including employee cost) % of Rooms Revenue 13%
Food & Beverage Cost % of F&B 39%
Spa Cost % of Spa Revenue 50%
Other Operation Department Cost % of MOD Revenue 30%
Payroll % of Total Revenue 12%
Administration & General Cost % of Total Revenue 3%
Operating Expenses % of Total Revenue 8%
Sales & Marketing Expenditure % of Total Revenue 3.4%
Repairs & Maintenance % of Total Revenue 2.5%
Base Management Fee % of Total Revenue 0.3%
Advisory Fee % of Total Revenue 1.8%
Royalty Fee % of Total Revenue 0.5%
Management Incentive Fee % of Total Revenue Ref 1
FF&E Reserve % of Total Revenue 0.5%

Source: Valuer assessment & Information received from Client.

Ref 1–- Management incentive Fee: For GOP < 30% = 5.5%, GOP 30 – 40% = 6.5%, GOP 40 – 45% = 7.5%, GOP > 45% = 8.0%.

Operating Cost

• Departmental Expenses: We have assumed the Room Cost, F&B cost, spa cost & Minor Operating
Department (MOD) cost at 13%, 39%, 50% & 30% of respective revenues.

• Property Taxes & Insurance: We have assumed the property tax & insurance as per Information received
from Client.

• Undistributed Cost: We have assumed undistributed costs like Payroll, Administration, Sales & Marketing,
operating expenses basis on prevailing trends in the similar comparable hotels.

• Base Management Fee (% of Total Revenue): Base fee of 0.3% has been considered as informed by the
Client.

• Advisory Fee (% of Total Revenue): Advisory fee of 1.8% has been considered as informed by the Client.

• Royalty Fee (% of Total Revenue): Royalty fee of 0.5% has been considered as informed by the Client.

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• Management Incentive Fee: As per the management terms shared by the Client the incentive fee of 5.5% is
applicable if the GOP % is less than 30%. The same is 6.5%, if the GOP is between 30% to 40%, 7.5% if the
GOP is between 40% to 45% and 8.0% if GOP is greater than 45%.

• Furniture, Fixtures & Equipment (FF&E) Reserve (% of GOP): FF&E reserve 2% is considered which
is in line with the market trends of hospitality industry.

4.8. Capitalization Rates

In order to arrive at the capitalization rate for the property, relevant parameters of some key investments in
comparable properties of similar quality, use, tenant profile made by institutional real estate investors were
perused. Further, considering that these investments have been made through private equity and the subject
valuation is being carried out for a potential public listing with better liquidity/marketability of ownership interest,
the cap rate for the subject properties has been assumed to be 7.75% for office and 7.14% for hospitality
developments which is in line with the available market information applied on the one year forward NOI in the
terminal year.

4.9. Discount Rate

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

For the purpose of arriving at the Cost Equity, a peer group of listed comparable were studied and suitable
adjustments made therein to reflect the specific opportunities and characteristics of the Subject Property as part of
a listed portfolio. The Cost of Debt is assumed on the basis of the marginal cost of debt that the SPV owning the
Subject Property has been able to avail and the general borrowing rates of similar assets. The Weights attributed
to equity and debt were benchmarked against similar portfolios/properties in the market.

The derived discount rate of 11.75% for operational segment (including CAM), 13.00% for under construction
Office & Retail segment and 12.14% for Hospitality segment.

4.10. Market Value of the Subject Property

The Valuer is of the opinion that subject to the overriding stipulations contained within the body of this report and
to there being no onerous restrictions or unusual encumbrances of which she has no knowledge, the opinion of
value of the complete ownership interest in the Subject Property comprising land and improvements thereon, as
explained above, on 31st March 2024, is as follows:

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Market Value of the Subject Property

Components Value in (₹Mn)

Completed Block 5,390

Hotel 9,077

Total Value of Embassy One 14,467

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J. EMBASSY BUSINESS HUB

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1. Property Description - Embassy Business Hub

Embassy Business Hub (EBH) - Comprising of Operational and Under-construction

Property Name
commercial IT/ITeS office blocks.

Embassy Business Hub (EBH), Sy. # 25/2, 25/3 & 26, Venkatala Village, Bellary Road,
Address
Yelahanka Bengaluru North, Bengaluru.

Ownership & Title Details JDA: approx. 13 acres (by the respective landowners).

Leasable Area Total leasable Area – approx. 2.1 msf.

Source: Information received from Client, Architect Certificate, Title Report.

Note: The share of Embassy Office Parks REIT in the total leasable area is approx. 1.4 msf.

1.1. Encumbrances

Unless disclosed and recorded in the Property Report, the Subject Property is considered to possess a good and
marketable title and is free from any unusually onerous encumbrances with no option or pre-emption rights in
relation to the assets except for those created in favour of the lenders as mentioned below, based on the information
given in the Title Reports prepared by Trilegal. We have not checked and verified the title of the Subject Property.

2. Location

2.1. General

The Subject Property is located along the Bellary Road (NH-44) and has a good connectivity to the Kempegowda
International Airport. The NH-44 connects Bengaluru city to Kempegowda International Airport & Devanahalli in
the North and Outer Ring Road towards the South of the micro-market further enhances the connectivity to other
parts of the city. The Subject Property is also located in close proximity to Yelahanka micro-market which has
emerged as one of the most prominent residential locations of North Bengaluru. The micro market, which already
has good social and physical infrastructure is expected to witness further growth upon completion of the proposed
infrastructural expansions such as Metro to Airport emanating from the Outer Ring Road.

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The location map of the Subject Property is set out below:

Source: Consultant Research (Map not to Scale).

The Subject Property is spread out over approx.13 acres of land parcel. Located along NH-44 (Bellary Road), the
Subject Property witnesses a good frontage and also has a relatively flat topography with no significant variations
in the height of the land.

Site Boundaries:

The site boundaries for the Subject Property are as under:

• North: Private Property.

• South: Private Property.
• East: Bellary Road.
• West: Private Property.

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2.2. Accessibility

The Subject Property is well connected to major locations in the city via road network. The distance of the Subject
Property from major landmarks in the city is as follows:

• Approx. 2-3 kms from Yelahanka Railway Station.

• Approx. 18-19 kms from M G Road Metro Station.
• Approx. 18-19 kms from Bengaluru Railway Station.
• Approx. 18-20 kms from Kempegowda International Airport.

The Subject Property is well accessible to different parts of the city through the Bellary Road. It also has access to
basic urban infrastructure in terms of power, water supply and municipal sewerage system.

The property photographs of the Subject Property are attached in Annexure 3.

2.3. Ground Conditions

Based on visual inspection, there were no evidence of adverse ground conditions at the property or immediate
vicinity.

2.4. Environment Considerations

We have not carried out any investigations or tests or been supplied with any information from Client or from any
relevant expert that determines the presence or otherwise of pollution or contaminative substances in the subject
or any other land (including any ground water). For the purpose of assessing the vulnerability of the Subject
Property to any natural or induced disaster the location of the Subject Property with respect to risks pertaining to
earthquakes, high winds/ cyclone and flooding was studied. The city faces low risk in terms of high winds or
cyclones too. The Subject Property is not likely to face any higher risk than the overall risk profile of the city. No
hazardous activity was noted in the vicinity of the Subject Property which may expose it for any induced disaster.

2.5. Town Planning and Statutory Considerations

We have not made formal search but have generally relied on readily available information to general public. Our
Report is on current use/ current state basis of the property, and we have not considered any Government proposals
for road widening or compulsory purchase/ acquisition, or any other statute in force that might affect the Subject
Property.

3. Subject Property - Asset Description

Embassy Business Hub Embassy Business Hub is a Non-SEZ Grade A Tech Park located on Bellary Road,
Bengaluru. The Subject Property has two phases - Phase I (operational) & Phase II (under construction).
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Phase I and Phase II of the Grade A Tech Park admeasuring approx.0.7 msf. and approx.1.4 msf. of leasable area
respectively. Phase II which is under construction is expected to be completed by Q1 FY 2029.

3.1. Key Asset Information

Completed Block

Particulars: Details

Office

SEZ/ Leasable Area (msf.)

Building
Block Name Non- Age (Years)
Elevation Embassy
Building Area: SEZ Landlord
REIT Share

(Commenceme
3B + G + Non-
Phase I nt of operation 0.3 0.4
13 SEZ
– Q3 FY 2024)

Total 0.7

Asset type: Commercial Office/Non SEZ

Approved Usage: Non-SEZ

Approvals received
and pending as on List of approvals detailed in Annexure 4.
Valuation Date

Source: Title Report, Rent Roll dated 31st March 2024, Architect Certificate, Occupancy Certificate.

Note:

1. Refer company structure set out in Annexure 1.

2. Occupancy refers to proportion of area leased which is actively occupied by the tenants out of the total area that has received OC.

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Under Construction/ Proposed Block

Particulars: Details

Office

SEZ/ Construction Leasable Area (msf.)

Building
Block Name Non- Completion
Elevation Embassy
SEZ Timeline* Landlord
REIT Share
Building Area:
Non-
Phase II NA FY 2029 0.4 1.0
SEZ

Total 1.4

Note:*the timelines are mentioned as per financial year from April to March.

Asset Type: Commercial Office/Non SEZ

Approved Usage: Non SEZ

Leasable Area: Phase II: 1.4 msf.

Status of
Under construction
construction:

Approvals received
and pending as on List of approvals detailed in Annexure 4.
Valuation Date

3.2. Subject Property Inspection

Particulars: Description

Date of Inspection: The Subject Property consists of operational and under-construction commercial office developments and
was physically inspected on April 03, 2024.

Inspection Details: The inspection comprised of visual inspection of:

Operational and Under Construction Office Development

Key Observation As of the date of the site visit, phase I of the project was operational, while phase II had initiated its
construction activities. Presently, slab works are underway.

Source: Architect certificate, Rent Roll dated 31st March 2024, Valuer assessment.

Note: The Subject Property inspection did not comprise any structural survey, technical/ engineering review or safety audit and the assessment
of the condition of the building, its utilities and campus infrastructure are based completely on visual survey.

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3.3. Lease Expiry Profile

Philips India Limited is the single occupant as of now in Phase I occupying 0.4 msf. and the ultimate lease expiry
in Phase I is 15 years.

4. Valuation Methodology

For the purpose of the valuation of office component of Subject Property, Income Approach - Discounted Cash
Flow Method using Rental Reversion has been adopted.

4.1. Area Statement

Based on information, rent roll, lease deeds, architect certificate provided by the Client, we understand that Subject
Property is an Office Development. Further, the table below highlights the area configuration of the subject
property:

Block Leasable Area (msf.)

Completed Block 0.4

Under Construction/ Proposed Blocks 1.0

Total 1.4

Source: Architect certificate, rent roll dated 31st March 2024, lease deeds.

4.2. Construction Timelines

Under Construction/ Proposed Blocks

Based on visual inspection during the site visit and information provided by the Client, the following timelines for
construction have been adopted for the purpose of this valuation exercise:

Block^ Leasable/ Developable Area (msf.) Construction Completion Timeline*

Phase II 1.4 FY 2029

Source: Information received from Client, *the timelines are mentioned as per financial year from April to March.

Under construction area details are provided to us by Client for the Subject Property comprising of II including
food court and same has been considered for the purview of this exercise.

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4.3. Revenue Assumptions - Office

Revenue Assumptions - Phase I

Property Details Unit Value

In Place Rent INR per sq. ft. per month 57
Market Rent -Office INR per sq. ft. per month 65
Rent Escalation % Every 3 years 15%
Parking Income INR per month per bay 3,000
Other Income (Income from Cell Sites) % 1%

Note: The other income consists of income from kiosks, telecom towers, signages, other fests & events, etc.

Revenue Assumptions - Phase II

Property Details Unit Value

In Place Rent INR per sq. ft. per month -
Market Rent -Office INR per sq. ft. per month 65
Market Rent- Food Court INR per sq. ft. per month 80
Rent Escalation % Every 3 years 15%
Parking Income INR per month per bay 3,000
Other Income (Income from Cell Sites) % 1%

Note: The other income consists of income from kiosks, telecom towers, signages, other fests & events, etc.

• Market Rent Office: Peripheral North Peripheral North micro market has witnessed net absorption of approx.
1.3 msf. in Q1 CY 2024 which approx. 50% of the net absorption levels of CY 2023. Further, rentals in
submarket (Yelahanka to Devanahalli) witnesses rentals in the range of INR 55 to 65 per sq. ft. per month
primarily as the location is emerging in terms of real estate activity, social infrastructure, etc. Further, we
understand that traction in the buildings quoting lower rentals in the range of INR 55 to 65 per sq. ft. per
month is expected to gradually increase on account of the increased demand for good quality commercial
buildings.

Following are the lease transactions in the micro market:

Rent
Area Leased Date of
Tenant Location (INR per sq. ft. Type of Deal
(msf.) Transaction
per month)
Tenant 1 Devanahalli 0.1 Q1 2024 49 Fresh
Tenant 2 Thanisandra Road 0.04 Q3 2023 65 Fresh
Tenant 3 Yelahanka 0.04 Q1 2023 48 Fresh
Tenant 4 Thanisandra Road 0.02 Q4 2023 58 Fresh
Tenant 5 Bellary Road 0.02 Q1 2023 64 Fresh
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Rent
Area Leased Date of
Tenant Location (INR per sq. ft. Type of Deal
(msf.) Transaction
per month)
Tenant 6 Thanisandra Road 0.02 Q1 2023 65 Fresh
Source: Consultant Research.
Note: The data represented is on calendar year basis.

Considering our subject property’s location, grade of the building, amenities offered, tenant profile, lease terms
etc, we have assumed market lease rent as INR 65 per sq. ft. per month, parking rent as INR 3,000 per bay per
month and CAM income as INR 13 per sq. ft. per month.

• Rent Escalation: We have assumed market rent escalation of 15% every 3 years for vacant area & for area
reversing to the market in line with market norms.

• Parking Income: We have assumed 1:750 ratio to arrive at total number of slots & applied with 25% as free
slots & 75% as paid slots with a market rent of INR 3,000 per bay per month.

• Other Income: Other income typically includes income generated from Signage, ATM, Telecom Tower,
Vending Machine, food court, etc. We have assumed these incomes to be approx. 1% of the total lease revenue.

4.4. Expense Assumptions - Office

Development Cost

The following table highlights the assumptions towards the development cost for commercial blocks at the subject
development:

Block Pending Cost to be Spent (INR Mn)

Phase I 151

Phase II 6,616

Source: Information received from Client.

Operating Cost

In addition to capital expenditure, a development typically has few recurring operational expenses required for the
up-keep and running of the development. Based on information provided by the Client and market assessment,
following recurring expense assumptions have been adopted for the purpose of this valuation exercise (applicable
to both completed and under construction blocks):

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Nature of Expense Units Details

Insurance INR per sq. ft. per month 0.3

Property Tax INR per sq. ft. per month 3.1

Other Operating Expenses % of Lease Rental & Parking Income 2%

Property Management Fees % of Total Income 3%

Transaction cost on Exit % of Terminal Value 1%

Source: Information received from Client; Valuer assessment; * Asset Management fees has been considered a below the NOI line item.

• Other Operating Expenses: It is assumed at 2% of the lease rentals and parking income. The other expenses
account for minor repairs and maintenance to the buildings, legal and professional fees, rates and taxes and
other such expenses.

• Property Management: Based on information received from the Client, Property Management fees is
assumed at 3% of lease rentals, parking income, fitout, and other operating income.

• Transaction Cost On Exit: It is assumed at 1% of the terminal value and is expected to be incurred towards
brokerage/transaction fees, etc.

4.5. Other Assumptions

Nature Units Details

Vacancy Provision % 2%

New Lease -4 Months

Rent Free Period No. of Months
Renewal Lease- 2 Months

New Lease -2 Months

Brokerage No. of Months
Renewal Lease- 1 Months

Source: Valuer assessment.

• Stabilized Vacancy: We have assumed a stabilized vacancy of 2.0% during cashflow period & terminal year.

• Rent-Free Period: In accordance with market benchmarks for Grade A office & retail premises and rent roll
analysis, rent-free period of 2 month has been considered for existing lease rollovers and 4 months for new
leases.

• Brokerage: As per prevailing market trend, we have assumed a brokerage of 1 month for existing lease
rollovers and 2 months for new leases.

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4.6. Capitalization Rates

In order to arrive at the capitalization rate for the property, relevant parameters of some key investments in
comparable properties of similar quality, use, tenant profile made by institutional real estate investors were
perused. Further, considering that these investments have been made through private equity and the subject
valuation is being carried out for a potential public listing with better liquidity/marketability of ownership interest,
the cap rate for the subject properties has been assumed to be 8% for office and Retail developments which is in
line with the available market information applied on the one year forward NOI in the terminal year.

4.7. Discount Rate

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

For the purpose of arriving at the Cost Equity, a peer group of listed comparable were studied and suitable
adjustments made therein to reflect the specific opportunities and characteristics of the Subject Property as part of
a listed portfolio. The Cost of Debt is assumed on the basis of the marginal cost of debt that the SPV owning the
Subject Property has been able to avail and the general borrowing rates of similar assets. The Weights attributed
to equity and debt were benchmarked against similar portfolios/properties in the market.

The derived discount rate of 11.75% for Phase I (operational) and 13.00% for Phase II (under construction).

4.8. Market Value of the Subject Property

The Valuer is of the opinion that subject to the overriding stipulations contained within the body of this report and
to there being no onerous restrictions or unusual encumbrances of which she has no knowledge, the opinion of
value of the complete ownership interest in the Subject Property comprising land and improvements thereon, as
explained above, on 31st March 2024, is as follows:

Market Value of the Subject Property

Components Value in (₹Mn)

Phase I 3,950

Phase II 1,793

Total Value of Embassy Business Hub 5,743

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K. EXPRESS TOWERS

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1. Property Description - Express Towers

Property Name Express Towers

Express Towers, Plot no. 236, Block III of Backbay Reclamation Estate, Barrister Rajni Patel Marg,
Address
Nariman Point, Mumbai.

Ownership & Title Details Indian Express Newspapers (Mumbai) Private Limited.

Leasable Area Total Leasable Area – approx. 0.5 msf.

Source: Information received from Client, Architect Certificate, Title Report.

1.1. Encumbrances

Unless disclosed and recorded in the Property Report, the Subject Property is considered to possesses a good and
marketable title and is free from any unusually onerous encumbrances with no option or pre-emption rights in
relation to the assets except for those created in favour of the lenders as mentioned below, based on the information
given in the Title Reports prepared by Cyril Amarchand Mangaldas. We have not checked and verified the title of
the Subject Property.

2. Location

2.1. General

Express Towers is an operational Grade A completed building (hereinafter referred to as Subject Property), is
located in Barrister Rajni Patel Marg, Nariman Point, Mumbai. The Subject Property is a commercial building
admeasuring approx. 0.5 msf. of leasable area. Subject Property is a Non-SEZ type of a commercial building, and
the structure of the building has ground plus 25 floors and a terrace. The building also has basement parking. The
Subject Property is accessible from the Barrister Rajni Patel Marg. It enjoys good accessibility and connectivity
with other parts of the city.

South Mumbai is one of the most sought after commercial micro-markets of Mumbai and is considered as the
Central Business District of Mumbai and is home to IT, commercial office, bank establishments. The micro market
has presence of established buildings by prominent developers like K Raheja Corp, Lodha, Godrej, Kalpataru, etc.

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The location map of the Subject Property is set out below:

Source: Consultant Research (Map not to Scale).

The Subject Property is located in South Mumbai, is accessible through Barrister Rajni Patel Marg. It is located at
approx. 1 kms from Church gate Railway Station and 3 kms from Marine Lines Railway Station. Prominent
landmarks near the Subject Property are Trident Hotel and Oberoi Hotel.

Site Boundaries:

The site boundaries for the Subject Property are as under:

• North: Air India Building.

• South: Secondary Access Road & TCS (Nirmal) Registered Office.
• East: Access Road.
• West: Access Road and Trident Hotel.

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2.2. Accessibility

The Subject Property is well connected to major locations in the city via road network. The distance of the Subject
Property from major landmarks in the city is as follows:

• Approx. 1 kms from Churchgate Railway Station (Western Railway).

• Approx. 3 kms from Chhatrapati Shivaji Terminus Railway Station.
• Approx. 19 kms from Bandra Kurla Complex.
• Approx. 23 kms from Mumbai Domestic Airport.
• Approx. 24 kms from Chhatrapati Shivaji International Airport.

The property photographs of the Subject Property are attached in Annexure 3.

2.3. Ground Conditions

Based on visual inspection, there were no evidence of adverse ground conditions at the property or immediate
vicinity.

2.4. Environment Considerations

We have not carried out any investigations or tests or been supplied with any information from Client or from any
relevant expert that determines the presence or otherwise of pollution or contaminative substances in the subject
or any other land (including any ground water). For the purpose of assessing the vulnerability of the Subject
Property to any natural or induced disaster the location of the Subject Property with respect to risks pertaining to
earthquakes, high winds/ cyclone and flooding was studied. The city faces low risk in terms of high winds or
cyclones too. The Subject Property is not likely to face any higher risk than the overall risk profile of the city. No
hazardous activity was noted in the vicinity of the Subject Property which may expose it for any induced disaster.

2.5. Town Planning and Statutory Considerations

We have not made formal search but have generally relied on readily available information to general public. Our
Report is on current use/ current state basis of the property, and we have not considered any Government proposals
for road widening or compulsory purchase/ acquisition, or any other statute in force that might affect the Subject
Property.

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3. Key Asset Information

Particulars: Details

Entity: Indian Express Newspapers (Mumbai) Private Limited.1

Age of Building
based on the date of
54 Years
Occupancy
Certificate:

Asset Type: Commercial Office/Non-SEZ

Sub-Market: Central Business District

Approved and
Non-SEZ
Existing usage:

Land Area: approx. 1.5 acres

Freehold/Leasehold: Freehold

Leasable Area: 0.5 msf.

Occupied Area: 0.5 msf.

Occupancy (%) 96%

Current Effective INR 268 per sq. ft. per month (Office and Retail Only)
Rent (excluding
Parking)

Source: Title Report, Rent Roll dated 31st March 2024, Architect Certificate, Occupancy Certificate.

Note:
1. Refer company structure set out in Annexure 1.

2. Occupancy refers to proportion of area leased which is actively occupied by the tenants out of the total area that has received OC.

3.1. Subject Inspection

Particulars: Description

The Subject Property comprising a single building of 25 floors with Basement and ground, physically
Date of Inspection:
inspected on 16th April 2024.

The inspection comprised of visual inspection of:

Inspection Details: a. Operational buildings

b. Visits to their key utility areas such as LT electric room, DG Room, Pump room, HVAC installations,
power back up, STP, etc.

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Particulars: Description

• Subject Property has STP, safety features and power back-up facilities.
• The visual inspection of the buildings did not reveal any cause of concern with no visible signs

Key Observation of any disrepair or ill maintenance.

• No instances of any major logging or water accumulation were observed during the inspection.
• The Subject Property has been awarded LEED Platinum Rating for sustainability.

Source: Architect certificate, Rent Roll dated 31st March 2024, Valuer assessment.
Note: The Subject Property inspection did not comprise any structural survey, technical/ engineering review or safety audit and the assessment of the
condition of the building, its utilities and campus infrastructure are based completely on visual survey.

3.2. Lease Expiry Profile

The Weighted Average Lease Expiry (WALE) of Express Towers operational asset is working out to approx. 4.1
years, with approx. 98% of occupied area expiring between CY 2024 and CY 2034.

4. Value Assessment

For the purpose of the valuation of office component of Subject Property, Income Approach - Discounted Cash
Flow Method using Rental Reversion has been adopted.

4.1. Area Statement

Based on information, rent roll, lease deeds, architect certificate provided by the Client, we understand that Subject
Property is a commercial building. Further, the table below highlights the area configuration of the subject
property:

Block Total Area (msf.)

Completed Block 0.5

Source: Architect certificate, Rent Roll dated 31st March 2024, Lease Deeds.

4.2. Construction Timelines

Completed Blocks

As highlighted earlier, the Subject Property has approx. 0.5 msf. of completed development and no pending cost
to complete is remaining as of date of valuation for the completed building.

• As per the rent roll dated 31 Mar 2024 provided to us by Client, it was observed that the operational building
is approx. 96% occupied (including all category spaces).

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4.3. Revenue Assumptions - Office

Revenue Assumptions - Office

Property Details Unit Value

In Place Rent INR per sq. ft. per month 268
Market Rent - Office INR per sq. ft. per month 285
Market Rent - Office (Basement +
INR per sq. ft. per month 200
Ground)
Market Rent- Retail INR per sq. ft. per month 330
Rent Escalation % Every 3 years 15%

• Market Rent Office: The total net absorption of commercial office space in CBD micro market during Q1
2024 has been approx. 0.02 msf. and in 2023 total net absorption was approx. 0.02 msf. Premium supply in
the micro market command rentals in the range of INR 240 to INR 300 per sq. ft. per month on leasable area.
Considering the location, accessibility, quality, size of the building, keeping in view of the future supply, it is
assumed that the Subject Property shall be able to command an average rental of INR 285 per sq. ft. per month.

*A unit with leasable area of 36,163 sq. ft. is located on basement and ground floor for which the market rentals
of INR 200 per sq. ft. per month is considered.

Following are the lease transactions happened in the micro market:

Date of Rent
Tenant Location Area Leased (sq. ft.) Type of Deal
Transaction (INR per sq. ft. per month)
Tenant 1 Nariman Point 3,300 Q1 2024 236 Renewal
Tenant 2 Nariman Point 8,000 Q1 2024 233 Fresh
Tenant 3 Nariman Point 9,200 Q1 2024 230 Renewal
Tenant 4 Nariman Point 2,089 Q4 2023 264 Fresh
Tenant 5 Nariman Point 3,643 Q4 2023 250 Renewal
Tenant 6 Nariman Point 1,385 Q4 2023 325 Renewal
Tenant 7 Nariman Point 8,000 Q3 2023 233 Renewal
Tenant 8 Nariman Point 6,136 Q3 2023 345 Renewal
Tenant 9 Nariman Point 24,584 Q3 2023 265 Renewal
Tenant 10 Nariman Point 6,610 Q3 2023 391 Renewal
Tenant 11 Nariman Point 8,700 Q2 2023 305 Renewal
Tenant 12 Nariman Point 7,668 Q2 2023 260 Renewal
Tenant 13 Nariman Point 6,732 Q2 2023 295 Renewal
Tenant 14 Nariman Point 3,600 Q2 2023 283 Renewal
Tenant 15 Nariman Point 3,500 Q2 2023 240 Renewal
Tenant 16 Nariman Point 2,170 Q2 2023 272 Renewal
Tenant 17 Nariman Point 10,307 Q1 2023 310 Renewal
Tenant 18 Nariman Point 3,921 Q1 2023 239 Renewal
Tenant 19 Nariman Point 910 Q1 2023 235 Renewal
Source: Consultant Research.
Note: The data represented is on calendar year basis.

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Hence, we have assumed market lease rent as INR 285 per sq. ft. per month, CAM income as INR 21 per sq. ft.
per month and HVAC income as INR 13.5 per sq. ft. per month for vacant/under construction/proposed space.

• Market Rent Retail: Basis our market research & rent roll analysis, it was understood that the retail premises
are transacted in the range of INR 300 to 400 per sq. ft. per month. Hence, we have assumed a market rent of
INR 330 per sq. ft. per month on leasable area for retail premises.

• Rent Escalation: We have assumed market rent escalation of 15% every 3 years for vacant area & for area
reversing to the market.

4.4. Expense Assumptions - Office

Operating Cost

A development typically has few recurring operational expenses required for the up-keep and running of the
development. Based on information provided by the Client and market assessment, following recurring expense
assumptions have been adopted for the purpose of this valuation exercise.

Nature of Expense Units Details

Insurance INR per sq. ft. per month 0.6

Property Tax INR per sq. ft. per month 5.7

Other Operating Expenses % of Gross Rental Income 2%

Property Management Fees % of Total Income 3%

Transaction cost on Exit % of Terminal Value 1%

Source: Valuer assessment; Property Management fees has been considered a below the NOI line item.

• Other Operating Expenses: It is assumed at 2% of the rentals. The other expenses account for minor repairs
and maintenance to the buildings, legal and professional fees, rates and taxes and other such expenses.

• Property Management Fees: Based on information received from the Client, Property Management fees is
assumed at 3% of lease rentals, parking income, fitout, and other operating income.

• Transaction Cost On Exit: It is assumed at 1% of the terminal value and is expected to be incurred towards
brokerage/transaction fees, etc.

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4.5. Other Assumptions

Nature Units Details

Vacancy Provision % 5%

New Lease – 4 Months

Rent Free Period No. of Months
Renewal Lease – 2 Months

New Lease – 2 Months

Brokerage No. of Months
Renewal Lease – 1 Months

Source: Valuer assessment.

• Stabilized Vacancy: We have assumed a stabilized vacancy of 5.0% during cashflow period & terminal year.

• Rent-Free Period: In accordance with market benchmarks for Grade A office & retail premises, rent-free
period of 2 month has been considered for existing lease rollovers and 4 months for new leases.

• Brokerage: As per prevailing market trend, we have assumed a brokerage of 1 month for existing lease
rollovers and 2 months for new leases.

4.6. Capitalization Rates

In order to arrive at the capitalization rate for the property, relevant parameters of some key investments in
comparable properties of similar quality, use, tenant profile made by institutional real estate investors were
perused. Further, considering that these investments have been made through private equity and the subject
valuation is being carried out for a potential public listing with better liquidity/marketability of ownership interest,
the cap rate for the subject properties has been assumed to be 7.5% for office and Retail developments which is in
line with the available market information applied on the one year forward NOI in the terminal year.

4.7. Discount Rate

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

For the purpose of arriving at the Cost Equity, a peer group of listed comparable were studied and suitable
adjustments made therein to reflect the specific opportunities and characteristics of the Subject Property as part of
a listed portfolio. The Cost of Debt is assumed on the basis of the marginal cost of debt that the SPV owning the
Subject Property has been able to avail and the general borrowing rates of similar assets. The Weights attributed
to equity and debt were benchmarked against similar portfolios/properties in the market.

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The derived discount rate of 11.75% for operational segment (including CAM).

4.8. Market Value of the Subject Property

The Valuer is of the opinion that subject to the overriding stipulations contained within the body of this report and
to there being no onerous restrictions or unusual encumbrances of which she has no knowledge, the opinion of
value of the complete ownership interest in the Subject Property comprising land and improvements thereon, as
explained above, on 31st March 2024, is as follows:

Market Value of the Subject Property

Components Value in (₹Mn)

Express Tower 18,935

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L. EMBASSY 247

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1. Property Description - Embassy 247

Property Name Embassy 247

Embassy 247, Hariyali Village, Kurla Taluka, Lal Bahadur Shastri Road, Gandhi Nagar, Vikhroli
Address
West, Mumbai.

Ownership & Title Details Vikhroli Corporate Park Private Limited – approx.7.3 acres (Ownership by Embassy Office Parks
REIT).

Leasable Area Total operational area – approx. 1.2 msf.

Source: Information received from Client, Architect Certificate, Title Report.

1.1. Encumbrances

Unless disclosed and recorded in the Property Report, the Subject Property is considered to possesses a good and
marketable title and is free from any unusually onerous encumbrances with no option or pre-emption rights in
relation to the assets except for those created in favour of the lenders as mentioned below, based on the information
given in the Title Reports prepared by Little & Company. We have not checked and verified the title of the Subject
Property.

2. Location

2.1. General

247 Park is an operational Grade A completed building (hereinafter referred to as Subject Property), is located in
Vikhroli West, Mumbai. The Subject Property is a commercial building admeasuring approx.1.2 msf. of leasable
area. Subject Property is a Non-SEZ type of a commercial building 247 Park has 3 towers namely A, B & C. The
structure of Wing A & C has ground plus 11 floors and two levels of basement Parking whereas Wing B has ground
plus 14 floors and two levels of basement Parking. The Subject Property is accessible from the Lal Bahadur Shastri
Road. It enjoys good accessibility and connectivity with other parts of the city.

Eastern Suburbs is one of the most sought after commercial micro-markets of Mumbai and is home to IT,
commercial office, bank establishments. The micro market has presence of prominent developers like Lodha,
Runwal Realty, Dosti Group, L&T Realty, Godrej Properties, etc.

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The location map of the Subject Property is set out below:

Source: Consultant Research (Map not to Scale).

The Subject Property is located in Vikhroli West, adjacent to LBS Marg. It is located at a distance of approx. 1.8
kms from Vikhroli Railway Station and 1.5 kms from Kanjurmarg Railway Station.

Site Boundaries:

The site boundaries for the Subject Property are as under:

• North: HCC Ltd (Commercial Development).

• South: Raj Plaza (Commercial Development).
• East: Railway Tracks.
• West: Primary Access Road.

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2.2. Accessibility

The Subject Property is well connected to major locations in the city via road network. The distance of the
Subject Property from major landmarks in the city is as follows:

• Approx. 1.8 kms from Vikhroli Railway Station.

• Approx. 2 kms from Eastern Express Highway.
• Approx. 1.5 kms from Kanjurmarg Railway Station.
• Approx. 5.3 kms from Jagruti Nagar Metro Station.
• Approx. 12 kms from Mumbai International Airport.

The Subject Property is well accessible from all locations of Mumbai-Navi Mumbai and MMR. It also has access
to basic urban infrastructure in terms of power, water supply and municipal sewerage system.

The property photographs of the Subject Property are attached in Annexure 3.

2.3. Ground Conditions

Based on visual inspection, there were no evidence of adverse ground conditions at the property or immediate
vicinity.

2.4. Environment Considerations

We have not carried out any investigations or tests or been supplied with any information from Client or from any
relevant expert that determines the presence or otherwise of pollution or contaminative substances in the subject
or any other land (including any ground water). For the purpose of assessing the vulnerability of the Subject
Property to any natural or induced disaster the location of the Subject Property with respect to risks pertaining to
earthquakes, high winds/ cyclone and flooding was studied. The city faces low risk in terms of high winds or
cyclones too. The Subject Property is not likely to face any higher risk than the overall risk profile of the city. No
hazardous activity was noted in the vicinity of the Subject Property which may expose it for any induced disaster.

2.5. Town Planning and Statutory Considerations

We have not made formal search but have generally relied on readily available information to general public. Our
Report is on current use/ current state basis of the property, and we have not considered any Government proposals
for road widening or compulsory purchase/ acquisition, or any other statute in force that might affect the Subject
Property.

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3. Subject Property - Asset Description

247 Park is a commercial building with Occupancy Certificate (OC) located in Vikhroli West, Mumbai. The
building admeasures approx. 1.2 msf. of leasable area. 247 Park has 3 towers namely A, B & C. The structure of
Wing A & C has ground plus 11 floors and two levels of basement Parking whereas Wing B has ground plus 14
floors and two levels of basement Parking.

3.1. Key Asset Information

Particulars: Details

Entity: Vikhroli Corporate Park Private Limited1

Age of Building
based on the date of 14 years
Occupancy
Certificate:

Asset Type: Commercial Office / Non-SEZ block

Sub-Market: Eastern Suburbs

Approved and
Non-SEZ
Existing usage:

Land Area: approx. 7.3 acres

Freehold/Leasehold: Freehold

Leasable Area: 1.2 msf.

Occupied Area: 1.2 msf.

Occupancy (%) 100%

Current Effective
Rent (excluding INR 110 per sq. ft. per month (Office and Retail)
Parking)

Source: Title Report, Rent Roll dated 31st March 2024, Architect Certificate, Occupancy Certificate.

Note:
1. Refer company structure set out in Annexure 1.
2. Occupancy refers to proportion of area leased which is actively occupied by the tenants out of the total area that has received OC.

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3.2. Subject Property Inspection:

Particulars: Description

The Subject Property comprising 3 operational buildings which was physically inspected on 16 th April
Date of Inspection:
2024.

The inspection comprised of visual inspection of:

a. Operational buildings
Inspection Details:
b. Visits to their key utility areas such as LT electric room, DG Room, Pump room, HVAC installations,
power back up, STP, etc.

• Subject Property has STP, safety features and power back-up facilities.
• The visual inspection of the buildings did not reveal any cause of concern with no visible signs

Key Observation of any disrepair or ill maintenance.

• No instances of any major logging or water accumulation were observed during the inspection.
• The Subject Property has been awarded LEED Platinum Rating for sustainability.

Source: Architect certificate, Rent Roll dated 31st March 2024, Valuer assessment.

Note: The Subject Property inspection did not comprise any structural survey, technical/ engineering review or safety audit and the assessment of the
condition of the building, its utilities and campus infrastructure are based completely on visual survey.

3.3. Lease Expiry Profile

The Weighted Average Lease Expiry (WALE) of Embassy 247 operational asset is working out to approx. 3.9
years, with approx. 97% of occupied area expiring between CY 2024 and CY 2031.

4. Valuation Methodology

For the purpose of the valuation of office component of Subject Property, Income Approach - Discounted Cash
Flow Method using Rental Reversion has been adopted.

4.1. Area Statement

Based on information, rent roll, lease deeds, architect certificate provided by the Client, we understand that Subject
Property is an Office Park. Further, the table below highlights the area configuration of the subject property:

Block Leasable Area (msf.)

Completed Block 1.2

Source: Architect certificate, rent roll dated 31st March 2024, lease deeds.

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4.2. Construction Timelines

Completed Block

As highlighted earlier, the Subject Property has approx. 1.2 msf. of completed development and no pending cost
to complete is remaining as of date of valuation for the completed blocks.

As per the rent roll dated 31 Mar 2024 provided to us by Client, it was observed that the operational block is
approx. 100% occupied (including all category spaces).

4.3. Revenue Assumptions - Office

Revenue Assumptions - Office

Property Details Unit Value

In Place Rent INR per sq. ft. per month 110
Market Rent -Office INR per sq. ft. per month 115
Market Rent- Retail INR per sq. ft. per month 250
Rent Escalation % Every 3 years 15%
Other Income (Income from Cell sites) % 1%

Note: The other income consists of income from kiosks, telecom towers, signages, other fests & events, etc. However, same has not been
considered for under construction & proposed asset cashflows.

• Market Rent Office: The total net absorption of commercial office space in Eastern Suburbs micro market
during Q1 2024 has been approx. 0.12 msf. Premium Grade A supply in the micro market command rentals
in the range of INR 100 to 180 per sq. ft. per month on leasable area. Due to the advantages of location,
accessibility, quality, size of the building, keeping in view of the future supply, it is assumed that the Subject
Property shall be able to command an average rental of INR 115 per sq. ft. per month.

Following are the lease transactions happened in the micro market:

Rent
Area Leased Date of
Tenant Location (INR per sq. ft. per Type of Deal
(sq. ft.) Transaction
month)
Tenant 1 Vikhroli West 50,818 Q1 2024 158 Renewal

Tenant 2 Vikhroli East 22,269 Q1 2024 165 Fresh

Tenant 3 Vikhroli West 12,446 Q1 2024 125 Fresh

Tenant 4 Vikhroli East 14,340 Q1 2024 170 Fresh

Tenant 5 Vikhroli East 21,316 Q4 2023 170 Fresh

Tenant 6 Vikhroli East 23,007 Q4 2023 170 Fresh

Tenant 7 Vikhroli East 21,883 Q4 2023 170 Fresh

Tenant 8 Vikhroli East 22,339 Q4 2023 170 Fresh

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Rent
Area Leased Date of
Tenant Location (INR per sq. ft. per Type of Deal
(sq. ft.) Transaction
month)
Tenant 9 Vikhroli East 15,417 Q4 2023 167 Fresh

Tenant 10 Kanjurmarg West 7,345 Q4 2023 145 Fresh

Tenant 11 Vikhroli East 14,932 Q3 2023 167 Fresh

Tenant 12 Vikhroli East 20,903 Q2 2023 136 Fresh

Tenant 13 Vikhroli West 20,764 Q2 2023 150 Renewal

Tenant 14 Kanjurmarg East 4,340 Q2 2023 112 Fresh

Tenant 15 Vikhroli East 13,386 Q2 2023 185 Fresh

Tenant 16 Vikhroli East 21,555 Q1 2023 165 Fresh

Tenant 17 Vikhroli East 12,772 Q1 2023 185 Fresh

Source: Consultant Research.
Note: The data represented is on calendar year basis.

Hence, we have assumed market lease rent as INR 115 per sq. ft. per month and CAM income as INR 18 per sq.
ft. per month for vacant/under construction/proposed space.

• Market Rent Retail: Basis our market research & rent roll analysis, it was understood that the retail premises
are transacted in the range of INR 200 to 300 per sq. ft. per month. Hence, we have assumed a market rent of
INR 250 per sq. ft. per month on leasable area for retail premises.

• Rent Escalation: We have assumed market rent escalation of 15% every 3 years for vacant area & for area
reversing to the market.

• Other Income: We have assumed other income as 1%.

4.4. Expense Assumptions - Office

Operating Cost

A development typically has few recurring operational expenses required for the up-keep and running of the
development. Based on information provided by the Client and market assessment, following recurring expense
assumptions have been adopted for the purpose of this valuation exercise (applicable to both completed and under
construction blocks):

Nature of Expense Units Details

Insurance INR per sq. ft. per month 0.4

Property Tax INR per sq. ft. per month 3.3

Other Operating Expenses % of Gross Rental Income 2%

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Nature of Expense Units Details

Property Management Fees % of Total Income 3%

Transaction cost on Exit % of Terminal Value 1%

Source: Valuer assessment; * Property Management fees has been considered a below the NOI line item.

• Other Operating Expenses: It is assumed at 2% of the rentals. The other expenses account for minor repairs
and maintenance to the buildings, legal and professional fees, rates and taxes and other such expenses.

• Property Management Fees: Based on information received from the Client, Property Management fees is
assumed at 3% of lease rentals, parking income, fitout, and other operating income.

• Transaction Cost On Exit: It is assumed at 1% of the terminal value and is expected to be incurred towards
brokerage/transaction fees, etc.

4.5. Other Assumptions

Nature Units Details

Vacancy Provision % 5%

New Lease - 4 Months

Rent Free Period No. of Months
Renewal Lease - 2 Months

New Lease - 2 Months

Brokerage No. of Months
Renewal Lease - 1 Months

Source: Valuer assessment.

• Stabilized Vacancy: We have assumed a stabilized vacancy of 5.0% during cashflow period & terminal year.

• Rent-Free Period: In accordance with market benchmarks for Grade A office & retail premises, rent-free
period of 2 month has been considered for existing lease rollovers and 4 months for new leases.

• Brokerage: As per prevailing market trend, we have assumed a brokerage of 1 month for existing lease
rollovers and 2 months for new leases.

4.6. Capitalization Rates

In order to arrive at the capitalization rate for the property, relevant parameters of some key investments in
comparable properties of similar quality, use, tenant profile made by institutional real estate investors were
perused. Further, considering that these investments have been made through private equity and the subject
valuation is being carried out for a potential public listing with better liquidity/marketability of ownership interest,
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the cap rate for the subject properties has been assumed to be 8% for office and Retail developments which is in
line with the available market information applied on the one year forward NOI in the terminal year.

4.7. Discount Rate

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

For the purpose of arriving at the Cost Equity, a peer group of listed comparable were studied and suitable
adjustments made therein to reflect the specific opportunities and characteristics of the Subject Property as part of
a listed portfolio. The Cost of Debt is assumed on the basis of the marginal cost of debt that the SPV owning the
Subject Property has been able to avail and the general borrowing rates of similar assets. The Weights attributed
to equity and debt were benchmarked against similar portfolios/properties in the market.

The derived discount rate of 11.75% for operational segment.

4.8. Market Value of the Subject Property

The Valuer is of the opinion that subject to the overriding stipulations contained within the body of this report and
to there being no onerous restrictions or unusual encumbrances of which she has no knowledge, the opinion of
value of the complete ownership interest in the Subject Property comprising land and improvements thereon, as
explained above, on 31st March 2024, is as follows:

Market Value of the Subject Property

Components Value in (₹Mn)

Embassy 247 19,075

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M. FIRST INTERNATIONAL FINANCIAL CENTRE (FIFC)

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1. Property Description - FIFC

Property Name First International Financial Centre (FIFC) -Comprising of completed commercial office blocks.

First International Financial Centre (FIFC), Plot no. C-54 & C-55, G Block, BKC Road, Mumbai,
Address
Maharashtra 400 051.

Ownership & Title Details Earnest Towers Private Limited – approx. 2.0 acres 1 (Ownership by Embassy Office Parks REIT)

Leasable Area Total operational area – approx. 0.4 msf.

Source: Architect Certificate, Title Report.

Note: 1. FIFC has undivided right of 54.2% of the land.

1.1. Encumbrances

Unless disclosed and recorded in the Property Report, the Subject Property is considered to possesses a good and
marketable title and is free from any unusually onerous encumbrances with no option or pre-emption rights in
relation to the assets except for those created in favour of the lenders as mentioned below, based on the information
given in the Title Reports prepared by King & Partridge. We have not checked and verified the title of the Subject
Property.

2. Location

2.1. General

First International Financial Centre (FIFC) is an operational Grade A completed building (hereinafter referred to
as Subject Property), is located in G Block, Bandra Kurla Complex, Mumbai. The Subject Property is a commercial
building admeasuring approx. 0.4 msf. of leasable area. Subject Property is a Non-SEZ type of a commercial
building, and the structure of the building has ground plus 13 floors and a terrace. The building also has two levels
of basement parking. The Subject Property is accessible from the Bandra Kurla Complex Link Road. It enjoys
good accessibility and connectivity with other parts of the city.

First International Financial Centre (FIFC) is an operational Grade A completed building (hereinafter referred to
as Subject Property), is located in G Block, Bandra Kurla Complex, Mumbai. The Subject Property is a commercial
building admeasuring approx. 0.4 msf. of leasable area. Subject Property is a Non-SEZ type of a commercial
building, and the structure of the building has ground plus 13 floors and a terrace. The building also has two levels
of basement parking. The Subject Property is accessible from the Bandra Kurla Complex Link Road. It enjoys
good accessibility and connectivity with other parts of the city.

BKC is one of the most sought after commercial micro-markets of Mumbai and is considered as the Secondary
Business District of Mumbai and is home to IT, commercial office, bank establishments. The micro market has

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presence of established buildings by prominent developers like K Raheja Corp, Wadhwa Group, Sunteck, Godrej,
Adani, etc.

The location map of the Subject Property is set out below:

Source: Consultant Research (Map not to Scale).

The Subject Property is located in BKC i.e., at a distance of approx. 2 kms from Kurla Railway Station and 5 kms
from Bandra Railway Station. Prominent landmarks near the Subject Property are Bharat Diamond Bourse,
Reserve Bank of India office and BKC Telephone Exchange.

Site Boundaries:

The site boundaries for the Subject Property are as under:

• North: Primary Access Road.

• South: Secondary Access Road.
• East: Vacant Land Parcel belongs to MMRDA.
• West: TCG Financial Centre (Commercial Development).

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2.2. Accessibility

The Subject Property is well connected to major locations in the city via road network. The distance of the Subject
Property from major landmarks in the city is as follows:

• Approx. 2 kms from Kurla Railway Station (Central Railway).

• Approx. 3 kms from Western Express Highway.
• Approx. 5 kms from Bandra Railway Station (Western Railway).
• Approx. 5 kms from Eastern Express Highway.
• Approx. 9 kms from Mumbai International Airport.

The Subject Property is well accessible from all locations of Mumbai-Navi Mumbai and MMR. It also has
access to basic urban infrastructure in terms of power, water supply and municipal sewerage system.

The property photographs of the Subject Property are attached in Annexure 3.

2.3. Ground Conditions

Based on visual inspection, there were no evidence of adverse ground conditions at the property or immediate
vicinity.

2.4. Environmental Considerations

We have not carried out any investigations or tests or been supplied with any information from Client or from any
relevant expert that determines the presence or otherwise of pollution or contaminative substances in the subject
or any other land (including any ground water).

For the purpose of assessing the vulnerability of the Subject Property to any natural or induced disaster the location
of the property with respect to risks pertaining to earthquakes, high winds/cyclone and flooding was studied.
Mumbai where the Subject Property is located falls in Seismic Zone III with moderate risk. The city faces low risk
in terms of high winds or cyclones too. The Subject Property is not likely to face any higher risk than the overall
risk profile of the city. No hazardous activity was noted in the vicinity of the Subject Property which may expose
it for any induced disaster.

The Subject Property is located at relatively higher elevation compared to overall topography of the city, indicating
moderate risk of flooding.

2.5. Town Planning and Statutory Considerations

We have not made formal search but have generally relied on readily available information to general public. Our
Report is on current use/ current state basis of the property, and we have not considered any Government proposals
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for road widening or compulsory purchase/ acquisition, or any other statute in force that might affect the Subject
Property.

3. Subject Property - Asset Description

First International Financial Centre (FIFC) is a commercial building with Occupancy Certificate (OC) located in
G Block, Bandra Kurla Complex, Mumbai. The building admeasures approx. 0.4 msf. of leasable area. The
building has ground plus 13 floors and a terrace. The building also has two levels of basement parking.

3.1. Key asset Information

Particulars: Details

Entity: Earnest Towers Private Limited1

Age of Building based

on the date of
Occupancy Certificate: 10 Years

Asset Type: Commercial Office/Non-SEZ

Sub-Market: Bandra Kurla Complex

Approved and Existing

Non-SEZ
usage:

Land Area: approx. 2.0 acres 3

Freehold/Leasehold: The underlying land is taken on leasehold basis from MMRDA

Leasable Area: 0.4 msf.

Occupied Area: 0.4 msf.

Occupancy (%) 100%

Current Effective Rent INR 320 per sq. ft. per month (Office and Retail Only)
(excluding Parking)

Source: Title Report, Rent Roll dated 31st March 2024, Architect Certificate, Occupancy Certificate.

Note:
1. Refer company structure set out in Annexure 1.
2. Occupancy refers to proportion of area leased which is actively occupied by the tenants out of the total area that has received OC.
3. FIFC has undivided right of 54.2% of the land

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The underlying land of the Subject Property is held as leasehold from Mumbai Metropolitan Region Development
Authority (MMRDA). Given that the purpose and obligations associated with lease of the underlying land has
essentially been achieved, the likelihood of lease getting cancelled or not renewed at the end of the tenure is
negligible. Thus, no specific adjustments are required to be made towards the legal tenure of underlying land’s
ownership.

3.2. Subject Property Inspection

Particulars: Description

The Subject Property comprising a single building with 2 basement + Ground + 13 floors inspected
Date of Inspection:
on 16th April 2024. At the time of inspection, façade and all utilities were well maintained

The inspection comprised of visual inspection of:

Inspection Details: a. Operational buildings

b. Visits to their key utility areas such as LT electric room, DG Room, Pump room, HVAC installations,
power back up, STP, etc.

• Subject Property has STP, safety features and power back-up facilities.
• The visual inspection of the buildings did not reveal any cause of concern with no visible signs
Key Observation of any disrepair or ill maintenance.
• No instances of any major logging or water accumulation were observed during the inspection.
• The Subject Property has been awarded LEED Platinum Rating for sustainability.

Source: Architect certificate, Rent Roll dated 31st March 2024, Valuer assessment.

Note: The Subject Property inspection did not comprise any structural survey, technical/ engineering review or safety audit and the assessment of the
condition of the building, its utilities and campus infrastructure are based completely on visual survey.

3.3. Lease Expiry Profile

The Weighted Average Lease Expiry (WALE) of FIFC operational asset is approx. 3.0 years, with approx.43% of
occupied area expiring in CY 2025.

4. Valuation Methodology

For the purpose of the valuation of office component of Subject Property, Income Approach - Discounted Cash
Flow Method using Rental Reversion has been adopted.

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4.1. Area Statement

Based on information, rent roll, lease deeds, architect certificate provided by the Client, we understand that Subject
Property is an Office Park. Further, the table below highlights the area configuration of the subject property.

Block Total Area (msf.)

Completed Blocks 0.4

Source: Architect certificate, rent roll, lease deeds.

4.2. Construction Timelines

Completed Blocks

As highlighted earlier, the Subject Property has approx. 0.4 msf. of completed development and no pending cost
to complete is remaining as of date of valuation for the completed blocks.

• As per the rent roll dated 31 Mar 2024 provided to us by Client, it was observed that the operational block is
approx.100% occupied (including all category spaces).

4.3. Revenue Assumptions - Office

Revenue Assumptions - Office

Property Details Unit Value

In Place Rent - Office INR per sq. ft. per month 320
Market Rent - Office INR per sq. ft. per month 290
Market Rent - Retail INR per sq. ft. per month 350
Rent Escalation % Every 3 years 15%

• Market Rent Office: The total net absorption of commercial office space in BKC micro market during Q1
2024 has been approx. 0.3 msf. and in 2023 total net absorption was approx. 0.4 msf. Premium Grade A supply
in the micro market command rentals in the range of INR 300 to 450 per sq. ft. per month on leasable area.
These rentals are at a premium to the market benchmarks primarily due to the locational advantage, the quality
of construction, amenities, and an elite tenant list. Despite the market slowdown due to COVID-19 the micro
market has witnessed substantial rental growth since past 2-3 years. Considering the location, accessibility,
quality, size of the building, keeping in view of the future supply, it is assumed that the Subject Property shall
be able to command an average rental of INR 290 per sq. ft. per month.

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Following are the lease transactions happened in the micro market:

Rent Type of Deal

Area Leased
Tenant Location Date of Transaction (INR per sq. ft. per
(sq. ft.)
month)
Tenant 1 BKC 14,984 Q1 2024 300 Fresh
Tenant 2 BKC 1,658 Q1 2024 314 Fresh
Tenant 3 BKC 2,180 Q1 2024 298 Fresh
Tenant 5 BKC 4,037 Q4 2023 295 Renewal
Tenant 6 BKC 8,995 Q4 2023 300 Renewal
Tenant 7 BKC 5265 Q4 2023 300 Fresh
Tenant 8 BKC 5588 Q4 2023 305 Renewal
Tenant 9 BKC 3,003 Q3 2023 276 Fresh
Tenant 10 BKC 2,445 Q3 2023 287 Fresh
Tenant 11 BKC 2,208 Q3 2023 270 Fresh
Tenant 12 BKC 1,002 Q3 2023 281 Fresh
Tenant 13 BKC 37,126 Q2 2023 270 Renewal
Tenant 14 BKC 18,640 Q2 2023 298 Fresh
Tenant 15 BKC 2,922 Q2 2023 272 Fresh
Tenant 16 BKC 5,800 Q1 2023 295 Fresh
Tenant 17 BKC 16,682 Q1 2023 289 Fresh
Tenant 18 BKC 7,318 Q1 2023 301 Fresh
Tenant 18 BKC 6,479 Q1 2023 300 Fresh
Tenant 19 BKC 3,845 Q1 2023 301 Fresh
Tenant 20 BKC 2,335 Q1 2023 299 Fresh
Source: Consultant Research.
Note: The data represented is on calendar year basis.

Hence, we have assumed market lease rent as INR 290 per sq. ft. per month, and CAM income as INR 21 per sq.
ft. per month for vacant/under construction/proposed space.

• Market Rent Retail: Basis our market research & rent roll analysis, it was understood that the retail premises
are transacted in the range of INR 285 to 450 per sq. ft. per month. Hence, we have assumed a market rent of
INR 350 per sq. ft. per month on leasable area for retail premises.

• Rent Escalation: We have assumed market rent escalation of 15% every 3 years for vacant area & for area
reversing to the market.

4.4. Expense Assumptions - Office

Operating Cost

Below mentioned are the few recurring operational expenses required for the up-keep and running of the
development. Based on information provided by the Client and market assessment, following recurring expense
assumptions have been adopted for the purpose of this valuation exercise.

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Nature of Expense Units Details

Insurance INR per sq. ft. per month 0.1

Property Tax INR per sq. ft. per month 8.1

Other Operating Expenses % of Gross Rental Income 2%

Property Management Fees % of Total Income 3%

Transaction cost on Exit % of Terminal Value 1%

Source: Information received from Client; Valuer assessment; Property Management Fees has been considered a below the NOI line item.

• Other Operating Expenses: It is assumed at 2% of the rentals. The other expenses account for minor repairs
and maintenance to the buildings, legal and professional fees, rates and taxes and other such expenses.

• Property Management Fees: Based on information received from the Client, Property Management fees is
assumed at 3% of lease rentals, parking income, fitout, and other operating income.

• Transaction Cost On Exit: It is assumed at 1% of the terminal value and is expected to be incurred towards
brokerage/transaction fees, etc.

4.5. Other Assumptions

Nature Units Details

Vacancy Provision % 5%

New Lease - 4 Months

Rent Free Period No. of Months
Renewal Lease - 2 Months

New Lease - 2 Months

Brokerage No. of Months
Renewal Lease - 1 Months

Source: Valuer assessment.

• Stabilized Vacancy: We have assumed a stabilized vacancy of 5.0% during cashflow period & terminal year.

• Rent-Free Period: In accordance with market benchmarks for Grade A office & retail premises, rent-free
period of 2 month has been considered for existing lease rollovers and 4 months for new leases.

• Brokerage: As per prevailing market trend, we have assumed a brokerage of 1 month for existing lease
rollovers and 2 months for new leases.

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4.6. Capitalization Rates

In order to arrive at the capitalization rate for the property, relevant parameters of some key investments in
comparable properties of similar quality, use, tenant profile made by institutional real estate investors were
perused. Further, considering that these investments have been made through private equity and the subject
valuation is being carried out for a potential public listing with better liquidity/marketability of ownership interest,
the cap rate for the subject properties has been assumed to be 7.75% for office and Retail developments which is
in line with the available market information applied on the one year forward NOI in the terminal year.

4.7. Discount Rate

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

For the purpose of arriving at the Cost Equity, a peer group of listed comparable were studied and suitable
adjustments made therein to reflect the specific opportunities and characteristics of the Subject Property as part of
a listed portfolio. The Cost of Debt is assumed on the basis of the marginal cost of debt that the SPV owning the
Subject Property has been able to avail and the general borrowing rates of similar assets. The Weights attributed
to equity and debt were benchmarked against similar portfolios/properties in the market.

The derived discount rate of 11.75% for operational segment.

4.8. Market Value of the Subject Property

The Valuer is of the opinion that subject to the overriding stipulations contained within the body of this report and
to there being no onerous restrictions or unusual encumbrances of which she has no knowledge, the opinion of
value of the complete ownership interest in the Subject Property comprising land and improvements thereon, as
explained above, on 31st March 2024, is as follows:

Market Value of the Subject Property

Components Value in (₹Mn)

First International Financial Centre (FIFC) 14,977

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N. EMBASSY TECHZONE

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1. Property Description - Embassy TechZone

Embassy TechZone - Comprising of Completed & Under-construction commercial IT/ITeS SEZ

Property Name
and Non – SEZ office blocks.

Embassy TechZone is located at Plot No. 3A, Hinjewadi Phase 2 Road, Hinjewadi Rajiv Gandhi
Address
Infotech Park, Hinjewadi, Pune, Maharashtra 411057.

Ownership & Title Details The Subject Property is leasehold in nature, with remaining lease term of approx. 77 years

Source: Information received from Client, Architect Certificate, Title Report.

1.1. Encumbrances

Unless disclosed and recorded in the Property Report, the Subject Property is considered to possesses a good and
marketable title and is free from any unusually onerous encumbrances with no option or pre-emption rights in
relation to the assets except for those created in favour of the lenders as mentioned below, based on the information
given in the Title Reports prepared by King & Patridge Advocates. We have not checked and verified the title of
the Subject Property.

2. Location

2.1. General

'Embassy TechZone' (ETZ) is strategically situated in Pune's Hinjewadi area, which is renowned as a significant
commercial and technological centre. The location of ETZ offers exceptional accessibility, with key landmarks at
convenient distances. It is approx. 5 kms from National Highway 48, connecting major cities like Mumbai, Pune,
and Bengaluru. Pune's CBD is approx. 18 kms away, while the Pune Railway Station is around 20 kms from ETZ.
Additionally, Pune International Airport is accessible at a distance of approx. 26 kms.

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The location map of the Subject Property is set out below:

Source: Consultant Research (Map not to Scale).

Site Boundaries:

The site boundaries for the Subject Property are as under:

• North: Residential Development.

• South: Commercial Development.
• East: Vacant Land.
• West: Vacant Land.

2.2. Accessibility

The Subject Property is well connected to major locations in the city via road network. The distance of the Subject
Property from major landmarks in the city is as follows:

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• Approx. 5-6 km from NH 48 (Mumbai – Bengaluru highway).

• Approx. 1 -2 km from Proposed Infosys Phase II Metro Station.
• Approx. 20 -21 km from Pune Railway Station.
• Approx. 25 -26 km from Pune International Airport.

The Subject Property is well accessible to different parts of the city. It also has access to basic urban infrastructure
in terms of power, water supply and availability of MIDC Infrastructure.

The property photographs of the Subject Property are attached in Annexure 3.

2.3. Ground Conditions

Based on visual inspection, there were no evidence of adverse ground conditions at the property or immediate
vicinity.

2.4. Environment Considerations

We have not carried out any investigations or tests or been supplied with any information from Client or from any
relevant expert that determines the presence or otherwise of pollution or contaminative substances in the subject
or any other land (including any ground water). For the purpose of assessing the vulnerability of the Subject
Property to any natural or induced disaster the location of the Subject Property with respect to risks pertaining to
earthquakes, high winds/ cyclone and flooding was studied. The city faces low risk in terms of high winds or
cyclones too. The Subject Property is not likely to face any higher risk than the overall risk profile of the city. No
hazardous activity was noted in the vicinity of the Subject Property which may expose it for any induced disaster.

2.5. Town Planning and Statutory Considerations:

We have not made formal search but have generally relied on readily available information to general public. Our
Report is on current use/ current state basis of the property, and we have not considered any Government proposals
for road widening or compulsory purchase/ acquisition, or any other statute in force that might affect the Subject
Property.

3. Subject Property - Asset Description

"Embassy TechZone" has been conceived as an expansive office park spanning approx. 67.5 acres of land area.
This property currently operates as an IT/ITeS SEZ and Non-SEZ office park, accommodating multiple tenants. It
offers a wide array of facilities and amenities, including a food court, intra-park shuttle service, gymnasium, multi-
level parking, and a sports ground.

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Completed Blocks – Colarado Mississippi, Congo, Rhine, Mekong, Nile, Food Court, Hudson, and Ganges.

The completed buildings and parts thereof with Occupancy Certificate (OC) collectively admeasure approx. 3.0
msf. of leasable area. Out of them – Colarado Mississippi, Congo, Rhine, Mekong, Nile are SEZ buildings and
Hudson, and Ganges is Non-SEZ building.

Under Construction/ Proposed Blocks – Volga is an under-construction block, whereas Blocks 4, 9, and 10 are
proposed blocks.

The under-construction building Volga admeasuring approx. 0.04 msf. of leasable area is expected to be completed
by FY 2026. The proposed blocks Block 4, 9 and 10 admeasuring approx. 2.4 msf. of leasable area are expected
to be completed by FY 2030.

3.1. Key Asset Information

Completed Blocks

Particulars: Details

Entity: Embassy Pune TechZone Private Limited1

Building SEZ/ Non- Leasable Area

Block Name Age (Years)
Elevation SEZ (msf.)

Colorado S2+S1+G+5 SEZ 15 0.3

Mississippi S2+S1+G+5 SEZ 15 0.3

Congo G+10 SEZ 7 0.5

Age of Building Rhine G+8 SEZ 7 0.5
based on the date of
Occupancy Mekong G+9 SEZ 12 0.3
Certificate:
Nile B+G+7 SEZ 13 0.3

Food Court G+1 - 4 0.0

Hudson S+G+11 Non-SEZ 1 0.5

Ganges S+G+11 Non-SEZ 1 0.4

Total 3.0

Asset Type: Tech Park with 6 SEZ blocks and 2 Non-SEZ block

Sub-Market: PBD West

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Particulars: Details

Approved and
IT/ITeS SEZ & Non-SEZ
Existing usage:

Land Area: approx. 67.5 acres

Freehold/Leasehold: Leasehold

Leasable Area: 3.0 msf.

Occupied Area: 2.1 msf.

Occupancy (%) 78%

Current Effective
Rent (excluding INR 54 per sq. ft. per month (Office, Retail and Telecom Tenants Only)
Parking)

Source: Title Report, Rent Roll dated 31st March 2024, Architect Certificate, Occupancy Certificate.

Note:

1. Refer company structure set out in Annexure 1.

2. Occupancy refers to proportion of area leased which is actively occupied by the tenants out of the total area that has received OC.

Under Construction/ Proposed Blocks

Particulars: Details

Office
Construction
Building Leasable Area
Block Name SEZ/ Non-SEZ Completion
Elevation (msf.)
Timeline*

Volga NA SEZ FY2025 0.0

Building Area:
Block 4 NA SEZ FY 2028 0.4

Block 9 NA SEZ FY 2029 1.0

Block 10 NA SEZ FY 2030 1.0

Total 2.4
Note:*the timelines are mentioned as per financial year from April to March.

Asset Type: Commercial Office/IT SEZ/Non-SEZ

Approved Usage: Commercial office

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Particulars: Details

Leasable Area: approx. 2.4 msf.

Status of Volga - Under Construction

Construction: Block 4, 9, and 10 - Proposed

Approvals received
and pending as on List of approvals detailed in Annexure 4.
Valuation Date

3.2. Subject Property Inspection

Particulars: Description

The Subject Property comprising nine operational buildings along with four future development areas
Date of Inspection:
was physically inspected on April 10, 2024.

The inspection comprised of visual inspection of:

• Operational buildings
Inspection Details: • Visits to their key utility areas such as LT electric room, DG Room, Pump room, HVAC
installations, power back up, STP, etc.
• Area provisioned for Future development.

• Completed/ Operational Building: Colorado Mississippi, Congo, Rhine, Mekong, Nile, Food
Court, Hudson, and Ganges
• Future development: Volga, Block 4, 9 and 10
• Other Amenities: Food Court
Key Observation • Awards & Certifications: NA
• Parking: Yes
• Other Observations: None
• The Subject Property has been awarded LEED Platinum Rating for sustainability.

Source: Architect certificate, Rent Roll dated 31st March 2024, Valuer assessment.

Note: The Subject Property inspection did not comprise any structural survey, technical/ engineering review or safety audit and the assessment of the
condition of the building, its utilities and campus infrastructure are based completely on visual survey.

3.3. Lease Expiry Profile:

The Weighted Average Lease Expiry (WALE) of ETZ operational asset is working out to approx. 4.3 years, with
approx. 93% of occupied area expiring between CY 2024 and CY 2034.

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4. Valuation Methodology

For the purpose of the valuation of office component of Subject Property, Income Approach – Discounted Cash
Flow Method using Rental Reversion has been adopted.

4.1. Area Statement

Based on information, rent roll, lease deeds, architect certificate provided by the Client, we understand that Subject
Property is an Office Park. Further, the table below highlights the area configuration of the subject property:

Block Leasable Area (msf.)

Completed Blocks 3.0

Under- Construction/ Proposed Blocks 2.4

Total 5.5

Source: Architect certificate, rent roll dated 31st March 2024, lease deeds.

4.2. Construction Timelines

Completed Blocks

As highlighted earlier, the Subject Property has approx. 3.0 msf. of completed development and no pending cost
to complete is remaining as of date of valuation for the completed blocks.

• As per the rent roll dated 31 Mar 2024 provided to us by Client, it was observed that the operational block is
approx. 78% occupied (including all category spaces).

• The vacant area lease-up has been started from Q3 FY 2025.

Under Construction/ Proposed Blocks

Based on visual inspection during the site visit and information provided by the Client, the following timelines for
construction have been adopted for the purpose of this valuation exercise:

Block^ Leasable/ Developable Area (msf.) Construction Completion*

Volga 0.04 FY2025

Block 4 0.4 FY 2028

Block 9 1.0 FY 2029

Block 10 1.0 FY 2030

Source: Information received from Client, *the timelines are mentioned as per financial year from April to March.
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• Under construction area details are provided to us by Client for Volga and same has been considered for the
purview of this exercise.

• The vacant area lease-up has been started from Q4 FY 2025.

• Proposed area details are provided to us by Client for Block 4, 9 and 10 same has been considered for the
purview of this exercise.

• The vacant area lease-up has been started from Q4 FY 2029.

4.3. Revenue Assumptions

Revenue Assumptions - Office

Property Details Unit Value

In Place Rent INR per sq. ft. per month 54
Market Rent -Office INR per sq. ft. per month 48
Rent Escalation % Every 3 years 15%
Parking Income INR per month per bay 3,000
Effective Parking Income INR per month per bay 2,250
Other Income (Income from Cell Sites) % 1%

Note: The other income consists of income from kiosks, telecom towers, signages, other fests & events, etc. However, same has not been
considered for under construction & proposed asset cashflows.

• Market Rent Office: The total net absorption of commercial office space in PBD West during Q1 2024 has
been approx. 0.4 msf. and as in 2023 total net absorption was approx. 0.9 msf. On an Average the micro market
is witnessing a lease rental in the range of INR 40 to 60 per sq. ft. per month on leasable area despite the
market slowdown due to COVID-19 the micro market has witnessed substantial rental growth since past 2-3
years. Basis our market research and rent roll analysis it was observed that, new leases are getting transacted
in the range of INR 50 to 60 per sq. ft. per month listed are few latest transactions in the Subject Property and
comparable properties.

Following are the lease transactions happened in the micro market:

Date of Rate (INR per sq. Type of

Tenant Location Area Leased (sq. ft.)
Transaction ft. per month) Deal
Hinjewadi
Tenant 1 160,000 Q1 2024 52 Renewal
Phase-II

Hinjewadi
Tenant 2 42,600 Q1 2024 54 Renewal
Phase-II

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Date of Rate (INR per sq. Type of

Tenant Location Area Leased (sq. ft.)
Transaction ft. per month) Deal
Hinjewadi
Tenant 3 30,000 Q1 2024 55 Fresh
Phase-III
Hinjewadi
Tenant 4 27,800 Q1 2024 51 Fresh
Phase-I
Hinjewadi
Tenant 5 61,200 Q4 2023 43 Fresh
Phase-I

Hinjewadi
Tenant 6 37,700 Q4 2023 53 Fresh
Phase-I

Source: Consultant Research.

Note: The data represented is on calendar year basis.

Hence, we have assumed market lease rent as INR 48 per sq. ft. per month, parking rent as INR 3per sq. ft. per
month and CAM income as INR 15 per sq. ft. per month for vacant/under construction/proposed space.

• Rent Escalation: We have assumed market rent escalation of 15% every 3 years for vacant area & for area
reversing to the market.

• Fit Out Rent: As per the information (rent roll) provided by the Client, we understand that in addition to the
lease rent, there is rent towards fit outs for few of the tenants. The rent is in the range of INR 9.0 to 41.0 per
sq. ft. per month. For the purpose of this valuation, we have adopted the tenant wise fit-out details as provided
in the rent roll. Further, once the expiry of the existing lease tenure, we have assumed same space will reverse
to market on warm-shell basis. Further, we have assumed the under-construction/proposed blocks leasable
area would get leased on warm shell basis.

• Parking Income: We have assumed 1:750 ratio to arrive at total number of slots & applied with 25% as free
slots & 75% as paid slots.

• Other Income: We have assumed other income is 1 %.

4.4. Expense Assumptions - Office

Development Cost

The following table highlights the assumptions towards the development cost for the under construction/proposed
blocks at the subject development:

Block Pending Cost to be Spent (INR Mn)

Hudson 38

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Block Pending Cost to be Spent (INR Mn)

Ganges 78

Block 4 1,978

Block 9 4,188

Block 10 4,206

Source: Information received from Client.

Major Repair and Improvement

The following table highlights the assumptions towards the refurbishment/upgradation expenses in the subject development:

Expense head Total Pending Cost (INR Mn) Quarter of Completion

Infrastructure Expenses 8 Q2 FY 2026

Source: Information received from Client, Valuer assessment.

Operating Cost

In addition to capital expenditure, a development typically has few recurring operational expenses required for the
up-keep and running of the development. Based on information provided by the Client and market assessment,
following recurring expense assumptions have been adopted for the purpose of this valuation exercise (applicable
to both completed and under construction blocks):

Nature of Expense Units Details

Insurance INR per sq. ft. per month 0.4

Property Tax INR per sq. ft. per month 0.7

Other Operating Expenses % of Gross Rental Income 2%

Property Management Fees % of Total Income 3%

Transaction cost on Exit % of Terminal Value 1%

Source: Information received from Client; Valuer assessment; * Asset Management fees has been considered a below the NOI line item.

• Other Operating Expenses: It is assumed at 2% of the rentals. The other expenses account for minor repairs
and maintenance to the buildings, legal and professional fees, rates and taxes and other such expenses.

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• Property Management: Based on information received from the Client, Property Management fees is
assumed at 3% of lease rentals, parking income, fitout, and other operating income.

• Transaction Cost On Exit: It is assumed at 1% of the terminal value and is expected to be incurred towards
brokerage/transaction fees, etc.

4.5. Other Assumptions

Nature Units Details

Vacancy Provision % 5%

New Lease -4 Months

Rent Free Period No. of Months
Renewal Lease- 2 Months

New Lease -2 Months

Brokerage No. of Months
Renewal Lease- 1 Months

Source: Valuer assessment.

• Stabilized Vacancy: We have assumed a stabilized vacancy of 5.0% during cashflow period & terminal year.

• Rent-Free Period: In accordance with market benchmarks for Grade A office & retail premises, rent-free
period of 2 months has been considered for existing lease rollovers and 4 months for new leases.

• Brokerage: As per prevailing market trend, we have assumed a brokerage of 1 month for existing lease
rollovers and 2 months for new leases.

4.6. Capitalization Rates

In order to arrive at the capitalization rate for the property, relevant parameters of some key investments in
comparable properties of similar quality, use, tenant profile made by institutional real estate investors were
perused. Further, considering that these investments have been made through private equity and the subject
valuation is being carried out for a potential public listing with better liquidity/marketability of ownership interest,
the cap rate for the subject properties has been assumed to be 8.25% for office developments which is in line with
the available market information applied on the one year forward NOI in the terminal year.

4.7. Discount Rate

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

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For the purpose of arriving at the Cost Equity, a peer group of listed comparable were studied and suitable
adjustments made therein to reflect the specific opportunities and characteristics of the Subject Property as part of
a listed portfolio. The Cost of Debt is assumed on the basis of the marginal cost of debt that the SPV owning the
Subject Property has been able to avail and the general borrowing rates of similar assets. The Weights attributed
to equity and debt were benchmarked against similar portfolios/properties in the market.

The derived discount rate of 11.75% for operational segment (including CAM), 13.00% for under construction
Office.

4.8. Market Value of the Subject Property

The Valuer is of the opinion that subject to the overriding stipulations contained within the body of this report and
to there being no onerous restrictions or unusual encumbrances of which she has no knowledge, the opinion of
value of the complete ownership interest in the Subject Property comprising land and improvements thereon, as
explained above, 31st March 2024, is as follows:

Market Value of the Subject Property

Components Value in (₹Mn)

Completed Blocks 21,792

Under Construction/ Proposed Blocks 2,345

Total Value of Embassy TechZone 24,137

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O. EMBASSY QUADRON

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1. Property Description - Embassy Quadron

Property Name Embassy Quadron – Comprising of Completed commercial IT/ITeS SEZ office blocks.

Embassy Quadron is located at Plot No. 28, Hinjewadi Phase 2 Road, Phase 2, Hinjewadi Rajiv
Address
Gandhi Infotech Park, Hinjewadi, Pune, Pimpri-Chinchwad, Maharashtra 411057.

Ownership & Title Details The Subject Property is leasehold in nature, with remaining lease term approx. 77 years.

Source: Information received from Client, Architect Certificate, Title Report.

1.1. Encumbrances

Unless disclosed and recorded in the Property Report, the Subject Property is considered to possesses a good and
marketable title and is free from any unusually onerous encumbrances with no option or pre-emption rights in
relation to the assets except for those created in favour of the lenders as mentioned below, based on the information
given in the Title Reports prepared by Cyril Amarchand Mangaldas Advocates & Solicitors. We have not checked
and verified the title of the Subject Property.

2. Location

2.1. General

‘Embassy Quadron’ is envisioned as an Information Technology Special Economic Zone (IT SEZ) office park
catering to a diverse tenant base, spanning approx. 25.5 acres. This property stands out as a premium office park,
boasting a range of top-notch facilities and amenities. These include meticulously landscaped areas, a cutting-
edge food court, conveniently located ATMs, an indoor sports zone, a well-equipped gymnasium, and ample
parking spaces for both two-wheelers and four-wheelers. The Subject Property is accessible from the Mumbai –
Bengaluru Highway via Hinjewadi Phase 2 Road. It enjoys good accessibility and connectivity with other parts
of the city.

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The location map of the Subject Property is set out below:

Source: Consultant Research (Map not to Scale).

Site Boundaries:

The site boundaries for the Subject Property are as under:

• North: Vacant Land.

• South: Hinjewadi Main Road.
• East: Residential Development.
• West: Vacant Land.

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2.2. Accessibility

The Subject Property is well connected to major locations in the city via road network. The distance of the Subject
Property from major landmarks in the city is as follows:

• Approx. 8-9 km from NH 48 (Mumbai – Bengaluru highway).

• Approx. 1 -2 km from Quadron Metro Station.
• Approx. 25 -26 km from Pune Railway Station.
• Approx. 30 -31 km from Pune International Airport.

The Subject Property is well accessible to different parts of the city. It also has access to basic urban infrastructure
in terms of power, water supply and availability of MIDC Infrastructure.

The property photographs of the Subject Property are attached in Annexure 3.

2.3. Ground Conditions

Based on visual inspection, there were no evidence of adverse ground conditions at the property or immediate
vicinity.

2.4. Environment Considerations

We have not carried out any investigations or tests or been supplied with any information from Client or from any
relevant expert that determines the presence or otherwise of pollution or contaminative substances in the subject
or any other land (including any ground water). For the purpose of assessing the vulnerability of the Subject
Property to any natural or induced disaster the location of the Subject Property with respect to risks pertaining to
earthquakes, high winds/ cyclone and flooding was studied. The city faces low risk in terms of high winds or
cyclones too. The Subject Property is not likely to face any higher risk than the overall risk profile of the city. No
hazardous activity was noted in the vicinity of the Subject Property which may expose it for any induced disaster.

2.5. Town Planning and Statutory Considerations

We have not made formal search but have generally relied on readily available information to general public. Our
Report is on current use/ current state basis of the property, and we have not considered any Government proposals
for road widening or compulsory purchase/ acquisition, or any other statute in force that might affect the Subject
Property.

3. Subject Property – Asset Description

“Embassy Quadron” is envisioned as an Information Technology Special Economic Zone (IT SEZ) office park
catering to a diverse tenant base, spanning approx. 25.5 acres. This property stands out as a premium office park,
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boasting a range of top-notch facilities and amenities. These include meticulously landscaped areas, a cutting-edge
food court, conveniently located ATMs, an indoor sports zone, a well-equipped gymnasium, and ample parking
spaces for both two-wheelers and four-wheelers.

Completed Blocks –Q1, Q2, Q3, Q4.

The completed buildings and parts thereof with Occupancy Certificate (OC) collectively admeasure approx. 1.9
msf. of leasable area.

3.1. Key Asset Information

Completed Blocks

Particulars: Details

Entity: Quadron Business Park Private Limited1

Building SEZ/ Non- Leasable Area

Block Name Age (Years)
Elevation SEZ (msf.)
Age of Building Q1 LG+UG+5 SEZ 15 0.4
based on the date of Q2 LG+UG+4 SEZ 16 0.4
Occupancy
Q3 LG+UG+5 SEZ 14 0.5
Certificate:
Q4 LG+10 SEZ 12 0.6
Total 1.9

Asset Type: Tech Park with 4 SEZ blocks

Sub-Market: PBD West
Approved and
IT/ITeS SEZ
Existing usage:
Land Area: approx. 25.5 acres
Freehold/Leasehold: Leasehold
Leasable Area: 1.9 msf.
Occupied Area: 1.0 msf.
Occupancy (%) 54%
Current Effective
Rent (excluding INR 54 per sq. ft. per month (Office, Retail and Telecom Tenants Only)
Parking)

Source: Title Report, Rent Roll dated 31st March 2024, Architect Certificate, Occupancy Certificate.

Note:

1. Refer company structure set out in Annexure 1.

2. Occupancy refers to proportion of area leased which is actively occupied by the tenants out of the total area that has received OC.

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3.2. Subject Property Inspection

Particulars: Description

The Subject Property comprising four operational buildings was physically inspected on April 10,
Date of Inspection:
2024.

The inspection comprised of visual inspection of:

• Operational buildings
Inspection Details: • Visits to their key utility areas such as LT electric room, DG Room, Pump room, HVAC
installations, power back up, STP, etc.
• Area provisioned for Future development.

• Completed/ Operational Building: Q1, Q2, Q3, Q4

• Future development: NA
• Other Amenities: Food Court
Key Observation • Awards & Certifications: NA
• Parking: Yes
• Other Observations: None
• The Subject Property has been awarded LEED Platinum Rating for sustainability.

Source: Architect certificate, Rent Roll dated 31st March 2024, Valuer assessment.

Note: The Subject Property inspection did not comprise any structural survey, technical/ engineering review or safety audit and the assessment of the
condition of the building, its utilities and campus infrastructure are based completely on visual survey.

3.3. Lease Expiry Profile

The Weighted Average Lease Expiry (WALE) of Quadron operational asset is working out to approx. 4.6 years,
with approx. 95% of occupied area expiring between CY 2024 and CY 2034.

4. Valuation Methodology

For the purpose of the valuation of office component of Subject Property, Income Approach - Discounted Cash
Flow Method using Rental Reversion has been adopted.

4.1. Area Statement

Based on information, rent roll, lease deeds, architect certificate provided by the Client, we understand that Subject
Property is an Office Park. Further, the table below highlights the area configuration of the subject property:

Block Total Area (msf.)

Completed Blocks 1.9

Source: Architect certificate, rent roll dated 31st March 2024, lease deeds.

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4.2. Construction Timelines

Completed Blocks

As highlighted earlier, the Subject Property has approx. 1.9 msf. of completed development and no pending cost
to complete is remaining as of date of valuation for the completed blocks.

• As per the rent roll dated 31 Mar 2024 provided to us by Client, it was observed that the operational block is
approx.54% occupied (including all category spaces).

• The vacant area lease-up has been started from Q4 FY 2025.

4.3. Revenue Assumptions - Office

Revenue Assumptions - Office

Property Details Unit Value

In Place Rent INR per sq. ft. per month 53
Market Rent -Office INR per sq. ft. per month 48
Rent Escalation % Every 3 years 15%
Parking Income INR per month per bay 3,000
Effective Parking Income INR per month per bay 2,250
Other Income (Income from Cell Sites) % 1%

Note: The other income consists of income from kiosks, telecom towers, signages, other fests & events, etc. However, same has not been
considered for under construction & proposed asset cashflows.

• Market Rent Office: The total net absorption of commercial office space in PBD West during Q1 2024 has
been approx. 0.4 msf. and as in 2023 total net absorption was approx. 0.9 msf. On an Average the micro market
is witnessing a lease rental in the range of INR 40 to 60 per sq. ft. per month on leasable area despite the
market slowdown due to COVID-19 the micro market has witnessed substantial rental growth since past 2-3
years. Basis our market research and rent roll analysis it was observed that, new leases are getting transacted
in the range of INR 50 to 60 per sq. ft. per month listed are few latest transactions in the Subject Property and
comparable properties.

Following are the lease transactions happened in the micro market:

Area Leased Date of Rate (INR per Type of

Tenant Location
(sq. ft.) Transaction sq. ft. per month) Deal

Hinjewadi
Tenant 1 160,000 Q1 2024 52 Renewal
Phase-II

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Area Leased Date of Rate (INR per Type of

Tenant Location
(sq. ft.) Transaction sq. ft. per month) Deal

Hinjewadi
Tenant 2 42,600 Q1 2024 54 Renewal
Phase-II
Hinjewadi
Tenant 3 30,000 Q1 2024 55 Fresh
Phase-III
Hinjewadi
Tenant 4 27,800 Q1 2024 51 Fresh
Phase-I
Hinjewadi
Tenant 5 61,200 Q4 2023 43 Fresh
Phase-I

Hinjewadi
Tenant 6 37,700 Q4 2023 53 Fresh
Phase-I
Source: Consultant Research.
Note: The data represented is on calendar year basis.

Hence, we have assumed market lease rent as INR 48 per sq. ft. per month, parking rent as INR 3 per sq. ft. per
month and CAM income as INR 18 per sq. ft. per month for the operational space.

• Rent Escalation: We have assumed market rent escalation of 15% every 3 years for vacant area & for area
reversing to the market.

• Parking Income: We have assumed 1:750 ratio to arrive at total number of slots & applied with 25% as free
slots & 75% as paid slots.

• Other Income: We have assumed other income as 1 %.

4.4. Expense Assumptions - Office

Operating Cost

In addition to capital expenditure, a development typically has few recurring operational expenses required for the
up-keep and running of the development. Based on information provided by the Client and market assessment,
following recurring expense assumptions have been adopted for the purpose of this valuation exercise (applicable
to both completed and under construction blocks):

Nature of Expense Units Details

Insurance INR per sq. ft. per month 0.4

Property Tax INR per sq. ft. per month 0.6

Other Operating Expenses % of Gross Rental Income 2%

Property Management Fees % of Total Income 3%

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Nature of Expense Units Details

Transaction cost on Exit % of Terminal Value 1%

Source: Information received from Client; Valuer assessment; * Asset Management fees has been considered a below the NOI line item.

• Other Operating Expenses: It is assumed at 2% of the rentals. The other expenses account for minor repairs
and maintenance to the buildings, legal and professional fees, rates and taxes and other such expenses.

• Property Management: Based on information received from the Client, Property Management fees is
assumed at 3% of lease rentals, parking income, fitout, and other operating income.

• Transaction Cost On Exit: It is assumed at 1% of the terminal value and is expected to be incurred towards
brokerage/transaction fees, etc.

4.5. Other Assumptions

Nature Units Details

Vacancy Provision % 5%

New Lease -4 Months

Rent Free Period No. of Months
Renewal Lease- 2 Months

New Lease -2 Months

Brokerage No. of Months
Renewal Lease- 1 Months

Source: Valuer assessment.

• Stabilized Vacancy: We have assumed a stabilized vacancy of 5.0% during cashflow period & terminal year.

• Rent-Free Period: In accordance with market benchmarks for Grade A office & retail premises, rent-free
period of 2 months has been considered for existing lease rollovers and 4 months for new leases.

• Brokerage: As per prevailing market trend, we have assumed a brokerage of 1 month for existing lease
rollovers and 2 months for new leases.

4.6. Capitalization Rates

In order to arrive at the capitalization rate for the property, relevant parameters of some key investments in
comparable properties of similar quality, use, tenant profile made by institutional real estate investors were
perused. Further, considering that these investments have been made through private equity and the subject
valuation is being carried out for a potential public listing with better liquidity/marketability of ownership interest,

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the cap rate for the subject properties has been assumed to be 8.25% for office developments which is in line with
the available market information applied on the one year forward NOI in the terminal year.

4.7. Discount Rate

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

For the purpose of arriving at the Cost Equity, a peer group of listed comparable were studied and suitable
adjustments made therein to reflect the specific opportunities and characteristics of the Subject Property as part of
a listed portfolio. The Cost of Debt is assumed on the basis of the marginal cost of debt that the SPV owning the
Subject Property has been able to avail and the general borrowing rates of similar assets. The Weights attributed
to equity and debt were benchmarked against similar portfolios/properties in the market.

The derived discount rate of 11.75% for operational segment (including CAM).

4.8. Market Value of the Subject Property

The Valuer is of the opinion that subject to the overriding stipulations contained within the body of this report and
to there being no onerous restrictions or unusual encumbrances of which she has no knowledge, the opinion of
value of the complete ownership interest in the Subject Property comprising land and improvements thereon, as
explained above, on 31st March 2024, is as follows:

Market Value of the Subject Property

Components Value in (₹Mn)

Embassy Quadron 11,398

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P. EMBASSY QUBIX

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1. Property Description - Embassy Qubix

Property Name Embassy Qubix - Comprising of Completed commercial IT/ITeS SEZ office blocks.

Embassy Qubix is located in Blue Ridge Township Pune, Phase 1, Hinjewadi Rajiv Gandhi Infotech
Address
Park, Hinjewadi, Pune, Pimpri-Chinchwad, Maharashtra 411057

Ownership & Title Details The Subject Property is freehold in nature

Source: Information received from Client, Architect Certificate, Title Report.

1.1. Encumbrances

Unless disclosed and recorded in the Property Report, the Subject Property is considered to possesses a good and
marketable title and is free from any unusually onerous encumbrances with no option or pre-emption rights in
relation to the assets except for those created in favour of the lenders as mentioned below, based on the information
given in the Title Reports prepared by Cyril Amarchand Mangaldas Advocates & Solicitors. We have not checked
and verified the title of the Subject Property.

2. Location

2.1. General

‘Embassy Qubix’ is an IT SEZ office park spanning over approx. 25.2 acres, offering office spaces to IT/ITeS
companies. The property boasts an array of facilities and amenities, "Q Court Courtyard", grocery stores and on-
site ATMs. In addition to these conveniences, Embassy Qubix generously provides ample parking spaces for both
two-wheelers and four-wheelers. Notably, the development of this property occurred in stages, with construction
spanning from 2010 to 2012.

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The location map of the Subject Property is set out below:

Source: Consultant Research (Map not to Scale).

Site Boundaries:

The site boundaries for the Subject Property are as under:

• North: Symbiosis Institute of International Business.

• South: Blueridge Township.
• East: Radius Tech Park.
• West: Primary Access Road.

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2.2. Accessibility

The Subject Property is well connected to major locations in the city via road network. The distance of the Subject
Property from major landmarks in the city is as follows:

• Approx. 4-5 km from NH 48 (Mumbai – Bengaluru highway).

• Approx. 1-2 km from Shivaji Chowk Metro Station.
• Approx. 19-20 km from Pune Railway Station.
• Approx. 25-26 km from Pune International Airport.

The Subject Property is well accessible to different parts of the city. It also has access to basic urban infrastructure
in terms of power, water supply and availability of MIDC Infrastructure.

The property photographs of the Subject Property are attached in Annexure 3.

2.3. Ground Conditions

Based on visual inspection, there were no evidence of adverse ground conditions at the property or immediate
vicinity.

2.4. Environment Considerations

We have not carried out any investigations or tests or been supplied with any information from Client or from any
relevant expert that determines the presence or otherwise of pollution or contaminative substances in the subject
or any other land (including any ground water). For the purpose of assessing the vulnerability of the Subject
Property to any natural or induced disaster the location of the Subject Property with respect to risks pertaining to
earthquakes, high winds/ cyclone and flooding was studied. The city faces low risk in terms of high winds or
cyclones too. The Subject Property is not likely to face any higher risk than the overall risk profile of the city. No
hazardous activity was noted in the vicinity of the Subject Property which may expose it for any induced disaster.

2.5. Town Planning and Statutory Considerations

We have not made formal search but have generally relied on readily available information to general public. Our
Report is on current use/ current state basis of the property, and we have not considered any Government proposals
for road widening or compulsory purchase/ acquisition, or any other statute in force that might affect the Subject
Property.

3. Subject Property - Asset Description

“Embassy Qubix” is an IT SEZ office park spanning over approx. 25.2 acres, offering office spaces to IT/ITeS
companies. The property boasts an array of facilities and amenities, "Q Court Courtyard", grocery stores and on-
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site ATMs. In addition to these conveniences, Embassy Qubix generously provides ample parking spaces for both
two-wheelers and four-wheelers. Notably, the development of this property occurred in stages, with construction
spanning from 2010 to 2012.

Completed Blocks – IT 1, IT 2, IT 3, IT 4, IT 5, IT 6.

The completed buildings and parts thereof with Occupancy Certificate (OC) collectively admeasure approx. 1.5
msf. of leasable area.

3.1. Key Asset Information

Completed Blocks

Particulars: Details

Entity: Qubix Business Park Private Limited1

Building SEZ/ Non- Leasable Area

Block Name Age (Years)
Elevation SEZ (msf.)

IT 1 G+6 SEZ 7 0.3

IT 2 G+6 SEZ 7 0.1

Age of Building based IT 3 G+6 SEZ 7 0.3
on the date of
Occupancy Certificate: IT 4 G+6 SEZ 7 0.2

IT 5 G+6 SEZ 7 0.2

IT 6 G+6 SEZ 7 0.3

Total 1.5

Asset Type: Tech Park with 6 SEZ blocks

Sub-Market: PBD West

Approved and Existing IT/ITeS SEZ

usage:

Land Area: approx. 25.2 acres

Freehold/Leasehold: Leasehold

Leasable Area: 1.5 msf.

Occupied Area: 1.0 msf.

Occupancy (%) 68%

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Particulars: Details

Current Effective Rent INR 47 per sq. ft. per month (Office, Retail and Telecom Tenants Only)
(excluding Parking)

Source: Title Report, Rent Roll dated 31st March 2024, Architect Certificate, Occupancy Certificate.

Note:

1. Refer company structure set out in Annexure 1.

2. Occupancy refers to proportion of area leased which is actively occupied by the tenants out of the total area that has received OC.

3.2. Subject Property Inspection

Particulars: Description

The Subject Property comprising four operational buildings was physically inspected on April 10,
Date of Inspection:
2024.

The inspection comprised of visual inspection of:

• Operational buildings
Inspection Details: • Visits to their key utility areas such as LT electric room, DG Room, Pump room, HVAC
installations, power back up, STP, etc.
• Area provisioned for Future development.

• Completed/ Operational Building: IT 1, IT 2, IT 3, IT 4, IT 5, IT 6

• Future development: NA
• Other Amenities: Retail Area
• Awards & Certifications: NA
Key Observation
• Parking: Yes
• Other Observations: None
• The Subject Property has been awarded LEED Platinum Rating for sustainability.

Source: Architect certificate, Rent Roll dated 31st March 2024, Valuer assessment.

Note: The Subject Property inspection did not comprise any structural survey, technical/ engineering review or safety audit and the assessment of the
condition of the building, its utilities and campus infrastructure are based completely on visual survey.

3.3. Lease Expiry Profile

The Weighted Average Lease Expiry (WALE) of Qubix operational asset is working out to approx. 4.3 years, with
approx. 98% of occupied area expiring between CY 2024 and CY 2034.

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4. Valuation Methodology

For the purpose of the valuation of office component of Subject Property, Income Approach - Discounted Cash
Flow Method using Rental Reversion has been adopted.

4.1. Area Statement

Based on information, rent roll, lease deeds, architect certificate provided by the Client, we understand that Subject
Property is an Office Park. Further, the table below highlights the area configuration of the subject property:

Block Leasable Area (msf.)

Completed Blocks 1.5

Source: Architect certificate, rent roll, lease deeds.

4.2. Construction Timelines

Completed Blocks

As highlighted earlier, the Subject Property has approx. 1.5 msf. of completed development and no pending cost
to complete is remaining as of date of valuation for the completed blocks.

• As per the rent roll dated 31 Mar 2024 provided to us by Client, it was observed that the operational block is
approx. 68% occupied (including all category spaces).

• The vacant area lease-up has been started from Q3 FY 2025.

4.3. Revenue Assumptions - Office

Revenue Assumptions - Office

Property Details Unit Value

In Place Rent INR per sq. ft. per month 44
Market Rent -Office INR per sq. ft. per month 48
Rent Escalation % Every 3 years 15%
Parking Income INR per month per bay 3,000
Effective Parking Income INR per month per bay 2,250
Other Income (Income from Cell Sites) % 1%

Note: The other income consists of income from kiosks, telecom towers, signages, other fests & events, etc. However, same has not been
considered for under construction & proposed asset cashflows.

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• Market Rent Office: The total net absorption of commercial office space in PBD West during Q1 2024 has
been approx. 0.4 msf. and as in 2023 total net absorption was approx. 0.9 msf. On an Average the micro market
is witnessing a lease rental in the range of INR 40 to 60 per sq. ft. per month on leasable area despite the
market slowdown due to COVID-19 the micro market has witnessed substantial rental growth since past 2-3
years. Basis our market research and rent roll analysis it was observed that, new leases are getting transacted
in the range of INR 50 to 60 per sq. ft. per month listed are few latest transactions in the Subject Property and
comparable properties.

Following are the lease transactions happened in the micro market:

Rate (INR per sq. ft. per Type of

Tenant Location Area Leased (sq. ft.) Date of Transaction
month) Deal

Hinjewadi
Tenant 1 160,000 Q1 2024 52 Renewal
Phase-II

Hinjewadi
Tenant 2 42,600 Q1 2024 54 Renewal
Phase-II

Hinjewadi
Tenant 3 30,000 Q1 2024 55 Fresh
Phase-III
Hinjewadi
Tenant 4 27,800 Q1 2024 51 Fresh
Phase-I

Hinjewadi
Tenant 5 61,200 Q4 2023 43 Fresh
Phase-I

Hinjewadi
Tenant 6 37,700 Q4 2023 53 Fresh
Phase-I
Source: Consultant Research.
Note: The data represented is on calendar year basis.

Hence, we have assumed market lease rent as INR 48 per sq. ft. per month, parking rent as INR 3 per sq. ft. per
month and CAM income as INR 13 per sq. ft. per month for vacant/under construction/proposed space.

• Rent Escalation: We have assumed market rent escalation of 15% every 3 years for vacant area & for area
reversing to the market.

• Parking Income: We have assumed 1:750 ratio to arrive at total number of slots & applied with 25% as free
slots & 75% as paid slots.

• Other Income: We have assumed other income is 1 %.

4.4. Expense Assumptions - Office

Operating Cost

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In addition to capital expenditure, a development typically has few recurring operational expenses required for the
up-keep and running of the development. Based on information provided by the Client and market assessment,
following recurring expense assumptions have been adopted for the purpose of this valuation exercise (applicable
to both completed and under construction blocks).

Nature of Expense Units Details

Insurance INR per sq. ft. per month 0.4

Property Tax INR per sq. ft. per month 0.6

Other Operating Expenses % of Gross Rental Income 2%

Property Management Fees % of Total Income 3%

Transaction cost on Exit % of Terminal Value 1%

Source: Information received from Client; Valuer assessment; * Asset Management fees has been considered a below the NOI line item.

• Other Operating Expenses: It is assumed at 2% of the rentals. The other expenses account for minor repairs
and maintenance to the buildings, legal and professional fees, rates and taxes and other such expenses.

• Property Management: Based on information received from the Client, Property Management fees is
assumed at 3% of lease rentals, parking income, fitout, and other operating income.

• Transaction cost on exit: It is assumed at 1% of the terminal value and is expected to be incurred towards
brokerage/transaction fees, etc.

4.5. Other Assumptions

Nature Units Details

Vacancy Provision % 5%

New Lease -4 Months

Rent Free Period No. of Months
Renewal Lease- 2 Months

New Lease -2 Months

Brokerage No. of Months
Renewal Lease- 1 Months

Source: Valuer assessment.

• Stabilized Vacancy: We have assumed a stabilized vacancy of 5.0% during cashflow period & terminal year.

• Rent-Free Period: In accordance with market benchmarks for Grade A office & retail premises, rent-free
period of 2 months has been considered for existing lease rollovers and 4 months for new leases.

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• Brokerage: As per prevailing market trend, we have assumed a brokerage of 1 month for existing lease
rollovers and 2 months for new leases.

4.6. Capitalization Rates

In order to arrive at the capitalization rate for the property, relevant parameters of some key investments in
comparable properties of similar quality, use, tenant profile made by institutional real estate investors were
perused. Further, considering that these investments have been made through private equity and the subject
valuation is being carried out for a potential public listing with better liquidity/marketability of ownership interest,
the cap rate for the subject properties has been assumed to be 8.25% for office developments which is in line with
the available market information applied on the one year forward NOI in the terminal year.

4.7. Discount Rate

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

For the purpose of arriving at the Cost Equity, a peer group of listed comparable were studied and suitable
adjustments made therein to reflect the specific opportunities and characteristics of the Subject Property as part of
a listed portfolio. The Cost of Debt is assumed on the basis of the marginal cost of debt that the SPV owning the
Subject Property has been able to avail and the general borrowing rates of similar assets. The Weights attributed
to equity and debt were benchmarked against similar portfolios/properties in the market.

The derived discount rate of 11.75% for operational segment (including CAM).

4.8. Market Value of the Subject Property

The Valuer is of the opinion that subject to the overriding stipulations contained within the body of this report and
to there being no onerous restrictions or unusual encumbrances of which she has no knowledge, the opinion of
value of the complete ownership interest in the Subject Property comprising land and improvements thereon, as
explained above, on 31st March 2024, is as follows:

Market Value of the Subject Property

Components Value in (₹Mn)

Embassy Qubix 9,521

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Q. EMBASSY OXYGEN

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1. Property Description - Embassy Oxygen

Property Name Embassy Oxygen -Comprising of IT/ITeS SEZ office blocks.

Embassy Oxygen (hereinafter referred to as Subject Property) is located at Plot No. – 7, Sector-
Address
144, Noida, Uttar Pradesh.

Land tenure: Leasehold; and buildings thereupon are owned by Oxygen Business Park Private
Ownership & Title Details Limited, which is 100% owned and controlled by the Embassy Office Parks REIT
Parks REIT.

Leasable Area Total Operational Area – approx. 3.3 msf.

Source: Architect Certificate, Title Report.

1.1. Encumbrances

Unless disclosed and recorded in the Property Report, the Subject Property is considered to possesses a good and
marketable title and is free from any unusually onerous encumbrances with no option or pre-emption rights in
relation to the assets except for those created in favour of the lenders as mentioned below, based on the information
given in the Title Reports prepared M/s Cyril Amarchand Mangaldas (Hereinafter referred to as ‘Legal Counsels’).
We have not checked and verified the title of the Subject Property.

2. Location:

2.1. General

Subject Property is a Grade A IT/ITeS SEZ development along with Tower 1 being converted to IT/ITeS Non-
SEZ-, located at Plot No. – 7, Sector- 144, Noida, Uttar Pradesh. Subject Property is located in close proximity to
Noida - Greater Noida Expressway, one of the established IT/ITeS SEZ office destination of Noida and forms part
of the Noida - Greater Noida Expressway micro market. The Subject Property is accessible via 24-meter-wide
access road on the South and 45-meter-access road on the West (primary access road). Subject Property lies in
close proximity to Sector 143 Metro Station (Aqua Line of DMRC), which further enhances its accessibility from
different parts of NCR. Further, the under-construction Faridabad Noida Ghaziabad (FNG) Expressway and a
proposed 75-meter-wide expressway starting from Noida Sector 150 up till Faridabad will enhance the
connectivity of Subject Property with Ghaziabad and Faridabad. The Subject Property lies in close proximity to
various office assets such as Assotech Business Cresterra, Advant Navis Business Park, Stellar 135, Candor
TechSpace N2, Express Trade Towers 2, etc. This micro market is considered as the prominent office destination
in the city on account of presence of IT/ITeS SEZ office clusters, residential developments, connectivity, and
proximity to important hubs of NCR, etc.

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The location map of the Subject Property is set out below:

Source: Consultant Research (Map not to Scale).

The Subject Property is spread across a total land area of approx. 24.8 acres. The tenure of the underlying land of
the Subject Property is leasehold with the lessee being New Okhla Industrial Development Authority (NOIDA).
The remaining tenure of the land is approx. 73 years. Basis the site plan & visual inspection it was observed that
the land underlying the Subject Property is largely regular in shape, levelled topography and bounded by compound
wall.

Site Boundaries:

The site boundaries for the Subject Property are as under:

• North: Green Belt.

• South: 24-meter-wide internal sector road.
• East: NSL TechZone.
• West: 45-meter-wide internal sector road (Primary access road).

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2.2. Accessibility

The Subject Property is well connected to surrounding urban settlements and key nodes. The distance of the Subject
Property from prominent landmarks in Delhi-NCR is as follows:

• Approx. 1.1 km from NGN Expressway.

• Approx. 1.5 km from Noida Sector 143, Aqua Line Metro Station.
• Approx. 17-18 km from Sector 18, Noida CBD.
• Approx. 30-31 km from Connaught Place, the CBD of New Delhi.
• Approx. 30-31 km from New Delhi Railway Station.
• Approx. 45-46 km from IGIA (Indira Gandhi International Airport).

The Subject Property is well accessible to different parts of the city through the Noida - Greater Noida Expressway.
It also has access to urban infrastructure in terms of power, water supply and municipal sewerage system.

The property photographs of the Subject Property are attached in Annexure 3.

2.3. Ground Conditions

Based on visual inspection, there were no evidence of adverse ground conditions at the property or immediate
vicinity.

2.4. Environment Considerations

We have not carried out any investigations or tests or been supplied with any information from Client or from any
relevant expert that determines the presence or otherwise of pollution or contaminative substances in the subject
or any other land (including any ground water). For the purpose of assessing the vulnerability of the Subject
Property to any natural or induced disaster the location of the Subject Property with respect to risks pertaining to
earthquakes, high winds/ cyclone and flooding was studied. The city faces low risk in terms of high winds or
cyclones too. The Subject Property is not likely to face any higher risk than the overall risk profile of the city. No
hazardous activity was noted in the vicinity of the Subject Property which may expose it for any induced disaster.

2.5. Town Planning and Statutory Considerations

We have not made formal search but have generally relied on readily available information to general public. Our
Report is on current use/ current state basis of the property, and we have not considered any Government proposals
for road widening or compulsory purchase/ acquisition, or any other statute in force that might affect the Subject
Property.

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3. Subject Property - Asset Description

Subject Property is a combination of Grade A IT/ITeS SEZ and IT/ITeS Non-SEZ development, business park with
10 completed buildings spread across a total land area of approx. 24.8 acres. The Subject Property is accessible
via 24-meter-wide access road on the South and 45-meter-access road on the West (primary access road). Basis
the site plan & visual inspection it was observed that the land underlying the Subject Property is largely regular in
shape, levelled topography and bounded by compound wall. Further, the detailed summary of Embassy Oxygen
blocks at various stages of development is as follows.

Completed Blocks – Tower 1, 2, 3, A, B, C, D, E, F and Food Court.

The completed buildings and parts thereof with Occupancy Certificate (OC) collectively admeasure approx. 3.3
msf. of leasable area.

Embassy Oxygen is planned as an integrated development with commercial & retail developments. The Park offers
various quality amenities to its employees including Food Courts, F&B outlets, Gym, Sports Facilities and
Recreation Centers.

3.1. Key Asset Information

Completed Blocks

Particulars: Details

Entity: Oxygen Business Park Private Limited1

Age Leasable Area

Block Name Building Elevation SEZ/ Non-SEZ
(Years) (msf)

A B+G+7 SEZ 11 0.2

B B+G+8 SEZ 11 0.2

C B+G+8 SEZ 10 0.3

D G+4 SEZ 11 0.2

Age of Building based
on the date of E B+S+G+9 SEZ 9 0.3
Occupancy Certificate:
F B+S+G+7 SEZ 9 0.2

3 B + S + G + 12 SEZ 4 0.5

Food Court B+S+G SEZ 4 0.0

2 B + S + G + 12 SEZ 2 0.6

1 B + S + G + 12 Non-SEZ 1 0.7

Total 3.32

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Particulars: Details

Asset Type: Tech Park with 8 SEZ blocks, 1 Non-SEZ block and 1 food court

Sub-Market: Noida-Greater Noida Expressway

Approved and Existing IT/ITeS SEZ

usage:
Tower-1: Non-SEZ

Land Area: approx.24.8 acres

Freehold/Leasehold: Leasehold

Leasable Area: 3.3 msf.3

Occupied Area: 1.9 msf.

Occupancy (%)4 58%

Current Effective Rent
(including Parking) INR 54 per sq. ft. per month (Office, Retail and Telecom Tenants Only)

Source: Title Report, Rent Roll dated 31st March 2024, Architect Certificate, Occupancy Certificate.

Note:

1. Refer company structure set out in Annexure 1.

2. Occupancy Certificate for Tower 1 having leasable area 0.7 msf. has been received post the reporting date i.e., 31st March 2024.
3. Occupancy refers to proportion of area leased which is actively occupied by the tenants out of the total area that has received OC.

3.2. Subject Property Inspection

Particulars: Description

Date of Inspection: The Subject Property comprising 10 operational buildings (including food court) was physically
inspected on 19th March 2024.

The inspection comprised of visual inspection of:

Inspection Details: • Operational buildings
• Visits to their key utility areas such as LT electric room, DG Room, Pump room, HVAC
installations, power back up, STP, etc.

• The Subject Property is an IT/ITeS SEZ office space offering large floor plates with
significant open/ green areas and number of amenities for occupiers.
• The Subject Property offers amenities like food court, F&B, fitness center, day care,
Key Observation basement parking, 24/7 power back-up, sports zone, and auditorium.
• The visual inspection of the buildings and the future development area did not reveal any
cause of concern with no visible signs of any disrepair or ill maintenance.
• No instances of any major logging or water accumulation were observed during the
inspection. The utility areas also appeared well maintained, visually.
• The Subject Property has been awarded LEED Platinum Rating for sustainability.

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Particulars: Description

•
• Regular upgradation activities are being undertaken within the campus to ensure its upkeep
as per the modern age requirement.

Source: Architect certificate, Rent Roll dated 31st March 2024, Valuer assessment.

Note: The Subject Property inspection did not comprise any structural survey, technical/ engineering review or safety audit and the assessment of the
condition of the building, its utilities and campus infrastructure are based completely on visual survey.

3.3. Lease Expiry Profile

The Weighted Average Lease Expiry (WALE) of operational asset is working out to approx. 8.4 years, with
approx.82.8% of occupied area expiring between CY 2024 and CY 2034.

4. Valuation Methodology

For the purpose of the valuation of office component of Subject Property, Income Approach - Discounted Cash
Flow Method using Rental Reversion has been adopted.

4.1. Area Statement

Based on information, rent roll, lease deeds, architect certificate provided by the Client, we understand that Subject
Property is an Office Park. Further, the table below highlights the area configuration of the subject property:

Block Leasable Area (msf.)

Completed Blocks 3.3

Source: Architect certificate, rent roll dated 31st March 2024, lease deeds.

4.2. Construction Timelines

Completed Blocks

As highlighted earlier, the Subject Property has approx. 3.3 msf. of completed development and no pending cost
to complete is remaining as of date of valuation for the completed blocks.

• As per the rent roll dated 31st March 2024 provided to us by Client, it was observed that the operational block
are approx.58% occupied (including all category spaces).

• The vacant area lease-up has been started from Q2 FY 2025.

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4.3. Revenue Assumptions - Office

Revenue Assumptions - Office

Property Details Unit Value

In Place Rent (including Parking) INR per sq. ft. per month 54
Market Rent -Office (including Parking) INR per sq. ft. per month 48
Market Rent -Office (including Parking) (for Non-
SEZ converted area/to be converted of new towers INR per sq. ft. per month 50
i.e., Tower 1, 2, 3)
Market Rent- Retail INR per sq. ft. per month 85
Rent Escalation % Every 3 years 15%
Other Income % 1%

Note: The other income consists of income from kiosks, telecom towers, signages, other fests & events, etc.

• Market Rent Office: The total net absorption of commercial office space in NGN Expressway during Q1 CY
2024 has been approx. 0.1 msf. Basis our market research it, was observed that, new leases are getting
transacted in the range of INR 47 to 65 per sq. ft. per month and the common area maintenance in the range
of INR 16 to 30 per sq. ft. per month. Listed are few latest transactions in the comparable properties.

Following are the lease transactions which happened in the micro market:

Rent
Area Leased Date of
Tenant Location (INR per sq. Type of Deal
(msf.) Transaction
ft. per month)
Tenant 1 NGN Expressway 0.03 Q1 2024 54 Fresh
Tenant 2 NGN Expressway 0.02 Q3 2023 55 Fresh
Tenant 3 NGN Expressway 0.02 Q3 2023 55 Fresh
Tenant 4 NGN Expressway 0.03 Q2 2023 65 Fresh
Tenant 5 NGN Expressway 0.06 Q2 2023 60 Fresh
Tenant 6 NGN Expressway 0.01 Q2 2023 55 Fresh
Tenant 7 NGN Expressway 0.13 Q1 2023 62 Fresh
Tenant 8 NGN Expressway 0.04 Q1 2023 58 Fresh
Tenant 9 NGN Expressway 0.05 Q4 2022 53 Fresh
Tenant 10 NGN Expressway 0.07 Q4 2022 52 Fresh
Tenant 11 NGN Expressway 0.01 Q2 2022 50 Fresh
Source: Consultant Research.
Note: The data represented is on calendar year basis.

We have assumed market lease rent as INR 48 per sq. ft. per month, including parking and INR 50 per sq. ft.
per month, including parking for Non-SEZ converted/to be converted area of new towers i.e., Tower 1, 2, 3
and CAM income as INR 20 per sq. ft. per month for vacant/under construction/proposed space.

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• Market Rent Retail: Basis our market research, it was understood that the retail premises are transacted in
the range of INR 80 to 100 per sq. ft. per month. Hence, we have assumed a market rent of INR 85 per sq. ft.
per month on leasable area for retail premises.

• Rent Escalation: We have assumed market rent escalation of 15% every 3 years for vacant area & for area
reversing to the market.

• Other Income: We have assumed other income is 1 % consists of income from kiosks, telecom towers,
signages, other fests & events, etc.

4.4. Expense Assumptions - Office

Operating Cost

In addition to capital expenditure, a development typically has few recurring operational expenses required for the
up-keep and running of the development. Based on information provided by the Client and market assessment,
following recurring expense assumptions have been adopted for the purpose of this valuation exercise:

Nature of Expense Units Details

Insurance INR per sq. ft. per month 0.28

Land Lease Payment INR per sq. ft. per month 0.38

Other Operating Expenses % of Gross Rental Income 2%

Property Management Fees* % of Total Income 3%

Transaction cost on Exit % of Terminal Value 1%

Source: Information received from Client; Valuer assessment; * Property Management fees has been considered a below the NOI line item.

• Other Operating Expenses : It is assumed at 2% of the rentals. The other expenses account for minor repairs
and maintenance to the buildings, legal and professional fees, rates and taxes and other such expenses.

• Property Management : Based on information received from the Client, Property Management fees is
assumed at 3% of lease rentals, parking income ,fitout and other operating income.

• Transaction Cost On Exit : It is assumed at 1% of the terminal value and is expected to be incurred towards
brokerage/transaction fees, etc.

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4.5. Other Assumptions

Nature Units Details

Vacancy Provision % 5

New Lease -4 Months

Rent Free Period No. of Months
Renewal Lease- 2 Months

New Lease -2 Months

Brokerage No. of Months
Renewal Lease- 1 Months

Source: Valuer assessment.

• Stabilized Vacancy: We have assumed a stabilized vacancy of 5.0% during cashflow period & terminal year.

• Rent-Free Period: In accordance with market benchmarks for Grade A office & retail premises, rent-free
period of 2 month has been considered for existing lease rollovers and 4 months for new leases.

• Brokerage: As per prevailing market trend, we have assumed a brokerage of 1 month for existing lease
rollovers and 2 months for new leases.

4.6. Capitalization Rates

In order to arrive at the capitalization rate for the property, relevant parameters of some key investments in
comparable properties of similar quality, use, tenant profile made by institutional real estate investors were
perused. Further, considering that these investments have been made through private equity and the subject
valuation is being carried out for public listing with better liquidity/marketability of ownership interest, the cap
rate for the subject properties has been assumed to be 8.25% for office and Retail developments which is in line
with the available market information applied on the one year forward NOI in the terminal year.

4.7. Discount Rate

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

For the purpose of arriving at the Cost Equity, a peer group of listed comparable were studied and suitable
adjustments made therein to reflect the specific opportunities and characteristics of the Subject Property as part of
a listed portfolio. The Cost of Debt is assumed on the basis of the marginal cost of debt that the SPV owning the
Subject Property has been able to avail and the general borrowing rates of similar assets. The Weights attributed
to equity and debt were benchmarked against similar portfolios/properties in the market.

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The derived discount rate of 11.75% for operational segment (including CAM) Office segment.

4.8. Market Value of the Subject Property

The Valuer is of the opinion that subject to the overriding stipulations contained within the body of this report and
to there being no onerous restrictions or unusual encumbrances of which she has no knowledge, the opinion of
value of the complete ownership interest in the Subject Property comprising land and improvements thereon, as
explained above, on 31st March 2024, is as follows:

Market Value of the Subject Property

Components Value in (₹Mn)

Embassy Oxygen 23,826

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R. EMBASSY GALAXY

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1. Property Description – Embassy Galaxy

Property Name Embassy Galaxy – Comprising of Completed IT/ITeS office blocks

Embassy Galaxy (hereinafter referred to as Subject Property) is located in A-44 & 45, Sector-62,
Address
Noida, Uttar Pradesh

Ownership & Title Details Land tenure: Leasehold; and buildings thereupon are owned by Galaxy Square Private Limited,
which is 100% owned and controlled by the Embassy Office Parks REIT

Leasable Area Total Operational Area – approx. 1.4 msf.

Source: Architect Certificate, Title Report.

1.1. Encumbrances

Unless disclosed and recorded in the Property Report, the Subject Property is considered to possesses a good and
marketable title and is free from any unusually onerous encumbrances with no option or pre-emption rights in
relation to the assets except for those created in favour of the lenders as mentioned below, based on the information
given in the Title Reports prepared M/s Cyril Amarchand Mangaldas (Hereinafter referred to as ‘Legal Counsels’).
We have not checked and verified the title of the Subject Property.

2. Location

2.1. General

Subject Property is a Grade A IT/ITeS development, located in A-44 & 45, Sector-62, Noida, Uttar Pradesh,
which is an established office district of Noida. The Subject Property is accessible via 45-meter-wide internal
road on the South. The Subject Property is well connected to other parts of Noida & Delhi via National Highway
24 & Blue Line of Delhi Metro (DMRC). The Subject Property lies in close proximity to Noida Electronic City
Metro Station, which further enhances its accessibility from different parts of NCR. Widening of NH – 9 (which
is converted to a 16-lane expressway providing dedicated 8 lanes on the main carriage way and additional 8 lanes
for transit traffic to the city nodes) and development of signal free elevated corridor from Nizamuddin in Delhi
up till UP border on NH – 9 (currently operational) has significantly enhanced the connectivity of Competitive
REIT Micro Market with the rest of NCR. Also, the Subject Property is located approx. 10 kms from Sector-18
which is the CBD of Noida. Sector – 62 is located in the northern part of Noida and abuts NH – 24. Also, the
Subject Property enjoys good connectivity from Sector 18 Noida (the city centre of Noida).

The Subject Property is also located in proximity to established residential vectors such as Vaishali, Indirapuram
etc which offer a wide range of affordable to high end housing options.

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The location map of the Subject Property is set out below:

Source: Consultant Research (Map not to Scale).

The Subject Property is spread across a total land area of approx. 9.9 acres. The tenure of the underlying land of
the Subject Property is leasehold with the lessee being New Okhla Industrial Development Authority (NOIDA
Authority). The remaining tenure of the land is approx. 71 years. Basis the site plan & visual inspection it was
observed that the land underlying the Subject Property is regular in shape, levelled topography and bounded by
compound wall.

Site Boundaries:

The site boundaries for the Subject Property are as under:

• North: Vacant Land.

• South: 45-meter-wide internal sector road (Primary access road).
• East: ASPAM Scottish School.
• West: I-Thums 62 (Under Construction).

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2.2. Accessibility

The Subject Property is well connected to surrounding urban settlements and key nodes. The distance of the Subject
Property from prominent landmarks in Delhi-NCR is as follows:

• Approx. 1 km from Noida Electronic City Metro Station.

• Approx. 1-2 km from NH – 24/ Delhi – Meerut Expressway.
• Approx. 10-11 km from Sector 18, Noida CBD.
• Approx. 19-20 km from Connaught Place, the CBD of New Delhi.
• Approx. 19-20 km from New Delhi Railway Station.
• Approx. 32-33 km from IGIA (Indira Gandhi International Airport).

The Subject Property is well accessible to different parts of the city through the NH -24. It also has access to basic
urban infrastructure in terms of power, water supply and municipal sewerage system.

The property photographs of the Subject Property are attached in Annexure 3.

2.3. Ground Conditions

Based on visual inspection, there were no evidence of adverse ground conditions at the property or immediate
vicinity.

2.4. Environment Considerations

We have not carried out any investigations or tests or been supplied with any information from Client or from any
relevant expert that determines the presence or otherwise of pollution or contaminative substances in the subject
or any other land (including any ground water). For the purpose of assessing the vulnerability of the Subject
Property to any natural or induced disaster the location of the Subject Property with respect to risks pertaining to
earthquakes, high winds/ cyclone and flooding was studied. The city faces low risk in terms of high winds or
cyclones too. The Subject Property is not likely to face any higher risk than the overall risk profile of the city. No
hazardous activity was noted in the vicinity of the Subject Property which may expose it for any induced disaster.

2.5. Town Planning and Statutory Considerations

We have not made formal search but have generally relied on readily available information to general public. Our
Report is on current use/ current state basis of the property, and we have not considered any Government proposals
for road widening or compulsory purchase/ acquisition, or any other statute in force that might affect the Subject
Property.

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3. Subject Property – Asset Description

Subject Property is a Grade A IT/ITeS business park with 5 completed blocks spread across a total land area of
approx. 9.9 acres. The Subject Property is accessible via 45-meter-wide internal road on the South. Basis the site
plan & visual inspection it was observed that the land underlying the Subject Property is largely regular in shape,
levelled topography and bounded by compound wall. Further, the detailed summary of Embassy Galaxy blocks is
as follows.

Completed Blocks – Tower A, B, C, D, and E

The completed buildings and parts thereof with Occupancy Certificate (OC) collectively admeasure approx. 1.4
msf. of leasable area.

Embassy Galaxy is planned as an integrated development with commercial & retail developments. The Park offers
various quality amenities to its employees including Food Courts, F&B outlets, and other retail options.

3.1. Key Asset Information

Completed Blocks

Particulars: Details

Entity: Galaxy Square private Limited1

Building SEZ/ Non- Leasable Area

Block Name Age (Years)
Elevation SEZ (msf.)

A 2B + G + 5 Non-SEZ 15 0.3

B 2B + G + 6 Non-SEZ 15 0.3
Age of Building based
on the date of C 2B + G + 10 Non-SEZ 15 0.3
Occupancy Certificate:
D 2B + G + 10 Non-SEZ 15 0.4

E 2B + G + 2 Non-SEZ 15 0.01

Total 1.4

Asset Type: Tech Park with 5 Non-SEZ blocks

Sub-Market: Noida Sector 62

Approved and Existing Non-SEZ

usage:

Land Area: approx. 9.9 acres

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Particulars: Details

Freehold/Leasehold: Leasehold

Leasable Area: 1.4 msf.

Occupied Area: 1.3 msf.

Occupancy (%)3 97%

Current Effective Rent INR 44 per sq. ft. per month (Office, Retail and Telecom Tenants Only)
(including parking)

Source: Title Report, Rent Roll dated 31st March 2024, Architect Certificate, Occupancy Certificate.

Note:

1. Refer company structure set out in Annexure 1.

2. Occupancy refers to proportion of area leased which is actively occupied by the tenants out of the total area that has received OC

3.2. Subject Property Inspection

Particulars: Description

Date of Inspection: The Subject Property comprising 5 operational buildings was physically inspected on 19th March
2024.

The inspection comprised of visual inspection of:

Inspection Details: • Operational buildings

• Visits to their key utility areas such as LT electric room, DG Room, Pump room, HVAC
installations, power back up, STP, etc.

• The Subject Property is an IT/ITeS office space offering large floor plates with open/ green
areas and number of amenities for occupiers.
• The Subject Property offers amenities like state of the art food courts, F&B, numerous retail
options, basement parking, 24/7 power back-up.
• The visual inspection of the buildings did not reveal any cause of concern with no visible
Key Observation signs of any disrepair or ill maintenance.
• No instances of any major logging or water accumulation were observed during the
inspection. The utility areas also appeared well maintained, visually.
• Regular upgradation activities are being undertaken within the campus to ensure its upkeep
as per the modern age requirement.
• The Subject Property has been awarded LEED Platinum Rating for sustainability.

Source: Architect certificate, Rent Roll dated 31st March 2024, Valuer assessment.

Note: The Subject Property inspection did not comprise any structural survey, technical/ engineering review or safety audit and the assessment of the
condition of the building, its utilities and campus infrastructure are based completely on visual survey.

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3.3. Lease Expiry Profile

The Weighted Average Lease Expiry (WALE) of operational asset is working out to approx. 7.9 years, with approx.
93% of occupied area expiring between CY 2024 and CY 2034.

4. Valuation Methodology

For the purpose of the valuation of office component of Subject Property, Income Approach - Discounted Cash
Flow Method using Rental Reversion has been adopted.

4.1. Area Statement

Based on information, rent roll, lease deeds, architect certificate provided by the Client, we understand that Subject
Property is an Office Park. Further, the table below highlights the area configuration of the subject property:

Block Leasable Area (msf.)

Completed Blocks 1.4

Source: Architect certificate, rent roll dated 31st March 2024, lease deeds.

4.2. Construction Timelines

Completed Blocks

As highlighted earlier, the Subject Property has approx. 1.4 msf. of completed development and no pending cost
to complete is remaining as of date of valuation for the completed blocks.

• As per the rent roll dated 31st March 2024 provided to us by Client, it was observed that the operational block
are approx. 97% occupied.

• There are no vacant space left for lease up after considering the vacant provision.

4.3. Revenue Assumptions - Office

Revenue Assumptions - Office

Property Details Unit Value

In Place Rent (including Parking) INR per sq. ft. per month 44
Market Rent -Office (including Parking) INR per sq. ft. per month 48
Market Rent- Retail INR per sq. ft. per month 85
Rent Escalation % Every 3 years 15%
Other Income (Income from Cell Sites) % 1%

Note: The other income consists of income from kiosks, telecom towers, signages, other fests & events, etc.

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• Market Rent Office: Sector-62, Noida micro market has total office stock of approx. 7.4 msf. The average
net absorption of commercial office space in Sector-62 during the period 2016 – Q1 CY 2024 is approx. 0.3
msf. On an Average the micro market is witnessing a lease rental in the range of INR 48 to 65 per sq. ft. per
month on leasable area. Basis our market research, it was observed that, new leases are getting transacted in
the range of INR 48 to 65 per sq. ft. per month and the common area maintenance in the range of INR 16 to
24 per sq. ft. per month. Listed are few latest transactions in the comparable properties.

Following are the lease transactions happened in the micro market:

Rent
Area Leased Date of
Tenant Location (INR per sq. ft. Type of Deal
(msf.) Transaction
per month)
Tenant 1 Sector-62, Noida 0.08 Q1 2024 51 Fresh
Tenant 2 Sector-62, Noida 0.02 Q1 2024 47 Fresh
Tenant 3 Sector-62, Noida 0.01 Q1 2024 48 Fresh
Tenant 4 Sector-62, Noida 0.31 Q1 2024 45 Fresh
Tenant 5 Sector-62, Noida 0.01 Q3 2023 64 Fresh
Tenant 6 Sector-62, Noida 0.02 Q2 2023 48 Fresh
Tenant 7 Sector-62, Noida 0.01 Q2 2023 50 Fresh
Tenant 8 Sector-62, Noida 0.01 Q1 2023 63 Fresh
Tenant 9 Sector-62, Noida 0.05 Q1 2023 59 Fresh
Tenant 10 Sector-62, Noida 0.04 Q1 2023 62 Fresh
Tenant 11 Sector-62, Noida 0.03 Q1 2023 62 Fresh
Tenant 12 Sector-62, Noida 0.04 Q1 2023 53 Fresh
Tenant 13 Sector-62, Noida 0.01 Q1 2023 64 Fresh
Tenant 14 Sector-62, Noida 0.01 Q1 2023 60 Fresh
Source: Consultant Research.
Note: The data represented is on calendar year basis.

We have assumed market lease rent as INR 48 per sq. ft. per month, including parking and CAM income as
INR 17 per sq. ft. per month for vacant space.

• Market rent Retail: Basis our market research, it was understood that the retail premises are transacted in
the range of INR 80 to 100 per sq. ft. per month. Hence, we have assumed a market rent of INR 85 per sq. ft.
per month on leasable area for retail premises.

• Rent Escalation: We have assumed market rent escalation of 15% every 3 years for vacant area & for area
reversing to the market.

• Other Income: We have assumed other income is 1 % consists of income from kiosks, telecom towers,
signages, other fests & events, etc.

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4.4. Expense Assumptions - Office

Operating Cost

In addition to capital expenditure, a development typically has few recurring operational expenses required for the
up-keep and running of the development. Based on information provided by the Client and market assessment,
following recurring expense assumptions have been adopted for the purpose of this valuation exercise (applicable
to completed blocks).

Nature of Expense Units Details

Insurance INR per sq. ft. per month 0.29

Land Lease Payment INR per sq. ft. per month 0.34

Other Operating Expenses % Of Gross Rental Income 2%

Property Management Fees* % Of Total Income 3%

Transaction cost on Exit % Of Terminal Value 1%

Source: Information received from Client; Valuer assessment; * Property Management fees has been considered a below the NOI line item.

• Other Operating Expenses : It is assumed at 2% of the rentals. The other expenses account for minor repairs
and maintenance to the buildings, legal and professional fees, rates and taxes and other such expenses.

• Property Management : Based on information received from the Client, Property Management fees is
assumed at 3% of lease rentals, parking income ,fitout and other operating income.

• Transaction Cost On Exit : It is assumed at 1% of the terminal value and is expected to be incurred towards
brokerage/transaction fees, etc.

4.5. Other Assumptions

Nature Units Details

Vacancy Provision % 5

New Lease -4 Months

Rent Free Period No. of Months
Renewal Lease- 2 Months

New Lease -2 Months

Brokerage No. of Months
Renewal Lease- 1 Months

Source: Valuer assessment.

• Stabilized Vacancy: We have assumed a stabilized vacancy of 5.0% during cashflow period & terminal year.

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• Rent-Free Period: In accordance with market benchmarks for Grade A office & retail premises, rent-free
period of 2 month has been considered for existing lease rollovers and 4 months for new leases.

• Brokerage: As per prevailing market trend, we have assumed a brokerage of 1 month for existing lease
rollovers and 2 months for new leases.

4.6. Capitalization Rates

In order to arrive at the capitalization rate for the property, relevant parameters of some key investments in
comparable properties of similar quality, use, tenant profile made by institutional real estate investors were
perused. Further, considering that these investments have been made through private equity and the subject
valuation is being carried out for public listing with better liquidity/marketability of ownership interest, the cap
rate for the subject properties has been assumed to be 8.00% for office and Retail developments which is in line
with the available market information applied on the one year forward NOI in the terminal year.

4.7. Discount Rate

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

For the purpose of arriving at the Cost Equity, a peer group of listed comparable were studied and suitable
adjustments made therein to reflect the specific opportunities and characteristics of the Subject Property as part of
a listed portfolio. The Cost of Debt is assumed on the basis of the marginal cost of debt that the SPV owning the
Subject Property has been able to avail and the general borrowing rates of similar assets. The Weights attributed
to equity and debt were benchmarked against similar portfolios/properties in the market.

The derived discount rate of 11.75% for operational segment (including CAM).

4.8. Market Value of the Subject Property

The Valuer is of the opinion that subject to the overriding stipulations contained within the body of this report and
to there being no onerous restrictions or unusual encumbrances of which she has no knowledge, the opinion of
value of the complete ownership interest in the Subject Property comprising land and improvements thereon, as
explained above, on 31st March 2024, is as follows:

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Market Value of the Subject Property

Components Value in (₹Mn)

Embassy Galaxy 9,894

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S. EMBASSY HILTON GOLFLINKS

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1. Property Description - Hilton - Embassy GolfLinks

Property Name Hilton - Embassy GolfLinks -Operational Hospitality Developments

Hilton – Embassy GolfLinks Challaghatta Village, Varthur Hobli, Bengaluru East Taluk, Bengaluru,
Address
Karnataka – 560 071.

Ownership & Title Details Umbel Properties Private Limited (approx. 3.6 acres)

247 Keys
No. of Keys
(Developed area –approx. 0.5 msf.)

Source: Information received from Client, Title Report.

1.1. Encumbrances

Unless disclosed and recorded in the Property Report, the Subject Property is considered to possess a good and
marketable title and is free from any unusually onerous encumbrances with no option or pre-emption rights in
relation to the assets except for those created in favour of the lenders as mentioned below, based on the information
given in the Title Reports prepared by King & Partridge. We have not checked and verified the title of the Subject
Property.

2. Location

2.1. General

The Hilton Embassy Golflinks is close to CBD area of Bengaluru city, accessible by Intermediate Ring Road which
further connects to Old Airport Road thereby providing connectivity to the city centre and other locations such as
Marathahalli, Outer Ring Road, Whitefield, etc. Surrounded by the residential and commercial developments the
Subject Property is located near to the vicinity of Indiranagar, Koramangala, CV Raman Nagar etc. The micro
market has a presence of prominent hotels like Leela Palace, Ramada Encore by Wyndham, The Paul, Royal
Orchid, etc.

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The location map of the Subject Property is set out below:

Source: Consultant Research (Map not to Scale).

The Subject Property (Hilton, Embassy GolfLinks) is an operational hospitality development spread across approx.
3.6 acres land parcel inside Embassy GolfLinks Business Park located along the Intermediate Ring Road, Bengaluru,
Karnataka. The hospitality development is operated by Hilton, having 247 keys.

Site Boundaries:

The site boundaries for the Subject Property are as under:

• North: Embassy GolfLinks (Larger Development).

• South: Embassy GolfLinks (Larger Development).
• East: Internal Access Road.
• West: Embassy GolfLinks (Larger Development).

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2.2. Accessibility

The Subject Property is well connected to major locations in the city via road network. The distance of the Subject
Property from major landmarks in the city is as follows:

• Approx. 6-7 km from Bengaluru CBD.

• Approx. 3-4 km from Indiranagar Metro Station.
• Approx. 11-12 km from Bengaluru Railway Station.
• Approx. 41-42 km from Kempegowda International Airport.

The Subject Property is accessible by the Internal Road of the larger development Embassy GolfLinks, which acts
as the primary access and connects to Intermediate Ring Road and Wind Tunnel Road which further connects to
major parts of the city. It also has access to basic urban infrastructure in terms of power, water supply and municipal
sewerage system.

The property photographs of the Subject Property are attached in Annexure 3.

2.3. Ground Conditions

Based on visual inspection, there were no evidence of adverse ground conditions at the property or immediate
vicinity.

2.4. Environment Considerations

We have not carried out any investigations or tests or been supplied with any information from Client or from any
relevant expert that determines the presence or otherwise of pollution or contaminative substances in the subject
or any other land (including any ground water). For the purpose of assessing the vulnerability of the Subject
Property to any natural or induced disaster the location of the Subject Property with respect to risks pertaining to
earthquakes, high winds/ cyclone and flooding was studied. The city faces low risk in terms of high winds or
cyclones too. The Subject Property is not likely to face any higher risk than the overall risk profile of the city. No
hazardous activity was noted in the vicinity of the Subject Property which may expose it for any induced disaster.

2.5. Town Planning and Statutory Considerations

We have not made formal search but have generally relied on readily available information to general public. Our
Report is on current use/ current state basis of the property, and we have not considered any Government proposals
for road widening or compulsory purchase/ acquisition, or any other statute in force that might affect the Subject
Property.

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3. Subject Property – Asset Description

Hilton – Embassy GolfLinks is spread across land area of admeasuring approx. 3.6 acres and is under the
ownership of Umbel Properties Private Limited. According to the site plan & based on visual inspection it was
observed that the land under lying the Subject Property is irregular in shape, bounded by compound wall. The
Subject Property offers large sized rooms with studios and suites that are fully equipped with kitchenettes, dining,
living and work areas and are ideal for a business trip or relaxing vacation. The hotel also features two indoor
dining venues, a restaurant by the poolside, a bar, six meeting rooms, 24-hour fitness centre, outdoor temperature-
controlled swimming pool and spa.

3.1. Key Asset Information

Completed Block

Particulars: Details

Entity: Umbel Properties Private Limited1

Age of Building based Building Age No. of

Block Name Type
on the date of Elevation (Years) Keys
Occupancy Certificate: Hilton – Embassy GolfLinks 2B+G+3 Hospitality 11 247

Asset Type: Hospitality (Luxury Hotel)

Sub-Market: Suburban East

Approved and Existing Hospitality

usage:

Land Area: approx. 3.6 acres

Freehold/Leasehold: Freehold

No. Of Keys: 247

Source: Information received from Client, Title Report, Occupancy Certificate.

Note:

1. Refer company structure set out in Annexure 1.

2. Occupancy refers to proportion of area leased which is actively occupied by the tenants out of the total area that has received OC.

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3.2. Subject Property Inspection

Particulars: Description

The Subject Property comprising of 1 operational building was physically inspected on 2nd April
Date of Inspection:
2024.

The inspection comprised of visual inspection of:

• Operational buildings
Inspection Details: • Visits to their key utility areas such as LT electric room, DG Room, Pump room, HVAC
installations, power back up, STP, etc.
• Area provisioned for Future development.

• The Hotel is a part of a larger development – Embassy GolfLinks Business Park and has
total 247 keys.

Key Observation
• It has STP, safety features and power back-up facilities.
• The visual inspection of the buildings did not reveal any cause of concern with no visible
signs of any disrepair or ill maintenance.

Source: Architect certificate, Valuer assessment.

Note: The Subject Property inspection did not comprise any structural survey, technical/ engineering review or safety audit and the assessment of the
condition of the building, its utilities and campus infrastructure are based completely on visual survey.

4. Valuation Methodology

The methodology used to arrive at the market value of Subject Property is Discounted Cash Flows Method where
the projected cash flows are discounted at an appropriate discount rate to arrive at the present value of the property.
The cash flows for the hotel have been projected after thorough understanding of the hotels or comparable hotels
operations, market dynamics, and other factors.

4.1. Area Statement

Based on information provided by the Client, we understand that Subject Property is an Operational Luxury hotel.
Further, the table below highlights the no. of keys of the subject property:

Block Status No. of Keys

Hilton – Embassy GolfLinks Operational 247

Source: Information received from Client.

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4.2. Construction Timelines

Completed Block

The Subject Property which has 247 keys is operational and has no pending cost to be incurred as of date of
valuation.

4.3. Revenue Assumptions - Hotel

Operating Revenues Units Hilton Embassy GolfLinks

ARR (INR/Room/Night) 11,000

Increase in ARR (YoY) 5%

Stabilized Occupancy % 72%

Food & Beverage Revenue % Of Rooms Revenue 50%

Minor Operating Department (MOD)

% Of Rooms Revenue 5%
Revenue

Revenue Assumptions

• Average Room Rent (ARR): ARR for the hotel has been considered in line with the ARR for comparable
hotels in the micro market at INR 11,000/ Room/ Night. Keeping in mind the historical trend of ARR and the
upcoming supply in the micro market, the ARR growth rate is assumed at 5% Y-O-Y from April 2024 onwards.

• Stabilized Occupancy: Based upon our analysis of occupancy trend in the hotel, occupancy is expected to be
stabilized at 72% in FY 2025.

• F&B Revenue: We have assumed F&B revenue of 50% of room revenue.

• Minor Operating Department (MOD) Revenue: We has assumed a MOD revenue of 5% of room revenue.

4.4. Expense Assumptions - Hotel

Major Repair and Improvement

As per information provided by Client there is no refurbishment/upgradation expenses in the subject development.

4.5. Operating Cost - Hotel

Expenses Unit Hilton Embassy GolfLinks

Room Cost (Including employee cost) % of Rooms Revenue 14%

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Expenses Unit Hilton Embassy GolfLinks

Food & Beverage Cost % of F&B 35%
Minor Operating Department (MOD) Cost % of MOD Revenue 35%
Payroll % of Total Revenue 12%
Administration & General Cost % of Total Revenue 3%
Operating Expenses % of Total Revenue 8%
Sales & Marketing Expenditure % of Total Revenue 2.4%
Repairs & Maintenance % of Total Revenue 4%
Base Management Fee % of Total Revenue 2%
Management Incentive Fee % of Gross Operating Profit (GOP) 5.5%
Furniture, Fixtures & Equipment (FF&E) Reserve % of Total Revenue 2%

Source: Valuer assessment & Information received from Client.

Operating Cost

• Departmental Expenses: We have assumed the Room Cost, F&B cost & Minor Operating Department (MOD)
cost at 14%, 35% & 35% of respective revenues.

• Undistributed Cost: We have assumed undistributed costs like Payroll, Administration, Sales & Marketing,
operating expenses basis on prevailing trends in the similar comparable hotels.

• Base Management Fee (% of Total Revenue): Based on information provided by the Client, Base fee of 2% of
the total revenue has been considered.

• Management Incentive Fee: Management Incentive fee of 5.5% of the Gross Operating Profit has been
considered as informed by the Client.

• Furniture, Fixtures & Equipment (FF&E) Reserve (% of GOP): FF&E reserve 2% is considered which is in
line with the market trends of hospitality industry.

4.6. Capitalization Rates

Hotels are undisputedly a combination of business and real estate; the day-to-day operation of a hotel represents a
business over and above the real estate value. The exercise is aimed at assessing the value of the property on the
earnings generating capacity of the hotel. As per instruction from the Client, we understand that the investors are
investing with a view of future earnings and not for the purpose of selling the assets in the present time. Hence the
most appropriate method is the EV/EBITDA Multiple approach.

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For this method, we have evaluated the historic data of listed large and medium Hotel Companies and have arrived
at an average multiple. This average EV/EBITDA multiple from year 2012 to 2023 is in the range of 14 to 15
times.

Therefore, the EV/EBITDA multiple of 14 to 15 times translates to a capitalization rate range of 7.14% to 6.7%.
We have taken the lower end of the multiple i.e., 14 which translates to 7.14% capitalization rate.

4.7. Discount Rate

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

The derived discount rate of 12.14% has been considered for the valuation exercise.

4.8. Market Value of the Subject Property

The Valuer is of the opinion that subject to the overriding stipulations contained within the body of this report and
to there being no onerous restrictions or unusual encumbrances of which she has no knowledge, the opinion of
value of the complete ownership interest in the Subject Property comprising land and improvements thereon, as
explained above, on 31st March 2024, is as follows:

Market Value of the Subject Property

Components Value in (₹Mn)

Embassy Hilton Golflinks 6,341

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T. EMBASSY ENERGY, BELLARY DISTRICT, KARNATAKA

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1. Property Description - Embassy Energy Private Limited

Property Name Embassy Energy

Villages Ittigi and Mooregeri in Huvinhadagali Taluka and Nellukudure in Hagribommanhalli

Address
Taluka, Bellary District, Karnataka.

Ownership & Title Details Embassy Energy Private Limited (EEPL).

Land Area approx. 465.8 Acres

Source: Information provided by Client.

1.1. Encumbrances

Unless disclosed and recorded in the property report, the Subject Property is considered to possess a good and
marketable title and is free from any unusually onerous encumbrances with no option or pre-emption rights in
relation to the assets except for those created in favour of the lenders as mentioned below, based on the information
given in the Title Reports prepared by Law Shield. We have not checked and verified the title of the Subject
Property.

2. Location

2.1. General

The Embassy Energy Private Limited (EEPL) facility is situated in the vicinity of Ittigi and Mooregeri villages in
Huvinhadagali Taluka, as well as Nellukudure village in Hagribommanhalli Taluka, within Karnataka’s Bellary
District. The surrounding landscape is primarily defined by expansive agricultural plots, with a notable prevalence
of black cotton soil. Additionally, the subject location has garnered attention for potential solar park developments,
with various infrastructure companies like Adani, ReNew, and others currently operating or considering proposals
for such projects in the area.

According to the Valuer’s analysis of the power purchase agreements between EEPL and the power purchasers,
the solar facility would provide electricity to the Embassy’s current office parks and hotels in Bengaluru. As an
alternative, it is acknowledged that EEPL has already inked 25-year power purchase agreements (PPAs) with a
number of organisations in the commercial and industrial sectors.

Based on review of various documents (such as commissioning certificates, Government Order, etc.), the solar
park has an installed capacity of approx. 130 Mega Watts (MW) DC (output will be 100 MW AC), capable of
generating at least 215 million Units (MU) of electricity (subject to plant stabilization).

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In accordance with the PPAs signed with different organisations, the buyers have committed to buying a minimum
of 85% of the contracted quantity (also known as the “minimum guaranteed offtake”) for each tariff year starting
on the date of commercial operation and continuing until the end of the term.

The location map of the Subject Property is set out below:

Source: Consultant Research (Map not to Scale).

Site Boundaries:

The site boundaries for the Subject Property are as under:

• North: Agricultural land.

• South: Primary Access Road (SH – 45).
• East: Agricultural land.
• West: Agricultural land.

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2.2. Zoning & Usage

• Current Land Usage: Operational Solar Park.

• Approved Usage: The Subject Propertyis currently an operational Solar Park.

• Restrictions: No such restrictions on the subject land parcel.

• Natural or Induced Hazards: We hold the view that the project/site has been designed and constructed to
endure natural or human-induced hazards, with the exclusion of exceptionally rare or extraordinary events.

2.3. Accessibility

The Subject property is well connected to major locations via road network. The distance of the Subject Property
from major landmarks in the city is as follows:

• Approx. 6-7 km from Ittigi Village Centre.

• Approx. 65-75 km from Davangere.
• Approx. 130-140 km from Bellary Town.
• Approx. 300-310 km from Bengaluru.

The Subject Property is well accessible to different parts of the Karnataka through road connectivity. It also has
access to basic urban infrastructure in terms of power, water supply and sewerage system.

The property photographs of the Subject Property are attached in Annexure 3.

2.4. Ground Conditions

Based on visual inspection, there were no evidence of adverse ground conditions at the property or immediate
vicinity.

2.5. Inspection

The Property was visually inspected by the valuer, however no measurement or building survey has been carried
out as part of the valuation exercise and the Valuer has relied entirely on the site areas provided by the Client,
which has been assumed to be correct.

2.6. Environment Considerations

We have not carried out any investigations or tests or been supplied with any information from Client or from any
relevant expert that determines the presence or otherwise of pollution or contaminative substances in the subject
or any other land (including any ground water). For the purpose of assessing the vulnerability of the Subject
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Property to any natural or induced disaster the location of the Subject Property with respect to risks pertaining to
earthquakes, high winds/ cyclone and flooding was studied. The location faces low risk in terms of high winds or
cyclones too. The Subject Property is not likely to face any higher risk than the overall risk profile of the location.
No hazardous activity was noted in the vicinity of the Subject Property which may expose it for any induced
disaster.

2.7. Town Planning and Statutory Considerations

We have not made formal search but have generally relied on readily available information to general public. Our
Report is on current use/ current state basis of the property, and we have not considered any Government proposals
for road widening or compulsory purchase/ acquisition, or any other statute in force that might affect the Subject
Property.

3. Subject Property - Asset Description

Embassy-Energy Private Limited (EEPL) is envisaged across total land area of approx. admeasuring approx. 465.8
acres. Basis the review of the site plan & visual inspection it was observed that the land under lying the Subject
Property is irregular in shape, levelled topography, bounded by compound wall, and has excellent visibility as it
has same multiple access via the SH-45.

3.1. Key Asset Information

Land Area approx. 465.8 acres

Plant Capacity 130 MW DC

Plant Output 100 MW AC

Plant Commissioning Date 28-Feb-2018

• 40% commenced operations on January 23, 2018

Completion Phases
• 60% commenced operations on February 28, 2018,

Source: Information provided by Client.

3.2. Subject Property Inspection

Particulars: Description

Date of Inspection: The Subject Property was physically inspected on 19 th October 2023.

The inspection comprised of visual inspection of:

Inspection Details:
• Solar Panels

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Particulars: Description

• DC to AC Convertor
• Substation

Source: Valuer assessment.

4. Details on Land Extent

Based on information provided by the Client, the park covers an area of approx. 465.8 acres, as indicated in title
reports, site plans and the site visit.

Additionally, we recognize that the solar park has been developed across the majority of the site, and EEPL, along
with its contractors and subcontractors, currently holds physical possession of the land. The assumption is that the
sale and conversion have been successful, and the valuation does not consider any potential adverse impacts.

5. Overview and Policies

5.1. Renewable Energy Policy

In the latest REN21 Renewables 2022 Global Status Report, India is ranked fourth in the world for its total
Renewable Energy Installed Capacity, which includes Large Hydro. The country also holds the fourth position in
Wind Power capacity and fifth position in Solar Power capacity. Notably, the Solar Power installed capacity has
experienced a remarkable growth, surging approx. 29 times from 2.82 GW to 81.81 GW since 2014. Furthermore,
the generation of Renewable Power has witnessed a nearly 1.75 times increase, rising from 190 billion units (BU)
to 332 BU since the fiscal year 2014-15. India has a total of 59 solar parks (as of Feb-2023) with an aggregated
approved capacity reaching 39.28 GW.

Source: Ministry of New and Renewable Energy (MNRE).

5.2. Indian Solar Industry Overview

India possesses an extensive potential for solar energy. India receives approx. 5,000 trillion kWh of energy
annually, with the majority of regions receiving between 4 to 7 kWh per square meter per day. National Institute
of Solar Energy (NISE) has assessed the country’s solar potential of about 748 GW assuming 3% of the waste land
area to be covered by Solar PV modules. In order to support this effort, the government has implemented various
policies at both the national and state level.

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Several policies which contribute to the enhancement of renewable energy generation are given below:

Name of the Policy Date Objective

1. This scheme will cover electrification of one Lakh

un-electrified households in PVTG areas
Particularly Vulnerable Tribal
Groups (PVTG) identified by Ministry of Tribal Affairs (MoTA).
Habitations/Villages under 2. Provision of 0.3 kW solar off-grid system for 1
January – 2024 lakh PVTG Households.
Pradhan Mantri Janjati Adivasi
Nyaya Maha Abhiyan (PM 3. Solar street lighting and provision of lighting in
JANMAN) 1,500 multi-purpose centres MPCs of PVTG areas
where electricity through grid not available

1. Permitting Foreign Direct Investment (FDI) up to

100 percent under the automatic route for
renewable energy projects.
2. Setting up of Ultra Mega Renewable Energy
Parks, to provide land and transmission to RE
developers on a plug and play basis.
3. Transmission Plan for Integration of 500 GW
Union Budget 2023-24 March -2023 Renewable Energy capacity by 2030.
4. Laying of new transmission lines and creating new
sub-station capacity under the Green Energy
Corridor Scheme for evacuation of renewable
power
5. Launch of Green Term Ahead Market to facilitate
sale of renewable energy power through
exchanges.

Renewable Purchase 1. States have already designated a percentage,

July – 2022 varying from 2% to 14% of the overall energy
Obligations demand to be fulfilled through renewable energy
sources.

1. Provide financial assistance to farmers for the

installation of solar irrigation pumps used in
cultivation.
2. Each farmer will be eligible for a 60% subsidy to
establish tube wells and pump sets and this policy
Pradhan Mantri Kisan Urja is valid till March-2026.
3. As of March 31, 2024, the scheme’s Component-
Suraksha evam Utthaan March – 2019
A has seen the installation of solar power plants
Mahabhiyan (KUSUM) with a total capacity of 166.28 MW.
4. Additionally, approx. 12 lakh stand-alone solar
pumps have been installed under Component-B.
2,571 pumps have been reported as solarized
under the individual pump solarization variant of
Component-C

Source: [Link]

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Karnataka Solar Policy: Highlights

Karnataka is one among the leading states in Renewable Energy (RE) sector in the country with a RE generation
potential about 36,590 MU (from Apr-2023 to Feb-2024).7 The state has achieved its stature through its effective
policy, programs, and implementation.

The state is endowed with RE potential which includes air, wind, solar, solar -wind hybrid, biomass, co-generation,
waste to energy, small hydro and other renewable energies that makes Karnataka a favourable destination for RE
investments in India.

As per the stipulations outlined in the Karnataka Solar Policy for the years 2022 to 2027, its primary objective is
to aid the Government of India in achieving its Renewable Energy (RE) target of 500 gigawatts (GW) by the year
2030. Furthermore, it aims to foster the adoption of novel initiatives and emerging energy technologies within the
state.8

• To facilitate development of 10 GW of additional RE projects with or without energy storage systems in the
State, including up to 1 GW of Rooftop solar PV projects.

• To attract investment in the RE sector and development of State economy.

• To develop Renewable Energy Parks including hybrid parks in the State

• To encourage private sector participation in transmission network/Green Energy Corridor projects

• To develop ecosystem for distributed generation through Solarization of agriculture feeders and pumps which
can help deferment of transmission and distribution capacity addition and reduction in losses

• To promote adaptation of electric vehicles and de-carbonize transportation in the State by encouraging use of
cleaner renewable energy in the transportation sector

• To promote energy storage projects in the State.

5.3. Executed Power Purchase Agreements (PPAs)

Referring to the data provided by the Client, specifically Power Purchase Agreements (PPAs), it is evident that the
solar facility supplies power to Embassy’s existing office parks and hotels in Bengaluru, including Embassy

7 Central Electricity Authority

8 Karnataka Renewable Energy Policy 2022 - 2027
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Manyata, Embassy GolfLinks, Hilton at GolfLinks, and Embassy TechVillage. In addition to this, it is apparent
that EEPL has entered into power purchase agreements (PPAs) with different entities in the commercial and
industrial sectors.

Based on the review of power purchase agreements shared by the Client, it is understood that it has following
terms and conditions:

• The purchaser of Power Purchase Agreements (PPAs) has committed to procure a minimum of 85% of the
contracted quantity (referred to as ‘minimum guaranteed offtake’) annually, commencing from the commercial
operation date until the termination of the agreement. Furthermore, it is understood that the seller affirms its
obligation to provide at least 85% of the contracted quantity (referred to as ‘minimum guaranteed supply’)
annually.

• In the event that the purchaser fails to draw the minimum guaranteed offtake in any tariff year, except due to the
seller’s failure to supply the minimum guaranteed offtake at the delivery points, the purchaser shall remain
obligated to compensate the seller for the shortfall between the minimum guaranteed offtake and the actual
delivered energy during that tariff year.

• If the seller fails to provide the Minimum Guaranteed Supply in any Tariff year except the first year, the seller shall
pay the aggregate of:

• The difference between the tariff and the prevailing BESCOM tariff for the units corresponding to the
shortfall between the minimum guaranteed supply and the delivered energy for that tariff year.

• Any expenses incurred by the purchaser in securing the remainder of the minimum guaranteed supply
from alternate sources.

• The tariff for billable energy in each preceding billing month shall be determined as the sum of:

• The BESCOM tariff applicable to the respective billing month.

• Any applicable policy charges imposed by BESCOM on the billable energy.

• Penalties, if any, imposed according to the terms of the agreement or any outstanding sum from previous
invoices.

• Any adjustments resulting from invoice reconciliation.

• Open access charges, if applicable.

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5.4. Capacity Utilization Factor (CUF)

In terms solar power, the actual energy output of a solar power plant is influenced by factors like sunlight
availability, maintenance-related downtime, and fluctuations in weather conditions. The Capacity Utilization
Factor (CUF) in solar energy specifically represents the ratio of the actual energy output of a solar facility during
a specified period, typically measured annually, to the maximum potential energy output if the plant were
consistently operating at its peak capacity throughout that timeframe. This metric is expressed as a percentage, and
a higher CUF signifies a more efficient and productive solar power plant. It serves as a crucial measure for
evaluating the performance and reliability of solar energy systems. With respect to the Research conducted and
with reference to table below it is understood that the average capacity utilization of solar PV plants in Karnataka
is 19%. However, we have assumed the Capacity utilization factor as 17.35% which is in line with industry
benchmarks.

Entity Capacity Utilization Factor (CUF)

BESCOM 20%

Power Energy Mysore 18%

Karnataka Renewable Energy Association 18%

Power Company of Karnataka Limited 27%

Raghunandhan KREA 18%

GTSS Infra 18%

Hiner Engineering 18%

Power Gate Energy 18%

Average 19%

Source: Bengaluru Electricity Supply Company Limited (BESCOM), Karnataka Renewable Energy Development Limited.

5.5. Commercial/ Industrial Tariff

To determine the revenue generated by the solar plant, we examined the current and historic BESCOM Tariff data,
which is provided in the exhibit below:

Year Commercial (INR per unit) Industrial (INR per unit)

FY 2014 7.3 5.8
FY 2015 7.7 6.2
FY 2016 7.9 6.3
FY 2017 8.4 6.8
FY 2018 8.6 7.0
FY 2019 8.8 7.2
FY 2020 9.0 7.4

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Year Commercial (INR per unit) Industrial (INR per unit)

FY 2021 9.3 7.7
FY 2022 9.4 7.8
FY 2023 9.4 7.8
FY 2024 8.0 6.9
Source: Bengaluru Electricity Supply Company Limited (BESCOM).

5.6. Useful Life

According to the guidelines set by the Central Electricity Regulatory Commission (CERC), a Solar PV generation
facility must assume a useful life of 25 years when determining the tariff. The same has been assumed for the
subject property.

5.7. Escalation in Tariff

After conducting a review of various Power Purchase Agreements (PPAs) executed, it has been analysed that the
calculation of billable energy tariff aligns with the prevailing BESCOM tariffs. To forecast prospective tariff
escalation, an examination of the historical BESCOM unit rates spanning the past ten years has been undertaken.

1.0 10.0%
5.5% 6.4%
3.6% 2.9% 2.8%
INR per kWH

2.6% 2.4% 2.3% 5.0%

0.5 1.1% 0.5%
0.5
0.4 0.0%
0.0 0.3 0.2 0.2 0.3 0.2 0.3
0.1
-5.0%
0.1
-0.5
-14.9% -10.0%
-1.0
-15.0%

-1.5 -1.4 -20.0%

FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24

Absloute Increase in Commercial Tariff % Change

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1 10.0%
7.0% 7.1%
4.5%
3.0% 3.6% 3.4% 5.0%
2.4% 2.8%
0.5 1.3% 0.6%
0.4 0.4
INR per kWH

0.0%
0.2 0.2 0.2 0.2 0.2
0 0.1 0.1
0.05 -5.0%

-0.5 -11.5%
-10.0%

-1 -0.9 -15.0%
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24

Absloute Increase in Industrial Tariff % Change

Source: Bengaluru Electricity Supply Company Limited (BESCOM).

We have assumed an annual escalation of 2.5% on the tariff.

6. Value Assessment

For the purpose of the valuation of Subject Property, Income Approach - Discounted Cash Flow Method has been
adopted.

6.1. Area Statement

Based on the information provided by the Client, the total land extent of the Subject Property is approx. 465.8
acres.

6.2. Revenue Assumptions

As highlighted earlier. Following are the assumptions made towards revenue calculations:

Component Unit Solar Project

Location Bellary
PPA Tariff – FY 2024 INR 7.80
% Rise in PPA Tariff % 2.5%
% Rise in PPA Tariff (qtr.) % 0.6%

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6.3. Cost Assumptions

Open Access Charges

It refers to the fees associated with the transmission and distribution of electricity from the solar facility to the end-
user or consumer. These charges include various components like Cross Subsidy Charges, Transmission Charges
and SLDC Charges.

Cross Subsidy Charges:

Cross-subsidy charges are fees imposed on certain consumers or categories of electricity consumers to compensate
for the subsidization of electricity provided to other consumer groups. The goal is to balance the cost of electricity
distribution and ensure that all consumer categories contribute their fair share. The imposition of cross subsidy
charges aims to create a more equitable distribution of electricity costs among various consumer groups, ensuring
that the burden of subsidizing one group is shared by others, particularly those who can afford to pay higher rates.

Transmission Charges:

Transmission charges are the cost associated with the transportation of electricity from the generation site (solar
power plant) to the distribution network or grid. These charges cover the costs incurred for transmitting electricity
over the transmission infrastructure, which includes high-voltage lines and substations.

State Load Dispatch Centre (SLDC) Charges:

The System Load Dispatch Center (SLDC) operates under the purview of Karnataka Power Transmission
Corporation Limited (KPTCL) as the apex body responsible for ensuring the seamless and coordinated operation
of the power system in Karnataka. The SLDC plays a pivotal role in real-time load dispatch, overseeing the
operation and maintenance of the SCADA (Supervisory Control and Data Acquisition) System, and managing
energy accounting. To fund its operational activities, the SLDC recovers annual expenses from consumers and
beneficiaries utilizing the Intra-State transmission system.

All the above charges are calculated on the percentage of tariff.

Component Unit Solar Project

Open Access Charges % On Tariff 36%
Cross Subsidy Surcharge % On Tariff 19.3%
Transmission Charges % On Tariff 16.5%
SLDC Charges % On Tariff 0.1%

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Wheeling Charges:

It is the cost associated with the transportation of electricity from the point of generation (solar plant) to the point
of consumption, which may be at a different location. These charges cover the use of the transmission and
distribution infrastructure to "wheel" the electricity from the generator to the end-user.

Banking Charges:

“Banking" generally refers to the practice of storing excess generated electricity in the grid for future use. When a
solar power plant produces more electricity than is immediately consumed, the excess electricity can be fed into
the grid. Later, during periods when the solar plant's output is insufficient, the operator can draw electricity from
the grid to meet their needs. Banking charges are applied to compensate for the costs associated with storing and
managing this electricity exchange. These charges may cover administrative costs, infrastructure maintenance, and
other expenses incurred by the utility or grid operator for facilitating the process of storing and retrieving excess
electricity.

Both the above charges are calculated on the percentage of injected energy:

Component Unit Solar Project

Wheeling Charges % On injected Energy 5%
Banking Charges % On injected Energy 2%

Other Assumptions:

Component Unit Solar Project

Additional Surcharge per Unit 0.82
Cost Escalation Per Year 4%
Admin Cost INR Mn per qtr. 1.30
O&M Cost INR Mn per qtr. 16.25
Employee Expenses INR Mn per qtr. 1.30
Inverter Replacement Cost INR in Mn per MW 1.30

6.4. Discount Rates

This discount rate applied to the available cash flows reflect the opportunity cost to all the capital providers, namely
shareholders (Cost of Equity) and creditors (Cost of Debt), weighted by the relative contribution to the total capital
of the company (WACC). The opportunity cost to the capital provider equals the rate of return the capital provider
expects to earn on other investments of equivalent risk.

For the purpose of arriving at the Cost Equity, a peer group of listed comparable were studied and suitable
adjustments made therein to reflect the specific opportunities and characteristics of the Subject Property as part of
a listed portfolio. The Cost of Debt is assumed on the basis of the marginal cost of debt that the SPV owning the
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Subject Property has been able to avail and the general borrowing rates of similar assets. The Weights attributed
to equity and debt were benchmarked against similar portfolios/properties in the market.

The discount rate for the Subject Property is 11.75%.

6.5. Market Value of the Property

The Valuer is of the opinion that subject to the overriding stipulations contained within the body of this report and
to there being no onerous restrictions or unusual encumbrances of which she has no knowledge, the opinion of
value of the complete ownership interest in the Subject Property comprising land and improvements thereon, as
explained above, on 31st March 2024, is as follows:

Market Value of the Subject Property

Components Value in (₹Mn)

Embassy Energy Power Limited (EEPL) 7,813

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U. MATERIAL LITIGATION

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This section discloses all outstanding material litigation and regulatory action against Embassy REIT, the Manager, their
respective Associates, and the Trustee (the “Relevant Parties”). Details of all outstanding regulatory actions and criminal
proceedings against the Relevant Parties have been disclosed. Only such outstanding civil/commercial matters against the
Relevant Parties have been disclosed where amounts involved are in excess of the materiality thresholds disclosed below. All
property tax, direct tax and indirect tax matters against the Relevant Parties have been disclosed in a consolidated manner.

“Associates” of a person shall be as defined under the Companies Act, 2013, or under applicable accounting standards, and
shall also include: (i) any person directly or indirectly controlled by the said person; (ii) any person who directly controls the
said person;(iii) where the said person is a company or a body corporate, any person(s) who is designated as a promoter of
the company or body corporate and any other company or body corporate and any other company or body corporate with the
same promoter; and (iv) where the said person is an individual, any relative of the individual.

I. Material title litigation pertaining to the Portfolio

For the purpose of this section, details of all pending material title litigation pertaining to the Portfolio have been
disclosed. Other than as disclosed below, there are no pending material title litigations pertaining to the Portfolio
as of March 31, 2024:

A. Embassy Manyata

a. MPPL has filed a writ petition against the BBMP and others seeking to, inter-alia, quash (i) a circular from
2014 re-fixing the improvement charges under the Karnataka Municipal Corporations Act, 1976, and the
Karnataka Municipal Corporations (Recovery of Improvement Expenses) Rules, 2009, and (ii) a notice from
2015 demanding payment of betterment charges of ₹127.9 million. MPPL has paid betterment charges under
protest vide letter dated March 30, 2022. The High Court of Karnataka granted an interim stay on the
applicability of the above circular and notice. The matter is currently pending.

b. A third party suit was filed against MPPL and other defendants in 2020 before the City Civil Court, Bengaluru
seeking inter-alia: (i) 1/8th share of several land parcels by way of partition out of which Embassy Manyata is
only concerned with one land parcel; and (ii) a declaration that certain sale deeds, including the lease deed
executed by MPPL, are null and void. The matter is currently pending.

c. An original suit was filed by a third party in 2003 against MPPL and other defendants before the Additional
City Civil and Sessions Judge, Bengaluru for inter-alia partition of property including in respect of a land parcel
admeasuring approximately 3 acres and 32 guntas located in Embassy Manyata. The court pursuant to its
judgement and decree dated October 16, 2019 inter-alia, decreed that the plaintiff could not claim for
possession of the relevant land parcel but could only seek compensation as regards the land concerning MPPL.

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A regular first appeal has been filed by a third party against MPPL and other defendants before the High Court
of Karnataka challenging the judgement and decree dated October 16, 2019. The matter is currently pending.

A co-defendant in the original suit has filed a miscellaneous petition dated September 8, 2020 before the
Additional Judge, City Civil Court, Bengaluru to set aside the judgement and decree dated October 16, 2019
and the matter is currently pending.

d. A third-party suit has been filed against MPPL and other defendants on September 23, 2020 before the Principal
City and Sessions Judge, Bengaluru seeking possession of a land parcel admeasuring 1 acre and 12 guntas
forming part of Embassy Manyata. The plaintiff claims that the land parcel was mortgaged by his ancestors in
1905 and they were unable to redeem the mortgage. The plaintiff has filed the suit to redeem the mortgaged
premises and seek possession of the land parcel. MPPL has filed its response in this matter. The matter is
currently pending.

e. Certain third parties have filed a writ petition against State of Karnataka, MPPL and others before the High
Court of Karnataka challenging the acquisition proceedings initiated by the state government with respect to
inter-alia land parcels admeasuring 1 acre and 3 acres and 32 guntas at Nagavara Village which currently forms
part of Embassy Manyata. The third parties were party to the proceedings in which the acquisition of the above
lands had been challenged and the matter attained finality with the Supreme Court upholding the acquisition.
The third parties have alleged that their representations for determination of compensation have not been
addressed by KIADB and on this ground they have sought: (i) quashing of the awards proceedings initiated by
respondents which has led to arbitrary determination of the compensation (ii) directions for the State of
Karnataka to pass an award and pay compensation under the provisions of The Right to Fair Compensation
and Transparency in Land Acquisition, Rehabilitation And Resettlement Act, 2013; and (iii) quashing of the
acquisition of property situated in Embassy Manyata. The matter is currently pending.

f. MPPL had filed a suit against a third party for a relief that the third party be restrained for interfering with
MPPL’s possession and enjoyment of the land parcel admeasuring 4 guntas which forms part of Embassy
Manyata before the Additional City Civil Judge, Bengaluru. The Additional City Civil Judge, Bengaluru passed
a judgement and decree on December 8, 2017 in favour of MPPL. Aggrieved by the judgement and decree
dated December 8, 2017, the third party has filed an appeal before the High Court of Karnataka against MPPL
in 2018. The matter is currently pending.

g. An original suit was filed by third parties in 2007 against certain defendants before the City Civil Judge,
Bangalore in relation to land parcels admeasuring 1 acre and 38 guntas situated in Nagavara Village, Kasaba
Hobli, Bangalore, North Taluk. MPPL impleaded itself as party to this suit. The plaintiffs claim that the land
parcels are their ancestral properties and sought, inter-alia (i) half share of the land parcels by way of partition
in favour of the plaintiffs and possession of such property; (ii) a declaration that the sale of the land parcels

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and the consequent khata and mutation in favour of the defendants (including MPPL) was illegal and is not
binding on the plaintiffs; (iii) a direction to MPPL to deposit the amount of compensation paid by KIADB
along with interest before the court and to release half of the compensation amount or alternative land to the
plaintiffs; and (iv) permanent injunction against certain defendants (including MPPL) in relation to the land
parcels. The matter is currently pending.

h. An original suit was filed by third parties in 2012 against certain defendants before the City Civil Judge,
Bangalore in relation to certain land parcels situated at Nagawara Village, Kasaba Hobli, Bangalore, North
Taluk. The plaintiffs claim that the land parcels are their ancestral properties and sought, inter-alia: (i) partition
of the land parcel and possession to the plaintiffs to the extent of their share; (ii) a declaration that the release
deed in relation to the land parcels is not binding on the plaintiffs; and (iii) order for mesne profit. MPPL was
not made party to the suit, however, it is concerned with certain land parcels in relation to which the suit is
filed as they form a part of Embassy Manyata. Thus, MPPL filed an application for impleading it as a party.
The City Civil Court has dismissed the impleading application filed by MPPL pursuant to an order dated
December 15, 2022. MPPL has filed an appeal against the order dated December 15, 2022 before the High
Court of Karnataka. The matter is currently pending.

i. An original suit was filed by third parties in 2008 against certain defendants before the City Civil Judge,
Bangalore in relation to certain land parcels admeasuring 0.26 guntas situated at Thanisandra Village, K.R.
Puram Hobli, Bangalore East Taluk, among others. The plaintiffs claim that the land parcels are their ancestral
properties and have seeking inter-alia (i) 1/4th share of several land parcels by way of partition to each of the
two plaintiffs; and (ii) a declaration that the compromise entered between certain defendants is not binding of
the plaintiffs. The matter is currently pending.

j. An original suit was filed by a third party in 2009 against MPPL and others before the City Civil Judge,
Bangalore in relation to multiple land parcels situated at Nagavara Village, Bangalore, North Taluk, among
others. The plaintiffs claim that the land parcels are their joint family properties and sought, inter-alia: (i) 1/3rd
share of the properties by way of partition to the plaintiffs and possession of such property; and (ii) a declaration
that the sale deed executed in favour of defendants (including MPPL) was null and void and is not binding on
the plaintiffs. The matter is currently pending.

k. An original suit was filed by third parties in 2010 against MPPL and certain others before the City Civil Judge,
Bangalore in relation to land parcels admeasuring 1 acre and 13 ½ guntas situated at Nagavara Village, Kasaba
Hobli, Bangalore, North Taluk, among others. The plaintiffs claim that the land parcels are their joint family
properties and sought, inter-alia: (i) 5/10th share in the land parcels by way of partition to the plaintiffs and

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possession of such property; (ii) a declaration that the transactions made by the defendants (including MPPL)
are not binding on the plaintiffs; and (iii) order for mesne profit. The matter is currently pending.

l. An original suit was filed by a third party in 2019 before the City Civil Judge, Bangalore in relation to land
parcels admeasuring 1 acre and 18 guntas situated at Rachenahalli Village K.R. Puram, Hobli, Bangalore, East
Taluk, Bangalore. The plaintiff claims that the land parcels are its ancestral properties and has sought, inter-
alia, (i) 1/6th share of the land parcels by way of partition and possession of such property; and (ii) a declaration
that certain sale deeds executed are not binding upon plaintiff’s share. MPPL has filed an impleading
application seeking to be included as an additional defendant in this matter. The matter is currently pending.

m. An original suit was filed by third parties in 2016 against MPPL and others before the City Civil Judge,
Bangalore in relation to land parcels admeasuring 1 acre and 31 guntas situated at Nagawara Village, Kasaba
Hobli, Bangalore, North Taluk and Kothanur Narayanapura ([Link]) village, Bengaluru, East Taluk,
among others. The plaintiffs claim that the land parcels are their ancestral and Hindu joint family properties
and sought, inter-alia: (i) legitimate share of the land parcels by way of partition to the plaintiffs and possession
of such property; (ii) a declaration that the sale deed executed by certain defendants is not binding on the
plaintiffs; and (iii) permanent injunction restraining certain defendants (including MPPL) from alienating or
encumbering the land parcels to any third parties, pending disposal of the suit. The matter is currently pending.

n. An original suit was filed by third parties in 2014 before the City Civil Judge, Bangalore in relation to land
parcels admeasuring 7.5 guntas situated at Rachenahalli Village, K.R Puram Hobli, Bangalore East Taluk,
Bangalore forming part of Embassy Manyata. The plaintiff claims that the land parcels are its ancestral
properties and has sought inter-alia (i) 2/3rd share in the land parcels; (ii) declaration that the sale deed executed
by the defendant is not binding on the plaintiff. The matter is currently pending.

o. An original suit was filed by a third party in 2022 against MPPL and others before the 4th Additional Senior
Civil Judge, Bengaluru Rural in relation to certain land parcels situated at Chokkanahalli Village, Yalahanka
Hobli, Yalahanka Taluk, among others, which do not form part of the assets held by MPPL. The plaintiff claims
that the land parcels are their ancestral properties and has sought, inter-alia, (i) 1/5th share in the land parcels;
and (ii) a permanent injunction restraining certain defendants (including MPPL) from carrying on
developmental activities on the land parcels and from alienating or encumbering the land parcels to any third
parties. The matter is currently pending.

p. An original suit was filed by third parties in 2022 before the City Civil Judge, Bangalore in relation to land
parcels admeasuring 31 guntas situated at Rachenahalli Village K.R. Puram, Hobli, Bangalore, East Taluk,
Bangalore. The plaintiffs claim that the land parcels are their joint family properties and have sought, inter-
alia, (i) for a separate possession of the 1/9th share of the suit properties and (ii) declaration that the sale deeds
executed in relation to such properties are not binding on the plaintiffs. MPPL is not a party to the suit, however,

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MPPL is concerned with certain land parcels in relation to which suit is filed as they form a part of Embassy
Manyata and MPPL has filed an impleadment application. The matter is currently pending.

q. An original suit was filed by third parties in 2022 before the City Civil Judge, Bangalore in relation to land
parcels admeasuring 2 acre 27 guntas situated at Nagavara Village K.R. Puram, Hobli, Bangalore, East Taluk,
Bangalore. The plaintiffs’ claim that the land parcels were acquired through a partition deed and has sought,
inter-alia, (i) for partition and separate possession of plaintiff’s 4/6th share of the suit properties; and (ii) a
declaration that sale deeds executed in relation to such land parcels are not binding upon the plaintiff’s share.
The matter is currently pending.

r. A third party suit was filed against MPPL and others in 2022 before the City Civil Court, Bengaluru, seeking
(i) partition of the land parcels in accordance with the Hindu Succession Act, 1956; (ii) 1/5th share in the land
parcel; and (ii) permanent injunction against alienation/ sale of the joint family properties. The court vacated
the interim stay granted in 2022. The plaintiff has challenged the order of the City Civil Court before the High
Court of Karnataka in an appeal. MPPL has been arraigned as respondents in the appeal. Please note that the
land parcels in this matter do not form part of Embassy Manyata. The matter is currently pending.

B. Hilton at Embassy Golflinks

A third party has filed a suit against GLSP, UPPL, Mac Charles (India) Limited and others in 2003 before the
Additional City Civil Judge, Bengaluru, seeking specific performance of an agreement for sale for 94,000
square feet of land forming part of the larger parcel of land admeasuring 5 acres and 23 guntas situated at
Challaghatta village. The court dismissed the suit in 2009. The plaintiff has challenged such dismissal in 2009
before the High Court of Karnataka in an appeal. GLSP, UPPL and Mac Charles (India) Limited have been
arraigned as respondents in the appeal. The High Court of Karnataka has recorded the submission made by
GLSP, UPPL and Mac Charles (India) Limited indicating that no encumbrance would be created on the suit
property of 94,000 square feet. The matter is currently pending.

C. Express Towers

a. IENMPL has filed a writ petition against the Government of Maharashtra and the Collector, Mumbai in 2003
before the Bombay High Court, challenging the demand against IENMPL for payment of increased transfer
charges in relation to a sub-lease. While transfer charges amounting to ₹0.12 million annually for 61 years as
per GoI’s letter were levied in 2001, the transfer charges were revised to ₹2.34 million in the same year by the
Collector, Bombay. In 2004, the Bombay High Court passed an order staying the operation of demand for
increased transfer charges, subject to IENMPL continuing to pay the original transfer charges. IENMPL has
also undertaken that in the event of dismissal of petition it will pay the demanded increased transfer charges.
This matter is currently pending.

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b. IENMPL had initiated legal proceedings against an occupier before the Court of Small Causes, Mumbai in
2007 for eviction and recovery of possession of 2,150 square feet in Express Towers and for mesne profits. On
November 15, 2011, the court directed the occupier to pay ₹0.26 million per month towards mesne profits for
the period between March 1, 2007 and February 2010, and ₹0.29 million per month March 1, 2010 onward.
An appeal by the occupier against this order before the Court of Small Causes was dismissed on May 6, 2015.
Aggrieved, the occupier filed a petition before the Bombay High Court. On August 28, 2017, the High Court
passed an order directing the occupier to pay ₹225 per square foot per month from May 1, 2015 to continue
the possession of the premises. The occupier continues to occupy the premises and pay rentals. This matter is
currently pending.

c. A criminal public interest litigation has been instituted by a third party against the state of Maharashtra and
others in 2017 which has alleged irregularities in the manner in which Express Towers was being used, and the
manner in which the shareholders of IENMPL have acquired the asset. IENMPL impleaded itself as party to
this public interest litigation. The Bombay High Court had directed the third party to file an amended petition
to, inter-alia, include IENMPL as a party. The matter is currently pending.

D. Embassy Golflinks

a. A third party individual has filed a suit before the Court of the City Civil Judge, Bengaluru in 2005, against
GLSP and others for declaring a sale deed allegedly executed in 2004 by him in favour of GLSP and another
pertaining to a portion of land situated at Embassy Golflinks, as null and void on account of fraud and
misrepresentation. The plaintiff died at the evidence stage and his alleged heir was not permitted to come on
record as the court rejected his application by passing an order in 2015. Aggrieved by the order, the alleged
heir filed a civil revision petition before the High Court of Karnataka in 2015 which was subsequently
converted into a writ petition. The High Court of Karnataka allowed the writ petition and directed the trial court
to pass appropriate orders after giving an opportunity of being heard to the parties. The matter is currently
pending.

b. GLSP has filed a petition in 2014 before the High Court of Karnataka inter-alia, against a show cause notice
issued under the Public Premises (Eviction of Unauthorised Occupation) Act, 1971, in relation to eviction of
GLSP from certain parcels of land admeasuring 92 square meters, 274.86 square meters and 2,079.79 square
meters in Domlur Village, Bengaluru, which as per the show cause notice allegedly belongs to the Department
of Defence and seeking a direction against the BBMP and others to complete the construction of the road on
the aforementioned lands. The High Court in 2014 directed BBMP to continue with the construction of the
road in terms of certain agreements signed between the Department of Defence and BBMP and also restrained
the respondents from acting upon the impugned notice or taking coercive steps against GLSP. The respondents
have obtained a stay on such order in 2016 by way of an appeal filed in 2015 before the High Court of
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Karnataka. The stay order also stated that GLSP could not be evicted without the leave of court. In 2019, the
High Court of Karnataka allowed the appeals. Further, the High Court of Karnataka on July 11, 2022 directed
the deputy commissioner to take steps to conduct a survey for identification of limits of Domlur Village. The
survey report along with a memo was taken on the record by the High Court on April 5, 2023. Additionally,
the High Court clarified that no proceedings to be progressed by the state officers until further orders are issued.
The matter is currently pending.

c. A third party has filed a suit before the City Civil Court, Senior Division, Rural District Jat Bengaluru against
GLSP and others alleging that the sale deed in relation to land parcels forming part of Embassy Golflinks
executed in favour of GLSP in 2003 is not binding on the petitioner. The suit was dismissed in 2016 for default
by the petitioner. The petitioner has thereafter filed an application in 2017 seeking to restore the case. The
matter is currently pending.

d. GLSP received a notice from a third party individual alleging that certain third parties were the absolute owners
of land in possession of GLSP admeasuring 2 acres and 8 guntas in Bengaluru. The Additional City Civil and
Sessions Judge, pursuant to a preliminary decree in 2017, granted the petitioner half a share in the land. GLSP
was not made a party to the above suit filed by the third party. GLSP has filed an appeal in the High Court of
Karnataka to set aside the decree of the Additional City Civil and Sessions Judge and to remand the suit to the
trial court by impleading GLSP as a defendant. The High Court of Karnataka has notified that the final decree
proceedings shall continue but that no final decree shall be drawn up. The matter is currently pending.

e. Certain third parties have filed an original suit against GVPPL and others before the Court of Additional City
Civil Judge, Bengaluru claiming 3/7th share ownership over certain parcels of land belonging to GLSP, i.e.
Survey No.10/2A admeasuring 25 guntas in Bengaluru. The Additional City Civil Judge, Bengaluru passed a
judgement and a decree, inter alia, stating that (i) the plaintiffs therein are entitled to 1/7th share in the disputed
property (ii) the sale deed executed by the defendants therein and subsequent sale deeds are not binding on the
plaintiffs and (iii) defendants to handover the plaintiffs’ share in such disputed property. GVPPL filed an appeal
before the High Court of Karnataka against the judgement and decree. Further, the plaintiffs have filed an
application before the Additional City Civil Judge, Bangalore to amend the earlier decree by granting the relief
of mesne profit. Additionally, the plaintiffs have initiated final decree proceedings. These matters are currently
pending.

A co-defendant in the original suit against GVPPL has filed an appeal before the High Court of Karnataka
seeking to set aside the judgement and the decree passed by the Additional City Civil Judge, Bengaluru. The
matter is currently pending.

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f. Certain third parties have filed an original suit against GLSP and others before the City Civil Court, Bengaluru
in 2022 in respect of land parcels admeasuring 1 acre situated at Challaghatta Village, Varthur Hobli, Bangalore
East Taluk. The plaintiffs claim that the land parcels are their ancestral properties and have sought, inter-alia,
(i) 1/8th share in the land parcels; and (ii) declaration that the sale deeds executed by the defendants is not
binding on the plaintiffs. The Court passed ad-interim orders on July 1, 2022, restraining GLSP from alienating
or creating any charge over the disputed land parcels. The matter is currently pending.

g. Certain third parties filed a suit in 2003 before the City Civil Court, Bengaluru in respect of a property
admeasuring 1 acre and 36 guntas, forming part of Embassy Golflinks, and sought, inter-alia, (i) for partition
of suit property, (ii) permanent injunction restraining the defendant therein from alienating the suit property
and (iii) order enquiry as to mesne profit. The suit was partly decreed by the court on September 23, 2021,
where it held that the plaintiffs were not entitled to procession over the land parcels forming part of Embassy
GolfLinks. The plaintiffs have challenged the decree before the High Court of Karnataka. These matters are
currently pending.

E. Embassy TechVillage

a. A third party individual filed a suit in 2017 against the ‘Embassy Group’ before the City Civil Court, Bangalore
seeking a decree of permanent injunction against ‘Embassy Group’ from interfering with the alleged rights of
the plaintiff in relation to a land parcel forming part of ETV. VTPL filed two interim applications, inter alia,
for: (i) dismissal of the suit contending that ‘Embassy Group’ is not a valid legal entity; and (ii) impleading
itself as party. Pursuant to an order dated December 16, 2017, the City Civil Court rejected both the above
applications and rejected an interim application filed by the plaintiff seeking a temporary injunction against
‘Embassy Group’. VTPL filed a civil revision petition and a writ petition before the High Court of Karnataka
against the rejection of its applications. Pursuant to orders dated January 10, 2018, the High Court of Karnataka
stayed the proceedings before the City Civil Court until the next date of hearing. The matters are currently
pending.

The third party individual has also filed an appeal under the Karnataka Land Revenue Act, 1964 before the
Assistant Commissioner, Bangalore, North Sub-Division challenging the endorsement dated October 29,
2015 issued by the Tahasildar, Bangalore East Taluk rejecting the claim of the plaintiff to a land parcel
admeasuring 21 guntas. VTPL has impleaded itself as a party and filed a statement of objections. The matter
is currently pending.

b. A third party individual has filed a suit before City Civil Court, Bangalore against the ‘Embassy Company’
seeking a decree of permanent injunction against the defendants from interfering with the peaceful possession
of a land parcel. While VTPL has not claimed title over the disputed land parcel, the plaintiffs have alleged
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that the land parcel is at the edge of the property owned by VTPL. VTPL has impleaded itself as a party and
has contended, inter-alia, that the plaintiff has filed the suit against a non-existing party. The matter is currently
pending. [SAMCo Note: We note from the backups provided and as per the response received from the REIT
team that this matter is the same matter as disclosed in (d) below. Please merge the disclosures and retain only
(d)]

c. A third party individual has filed a writ petition in 2022 before the High Court of Karnataka seeking a
reconveyance of certain land parcels admeasuring 22 guntas that were acquired by the Karnataka Industrial
Area Development Board for construction of infrastructure/industrial projects by VTPL pursuant to a lease-
cum-sale agreement, which were allegedly not subsequently utilized by VTPL on account of the reconveyance
of certain adjacent properties by another party. The matter is currently pending.

d. A third party has filed an original suit before the City Civil Court, Bengaluru in respect of a property
admeasuring 34 and ½ guntas. The plaintiff has prayed for permanent injunction against VTPL from interfering
with the peaceful possession and enjoyment of the suit property by the plaintiff. VTPL has filed its written
statement in this matter stating, inter-alia, that the suit property does not form part of Embassy TechVillage.
The matter is currently pending.

F. Embassy Business Hub

a. A third party has filed an original suit in 2020 before the Senior Civil Judge Court, Bengaluru in respect of a
property, admeasuring 2 acres 1 gunta, forming part of Embassy Business Hub and sought, inter-alia, (i)
partition and separate possession of 1/6th share in the land parcels and (ii) a declaration that the sale of the
land parcel is not binding on the plaintiff. ECPL is not a party to the suit. The matter is currently pending.

b. Certain third parties have filed an original suit in 2019 before the Senior Civil Judge Court, Bengaluru in
respect of property admeasuring 2 acres 5 guntas forming part of Embassy Business Hub and has sought,
inter-alia, (i) declaration, division and separate possession of the plaintiff’s share in the disputed property, and
(ii) declaration that the sale of the land parcels is not binding on the plaintiff. The matter is currently pending.

c. Certain third parties have filed an original suit in 2023 before the Senior Civil Judge Court, Bengaluru in
respect of the certain parcels of land forming part of Embassy Business Hub and sought, inter-alia, (i) partition
and separate possession of 1/4th share in the land parcels, (ii) issue a permanent injunction against the
defendants (including ECPL) from alienating, encumbering or creating charge on the disputed property. The
matter is currently pending.

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G. Embassy Energy

a. A third party has filed a suit against EEPL and others in 2022, before the Civil Judge and Judicial Magistrate
First Class at Hagarabomanahalli, seeking, inter-alia, (i) a declaration that sale deed executed in relation to the
disputed property is not binding upon the plaintiff’s share in such property, and (ii) for partition and possession
of 1/4th share of the scheduled disputed property. The matter is currently pending.

b. An original suit was filed by the third parties in 2017 before the Civil Judge and Judicial Magistrate First Class
in Huvinahadagalli, in relation to land parcels situated at Ittigi village (which are owned by EEPL), seeking,
inter-alia, permanent injunction against a third party from fencing or obstructing plaintiff’s use of way. The
matter is currently pending.

II. Material litigation and regulatory action pending against Embassy REIT (Asset SPVs and the Investment
Entity)

With respect to the Asset SPVs and the Investment Entity, details of all pending regulatory actions and criminal
matters against the Asset SPVs and the Investment Entity have been disclosed.

A. MPPL

Regulatory Proceedings

a. The Director, SEZ Section, Government of India issued guidelines in 2009 (“2009 Circular") which laid down
that captive power plants in IT/ ITES SEZs were to be classified as separate units and were entitled to avail
fiscal benefits under the Special Economic Zones Act, 2005 including the benefit of exemption from the levy
of excise duty under the Central Excise Act, 1994, on the goods supplied to them. However, in 2015, a new
circular was issued which withdrew all such benefits and incentives extended to the captive power plants set
up in a SEZ with effect from April 1, 2015. In 2016, new guidelines were issued which restored the benefits
and exemptions given under the 2009 Circular. However, the exemptions and benefits were prospective in
nature and did not apply to SEZ developers, such as MPPL, for the period between the 2015 circular and the
2016 guidelines. By way of their letters in 2016, two diesel providers who were providing high speed diesel to
MPPL, informed MPPL that amount payable due to excise duty on supply of diesel to MPPL was ₹31.60
million and ₹8.49 million, respectively, due to the changed guidelines. MPPL filed an application before the
Development Commissioner, Manyata Embassy Business Park SEZ in 2016 seeking approval of its DG set
unit as a SEZ unit with retrospective effect, which was not granted.

Subsequently, MPPL filed an appeal before the Development Commissioner, Manyata Embassy Business Park
SEZ seeking modification of the letter of approval granted by the Board of Approval, SEZ Section to classify
MPPL’s captive power plant as a SEZ unit, as it was not granted with retrospective effect, which was rejected.
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MPPL has filed a writ petition in 2017 before the High Court of Karnataka to set aside the said order and a stay
order has been granted.

b. MPPL has received a demand note dated October 13, 2022 (“Demand Note”), from the Bangalore Water
Supply and Sewerage Board (“BWSSB”) for payments of charges in relation to issuance of a no-objection
certificate for a proposed project commercial building. MPPL has filed a writ petition before the High Court
of Karnataka against the State of Karnataka, BWSSB and others challenging the Demand Note and seeking an
order to, inter-alia, (i) quash the Demand Note; and (ii) issue the no-objection certificate to MPPL. Pursuant to
an order dated November 21, 2022, the High Court of Karnataka granted an ad-interim stay on the Demand
Note in relation to certain charges and instructed MPPL to pay the remaining sum of monies to BWSSB.
Accordingly, MPPL has made the requisite payment thereunder and received the NOC from BWSSB. The
matter is currently pending with respect to the remaining charges indicated in the Demand Note. The said
petition has been disposed on April 22,2024. However, as the final order is not available even on the high court
website, we are unable comment on the same.

c. MPPL has received a demand note dated August 3, 2023 (“Demand Note”) from the Bangalore Water Supply
and Sewerage Board (“BWSSB”) for a payment of charges in relation to issuance of a no-objection certificate
for a proposed project commercial building. MPPL has filed a writ petition before the High Court of Karnataka
against the State of Karnataka, BWSSB and others challenging, the Demand Note and seeking, inter-alia, (i)
to quash the Demand Note; and (ii) issue the no-objection certificate to MPPL. Pursuant to an order dated
November 11, 2023, the High Court of Karnataka granted an ad-interim stay on the Demand Note. The matter
is currently pending. The said petition has been disposed on April 22,2024. However, as the final order is not
available even on the high court website, we are unable comment on the same.

B. EEPL

i. Regulatory Proceedings

The Karnataka Electricity Regulatory Commission (“Commission”) has issued orders in 2005, 2008 and 2014
granting exemption to all solar power generators in Karnataka that achieved commercial operation date
between April 1, 2013 and March 31, 2018 from paying certain charges such as, inter-alia, payment of wheeling
and banking charges, cross subsidy surcharges, transmission losses and wheeling losses for a period of ten
years from the date of commissioning. The Commission issued an order in 2018 directing cancellation of the
aforementioned exemption available to Karnataka’s power generators, including EEPL. Subsequently, EEPL
and others have filed writ petitions in 2018 in the High Court of Karnataka against the State of Karnataka, the
Commission, Bangalore Electricity Supply Company Limited, Gulbarga Electricity Supply Company Limited
and Karnataka Power Transmission Corporation Limited. The High Court of Karnataka by way of an order

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dated May 24, 2018 has directed interim stay on the Commission’s order. In the event of cancellation of the
aforesaid exemption, EEPL would incur an estimated loss of approximately ₹1053.50 million over a ten year
period. The Bangalore Electricity Supply Company Limited filed an interlocutory application on June 18, 2018,
seeking recalling of order dated May 24, 2018 of the High Court of Karnataka and the Commission has filed
common preliminary objections on September 27, 2018 and requested the High Court of Karnataka to dismiss
the writ petition filed by EEPL and others. The High Court of Karnataka, by way of an order dated March 13,
2019, allowed the writ petitions filed by EEPL and others, and quashed the order dated May 14, 2018 issued
by the Commission. The Commission has filed a common writ appeal against the said order, against EEPL and
others. The matter is currently pending.

ii. Other Material Litigation

EEPL has received a demand notice under the Insolvency and Bankruptcy Code, 2016 (“IBC”) on February
28, 2019 from a third party subcontractor, engaged by the parent company of a third-party service provider for
Embassy Energy (“Service Provider”), which was itself engaged by the Service Provider as a contractor for
Embassy Energy. The demand notice alleges that unpaid amounts (categorized as operational debts)
aggregating up to ₹1,008.1 million are due to the sub-contractor directly from EEPL for the various works
claimed to have been undertaken at the site of Embassy Energy, on the basis of certain correspondence with
EEPL. EEPL has by its letter dated March 1, 2019, refuted all such claims inter-alia on the basis that the
payments are due from the Service Provider (and/ or its parent entity) to the sub-contractor and not from EEPL,
and therefore the sub-contractor has no claim against EEPL. By its letters dated March 18, 2019, the
subcontractor has responded to the letter from EEPL, denying all statements made by EEPL and reiterating
that the unpaid amounts are due from EEPL, without prejudice to any action, including criminal, that may be
taken under law including the IBC against EEPL, the Service Provider, its parent entity and certain
representatives of these entities. EEPL has also written to the Service Provider in relation to deficiencies in
services required to be contractually provided by the Service Provider. The Service Provider has responded to
EEPL denying the allegations in such letters. The sub-contractor of the Service Provider has filed an application
against EEPL in October 2019 under Section 9 of IBC before the NCLT, Bengaluru claiming debt of ₹997.59
million and interest thereon against EEPL. Pursuant to a letter dated January 2, 2020, the third party sub-
contractor served notice of hearing in this matter for initiation of insolvency proceedings under Section 9 of
the IBC before the NCLT, Bengaluru.

Subsequently, the Service Provider and EEPL agreed to a revised prepayment mechanism pursuant to a letter
dated November 18, 2020. It was agreed that upon payment of ₹7.77 billion, all the definitive agreements
executed between parties, except the operations and management agreement, shall be terminated and result in
the release of the security interest over the EEPL assets. Pursuant to a letter dated December 11, 2020, the
entire prepayment amount of ₹7.77 billion has been paid by EEPL towards full and final settlement and the

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Service Provider has confirmed that there are no dues payable under the deferment payment agreement. The
operations and management agreement with the Service Provider was subsequently terminated.

The NCLT, Bengaluru has disposed off this matter on March 8, 2022. The Service Provider has filed an appeal
against the order of the NCLT Bengaluru before the NCLAT, Chennai. The NCLAT has dismissed the appeal
pursuant to an order dated June 16, 2023. Further, an appeal has been filed by the Service Provider before the
Supreme Court of India. Additionally, the Service Provider has submitted an application to the District Legal
Service Authority requesting for pre-institution mediation with EEPL. The matter is currently pending.

iii. Criminal Proceedings

A First Information Report (“FIR”) for offences under various sections of the Indian Penal Code, 1860 was
registered by Deonar Police Station against representatives of EEPL and another person at the instance of a
representation of Sterling Wilson Renewable Energy Private Limited (“SWREL”) (formerly known as Sterling
Wilson Private Limited). SWREL under the FIR has claimed that EEPL has not made balance payments to
SWREL for its services as a third party contractor, thereby resulting in loss to SWREL. In response, EEPL and
its representatives have filed a criminal writ petition before the High Court of Bombay against the State of
Maharashtra and the representative of SWREL praying, inter-alia, to quash and set aside the FIR, which was
subsequently transferred to the Economic Offence Wing.

C. GLSP

Regulatory Proceedings

GLSP and its occupier have received a notice in 2017 from the Karnataka State Pollution Control Board stating
that the sewage treatment plant at Embassy Golflinks was inspected by the relevant officials and was found to
not be operating in accordance with the standards stipulated pursuant to an order passed by the National Green
Tribunal and a public notice issued by the Karnataka State Pollution Control Board detailing revised standards
required to be adopted for such plants in 2017. GLSP was called upon to show cause as to why action should
not be initiated against it under the Water (Prevention and Control of Pollution) Act, 1974 and related
legislations within 30 days from the date of the notice. Golflinks Embassy Business Park Management Services
LLP has responded to the notice stating that it is in the process of complying with the observations and
requesting for a period of six to seven months for compliance and to grant consent. Golflinks Embassy Business
Park Management Services LLP has informed the Karnataka State Pollution Control Board of completion of
upgradation work in relation to the sewage treatment plants pursuant to a letter dated September 10, 2020.

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D. VTPL

Regulatory Proceedings

a. The Director, SEZ Section, Government of India issued guidelines in 2009 (“2009 Circular") which laid down
that captive power plants in IT/ ITES SEZs were to be classified as separate units and were entitled to avail
fiscal benefits under the Special Economic Zones Act, 2005 including the benefit of exemption from the levy
of excise duty under the Central Excise Act, 1994, on the goods supplied to them. However, in 2015, a new
circular was issued which withdrew all such benefits and incentives extended to the captive power plants set
up in a SEZ with effect from April 1, 2015. In 2016, new guidelines were issued which restored the benefits
and exemptions given under the 2009 Circular. However, the exemptions and benefits were prospective in
nature and did not apply to SEZ developers, such as VTPL for the period between the 2015 circular and the
2016 guidelines. By way of its letter dated March 3, 2016, the diesel supplier providing high speed diesel to
VTPL, informed VTPL that amount payable due to excise duty on supply of diesel to VTPL was ₹4.31 million,
due to the changed guidelines. VTPL filed an application before the Development Commissioner, Vikas
Telecom SEZ in 2016 seeking approval of its DG set unit as a SEZ unit with retrospective effect, which was
not granted. Subsequently, VTPL filed an appeal before the Board of Approval, SEZ Section in 2016 seeking
modification of the letter of approval granted by the Board of Approval, SEZ Section to classify VTPL’s captive
power plant as a SEZ unit, as it was not granted with retrospective effect, which was rejected. VTPL has filed
a writ petition in 2017 before the High Court of Karnataka to set aside the said order and a stay order was
granted.

b. VTPL has received a demand note dated August 14, 2020, from the Bangalore Water Supply and Sewerage
Board for a payment of charges in relation to issuance of a no-objection certificate for a proposed project
commercial building on land parcel. VTPL has filed a writ petition before the High Court of Karnataka against
the State of Karnataka, Bangalore Water Supply and Sewerage Board and others challenging the government
order dated February 12, 2016 and the demand note issued against VTPL and seeking to, inter-alia, (i) quash
the demand notice dated August 14, 2020; and (ii) issue of no-objection certificate to VTPL. Pursuant to an
order dated November 17, 2020, the High Court of Karnataka granted an ad-interin stay on the demand notice
dated August 14, 2020 in relation to certain charges and instructed VTPL to pay the prescribed fee for issuance
of no objection certificate, which has been paid. The matter is currently pending. The said petition has been
disposed on April 22,2024. However, as the final order is not available even on the high court website, we are
unable comment on the same.

c. VTPL has received a demand note dated September 29, 2020 from the Bangalore Water Supply and Sewerage
Board for a payment in relation to issuance of a no-objection certificate for a proposed project office building
on land parcel. VTPL has filed a writ petition before the Karnataka High Court against State of Karnataka,

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Bangalore Water Supply and Sewerage Board and others challenging the government order dated February 12,
2016 and the demand note against VTPL seeking to, inter-alia, (i) quash the demand notice dated September
29, 2020; and (ii) issue of no-objection certificate to VTPL. Pursuant to an order dated November 30, 2020,
the High Court of Karnataka granted an ad-interin stay on the demand notice dated September 29, 2020 in
relation to certain charges and instructed VTPL to pay the prescribed fee for issuance of no objection certificate,
which has been paid. The matter is currently pending. The said petition has been disposed on April 22,2024.
However, as the final order is not available even on the high court website, we are unable comment on the
same.

d. The Department of Stamps and Registrations, Government of Karnataka, had issued notices dated July 18,
2022 to VTPL and SIPL (“Respondents”), alleging that there are shortfall in the stamp duty and registration
fees paid in relation to a sale deeds executed between the Respondents. The Respondents have submitted their
objection to the notices. The matter is currently pending.

E. ECPL

a. ECPL received a demand notice dated July 16, 2021 from BBMP (the “Demand Notice”) towards ground rent
and other charges for the purposes of issuing modified sanction plan at Embassy Business Hub. ECPL has filed
a writ petition against State of Karnataka before the High Court of Karnataka, inter alia, to set aside the Demand
Notice issued by BBMP. The High Court of Karnataka has passed an interim stay against the Demand Notice
and ordered ECPL to pay the other demands. ECPL has paid the requisite fee and has received the modified
sanction plan.

b. ECPL has received a demand note dated June 16, 2020 from the BWSSB (the “Demand Notice”) for payments
of charges in relation to issuance of a no-objection certificate for a proposed project commercial building.
ECPL has filed a writ petition before the High Court of Karnataka against the State of Karnataka, BWSSB and
others challenging the Demand Notice and seeking order to, inter-alia, (i) quash the Demand Notice; and (ii)
issue the no-objection certificate to ECPL. Pursuant to an order dated November 13, 2020, the High Court of
Karnataka granted an ad-interim stay on the Demand Notice, in relation to certain charges, and instructed ECPL
to pay the remaining sum of monies to BWSSB. Accordingly, ECPL has made the requisite payment thereunder
and received the NOC from BWSSB. The said petition has been disposed on April 22,2024. However, as the
final order is not available even on the high court website, we are unable comment on the same.

c. ECPL has received a demand note dated November 21, 2023 from the BWSSB (the “Demand Notice”) for
payments of charges in relation to issuance of a no-objection certificate for a proposed project commercial
building. ECPL has filed a writ petition before the High Court of Karnataka against the State of Karnataka,
BWSSB and others challenging the Demand Notice and seeking order to, inter-alia, (i) quash the Demand

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Notice; and (ii) issue the no-objection certificate to ECPL. Pursuant to an order dated January 16, 2024, the
High Court of Karnataka granted an ad-interim stay on the Demand Notice, in relation to certain charges, and
instructed ECPL to pay the remaining sum of monies to BWSSB. ECPL has made the requisite payments and
received the no-objection certificate from the BWSSB. The said petition has been disposed on April 22,2024.
However, as the final order is not available even on the high court website, we are unable comment on the
same.

III. Material litigation and regulatory action pending against the Manager and its Associates

As of March 31, 2024 the Manager and its Associates (to the extent that such Associates are not Associates of
the Sponsors) do not have any regulatory actions, criminal matters, or other material civil/ commercial litigation
pending against them. For the purposes of civil/commercial matters against the Manager and its Associates (to
the extent that such Associates are not Associates of the Sponsors), matters involving amounts exceeding 5%
of the revenue of the Manager for the Financial Year –2022-2023 have been considered material.

Criminal litigation

Two separate petitions have been filed under the Motor Vehicles Act, 1988 against the Manager. The petitioners
have claimed monetary compensation for injuries sustained by them due to an accident which allegedly
involved certain employees of the Manager. These matters are currently pending.

Other matters

A search under section 132 of the Income Tax Act was conducted on June 1, 2022 on the Manager, Embassy
REIT, certain SPVs namely VTPL, SIPL and EEPL, certain representatives of such entities (collectively
referred to as “Embassy REIT Entities”), the Embassy Sponsor (including certain representatives of the
Embassy Sponsor) and certain third-parties. Pursuant to the communication received from the income tax
authorities by the Embassy REIT Entities, requisite information was provided to the authorities. The Deputy
Commissioner of Income Tax has passed assessment orders in relation to the Embassy REIT Entities and
directed the issue of demand notices in this regard.

IV. Material litigation and regulatory action pending against the Trustee

As of March 31, 2024, the Trustee does not have any regulatory actions, criminal matters, or material
civil/commercial litigation, i.e., in excess of ₹12.32 million (Indian Rupees Twelve Point Three Two Million
Only) being 5% of the income of the profit after tax of the Trustee for the Financial Year 2022- 2023) pending
against it.

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V. Taxation Proceedings**

Details of all direct tax, indirect tax and property tax matters against the Relevant Parties as of March 31, 2024
are as follows:

Nature of case Number of cases Amount involved (in ₹ million)

Embassy REIT (Asset SPVs and Investment Entity)

Direct Tax 28 263.92

Indirect Tax 23 909.71

Property Tax 4 3418.9

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V. ANNEXURES

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ANNEXURE 1: Embassy REIT Structure

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ANNEXURE 2: Property Master Plan

EMBASSY MANYATA

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EMBASSY TECHVILLAGE

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EMBASSY GOLFLINKS

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EMBASSY ONE

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EMBASSY BUSINESS HUB

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EXPRESS TOWER

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FIFC

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EMBASSY 247

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TECHZONE

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QUADRON

350

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QUBIX

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OXYGEN

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GALAXY

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ANNEXURE 3: Property Photographs

EMBASSY MANYATA

External View of the Subject Property External View of the Subject Property

Entrance View of the Subject Property View of the Access Road

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EMBASSY TECHVILLAGE

External View of the Subject Property External View of the Subject Property

External View of the Subject Property View of the Access Road

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EMBASSY GOLFLINKS

External View of the Subject Property External View of the Subject Property

External View of the Subject Property View of the Access Road

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EMBASSY ONE

External View of the Subject Property Internal View of the Subject Property

View of the Basement Car Parking View of the Access Road

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EMBASSY BUSINESS HUB

External View of the Subject Property Internal View of the Subject Property

View of the Construction Progress View of the Access Road

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EXPRESS TOWERS

External View of the Subject Property Internal View of the Subject Property

View of the Basement Car Parking View of the Access Road

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247 PARK

External View of the Subject Property Internal View of the Subject Property

View of the Internal Vacant Space View of the Access Road

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FIFC

External View of the Subject Property Internal View of the Subject Property

View of the Basement Car Parking View of the Access Road

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EMBASSY TECHZONE

External View of the Subject Property External View of the Subject Property

View of the Subject Property View of the Internal Access Road

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EMBASSY QUADRON

External View of the Subject Property Internal View of the Subject Property

Internal View of the Subject Property View of the Internal Access Road

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EMBASSY QUBIX

External View of the Subject Property External View of the Subject Property

External View of the Subject Property View of the Internal Access Road

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EMBASSY OXYGEN

External View of the Subject Property Internal View of the Subject Property

View of the Car Parking View of the Access Road

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EMBASSY GALAXY

External View of the Subject Property Internal View of the Subject Property

External View of the Subject Property View of the Access Road

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ANNEXURE 4: Statutory Approvals

Based on the information provided by the Client, please find the details below regarding Statutory Approvals:

EMBASSY MANYATA

Completed Blocks:

1) Sanction Plan
2) Occupancy Certificates
3) Environmental Clearance Certificate
4) Fire NOC
5) Fire Clearance Certificate
6) Consent to Establish - CTE
7) Consent to Operate - CTO
8) Power Supply Approval from KPTCL

Under Construction Blocks:

Block L-4:
1) Sanction Plan
2) Height Clearance NOC from AAI
3) Environmental Clearance Certificate
4) Fire NOC
5) Consent to Establish - CTE
6) Water Supply and Sewerage NOC

Block M3B:
1) Sanction Plan
2) Height Clearance NOC from AAI
3) Environmental Clearance Certificate
4) Fire NOC
5) Consent to Establish - CTE
6) Water Supply and Sewerage NOC

Block D1-D2:
1) Sanction Plan
2) Height Clearance NOC from AAI
3) Environmental Clearance Certificate

Hotels:
1) Sanction Plan
2) Occupancy Certificate
3) Consent to Establish - CTE
4) Environmental Clearance Certificate
5) Consent to Operate - CTO

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6) Fire Clearance Certificate

EMBASSY GOLFLINKS

Completed Blocks:

1) Occupancy Certificates
2) Floor plans
3) Height Clearance Certificate from AAI
4) Fire NOC
5) Fire Clearance Certificate
6) Consent to Establish - CTE
7) Consent to Operate - CTO
8) Environmental Clearance Certificate

EMBASSY TECH VILLAGE

Completed Blocks:

1) Sanction Plan
2) Occupancy Certificates
3) Environmental Clearance Certificate
4) Height Clearance Certificate from AAI
5) Fire NOC
6) Fire Clearance Certificate
7) Consent to Establish - CTE
8) Consent to Operate - CTO

Under Construction Block (Parcel 8):

1) Sanction Plan
2) Height Clearance NOC from AAI
3) Fire NOC
4) Consent to Establish - CTE
5) Environmental Clearance Certificate

Under Construction Hotels:

1) Sanction Plan
2) Height Clearance NOC from AAI
3) Environmental Clearance Certificate
4) Consent to Establish - CTE
5) Fire NOC

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EMBASSY ONE

Completed Block:
1) Sanction Plan
2) Occupancy Certificate
3) Height Clearance Certificate from AAI
4) Fire NOC
5) Fire Clearance Certificate
6) Consent to Establish - CTE
7) Consent to Operate - CTO
8) Environmental Clearance Certificate

Hotel:
1) Sanction Plan
2) Occupancy Certificate
3) Consent to Establish - CTE
4) Consent to Operate - CTO
5) Environmental Clearance Certificate
6) Fire Clearance Certificate

EMBASSY BUSINESS HUB

Completed Block:

1) Occupancy Certificate
2) Sanction Plan
3) Height Clearance Certificate from AAI
4) Fire NOC
5) Consent to Establish - CTE
6) Consent to Operate - CTO
7) Fire Clearance Certificate
8) Environmental Clearance Certificate

Under Construction Blocks:

1) Height Clearance Certificate from AAI
2) Fire NOC
3) Sanction Plan
4) Environmental Clearance Certificate
5) Consent to Establish - CTE

EXPRESS TOWERS

1) Occupancy Certificate
2) Fire NOC

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EMBASSY 247

1) Occupancy Certificate
2) Sanction Plan
3) Fire NOC
4) Consent to Establish - CTE
5) Consent to Operate - CTO

FIRST INTERNATIONAL FINANCIAL CENTRE (FIFC)

1) Occupancy Certificate
2) Height Clearance Certificate from AAI
3) Fire NOC
4) Consent to Establish - CTE
5) Consent to Operate - CTO
6) Environmental Clearance Certificate

EMBASSY TECHZONE

Completed Blocks:

1) Occupancy Certificate
2) Environmental Clearance Certificate
3) Fire NOC
4) Consent to Establish - CTE
5) Consent to Operate - CTO

Under-Construction Blocks

Block 4, 9,10 & Volga

1) Environmental Clearance Certificate
2) Consent to Establish - CTE

EMBASSY QUADRON

1) Building Plan
2) Occupancy Certificate
3) Environmental Clearance Certificate
4) Fire NOC
5) Height Clearance NOC
6) NOC for DG, and Lift
7) Consent to Establish - CTE
8) Consent to Operate - CTO

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EMBASSY QUBIX

1) Building Plan
2) Occupancy Certificate
3) Environmental Clearance Certificate
4) Fire NOC
5) Height Clearance NOC
6) NOC for DG, and Lift
7) Consent to Establish - CTE
8) Consent to Operate - CTO

EMBASSY OXYGEN

1) Building Plan
2) Occupancy Certificate
3) Environmental Clearance Certificate
4) Height Clearance NOC
5) Provisional Fire NOC
6) Pollution NOC
7) Structural Certificate
8) Soil Test Report
9) Post Construction Fire NOC

EMBASSY GALAXY

1) Environmental Clearance Certificate

2) Height Clearance NOC
3) Occupancy Certificate

HILTON AT GOLFLINKS

1) Sanction Plan
2) Occupancy Certificate
3) Consent to Establish - CTE
4) Consent to Operate - CTO
5) Environmental Clearance Certificate

EMBASSY ENERGY

1) Commissioning Certificates
2) Government Order

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ANNEXURE 5: Historic Value Summary

30th September 2023

Market Value (INR Mn)

Development
Under construction
Completed Total
(UC) / Proposed
Embassy Manyata, Bengaluru 182,218 21,363 203,581
Embassy TechVillage, Bengaluru 100,930 20,588 121,518
Embassy One, Bengaluru 14,187 - 14,187
Embassy Business Hub, Bengaluru - 5,148 5,148
Express Towers, Mumbai 18,845 - 18,845
Embassy 247, Mumbai 18,874 - 18,874
First International Financial Center (FIFC),
14,905 - 14,905
Mumbai
Embassy TechZone, Pune 20,723 3,154 23,877
Embassy Quadron, Pune 12,172 - 12,172
Embassy Qubix, Pune 9,740 - 9,740
Embassy Oxygen, Noida 19,448 3,737 23,185
Embassy Galaxy, Noida 9,617 - 9,617
Hilton Embassy GolfLinks, Bengaluru 6,075 - 6,075
Embassy Energy, Bellary District, Karnataka 8,300 - 8,300
Total- 100% Owned Asset 436,034 53,990 490,023
Embassy GolfLinks, Bengaluru 36,490 - 36,490*
Total 472,525 53,990 526,514

*Note: Indicative of Embassy REIT’s economic interest in the asset, viz. 50%.

372

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

31st March 2023

Market Value (INR Mn)

Development
Under construction
Completed Total
(UC) / Proposed
Embassy Manyata, Bengaluru 164,984 32,649 197,633
Embassy TechVillage, Bengaluru 103,628 19,360 122,988
Embassy One, Bengaluru 12,497 - 12,497
Embassy Business Hub, Bengaluru - 3,751 3,751
Express Towers, Mumbai 18,252 - 18,252
Embassy 247, Mumbai 18,684 - 18,684
First International Financial Center (FIFC),
13,941 - 13,941
Mumbai
Embassy TechZone, Pune 20,037 2,808 22,845
Embassy Quadron, Pune 13,227 - 13,227
Embassy Qubix, Pune 9,718 - 9,718
Embassy Oxygen, Noida 19,301 3,508 22,809
Embassy Galaxy, Noida 9,526 - 9,526
Hilton Embassy GolfLinks, Bengaluru 4,762 - 4,762
Embassy Energy, Bellary District, Karnataka 8,514 - 8,514
Total- 100% Owned Asset 417,070 62,075 479,145
Embassy GolfLinks, Bengaluru 34,996 - 34,996*
Total 452,066 62,075 514,141

*Note: Indicative of Embassy REIT’s economic interest in the asset, viz. 50%.

373

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

30th September 2022

Market Value (INR Mn)

Development
Under construction
Completed Total
(UC) / Proposed
Embassy Manyata, Bengaluru 166,003 31,133 197,137
Embassy TechVillage, Bengaluru 104,510 15,269 119,779
Embassy One, Bengaluru 13,227 - 13,227
Express Towers, Mumbai 17,888 - 17,888
Embassy 247, Mumbai 18,502 - 18,502
First International Financial Center (FIFC),
14,212 - 14,212
Mumbai
Embassy TechZone, Pune 15,321 7,191 22,512
Embassy Quadron, Pune 12,903 - 12,903
Embassy Qubix, Pune 9,910 - 9,910
Embassy Oxygen, Noida 21,073 3,616 24,689
Embassy Galaxy, Noida 9,476 - 9,476
Hilton Embassy GolfLinks, Bengaluru 4,701 - 4,701
Embassy Energy, Bellary District, Karnataka 8,686 - 8,686
Total- 100% Owned Asset 416,413 57,210 473,623
Embassy GolfLinks, Bengaluru 34,792 - 34,792*
Total 451,205 57,210 508,414

*Note: Indicative of Embassy REIT’s economic interest in the asset, viz. 50%.

374

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

31st March 2022

Market Value (INR Mn)

Development
Under construction
Completed Total
(UC) / Proposed
Embassy Manyata, Bengaluru 167,060 23,464 190,524
Embassy TechVillage, Bengaluru 102,902 13,637 116,539
Embassy One, Bengaluru 12,616 - 12,616
Express Towers, Mumbai 17,987 - 17,987
Embassy 247, Mumbai 17,939 - 17,939
First International Financial Center (FIFC),
14,045 - 14,045
Mumbai
Embassy TechZone, Pune 15,784 6,657 22,441
Embassy Quadron, Pune 12,855 - 12,855
Embassy Qubix, Pune 9,999 - 9,999
Embassy Oxygen, Noida 22,131 2,517 24,648
Embassy Galaxy, Noida 9,276 - 9,276
Hilton Embassy GolfLinks, Bengaluru 4,280 - 4,280
Embassy Energy, Bellary District, Karnataka 8,965 - 8,965
Total- 100% Owned Asset 415,839 46,275 462,113
Embassy GolfLinks, Bengaluru 31,560 - 31,560*
Total 447,399 46,275 493,674

*Note: Indicative of Embassy REIT’s economic interest in the asset, viz. 50%.

375

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

30th September 2021

Market Value (INR Mn)

Development
Under construction
Completed Total
(UC) / Proposed
Embassy Manyata, Bengaluru 152,879 30,267 183,146
Embassy TechVillage, Bengaluru 85,298 27,922 113,220
Embassy One, Bengaluru 11,625 - 11,625
Express Towers, Mumbai 18,110 - 18,110
Embassy 247, Mumbai 17,028 - 17,028
First International Financial Center (FIFC),
13,845 - 13,845
Mumbai
Embassy TechZone, Pune 15,426 6,203 21,628
Embassy Quadron, Pune 12,801 - 12,801
Embassy Qubix, Pune 10,001 - 10,001
Embassy Oxygen, Noida 21,028 2,308 23,336
Embassy Galaxy, Noida 9,111 - 9,111
Hilton Embassy GolfLinks, Bengaluru 3,965 - 3,965
Embassy Energy, Bellary District, Karnataka 9,144 - 9,144
Total- 100% Owned Asset 380,261 66,699 446,960
Embassy GolfLinks, Bengaluru 28,445 - 28,445*
Total 408,706 66,699 475,405

*Note: Indicative of Embassy REIT’s economic interest in the asset, viz. 50%.

376

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)
EMBASSY OFFICE PARKS REIT

31st March 2021

Market Value (INR Mn)

Development
Under construction
Completed Total
(UC) / Proposed
Embassy Manyata, Bengaluru 149,163 28,756 177,920
Embassy TechVillage, Bengaluru 80,863 26,211 107,073
Embassy One, Bengaluru 11,601 - 11,601
Express Towers, Mumbai 18,403 - 18,403
Embassy 247, Mumbai 16,914 - 16,914
First International Financial Center (FIFC),
13,889 - 13,889
Mumbai
Embassy TechZone, Pune 15,869 6,958 22,827
Embassy Quadron, Pune 12,938 - 12,938
Embassy Qubix, Pune 10,414 - 10,414
Embassy Oxygen, Noida 21,077 2,617 23,694
Embassy Galaxy, Noida 9,028 - 9,028
Hilton Embassy GolfLinks, Bengaluru 3,995 - 3,995
Embassy Energy, Bellary District, Karnataka 9,302 - 9,302
Total- 100% Owned Asset 373,456 64,542 437,998
Embassy GolfLinks, Bengaluru 28,053 - 28,053*
Total 401,509 64,542 466,051

*Note: Indicative of Embassy REIT’s economic interest in the asset, viz. 50%.

377

L. Anuradha MRICS
(IBBI/RV/02/2022/14979)