Investment Memo

Strata KT
Office Opportunity
MARCH 2022
Investment Highlights
This is an opportunity to invest in 75,763 sqft of Krrish Towers;
a brand new, Grade-A Office asset located in Bangalore,
Karnataka. The opportunity is valued at ₹ 58.7 Cr. and the
tenant is an international sportswear brand.

8.88% 13.05%
Gross Entry Yield* Targeted IRR*

15 yrs 5 yrs
Lease Period* Tenant Lock-in*

Bengaluru Global Sportswear

In-demand location Brand
Tenant

* Entry yield includes 1% rental top-up

IRR is calculated at a value appreciation of 7% CAGR
Lease & Lock-in started from July 2021

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The Indian Office Market
As the Indian economy continues to grow and modernize, the need for Grade-A offices has doubled in the last decade
and will continue to see double digit annual growth for years to come.

Grade A Office Market Size (in million sqft) Share of Grade-A Office space in India

1100

~4X 13%
growth 13% 12% 2%

830 11% Bengaluru Chennai

16%
11% Mumbai Noida
310 9%
33% Hyderabad Gurugram

Pune Kolkata

2011 2021 2025

Source: Knight Frank Office Market Report 2021 | CBRE Future of Office 2021

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 Demand Drivers For Offices

Low cost of leasing office space in India (<$1/sqft )

Steady growth in IT/ITeS

MNCs continue to prefer India for Global

Capability Centers (GCC) due large talent pool

Growing demand for Coworking spaces

Rise in Innovation and R&D centers

Fast growing Indian businesses and startups

38 Million sqft of transactions in 2021 shows

$5+ Billion in PE Investments in real estate (2021)
strong recovery from COVID

Source: Knight Frank Office Market Report 2021 | JLL

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 Hyderabad
Offices Office Market
In The Post-Covid Era
When COVID-19 first broke out, the consensus was that Work From Home (WFH) would remove much of the need for
offices. That assumption has now been broken and most companies are returning to offices or to a Hybrid model.

Google Sets Its Return to Office Plans

for April 4 March 2022

80% Only 8%
Of companies Of companies
Prefer Work plan to go fully
from Office Remote TCS, Infosys, Wipro Keen on Employees
Returning to Office from Next Month

February 2022

Microsoft tells workers to prepare to

return to the office February 2022

Source: CBRE future of Office Survey 2021

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Location Overview

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 Hyderabad
Bengaluru OfficeSilicon
- India’s MarketValley
A hub of global innovation, technology, finance, and startups (including Strata), Bengaluru is the largest
office hub in India. The city boasts a young, well educated population and a salubrious climate that has
made it the preeminent metro of the country.

KEY GROWTH FACTORS

186 12.2
million sqft million sqft
Total office stock Large talent pool
Transactions in
as of 2021 2021

Highest Grade-A office stock in India

32%
Of annual
absorption in 35 out of 90 Unicorns in India
India (2021)

40% of TIndia’s IT export

Source: Knight Frank India Real Estate Report 2021 & CBRE Bangalore Office Market Report

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Key Micro Markets

Central & Secondary Business District (CBD & SBD)

Original business & social districts with high rents and limited new supply
Stock: 34.14 million sqft

North Bangalore

Developing micro market with new supply under construction. Suffers from
lack of metro connectivity and high vacancy rates
Stock: 21.28 million sqft

Whitefield & Outer Ring Road (ORR)

Established IT hub with good connectivity and low rents encouraging large,
built-to-suit offices. Upcoming metro is driving demand.
Stock: 103.25 million sqft

South Bangalore

Traditional IT hub but predominantly a residential market with limited supply

of Grade-A spaces and limited scope for future development.
Stock: 6.89 million sqft

Whitefield & Outer Ring Road are the most sought after locations with the Electronic City
largest office stock and moderate rents
Home of Indian IT campuses. Currently lacks social and transport
infrastructure. Has a high vacancy rate.
Source: CBRE Bangalore Office Market Report Stock: 11.36 million sqft

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7
Recent News Snippets Of Bengaluru Market

Bengaluru to match Beijing with 8 million Societe Generale renews lease for 3.23 lakh
sq ft office space demand in 2022 sq ft office space for five years in Bengaluru

December 2021 January 2022

Bengaluru is expected to absorb the maximum amount

IBM inks lease deals for 5 lakh sq ft in
of office space in Asia Pacific -Cushman & Wakefield
Bengaluru
November 2021 January 2022

Wells Fargo renews leases for two Bengaluru office tenants leased 3 mn sq ft space
commercial properties in last two months
February 2022 November 2021

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Location Overview
The asset is located in Mahadevpura, just off the Outer Ring Road (ORR), and the ITPL main road. Thanks to the proximity
of major roads, and the upcoming metro station, the asset will have excellent connectivity to the rest of Bengaluru.

Airport
Kempegowda International Airport - 40 Km

Railway Station
KR Puram - 3 Km

Upcoming Metro Station

Mahadevpura - 0.3 Km

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Major Tenants In The Vicinity
The area features several tech parks and office spaces. MNCs such as Accenture, Amazon, Hewlett Packard,
Dell, EY, Capgemini, Visa, etc., have offices in the region.

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Recent Sale & Lease Transactions In The Area

Lease Transactions

Date Tenant Name Asset name Area in sqft Rent price/ sqft
The opportunity’s gross purchase
August 2021 Legato Health Bagmane Solarium City ~527,000 ₹ 62 price of ₹ 7,400 per sqft is ~5%
April 2021 Xandr India ITPB Creator ~8,000 ₹ 56
lower than the avg. sale price in
the vicinity.
January 2021 AKTPL India Brigade Metropolis Enclave ~18,600 ₹ 64

January 2021 EMC Software WTC Aquamarine ~102,000 ₹ 68

The monthly rental rate of ₹ 52.2
September 2020 Amazon Constellation Business ~195,000 ₹ 60
per sqft is lower than the market
Park - Orion
average of ₹ 60 per sqft.
Sale Transactions
The favourable pricing will increase
Date Sale price/ sqft Asset name tenant stickiness and the potential
for a future upside.
December 2021 ₹ 7,619 Sigma Softech Park

August 2021 ₹ 10,728 Embassy Techsquare

March 2021 ₹ 8000 Embassy Techsquare

October 2020 ₹ 8371 Shantiniketan - WTC

Source: PropStack
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Asset & Tenant Overview

PRIVATE & CONFIDENTIAL 13

Asset Overview
15

Krrish Towers is a dual purpose commercial building with 15 14

Strata KT
storeys of Grade-A office space and a business hotel. The Office 13
property has been built to global standards, meeting all the Oppor tunity
requirements of a Grade-A asset. 12

11
The opportunity is to acquire the Ground, First, and Eleventh to
Fifteenth floors of the Office space totalling 75,763 sqft + 76 10

car parks. 9

6
Krrish Towers
5

Total size (commercial) 4

1,35,000 sqft 3

2
Structure Strata KT Office
Oppor tunity 1
2B+G+15
Ground Floor

B1

B2

PRIVATE & CONFIDENTIAL 14

Floor Plans
The floor plates of Krrish Towers have an efficient layout with elevators, stairs, and services in two corners.

PRIVATE & CONFIDENTIAL 15

 Rendered
Images
Of The Asset

PRIVATE & CONFIDENTIAL 16

Tenant Overview
The tenant is one of world’s largest designers and manufactures
of athletic and casual footwear, apparel and accessories.

The brand has an extensive media presence and is a prolific

sponsor of sports teams including Cricket, Football, F1, and
athletics. The company has been in operation for more than 70
years and has a presence in 120 countries.

The company is leasing the asset to accommodate its fast

growing India operations.

Employees: 16,100 (~2,000 in India)

Revenue: € 6.8 Billion (2021)

Source: Wikipedia
PRIVATE &
PRIVATE & CONFIDENTIAL
CONFIDENTIAL 17
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TERMS AND
FINANCIALS

PRIVATE & CONFIDENTIAL 18

Transaction structure

Escrow agent/Trustee
manages all fund flows
Investor

Allotment / Purchase of
Securities of the SPV

Escrow Agent Existing SPV*

/Trustee

Manages the SPV

and the asset

Asset
*Special Purpose Vehicle /
Asset Holding Company

PRIVATE & CONFIDENTIAL 19

Lease Overview
The tenant has signed a lease period of 15 years and lock-in period of 5 years starting from July 2021.
The rental escalation is 15% every 3 years.
Lease Timeline

July 2021
Rent per sqft of BUA ₹ 52.2 / per month Lease Start Date

Escalation on base rent 15% every 3 years March 2022

Current Date
Security deposit 1.94 Crores (6 months)

Lock-in Period 5 years

July 2026
Lease Period 15 years
Tenant Lock-in
end date

Insurance, Property Tax To be borne by the investors July 2036

Lease end date

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Rental Yield
The asset has an average yield over 15 years is 10.89%.

Rental Yield Rental

Escalation 13.78% 13.78% 13.78%
Rental top up 15% every 3 years
11.98% 11.98% 11.98%

10.42% 10.42% 10.42%

9.06% 9.06% 9.06%

8.88%

7.88%
1% Rental Top up
7.88%

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

PRIVATE & CONFIDENTIAL 21

Investment Breakup

Par ticulars Amount

Gross Purchase Price ₹ 56,06,46,200

Stamp Duty & Registration* -

Acquisition Fee (one-time) ₹ 1,68,19,386

Legal Fees ₹ 13,00,000

Reserves (refunded on sale) ₹ 87,34,414 Gross Purchase

Price/sqft
Net Purchase Price ₹ 58,75,00,000
₹ 7,400

* Since the asset is already owned by an Private Limited Company, Stamp Duty and Registration fee will not be
incurred.

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Financial Model (For an investment of ₹30 Lakh)

Day 0 Entry Year Year 4 Year 7 Year 14* Total

Investment (30,00,000) (30,00,000)

Rental Income 2,42,199 2,71,565 3,05,336 5,18,447 44,94,861

Pre Booking offer 30,000 - 30,000

Interest on Deposit* 5,369 5,369 5,369 7,159 76,954

Property Tax, Insurance etc (11,235) (11,235) (11,235) (14,980) (1,61,033)

Management Fee (30,000) (30,000) (30,000) (40,000) (4,30,000)

Sale Value** 79,10,261 79,10,261

Cash Flow (30,00,000) 2,36,333 2,35,699 2,69,470 83,80,886 89,21,043

*Year 14 includes 4 additional months from the 15th year

*Interest assumed at 5.4% p.a.
**Calculated with a value appreciation of 7% CAGR

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Growth Sensitivity

We are targeting a 7% annual capital appreciation on the asset, giving a targeted return of 13% IRR.

Annual Growth 5.0% 6.0% 7.0% 8.0% 10.0%

Targeted IRR 11.71% 12.37% 13.05% 13.75% 15.22%

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Investment Thesis

8.88% Blue Chip

Entry yield* Tenant

Brand new Strong Micro Upcoming

Asset Market Metro

13.05%
15 year lease &
IRR*
5 year lock-in

*Entry yield is including 1% top-up & IRR is calculated with an annual capital appreciation of 7%.

PRIVATE & CONFIDENTIAL 25

Terms for Investors

Management Fee Performance Fee

1% 20%
over hurdle rate of 10% IRR

Minimum Investment Year 1 Rental Top-up*

₹ 30 Lakhs 1%

Recommended Holding Period

7-8 years

*Pre-booking offer ends on 10th March 2022

PRIVATE & CONFIDENTIAL 26

Risk Matrix
Risk Factor Level of Risk Mitigation Strategy

Capital Risk LOW Recovery of principal amount invested through

Rental Income
Interest on Security Deposit

Ownership of asset and underlying land lies with SPV

Liquidity Risk MEDIUM Minimum horizon for investment : 5 years

Strata works with Investors to provide exit options such

as private sale and listing on resale platform

Real Estate Risk LOW Due diligence from reputed law firms and consultants

Properties leased to reputed companies who have also

done their DD on the land and title

Tenancy Risk MEDIUM Only pre leased properties with Lock in period are listed
on this platform

Asset management services by Strata

Re-leasing of property
Property upgradation to get higher rentals and increase
saleability

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ABOUT STRATA

PRIVATE & CONFIDENTIAL 28

 Snapshot Of Metrics Our Presence

₹ 500+ Cr ~2.5 Million

Assets under Total sqft
Management* Managed*

Jaipur

Tenants In our Portfolio

Mumbai

Hyderabad

Bengaluru Chennai
1200+ Investors
Hosur

*Includes Managed Assets

PRIVATE & CONFIDENTIAL 29

11
Strata’s Leadership

Sudarshan Priyanka Nihar Ankit Saloni

Lodha Rathore Shah Shah Doshi
Co-Founder & CEO Co-Founder Head of Investments Head of Marketing Chief of Staff

Pratik Kamalakar Smruthi

Shah Chaudhari Manchi
Head of Finance Head of Engineering Head of Legal

PRIVATE & CONFIDENTIAL 30

Recent Opportunities

Name & Location AUM ( In CR) Rental yield* Asset Type

Warehousing III ₹ 28.1 8.6% Warehouse

Hosur

Industrial IV ₹ 58.6 10% Industrial

Hosur

Strata Jaipur
₹ 20.9 9.5% Industrial
Industrial
Jaipur

*Entr y Yield

PRIVATE & CONFIDENTIAL 31

Asset Management Services

Asset Purchase Asset Management Investor Services

• Lease negotiation
• Property tour & review • Dedicated Investment Manager
• Tenancy management
• Asset purchase • Online Dashboard
• Asset upkeep
• Asset Registration • Market updates & Reports
• Half yearly valuation report • Rent Disbursal
• Asset Sale negotiation • Resale/Purchase Facilitation
• Tax Center

PRIVATE & CONFIDENTIAL 32

33
View asset details

Get regular updates

Track Rental Payouts

Receive TDS Certificate

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Our Backers

Elevation is one of the most prolific VCs in India. The

firm has more than 11 unicorns in its portfolio. It has
invested in companies such as Swiggy, Meesho,
Book My Show, ClearTax & National Stock Exchange.

Kotak Investment Advisors is the private equity Arm

of the Kotak Mahindra group. The firm has invested in
150+ projects & companies across multiple sectors.

Mayfield is a US based early stage fund that invest in

both enterprise & consumer companies. The firm has
invested in companies such as Amagi, SimpliLearn &
Licious.

Gruhas is a VC firm founded by Abhijeet Pai

(Puzzolana Group) & Nikhil Kamath( Zerodha & True
Beacon). The firm focuses on real estate &
infrastructure businesses.

PRIVATE & CONFIDENTIAL 37

Our Partners

Custodian Trustee

Escrow Par tner

Banker

Payment Solutions Market Data & Intelligence

18
PRIVATE & CONFIDENTIAL 38
 Media Coverage

“Strata, leading proptech startup, crosses Rs 500 crore AUM mark”

- ANI News

“Prop-tech startup Strata aims to change real estate game using data analytics”
- CNBC

PRIVATE & CONFIDENTIAL 39

Contact Us

BENGALURU
No. 6/1-1,
Museum Road, Ashok Nagar,
Bengaluru - 560001

MUMBAI
Parinee Crescenzo,
10th Floor - B Wing
Bandra Kurla Complex
Mumbai - 400051

Web:
/strataprop.com

PRIVATE & CONFIDENTIAL 40

Deck Disclaimer
Nothing stated in this memo is meant to be exhaustive and may not contain adequate disclosure of all the risks associated with the
opportunity, and should not be construed as investment, business, legal, or tax advice. The content contained herein does not constitute
an offer or an invitation to offer in relation to the opportunity, or by Strata to sell securities or an offer to buy or sell any property. Direct
and indirect purchase of real property involves significant risk and investments may lose value and are not insured by any Governmental
Agency nor are they guaranteed by Strata. The information stated herein is presented only for general informational purposes and no
specific securities or services are being promoted or offered. Any historical returns, expected returns, future liquidity, or probability
projections may not reflect actual future performance. The cost of acquisition of the asset, administrative costs, legal fees, government
charges, assumptions relating to income, etc., provided are approximate values. Such approximations involve known and unknown risks,
liabilities, and uncertainties in projected outcomes as well. Investors must seek their own legal or other professional advice. Investors
must be able to afford to bear losses on the investment made and have the ability to bear the risk of illiquidity. All information presented
herein is proprietary and based on independent research not meant for reliance, circulation, or reproduction by any third party without
the express consent of Strata. All images and illustrations are subject to copyright, and all logos are owned by their respective copyright
holders.

The past performance of any opportunity listed is not necessarily indicative of future performance of that or other assets .Strata is not
guaranteeing or assuring any return under any of the opportunities listed. You agree and acknowledge that information / projections
provided by Strata are not concrete facts. This information memorandum is not intended to be an offer / invitation or solicitation /
recommendation. You have informed yourself of the risks and have sought professional advise for investing into the said opportunity.

PRIVATE & CONFIDENTIAL 41