NEWSLETTER. Greetings from Satish Chukkapalli. A word from a proud owner - Mr. & Mrs. Dilip Kumar Yadav A P R I L / M A Y / J U N

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1 A P R I L / M A Y / J U N NEWSLETTER C O N T E N T : Greetings from the Director...1 Greetings from Satish Chukkapalli The Progress of the Buildings...3 Hyderabad Realty News: Hyderabad Sees Marginal Rise in Property Prices from Jan-March...5 Google to set up biggest campus outside the US in Hyderabad...6 House owners profiting on rising rentals in Hyderabad...7 Expand Non IT might drive the revival of Hyderabad realty...8 US-based DE Shaw plans $200 million investment in Hyderabad...9 Upsurge in office space absorption to drive housing demand in Hyderabad...9 Hyderabad infrastructure plan to be grounded by June...11 India Realty News: Government Relaxes Rules for Foreign Investment in Real Estate...12 Dear All, I believe the monsoon must have been a good and eventful months with lots of pleasant happenings in your life. I wish you and your family great days ahead and many surprising events to fill your life. I am excited that the month of April was a month of progress for us. As the new financial year began, I think all of us are looking for great days ahead in terms of career development, growth and new avenues in every respect of our lives. Let us look forward with expectations of a more dynamic and eventful future. A word from a proud owner - Mr. & Mrs. Dilip Kumar Yadav Owing a flat in Golf Edge has become a dream come true. Golf Edge is the perfect combination of the three most desired parameters great location, elegant design and best amenities. The fully furnished, fully serviced and fully fitted apartments is a one-of- its- kind concept and has also been awarded the best residential project in the luxury segment. Totally luxury-personified, Golf Edge raises the bar on great living with impeccable lifestyle offerings. I am proud to say that Golf Edge is a Signature Landmark in itself Follow us on Face book and get the latest news: 1

2 P A G E 2 Phoenix group wishes all our extended Phoenix family members a very Happy Birthday. Deepa Nadella - 04/04 Harwinder Kaur - 01/04 Anju Jha - 20/04 S Lakshmi Kolluru - 26/04 Rudraraju Venkata Suryanarayan Raju - 29/04 Gottipati Satish - 25/04 V Mahender Rao - 01/04 V Ramesh Babu - 15/04 NeeraJ Kothotia - 05/04 Sridhar Rao Kodati - 01/04 Somya Kidambi - 04/04 Kavitha Akkapalli - 12/04 Sujan Turlapaty - 11/04 Kiran Kumar Shrikant Chouka - 14/04 Mysore Basavarajaaiah Nagakumar - 20/04 SANDHYA R - 09/04 Haranath Babu Maganti - 02/04 Panuganti Naveen - 14/04 Yamana Sumalatha - 22/04 M Sirisha Challa Veera Raghava Prasad - 13/04 Shailesh Tekkurkar - 24/04 Madhu Jain - 14/05 Praveena Madan - 16/05 Sagar Kurada - 10/05 Harini K - 31/05 Jayram Komati - 25/05 Rayapudi shoba rani - 15/05 D.Venkata Chalam - 29/05 Madhulita Das - 30/05 Swastik Tube Corporation (Varun Gupta) - 30/05 P Sandhya - 8/05 Moutushi Choudhury - 12/05 Aswani Trackroo - 18/05 Raj Vanjani - 02/05 M Kiran Kumar - 18/05 Rashmi - 12/05 Racharla Laxmi - 13/05 Lakshmi Chundu - 05/05 Kalyani Karanam - 05/05

3 P A G E 3 Progress of the Buildings Tower A Tower A Tower A. 100% structure completed. Masonry work up to 29th floors completed Excluding Customization flats. 95% Internal Plastering completed. External Plastering work in progress and 60% completed. Interior Works: False ceiling work in progress False ceiling grid work in progress Staircase-1 granite work is in progress from 1st floor Tower B. In the tower B all the 30 slabs are completed. Masonry work Up to 29 th floors completed. Internal Plastering work 95% completed. 90% of the external plastering completed. Ground floor to 29th floor structural glazing completed for 6th and 7th units. Interior Works: 8th 20th Floor interiors work is in progress. Unit-5,6 &7 structural glazing completed from GF-29th floor Elevation work in progress Tower B Corridor & interior flats false ceiling grids work completed from 10th-20th floor 7th 10th 11th 12th 14th 15th 19th & 20th floor screeding & dadoing completed 1st Coat Putty Completed In 12th & 14th Floor Including Corridor Staircase-3 railing completed from GF terrace floor Window frames fixing completed in 10th -20th floor Fire window completed in 15th & 16th floor 11 th 12 th 14 th 15 th 19 th & 20 th floor marble work completed 10 th to 20 th floor door frame fixing completed

4 PAGE Club house. All the floor slabs of the clubhouse are completed. 100% Block work completed. Masonry works in Ground, 1st, 2nd & Lower Terrace floor completed. Club house Club house staircase granite work completed from stilt-lower terrace Internal Plastering Completed 100%. works External Plastering Com1pleted up to 100% Club house false ceiling grid in progress Commercial building. 8th floor slab concreting 100% completed. 9th Floor columns reinforcement and slab Shuttering work in progress Commercial building 4

5 P A G E 5 Hyderabad Realty News Hyderabad Sees Marginal Rise in Property Prices from Jan -March Source: New Indian express HYDERABAD: Despite commercial real estate market taking a hit and residential sector moving at a sluggish pace, there has been a marginal increase in the city s property prices in the last quarter. Hyderabad has witnessed 2 per cent growth in property prices from January to March as compared to October to December last, according to an Insite report by property portal 99.acres.com. Insite is a quarterly report focusing on capital and rental price trends in the residential real estate market across seven major cities of India. According to the report, the rental values in Hyderabad in the last one year have seen an average growth of 12 per cent. Mid-sized homes configured as 2 and 3BHK units were the most popular in the city. Most housing units in the city fall in the price bracket of Rs lakh. The presence of IT industries and the upcoming Hyderabad Metro Rail at strategic locations were the prime reasons for surge in housing demand in West Hyderabad, the report stated. Shaikpet, which registered a 10 pc price appreciation, saw rise in housing demand due to several projects nearing possession by the end of Meanwhile, Kondapur earned an appreciation of 11 pc due to presence of several readyto-move-in properties and well-developed social infrastructure. Banjara Hills recorded a price hike of 22 pc. When it comes to supply analysis, the supply of various property types such as apartments, builder floors and independent houses/villas in Hyderabad recorded slight variations from January to March 2015, as compared to October to Dec 2014, the report said. Residential apartments continued to remain the most supplied property type with over 60 pc market share. While the share of properties in the mid-income segment (Rs lakh) continued to top the city s supply chain, the share of ready-to-move-in properties in this budget range went up by 16 pc in Jan-Mar The city recorded an increased supply of ready-to-move-in properties this quarter. Overall, supply of these units went up by 12 per cent. It stood at 61 per cent as compared to 49 per cent in the last quarter, the report added. Commenting on the report, Narasimha Jayakumar, chief business officer, 99acres.com,said, After seeing an all-time low in the real estate market, Hyderabad has started picking up pace. The core areas witnessing maximum development are concentrated in the West, which is driven by software industry. With the upcoming Hyderabad Metro, the market is expected to improve further. Highlights Banjara Hills and Kondapur in West Hyderabad recorded the highest price appreciation of 22 pc and 11 per cent respectively Localities in the south such as Appa Junction and Dilsukhnagar saw prices dipping by pc Kukatpally, KPHB, Ameerpet and Miyapur recorded pc spike in rental values Jan-March/2015/06/06/article ece

6 P A G E 6 Hyderabad Realty News Google to set up biggest campus outside the US in Hyderabad Source: Live mint Google will invest Rs1,000 crore in its first company-owned campus in Asia, which will house 13,000 employees Google Inc. will build its biggest campus outside the US in Hyderabad at an investment of Rs.1,000 crore. The 2 million square feet facility, the Internet giant s first companyowned campus in Asia, will house 13,000 employees when it is ready in Telangana information minister K.T. Rama Rao, who is on an official visit to the US, signed the agreement with Google Inc. at its headquarters at Mountain View, California, under which the state government will allocate the company 7.2 acres in Hyderabad s Gachibowli locality. Google currently operates out of a leased facility in Kondapur locality in the city and employs about 7,000 people. Once the new campus is completed, Google s Hyderabad headcount will nearly double. Google has over 70 offices in 40 countries, including four in India: Bengaluru, Mumbai, Gurgaon and Hyderabad. Gachibowli is also home to the offices of Microsoft, Cap Gemini SA, CA Inc., Infosys Ltd, Wipro Ltd and Deloitte among others. Excited to announce that Google & Govt of Telangana have inked an MoU to build their largest campus (outside US), Rama Rao said on microblogging site Twitter. Google expects the facility to be complete and fully operational in about four years and is supposed to start before the summer of 2019, a statement from the Telangana government said. After 12 months of planning, construction of the facility will start in 2016, said David Radcliffe, Google s global head for facilities and workplaces, who signed the agreement on Google s behalf, said in a statement. It will take two-and-a-half years for the facility to be completed. Google was earlier allocated about 20 acres at Kokapet in 2007 but the project failed to take off due to legal hurdles. The government then assigned another piece of land at Raidurg locality in 2013 but this too didn t take off. After coming to power, the Telangana government has been trying to showcase Hyderabad as an investor-friendly destination. Online retailer Amazon Inc. last month unveiled plans to open its biggest fulfilment centre on Hyderabad s outskirts. Google has also agreed to a verbal request from Rama Rao to begin implementing Street View feature (of Google Maps) in India from Hyderabad.

7 P A G E 7 The company is awaiting approval from the Union home ministry to roll out the feature in Indian towns and cities although it s available at some tourist sites such as Taj Mahal and Qutub Minar. Street View allows users to have horizontal view of a street rather than a bird s eye view that s currently possible with Google Maps. Google has also agreed to support specific requests made by the minister to utilise Street View for monitoring of deviations from approved building plans, property tax collection, mapping of industrial land bank located in different parts of the state, to name a few, the government statement said. Google will also examine the feasibility of contributing its high-speed wired broadband service Google Fiber in Telangana. Rama Rao discussed the government s plans to provide fiber optic network connectivity to homes in Telangana in the same ductlines as a state-wide water grid project. House owners profiting on rising rentals in Hyderabad Source: Magicbrciks Are you looking to invest in property anytime soon in Hyderabad? This may be a good time! Close to 61% of the localities in the city recorded a rise in rental values. Thanks to new investments, government initiatives, talk about upcoming metro and road infrastructure and perhaps the stability in the state. Areas in the western IT belt of the city continued to dominate and drive the realty market with localities such as Kukatpally, Madhapur and Nallagandla recording the highest rental appreciation.while the first two areas are fairly developed, Nallagandla is driven by the spillover demand from Gachibowli and is hoping to replicate the success story of its neighbour. Madhapur If there could be a locality that could topple Gachibowli from being the most preferred locality for rent, it is Madhapur. Rental housing demand in this locality has been up for two reasonsfirstly, the area is the center of all the financial and commercial activities in the city and secondly, for time conscious tenants, daily commute could be time consuming. Hence, the idea of paying a little more to stay close to office works! Also, several small and big IT companies have recently come up in the area, increasing the strength of employees who look for renting out properties here. house-owners-profiting-on-rising-rentals-in-hyderabad/80964.html

8 P A G E 8 Expand Non IT might drive the revival of Hyderabad realty Source: Magic Bricks In the last four to five months, several non-it MNCs have either set the ball rolling to set up shop or expand their facilities in and around Hyderabad. The list includes Rotocraft in JV with the Tatas; an aerospace training hub by GMR Group; LuLu Group International; the Abu Dhabi-based company with diversified business interests in the retail sector; Pratt & Whitney; Procter and Gamble; Johnson and Johnson; IKEA and Cogent, among others, in addition to the upcoming Pharma City at Mucherla. Of these, Pharma City alone is expected to generate about 80,000 jobs in Phase I. With the industrial corridors near the city such as Mahabubnagar, Murchela and the neighbouring Ranga Reddy district, one can expect development of residential areas in the vicinity of all these areas, says Sudhesh Dharampal, one of the brokers dealing in Vidhya Nagar. The entire RR Stretch, along with the existing Gachi bowli, Hitec City, Madhapur, Kondapur and Manikonda areas, planned to be a part of the greater infrastructure development, are expected to benefit. With road connectivity and ongoing electricity development projects, one can expect the demand for housing to increase in the coming year, says a source from Cushman & Wakefield. THE EDUCATION SECTOR As areas such as Gachibowli and Hitec City offer expensive rental accommodation options, students generally target affordable societies of Madhapur and Kondapur. These areas were being targeted by students from ISB and the Hyderabad University. But with the XLRI (70 acre) campus coming up near the BITS Pilani Hyderabad campus and with other premier institutions like the Institute of Management Technology (IMT), Ghaziabad; Tata Institute of Social Sciences (TISS), Mumbai; the Narsee Monjee Institute of Management Sciences (NMIMS) and the All India Management Schools Association set to open campuses in the vicinity, a larger number of localities are expected to cater to the needs of this segment. Additional localities expected to be impacted due to the developing educational hub include Vidya Nagar and Nallakunta, Begumpet and areas surrounding Jawahar Nagar. If all these planned expansions go as per schedule at the industrial and educational front, it is a matter of time before Hyderabad residential realty is driven by much more than its dependency on IT. -revival-of-hyderabad-realty/80902.html

9 P A G E 9 US-based DE Shaw plans $200 million investment in Hyderabad Source: Economic times Global investment and technology firm DE Shaw, in association with Blackstone Asset Management Company, has agreed to invest $200 million in Hyderabad to set up a facility to provide software services for post-trade activities of asset management companies, said Telangana government in a statement. The New York headquartered firm will set up a new subsidiary titled Arcesium in Hyderabad in partnership with Blackstone, which will have 400 employees by the year-end to double the number over the next three years. Upsurge in office space absorption to drive housing demand in Hyderabad Source: Business standard The increase in office space absorption during the last three quarters in Hyderabad is expected to generate higher demand for residential units in the next six months, according to market observers. The upsurge in the office space activity was able to keep the housing sector recovery hopes alive despite the disappointment associated with the delay in the launch of the Metro Rail early this year, they said. With an 84 per cent growth in net office space absorption for the January-September period in the last calendar year, Hyderabad has joined the fastest-growing markets in the country in office leasing by adding 3.87 million sft, according to a report from global real estate consultant firm Cushman & Wakefield. The average deal size here increased 28 per cent to 18,400 sft, the report stated. The increased activity has resulted in a sharp rise in office rentals from Rs per sft seen a year ago to Rs 47 now. Tracking this, vacancy levels have dropped to the lowest 4-5 per cent currently across all prime locations, said real estate consultant JLL. We would not be surprised if the rentals touch Rs 50 per sft soon, said Sandeep Patnaik, managing director of JLL, here. With so much of activity, the most-preferred financial district has become very congested now, he added. While other metros in south like Chennai and Bengaluru have multiple corridors allowing corporate houses to expand, Hyderabad has very few options in this regard.

10 P A G E 10 According to him, the market here would gather more steam as three IT & ITeS companies were in advanced stages of discussions to float a request to clinch a large chunk of space in the coming months. It must be noted that e-tailer Amazon has recently closed a deal for acquiring 300,000 sft of space near Shamshabad. Other major player Flipkart, too, has gone in for around 250,000 sft for its back-end operations at Medchal near here, while Swedish retailer Ikea has announced an investment of Rs 500 crore in Hyderabad. In its report, Cushman said office rentals values in the suburban Gachibowli market may appreciate marginally during the April-June quarter, as the upcoming supply is likely to be introduced at higher rentals. Limited availability of quality office spaces in Madhapur may also push up demand in Gachibowli, it added. Considering all of this, the technicals for residential market are looking very bright and would be in a sweet spot in the next two to three quarters, they said. While residential property prices have remained stable in the last two years, developers could raise them in the near future. Speaking to Business Standard, Jayashree Kurup, head of content and research at real estate portal MagicBricks, said buyers here were looking for a further drop in interest rates to hit the market, and added buying sentiments are not down. In their research on consumer sentiment, it was observed that users here did not say they would not buy property. Magic Bricks expects residential prices to rise after Dussehra this year. For the first time, we are noticing interest from private equity players in the city housing market. With considerable development activity taking place in Madhapur and Gachibowli, we expect housing prices to rise in the next five to six months, said Veera Babu, office head Hyderabad, Cushman & Wakefield. According to data compiled by Cushman for the first three months this year, housing sector capital values have remained stable. It had noticed a 3-6 per cent price appreciation in the prime Banjara Hills and Jubilee Hills locations, when compared with the corresponding period last year. The average price per sft in these two locations stood at Rs 7,000-10,000 during the period. Developers launched around 3,300 new units during the aforesaid period and a majority was in Gachibowli, Madhapur, Sainikpuri, Miyapur and Kompally. City developers are yet to witness the pre-2008 record boom for housing units. According to sources in the real estate market, housing developers here are finding it difficult to cope with the high cost of financing, and are not considering hiking rates in the near term. 10

11 P A G E 11 Hyderabad infrastructure plan to be grounded by June Source: Deccon Chronicle Hyderabad: A day after the TRS plenary adopted a resolution to develop Hyderabad as a global city, officials started the exercise to build skyways, multiple grade separators, multi -level flyovers and corridors to ease traffic congestion on busy roads and junctions as part of the Strategic Road Development Programme. Chief secretary Rajiv Sharma held a meeting with officials of the municipal administration department and the GHMC at the Secretariat on Saturday to finalise the locations where these projects need to be taken up first. Posh areas like Madhapur, Jubilee Hills, Banjara Hills and Gachibowli may get priority. Chief Minister K. Chandrasekhar Rao is keen to lay the foundation stone for at least four projects before he completes a year in office on June 2. Officials have shortlisted nine projects that need to be taken up in the first phase at an estimated cost of Rs 1,611 crore. The government wants to launch works on four projects by June by calling global tenders. Initially, the work is likely to be launched at KBR Park, Banjara Hills, where a five-junction multi-level flyovers will be built. A multi-level spiral flyover with six lanes will be built at Jubilee Hills checkpost junction at an estimated cost of Rs 516 crore. Two major corridors have been planned at Ayyappa Society, Madhapur, and the Biodiversity Park at Gachibowli, costing Rs 28 crore and Rs 86 crore respectively. Multi-level flyovers have been planned at Rasoolpura (Rs 64 crore), the LB Nagar- Byramalguda-Kamineni Hospital-Chitankunta checkpost (Rs 448 crore), traffic interchage at Uppal junction (Rs 247 crore) and a flyover-cum-underpass at Owaisi junction (Rs 63 crore). A flyover was planned at Bahadurpura at an estimated cost of Rs 69 crore and Rs 90 crore was to be spent to develop the Rajiv Gandhi junction in Somajiguda. Officials have submitted detailed project reports for all these projects to the government. Recently, construction major Shapoorji Pallonji group chief Shapoorji Pallonji Mistry had met the CM and offered to invest Rs 20,000 crore to improve infrastructure and officials were asked to work out modalities. -be-grounded-june 11

12 P A G E 12 India Realty News Government Relaxes Rules for Foreign Investment in Real Estate Source: NDTV Profit The Cabinet on Wednesday relaxed rules to allow foreign funds to invest in real estate investment trusts (REITs), a move designed to revive the country's capital-starved property sector. The government introduced REITs last year to pool in capital from overseas and help developers reduce their debt. But provisions in the Foreign Exchange Management Act (FEMA) have, thus far, prevented actual investment flows. The FEMA governs cross-border transactions. "The approval is expected to enable foreign investment inflows into the completed rentyielding real estate projects, which is, as of now, prohibited," the government said in a statement Property Market to Improve by This Fiscal Year: Fitch Source: NDTV Profit Global rating agency Fitch on Monday said the likely upturn in the country's investment climate and reduction in interest rates will improve the property market by the end of March 2016 and provide relief to the debt-ridden developers. "The property development sector (will) be a key beneficiary of reductions in housing loan interest rates by several domestic banks in April 2015," the agency said, adding that they would also boost credit growth. The Reserve Bank has reduced the key policy rate by 0.50 per cent since January, prompting commercial banks to cut interest rates for home loan and other borrowers. "We expect property developers with a greater exposure to the middle and lower income segments to benefit more from lower domestic interest rates," it said, adding that developers with a greater mix of high-income customers, such as Lodha Developers and Indiabulls, will be less impacted because their customers are less sensitive to market interest rates. Both the companies, it said, would meaningfully reduce the portion of debts by end Cont...

13 P A G E 13 The rating agency observed that "the process of reducing leverage (debts) stalled in 2014 due to weak sales and slower cash collections on properties that were sold towards the end of 2014 and in early 2015, as developers introduced easy payment schemes to stoke demand." Earlier in the month, Fitch raised its forecasts for India's GDP growth to 8 per cent for the current fiscal, up from 7.4 in per cent in , and 8.3 per cent for Domestic property purchases remained weak in 2014 due to high interest rates and some political and policy uncertainty in an election year, it said, adding that several buyers postponed their purchases, which drove up inventory levels steadily during the last 12 months. Most developers, Fitch said, responded by introducing easy payment plans for certain products. These payment plans typically require 20 per cent of the property price to be paid upfront and the remainder at the end of construction, usually several years later. This has lengthened cash collection cycles and contributed to higher leverage. Fitch estimates that around 20 per cent of the sector's sales over the last two fiscal quarters were financed by easy payment plans and observed "the longer cash collection cycle will continue to weigh on developers' balance sheets in the near term." 13

14 P A G E 14 Phoenix s other residential Projects. Halcyon, Hyderabad Halcyon is for the hi-end customer and the connoisseur. It is upscale living packaged with ultra premium luxuries and comforts. Halcyon is located in Jubilee Hills, Hyderabad. From spellbinding architecture to tailor-made services, Halcyon resembles a five star home making its residents feel proud of owning it. The Village, Chennai The Village with 72% greens in OMR, Chennai creates a lasting impact on its residents. The holistically planned gated community has an array of home choices giving you an instant access to a luxurious lifestyle that you aspire for. Quality, affordability and natural green living.

15 P A G E 15 The Commune, Chennai A collection of attached villas set amidst a premier gated community on OMR, this 40 acre landscaped project, is a part of the Village Township, promoted by Phoenix Hodu Developers. The Master Plan was conceptualized by award winning Architect Prof. Cox of Australia. Naturally... there is no dearth of amenities and utilities; including a 30,000 sq.ft. Club house. Golf Edge Links: Website: Brochure: Floor Plans: Site Plan: Application: Walk-Through: Facebook: CONTACT DETAILS: sales@golfedge.in Director Satish Chukkapalli satish@phoenixindia.net Sales team