GREEN BUILDING VALUATION PROJECT- PAHAR PUR BUSINESS CENTER AND CATCHMENT AREA ANALYSUS

1. NTCC REPORT
ON
VALUATION OF A NON-GREEN BUILDING (EROS
CORPORATETOWER) IN COMPARISON TO A GREEN BUILDING (GREEN
BOULEVARD) LOCATED IN NOIDA MBA-REUI
2013-2015
To
RICS School of Built Environment
By
Akash Gupta
(A13558913055)
Under the guidance of
Prof. Saurabh Verma
In Partial Fulfillment of the Requirements for the Degree of
Master of Business Administration
At
RICS SCHOOL OF BUILT ENVIRONMENT
AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA – 201303, UTTAR PRADESH, INDIA

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DECLARATION
I hereby declare, this Dissertation Report “Valuation Of A Non Green
Building In Comparision With A Green Building” which is submitted
for partial time fulfillment of the requirement for the award of degree of
Masters of Business Administration (MBA)-Urban Infrastructure and
Real estate to RICS School of Built Environment, Amity University as
my own work and no part of my report has been copied from other
reports or directly from websites except where due reference has been
made.
AKASH GUPTA MR. Saurabh Verma
Roll Number –A13558913055 (Faculty Guide)
MBA (REUI)
Batch 2013-2015

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ACKNOWLEDGEMENT
First of all, I would like to thank almighty, whose generous blessings made the
internship a success and I want to thank my supportive parents from whom I learned
the value of writing succinct sentences.
I am very thankful to my Faculty Mentor- Mr. Saurabh Verma for giving me an
opportunity to carry out dissertation on “Valuation Of A Non Green Building
In Comparision With A Green Building”
Last but not the least; I would like to thank all the interviews and respondents
without whom it was impossible to complete my research.
AKASH GUPTA MR. SAURABH VERMA
Roll No. A135589113055 (Faculty Guide)
MBA (REUI)
Batch2013-2015

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CERTIFICATE
This is to certify that the dissertation done on “Valuation Of A Non
Green Building In Comparision With A Green Building” submitted to
RICS School of Built Environment, Amity Schoolby Mr. AKASH GUPTA
a student of post graduate Degree in MBA (REUI), Batch 2013-2015), is
the student’s own work carried out under my supervision. The matter
present in this dissertation report has not been submitted anywhere else for
the award of any other degree.
AKASH GUPTA MR. SAURABH VERMA
Roll No. A135589113055 (Faculty Guide)
MBA (REUI)
Batch2013-2015

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Table of Contents
Green Buildings & India.....................................................................................................8
Introduction................................................................................................................. 8
The Growing Crises....................................................................................................... 9
Green Rating Systems ................................................................................................. 11
Green Buildings in India............................................................................................... 12
Costs & benefits of Green Buildings in India.................................................................. 13
Cost Premium of Green Buildings................................................................................. 14
Paharpur Business Centre............................................................................................... 16
PRODUCTIVITY ANALYSIS............................................................................................... 17
Valuation.................................................................................................................... 22
Eros Corporate Tower .................................................................................................... 23
Productivity Analysis...................................................................................................... 24
Location Analysis........................................................................................................ 27
Valuation....................................................................................................................... 30
Comparative Analysis...................................................................................................... 31
Conclusion ..................................................................................................................... 32

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Figure 1: Constituent parts of Sustainability ..................................................................... 10
Figure 2: Performance of Green Buildings in India............................................................. 14
Figure 3: Paharpur Business Centre.................................................................................. 16
Figure 4: Location Map of Paharpur Business Centre .............. Error! Bookmark not defined.
Figure 5: Catchment Areas of Paharpur Business Centre ................................................... 21
Figure 6: Eros Corporate Tower....................................................................................... 23

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Green Buildings & India...
Introduction
The tremendous growth in economic activity across the globe is placing pressure on
natural and environmental resources. There is increasing evidence that human
activities are causing an irreversible damage to the global environment, which will
have an adverse impact on the quality of life of future generations. The rising
concern for the environment in response to global warming is driving thinkers to
seek sustainable solutions.
The real estate industry is a significant contributor to the global warming due to
extensive emissions of greenhouse gases (GHGs) from the energy use in buildings. In
some countries, the built environment accounts for about 40% of the energy used.
Therefore, there is an imperative for the industry to develop sustainable building
technologies and green buildings.
The construction industry in India is growing rapidly at a rate of 10% compared with
the world average of 5.2%. It is observed that buildings in India consume about 20%
of the total electricity in the country. Hence, real estate activity in India has a
significant impact on the environment and resources. This indicates that there is a
real opportunity to develop green buildings in the country.
However, developers face a major challenge in the development of green buildings
as in some cases this increases construction costs. Developers find it difficult to opt
for green buildings due to price constraints, difficulty in sourcing green building
materials, technologies and service providers or facilitators in India.

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The Growing Crises
Global warming is the increase in the average measured temperature of the Earth’s
near-surface air and oceans since the mid-20th century. Global warming can cause a
20% recession in the world’s GDP as this phenomenon increases the possibility of
occurrence of natural disasters altering the world’s GDP. It threatens the melting of
glacial ice, increasing the seawater level and causing devastating effects on the
coastal world. It is learnt that GHGs, which are produced and emitted due to human
activity, are responsible for global warming.
The world is taking action in addressing the issues leading to global warming. The
first step in this regard was the United Nations Framework Convention on Climate
Change (UNFCCC) treaty in 1992. UNFCCC was formalised as the Kyoto Protocol on
11 December 1997, with the objective of reducing GHG emissions to prevent the
man-made global warming process. The Kyoto Protocol aims to be a holistic
guideline restricting and reducing emissions in developed countries and at the same
time facilitating emission reduction in the developing world. GHG emission in
developed countries is capped with a fixed quota. However, if countries or
companies exceed their quota of emission, they can still earn carbon reduction
credits either by buying credits in the international carbon credit market and/or
through clean development mechanisms (CDMs).
Global warming can cause a 20% recession in the world’s GDP as
this phenomenon increases the possibility of occurrence of
natural disasters altering the world’s GDP
The framework provided by UNFCCC has revived the concept of sustainability and
placed the focus squarely on GHGs emissions. It has also given a fillip to the green
industry movement such as renewable energy production and the efficient usage of
energy resources and other resources.

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Sustainable Real Estate Development & Green Buildings
Sustainable development is defined as ‘Meeting the needs of the present generation
without compromising the ability of future generations to meet their needs’.
The field of sustainable development can be conceptually broken into three
constituent parts - social sustainability, environmental sustainability and economic
sustainability (Figure 1). The performance of the industrial economy has always been
measured through single bottom-line (financial) results. However, striking a balance
between environmental, social and economic performance is a key to achieving
sustainable outcomes. This has given rise to
the concept of triple bottom line.
The real estate industry is one the major
energy consumers and GHG emitters.
According to a report by the
Intergovernmental Panel on Climate Change
(IPCC) in 1996, the real estate industry is
expected to consume 38% of the global
energy and emit 3,800 mega tonnes of GHGs
every year. This does not include the usage of other resources such as water.
Therefore, the increasing crises of global warming, depleting resources and
consumer pressures have pushed the agenda of sustainability in the real estate
sector.
Growing human activity has increased the concern for sustainability even more in
recent times. Sustainability in the real estate context is not only limited to energy
conservation, but also includes resource usage, impact on the neighbouring
environment and working conditions for tenants. This concern has led to the
development of green buildings. The green building concept broadly integrates many
interests and aspects of sustainability emphasising reduction of environmental
impacts through a holistic approach to land and building uses and construction
strategies.
Figure 1: Constituent parts of Sustainability

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A green building uses less energy, water and natural resources than a conventional
building. It also creates less waste and provides a healthier living environment for
people living inside it compared to a conventional building. Green buildings
incorporate several sustainable features such as efficient use of water, energy-
efficient and eco-friendly environment, use of renewable energy and
recycled/recyclable materials, effective use of landscapes, effective control and
building management systems and improved indoor quality for health and comfort.
Sustainability is not just limited to energy conservation, but it has
also been expanded to resource usage, the neighbouring
environment and working conditions for tenants. This concern has
led to the development of green buildings.
The overall benefits of green buildings mostly depend on the extent to which the
sustainable features are addressed during the initial planning and design. A green
building is most likely to succeed in its objective if sustainable features are
envisioned and incorporated right at the design stage. The design has to take into
consideration the entire supply chain—from material sourcing, energy modelling,
resource reuse, civic amenities & waste disposal to tenant education.
Green Rating Systems
The green building movement has led to the emergence of various green rating
systems.
The
BREEAM
•Building Research Establishment Environmental Assessment Method
•Widely used in UK
LEED
•Leadership in Energy & Environmental Design
•Developed by US Green Building Council
•Used in the US
Green
Star
•Developed by the Green Building Council of Australia and used in Australia
•New Zealand GBC have their own version of Green Star
CASBEE
•Comprehensive Assessment System for Building Environmental Efficiency
•Developed by Japan Sustainable Building Consortium
•Used in Japan
Green
Mark
•Used in Singapore
•Mandated by the Building & Construction Authority for all new development
and retrofit works
NABERS
•National Australian Built Environment Rating System
•Managed by NSW Dept. of Environment & Climate Change
•Only rating system to measure ongoing operational performance

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predominant ones are:
The green rating systems followed in India are:
LEED India - administered by the Indian Green Building Council (IGBC);
GRIHA - Green Rating for Integrated Habitat Assessment developed by TERI (The
Energy and Research Institute).
These tools are relatively new and have not fully evolved. There is no doubt that
more and more developers are resorting to these systems to get their buildings
certified. Rating systems provide a tool to enable comparison of buildings on their
sustainability credentials. Many occupiers and investors are using these tools as a
guide to selecting properties for lease or acquisition. Meanwhile, these systems are
also being constantly improved. Therefore, the entire green building ecosystem is
getting in place. Among all these rating systems, LEED has emerged as the most
popular and is followed across 24 countries across the globe, including India.
A green building is most likely to succeed in its objective if
sustainable features are envisioned and incorporated right at the
design stage.
Green Buildingsin India
The green building movement in India started with the establishment of the IGBC in
2001, which was an initiative of the Confederation of Indian Industries (CII) along
with the World Green Building Council and the USGBC. The first green building in
India, CII-Sohrabji Godrej Green Business Centre in Hyderabad, was inaugurated on
14 July 2004. This was a great symbolic achievement. Since then, the number and
volume of green buildings in India has been phenomenal. The movement started
with 20,000 sq. ft. in 2004 and has grown exponentially, with an expected green
building footprint of 15 million sq. ft. by end-2008. There are 18 LEED certified

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buildings with a total area of about 8.5 million sq. ft. and 195 projects registered for
LEED certification with a total area of about 110 million sq. ft.as of year-end 2007.
The real estate industry is one of the biggest emitter of GHGs in India. According to a
report by the Ministry of Power in June 2004, 20–25% of the electricity consumed in
government buildings is wasted due to inefficient design. ‘The scenario is almost the
same in the private sector.
It is heartening to know that the green building concept is widely being adopted in
the Indian real estate industry. However, efforts are not enough and a greater push
is required to make real estate development sustainable. In the next 3-4 years about
200 million sq. ft. of commercial space and 45 million of retail space is expected to
be constructed across the major cities of India which indicates that there is a great
opportunity for developers and occupiers to promote green buildings.
Costs & benefits of Green Buildings in India
In terms of appearance or use, there is no difference between green buildings and
conventional ones. The major differences are that green buildings have improved
indoor environment and they offer operational savings. Green buildings have been
observed to have tangible and intangible benefits. The tangible benefits such as the
economic advantages are not immediately visible. However, the lifetime payback is
much higher compared with that of conventional buildings, which mainly accrue
from operational cost savings, reduced carbon emission credits and potentially
higher rental or capital values.
The intangible benefits such as social advantages are due to the positive impact of
green buildings in the neighbourhood environment. Moreover, due to better
working conditions, the productivity of occupier increases and health problems
decreases.
The tangible benefits such as the economic advantages are not
immediately visible. However, the lifetime payback is much

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Figure 2: Performance of Green Buildings in India
higher compared with that of conventional buildings, which
mainly accrue from operational cost savings, reduced carbon
emission credits and probably higher rental or capital values.
The performance of green buildings in India, as mentioned in Table 2 below,
indicates that platinum-rated buildings have a higher payback period of five to seven
years, while gold-rated and silver-rated buildings have a payback period of three to
four years. These tangible and intangible benefits define the triple-bottom-line
returns of green buildings.
Cost Premium of Green Buildings
The general sentiment among the developer community is that green buildings cost
higher than similar conventional buildings, and it is difficult to get positive returns on
this extra investment. This issue is mainly due to:
 The still-evolving nature of green buildings;
 The lack of technical information;
 The incomplete/inefficient execution of green projects;
 The short-term view on returns, instead of focusing on lifetime return on
investment (ROI) of these buildings.
In mature markets the cost premium range from 1-6%. Cost premium in India is in
the range of 6–18% (Table 2) depending on the level of rating. This can be attributed
to lack of technical know-how, immaturity of the market and lack of resources. We
foresee the cost premium in India to realign to the mature markets with the increase
in awareness and availability of resources.

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Scope / Nature of Work
Our major objective throughout this project would remain to test the credibility and
credentials of various reports suggesting that green rated buildings accrue benefits
not only to the occupants and the environment, but also to owners of green rated
buildings. We would be working towards judging these very points and draw
conclusions based on the results we procure based on our study of the chosen
buildings in the region of Delhi NCR. Our main area of focus would remain the
owner’s perspective and his financial gains, if there are any.
The whole project entails the comparable required to compare the green building
with a conventional one. The way forward would be enlist various parameters for
comparison between the 2 buildings.
The buildings for the purpose of study have been chosen. The green building which
we are looking at is Paharpur Business Centre & the conventional buildings which
would act as comparable building is EROS Commercial Tower.
The above mentioned buildings have been visited and analysed for further research,
the facilities management team of the various buildings have been met in order to
procure the relevant information.

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Figure 3: Paharpur Business Centre
Paharpur Business Centre
Paharpur Business Centre &
Software Technology Incubator
Park started its serviced office
business in 1990. Paharpur
Business Centre is a trusted
brand for many corporate &
multinationals. It has and is
delivering quality service to its
customers for over two decades. It is the only business centre in Delhi meeting five
international quality standards.
Located in Nehru Place, a prime commercial centre, Paharpur Business Centre is easy
to approach.
Key Points:
 Indoor Air Quality system confirms to ASHRAE Standards, ensuring fresh air in
the facility ultimately resulting to increased productivity
 Accessible 24/7 and 365 days open, Business Hours: 9a.m - 7p.m (Monday to
Friday). Option available for late working, extendable to 24 hours as per
requirement
 Dedicated Parking facilities for our customers
 Insurance to cover immediate relocation in case of disaster (fire, earthquake,
etc.)
 Paharpur Business Centre is also a signatory to UN Global Compact &
Women’s Empowerment Principles (WEP). It is a Government recognized
private STIP unit
 Paharpur Business Centre is a registered Software Technology Park with
Government of India

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PRODUCTIVITY ANALYSIS
Certifications-
 ISO 9001:2008 for Quality Management System
 ISO 14001:2004 for Environment Management System
 ISO 22000:2005 for Food Safety Management System
 ISO 50001:2011 for Energy Management Services
 OHSAS 18001:2007 for Occupational Health & Safety
 SA 8000:2008 for Social Accountability
TOTALBUILT UPAREA 50,400SQ.FT
NO. OF FLOORS B+G+6
FLOORPLATEAREA 6300SQ.FT
LEASED UP AREA 15000SQ.FT
VACANT AREA 35,400SQ.FT
NO. OF PARKINGS 3
PARKING COST 4000/CAR/MONTH
CONFERENCEROOM 20
VIRTUAL OFFICESPACE YES
MEMBERSHIPCHARGES RS.4000/LIFETIME
TENANT DETAILS
FLOORNO TENANT NAME AREA
OCCUPIED(SQ.FT)
RENT
G CAFETERIA 1500
RESTURANT 2500
1ST FLIPKART 3000 RS.200/SQ.FT
- 3200
2ND EMC 1500 RS.200/SQ.FT
SHELL 1500 RS.200/SQ.FT
HALLMARK 2000 RS.200/SQ.FT
- 1300
3RD FIRELLI 6300 RS.350/SQ.FT
4TH MICROSOFT 1000 RS.350/SQ.FT
5TH - 6300 RS.350/SQ.FT
6TH - 6300 RS.350/SQ.FT

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OTHERINCOME
 20 CONFERENCEROOMS
 4 PERSONTO 100PERSON – RS400/ PER PERSON/ PER HOUR
VIRTUAL ROOMS
 PLAN 1 - RS.3000/MONTH
 PLAN 2 - RS.6000/MONTH
 PLAN 3 - RS.9000/MONTH
OPERATIONAND MAINTENANCECOSTS
MAINTENANCECOST RS.100/SQ.FT
SINKING FUND RS.50/SQFT/YEAR
INSURANCE COST RS.1 PER SQ.FT/YEAR
LEASE AND MANAGEMENT CHARGES RS.1/SQ.FT/YEAR
FACILITIES
TRAINING ROOM
 Trainingroom withacapacityof 15 to 20 person
 Equippedwithstate-of-the-art computersnetworkedwithAT & T,CAT 5E Cabling
 XGA compatibleLCDprojectorwithlaserPointer. Internet access
CONFERENCEFACILITY
 Myconferencetm -Capacity6 to 25persons
 Interview cabins
 Meetingrooms,
 Video conferencing,
 Audio conferencing,
 Web conferencing
OFFICEFACILITIES
 Instant fully servicedoffices - modulesfor2 to 150persons
 Combinationsofmoduleswithareasperpersonrangingfrom 50 to 200 sq. Ft .:. 1200 nodes
on LAN
COMMONAREAS
 Reception
 Waitingarea
 Lounges

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TRANSPORTATIONFACILITY
 DELHI METRO
 CAR POOLING SERVICES
 DTCBUSSERVICE
 TAXI SERVICE
 AUTO STAND
EXTERNALENVIRONMENT
 6 ACRE SURROUNDING PARKS
 CAR PARKING ON 3 SIDES OF THEBUILDING
 MAIN ROAD ONTHEFRONT SIDE
 PETROLPUMPONTHEBACKSIDE
Lightinglevels
 Meetslux level requirementsasperDIN 5035 part 2 - InternationalStandard

 Lightingconservationinitiatives
 5 stars rated electricalappliancesareused.
 Installedmotionsensorsto controlthemisuseof electricity.
 . Replacedallthedesktopswith laptops.
 Noiselevel meetingISnotificationinrespectof noiseas per the gazette of India extraordinaire
of Feb14, 2000.
 LEDs use only2-10 watts of electricity(1/3rd to 1/30th of IncandescentorCompact
FluorescentLights)andlast upto 10timesas longas CFL's.
 • ReplacedCFLswithLEDlights.
• UpgradedHVAC,electrical systemandcoolingtowersthathave apayback periodof 8-14
years.
Noise level
Meets Indian standard notification in respectofnoise, as per the Gazette ofIndia extraordinary
of Feb. 14, 2000
Security & Fire Safety
24 hours security on each floor. Access control and screening ofall visitors. Closed circuitTV
security systems. Fire clearance certificate from Delhi Fire Department. Fully automatic fire
alarm system, smoke sensors,firefighting equipmentStaff trained in the use of fire fighting and
evacuation procedures.Special diesel engine driven pump for fire wet riser, with underground
200,000 litre storage tank for fire emergency

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Air Quality
It uses patentedtechnologyto detoxify indoorairand
growmountainfreshair. Theygrowfresh air with the helpof morethan 1200toxin-removingindoor
plants.
WATER CONSERVATIONTECHNIQUES
 SensorTaps
 Use of Soap FreeWater for Gardening
 Installationof cisternbased4/2 Liter Water Closet (WC)
 RainWater Harvesting
LocationAnalysis
Proximities Distance
Bus Stop 150 m
Metro Station 380 m

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Airport 15 km
Delhi CBD 7.5 km
Paharpur Business Centre is located in Nehru Place, South Delhi, which is the most
elite location to be in. It thus, holds a high capital value as among other locations
throughout Delhi.
Catchment Area
Primary Catchment Area covers most of the South Delhi Area as the tenants looking
for an office in this area will give their first preference to Nehru Place.
Secondary Catchment Area covers almost all of Delhi as prospects wanting to have
an office in Delhi will give their first preference to Nehru Place too.
Tertiary Catchment Area covers the areas of Gurgaon, Faridabad & NOIDA, including
the major area of NCR. The prospects of this area will have South Delhi as their
preferable option.
Figure 4: Catchment Areas of Paharpur Business Centre

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Valuation
Inflow Escalation
VIRTUAL ROOM CHARGES ESCLATION 3%
RENT ESCALATION 5%
PARKING CHARGES ESCLATION 2%
INCREASE IN CONFERENCE FACILITY CHARGES 5%
By following the DCF method under Income Approach, the value of the building is
same as its NPV.
From the above calculations, the Value of the building is ₹ 2517,56,381.96
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Gross Income (GI) 59460000.00 62433000.00 65554650.00 68832382.50 72274001.63 758
Outflows 23721400 24515956 25349916.52 26225245.23 27144003.85 281
Net Operating Income (NOI) 357,38,600.00 379,17,044.00 402,04,733.48 426,07,137.27 451,29,997.77 477,7
Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
50.00 68832382.50 72274001.63 75887701.71 79682086.79 83666191.13 87849500.69 92241975.72
16.52 26225245.23 27144003.85 28108357.05 29120577.6 30183051.74 31298284.92 32468907.68
33.48 426,07,137.27 451,29,997.77 477,79,344.65 505,61,509.19 534,83,139.39 565,51,215.76 597,73,068.04
Insurance Expenses 0.50% of cost of construction
CAMCharges 100 Rs. Per sq ft per month
Lease and asset management charges 1% of basic rent & parking charges
Marketing Expenses 50,00,000.00 per year
SINKING FUND 50 /SQ.FT/YEAR
Outflows

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Eros Corporate Tower
Eros Corporate Tower is strategically located in the Nehru Place District Centre
situated opposite to Nehru Place Metro
Station. The tower is one of the world
class premium addresses in the
business world.
Many leading multinational companies
like Microsoft, Barclays Bank, ENI India,
Jetro, BT India Pvt. Ltd., Sinosteel India,
Suzlon, Finmeccanica, Sjitz India, HDFC
Ergo, Axis Bank, Russell Reynold, Regus,
Korean Exim Bank, OOCL India, Royal
China etc., have chosen to operate
their businesses from this tower with
its perfect location.
It is a sixteen storey commercial tower
with interconnected seven storey car parking which can accommodate 1000 cars and
50 buses, thus being just one of its kind to match international quality standards.
The complex has a built-up area of approx. 6,50,000 sq ft. (60,400 sq mtr.). The
commercial tower offers approx. 14,000 sq.ft. (1300 sq.mtr.) per floor.
Figure 5: Eros Corporate Tower

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Productivity Analysis
Internal Emenities
 AirConditioned
 IntercomFacility
 Internet/Wi-Fi Connectivity
 RO Water System
External Emenities
 PowerBack
 Lift
 ReservedParking
 Security
 Water Storage
 Service/GoodsLift
 VisitorParking
 Cafeteria/Food Court
 Conference Room
 24 HRS SECURITY
The Location: South Delhi
Sub Location Name: Nehru Place
Developer Name: Eros Group
Property Type: Commercial Properties
Property Sub Type High Rise (Campus type)
Property Status: Functional Building
Floor Available: Office space is subjectto the availability
Total Floors in Building Ground + 16 Floors
Building Facing North East

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Area specifications
AREA CALCULATION AREA(SQ.FT)
LAND AREA 1,96,020
TOTAL BUILT UP AREA 6,50,000
COMMERCIAL TOWER AREA 2,47,337
PARKING AREA 3,72,663
SOLDOUT AREA 46,243
SELF OCCUPIED 23,377
LEASED UP AREA 1,56,263
VACANT AREA 21454
RETAIL SHOPS 30,000
FLOOR PLATE AREA 13740.94444
CONSTRUCTION COST 445206600
CAR PARKING
TOTAL BUILT UP AREA 3,72,663 SQ.FT
TOTAL CARS PARKED 1000 CARS
TOTAL BUSSES 50 BUSES
SPACE ACQUIRED BY 1 CAR- 372 SQ.FT
TOTAL CARS IN A DAY 700 CARS
IN A YEAR 2,10,000 CARS
AVERAGE RENT/CAR RS.30/CAR
FIXED CARS RENTAL RS.5000/ MONTH
NO. OF FIXED CARS 200
TOTAL RENT FROM FIXED CARS 1,20,00,000
INCOME RS.2,04,00,000/- ANNUALLY
OPERATINGANDMAINTENANCECOSTS
INSURANCECOST RS.1/SQ.FTANNUALLY
SINKINGFUND RS.24/SQ.FT/ANNUALLY
MAINTENANCECHARGES RS.25/SQ.FT/MONTH
LEASE ANDASSET MANAGEMENT CHARGES RS.1/SQ.FTANNUALLY

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Key tenants
FLOOR
NO
TENANT NAME
GROUND BARCLAYS BANK PLC
HDFC ERGO GENERAL INSURANCE CO.LTD
1 BARCLAYS BANK PLC
2 FINMECCANICA
AGUSTA WESTLAND
FINCANTIERI
3 ABC CONSULTANTS PVT.LTD
VRACKAL TRADING
OOCL LOGISTICS
INABENSA BHARAT PVT.LTD
4 JAPAN EXTERNAL TRADE ORGANISATION
INTERNATIONAL ENTERPRISE SINGAPORE
BELTECH
INDUSTRIAL KOREA
WESTERN DIGITAL
5 MICROSOFT CORPORATION INDIA PVT LTD
TRANSASIA INFRASTRUCTURE INDIA PVT.LT
SALEXES INDIA PVT.LTD
6 KYOSON INDIA PVT.LTD
ANDRITZ INDIA PVT.LTD
IDEMITSU
EFACEC INDIA PVT.LTD
JETRO
7 SOJITZ INDIA PVT.LTD
SOJITZINDIA PVT.LTD
8 EROS OFFICE
9 SUZLO.N ENERGY LTD
FIRST SOLAR POWER INDIA PVT. LTD
SINGAPORE TOURISM
10 TREND MICRO INDIA LTD
STEVEN ROCK
EROS OFFICE
11 YANMAR INDIA PVT. LTD
DT INDIA PVT.LTD
12 ST ENGINEERING
VOSSLOH
SINO Steel India Pvt.Ltd
HITACHI
14 LINTEC
INDRA
Eni India ltd
15 Regus

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Figure 6: Location Map of Eros Corporate Tower
Space available for rent
FLOOR NO. SPACE
AVAILABLE
rent/sq.ft total rent CONTACT
PERSON
CONTACT
NO.
1 6000 250 15,00,000 Sanjeet
Sharma
9810069114
5 7500 175 13,12,500
7 2500 200 5,00,000
12 5500 175 9,62,500
Location Analysis
Proximities Distance
Bus Stop 150 m
Metro Station 380 m
Airport 15 km
Delhi CBD 7.5 km
Eros Corporate Tower is located in Nehru Place, South Delhi, which is the most elite
location to be in. It thus, holds a high capital value as among other locations
throughout Delhi.

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Figure 7: Catchment areas of Eros Corporate Tower
Catchment Area
Primary Catchment Area covers most of the South Delhi Area as the tenants looking
for an office in this area will give their first preference to Paharpur Business Centre.
Secondary Catchment Area covers almost all of Delhi as prospects wanting to have
an office in Delhi will give their first preference to Nehru Place.
Tertiary Catchment Area covers the areas of Gurgaon, Faridabad & NOIDA, including
the major area of NCR. The prospects of this area will have South Delhi as their
preferable option.
Areas near Nehru Place
 Chirag Delhi
 Okhla
 Kalkaji
 Sarita Vihar
 Govindpuri
 Jasola Vihar
 Chittaranjan Park
 Siri Fort

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NEARBY COMMERCIAL BUILDINGS
 International Trade Tower
 Eros Corporate Tower
 IFCITower
 DevikaTower
 Chiranjeevi Tower
 Ansal Tower
 HemkuntTower
 PaharpurBusinessCentre
RENT IN NEARBY BUILDINGS
1. ANSAL TOWER- RS100/SQFT
2. DEVIKA TOWER- RS 80/SQFT
3. MODI TOWER- RS 100/SQFT
4. INTERNATIONAL TRADE TOWER- RS125/SQF

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Valuation
Following an Income Approach, the value of the building is assessed by dividing the
Net Operating Income of the Building with the Capitalization rate of the Area.
In Nehru Place, the Cap. Rate is at 9%
Thus, the value of the building = NOI/Cap. Rate
=23,96,71,213/0.09
= ₹ 26630,13,477.78
Inflows
Rent Office Space:
Ground 34,35,236.11
Rest 205,81,569.44
Retail -
Parking 2,04,00,000
Other Virtual Rooms 24,00,000.00
Total Inflows 264,16,805.56
Outflows
Maintenance 61,83,425.00
Asset Management 2,40,168.06
Insurance 20,611.42
Total Outflow 64,44,204.47
Net Operating Income Monthly 199,72,601.08
Annual 2396,71,213.00
Office rentals 1-16 FLOOR/MONTH 170 Per Sq Ft
Office rentals (GF)/MONTH 250 Per Sq Ft
Retail Rentals/MONTH 300 Per Sq Ft
No. of paid car parking slots occupied 150
Parking charges per car per month 5000
Inflows
Insurance Expenses 1 SQ.FT/ANNUM
CAMCharges 25 Rs. Per sq ft per month
Lease and asset management charges 1% of basic rent & parking charges
SINKING FUND 24 RS/SQ.FT/YEAR
Outflows

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Comparative Analysis
Eros Corporate Tower is a successful commercial building in the area. It has reputed
clients & is having a good amount of profit. It even has a decent value to itself.
Paharpur Business Centre on the other hand, though being Green, is making a Y-o-Y
loss. It still has a lot of area vacant but has managed to lease out to some reputed
tenants.
The reasons for Paharpur Business Centre not performing as good as Eros Corporate
Tower are:
o Higher Rent because of higher construction cost
o Market not willing to pay for Green
PBC has incurred high construction costs for its LEED Platinum Certification. Which is
why it is demanding higher rent than ECT. Also, the people still think that Green
Buildings are a gimmick & just a marketing strategy, making them unwilling to pay
higher rent for the Green.
However, due to the rise of Green buildings in India, people are becoming aware of
the benefits they can derive from Green Building. Thus, over a few years’ time, PBC is
ought to be able to lease out its vacant space & make higher profits.
Eros Corporate Tower, on the other hand, can benefit by inculcating some green
practices in the building. These can include glazed windows, solar panels, natural
ventilation, efficient equipment, etc. These features will reduce the operating
expenses of the building, thus, making it even more profitable.

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Conclusion
The idea of energy efficient, healthy buildings has been around for a long time, now
that the concept of “green” or “sustainable” building is entering the mainstream and
catching the attention of fortune 500 companies like Wall Mart, Dupont, and Home
Depot etc. There are probably several reasons; Global Warming, rising energy costs,
the growing awareness and liability costs associated with “Sick Building Syndrome”,
declining oil reserves, and concerns about our limited water supply. The list goes on,
but whatever the reason or reasons; sustainable building is a concept whose time
has come.
Green building revolves around four key issues:
1. Designing for energy efficiency including the use of renewal energy sources
such as wind, geothermal, and solar.
2. Creating a healthy indoor air environment with adequate ventilation and
making material choices that minimize volatile organic compound (VOC’s)
outgassing within the home.
3. Specifying building materials and resources that are sustainable, have low
embodied energy, and produce a minimal amount of upstream environmental
impact.
4. Providing for the efficient use of water via appliance, faucet, and shower head
choices and in arid climates by xeriscaping and recycling grey water and
capturing rain water for landscaping and other non-potable uses.
All these above features can exactly be seen in AECOM building whereas Oberthur
Company does not stand for any of these features.
A green building costs less than a conventional building. Despite public perception to
the contrary, today here is no statistically significant difference in construction cost
between LEED and non LEED building. And the LEED building will have energy cost
savings, on average, of more than 33% compared with the non LEED building.

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The green building market has matured such that we can today, state with certainty
the hard data on performance proves that when first costs of green building are
considered with direct energy savings, a green building costs less than a
conventional building.
Though the AECOM building cost much more than the Oberthur building if area is
taken into consideration also the initial cost of building is very high but when the
other benefits of the building are seen than the cost is really low and benefits are
many of a green building.