PAARIJAT RESIDENCES BY SAFAL CONSTRUCTIONS PVT. LIMITED Project Star Rating Ahmedabad 6-Star Project Star Rating Rationale Project developer quality Safal Constructions Pvt. Ltd. (SCPL) has been in the real estate industry for the last 17 years and has developed a number of residential and commercial projects in and around Ahmedabad region. SCPL has completed 34 projects since 1995 covering about 116 lakh square feet (lsf) of developed space. SCPL has nine ongoing projects, including Paarijat Residences, amounting to a total developable area of around 130.55 lsf. Over the years, the group has created the brand bsafal which is one of the reputed and trusted brands in real estate development business in Ahmedabad. Project construction quality and amenities The contractors for the project have quality track record. Adequate amenities and recreational facilities like gym, steam and sauna bath facilities, garden with children s play area, club house with indoor games and 24/7 security surveillance by CCTV camera have been provided. The project is situated 12 km from Ahmedabad Railway Station and 18 km from Ahmedabad International Airport. The project is also having proximity to Sarkhej Gandhinagar Highway (500 mtrs) and Ahmedabad Ring Road (3 km) through which it is easily approachable from all major cities of Gujarat. The project comprises 44 residential apartments spread across two buildings (Basement+Ground+12 floors). Project is at an advanced stage of construction having already incurred approximately 50% of envisaged construction cost by March 2012. Project legal quality The title search for the project land is done for 30 years. Land title is clear, marketable and free from encumbrances. Besides, the project has received all required clearances from Ahmedabad Urban Development Authority (AUDA) and Ahmedabad Municipal Corporation (AMC). Also, many banks have pre-approved the project for giving individual housing loan in the project. Project financial quality Low funding risk owing to adequate booking status, majority of equity funds already invested and fall back arrangement by way of sanctioned term loan in case of delays in receipt of booking amount. Project Profile Project Name Paarijat Residences Project Type Residential (High-end luxury) Project Location Bodakdev, Ahmedabad Development Type Bought Out Project Start Date Feb 2011 Scheduled Project Completion Date Dec 2012 Agreed upon Possession to the customer Within 12 months period from the date of payment of full sales value Total Saleable Area Construction Status 1.81 lsf having 44 residential apartments spread across two buildings. The construction work for the project is at an advanced stage (50% of construction cost incurred) with superstructure work of both the buildings completed. The concealed electrical and plumbing activities have been completed. Work related to flooring for both the blocks is being carried out currently. Project Developer Profile Name of the company developing the project Project developer group Development Experience of the developer group No of years in the industry Safal Constructions Pvt. Ltd. bsafal 17 years 17 years 1
No of projects developed till date 34 Total Area developed till date No. of projects ongoing 116 lsf Eight (128.74 lsf of saleable area) other than Paarijat Residences Project Developer SCPL was incorporated by Mr. Rajesh Brahmbhatt in the year 1995. The group has been in the Ahmedabad real estate market for the last 17 years and popularly known as bsafal. As on May 31, 2012, SCPL has successfully completed 34 real estate projects consisting of residential, commercial and plotted development schemes aggregating to a total of around 116 lsf of developed area. Other than Paarijat Residences, the group has eight other ongoing projects aggregating around 128.74 lsf of total developable area. The company s entire development portfolio is located in and around Ahmedabad which gives it an advantage in terms of reasonable business network and understanding of real estate market in Ahmedabad. The progress of the project is tracked on a daily basis and related reports of the status are sent to the top management. The company uses excel based MIS system. Project Details The project is situated at Bodakdev, which is one of the most posh residential localities in Ahmedabad. The project is designed to provide high end luxurious lifestyle with privacy and exclusivity. It consists of total 44 residential apartments distributed across two 12-storied blocks with two residential units per floor. The project stands over a land bank of 0.56 lsf and has a total saleable area of 1.81 lsf. The project uses 2.25x of approved FSI. The project also uses innovative concepts like rain water harvesting system, fly-ash based concrete brick walls, enclosed swimming pool, cast iron based internal drainage system (with the concept of hanging plumbing), etc. Highlights of the project Rain Water harvesting system 24/7 CCTV surveillance, access card aided gate entry system and automated home security system Fly-ash based lightweight concrete walls Enclosed swimming pool Gym with steam and sauna bath facilities Backup generator for all common services Garden with children play area and Club house with indoor games Daikin VRV Air conditioning system for individual flats Separate service lift in addition to the 2 automatic lifts per block Fire-Fighting and safety feature with separate dedicated water storage tank Construction Status The project has used column footing foundation in both the blocks where construction and the excavation work is carried out 8 meters into the earth (4 meters basement plus 4 meters into the earth from the basement) where it found hard strata. The construction work for both the blocks is being carried out on a parallel basis. The 12-storied structures for both the blocks along-with plaster work has been completed. The concealed electrical and plumbing activities have also been completed. Currently, for both the blocks, work related to internal flooring is being carried out wherein flooring of 10 floors out of 12 has been completed for Block A and 4 floors out of 12 has been completed for Block B. As on May 31, 2012, SCPL has incurred approximately 50% of the total envisaged construction cost. Two sample flats are ready, one furnished and one unfurnished. Block A is slightly ahead in terms of construction work compared with Block B. Construction work related to facilities and amenities like club house, garden, children s play area, basement parking, gym, enclosed swimming pool etc. is expected to commence from August 2012 and is targeted to be completed by December 2012. 2
Contractor details Architects and structural consultants M/s. Apurva Amin, Architects, based in Ahmedabad is the architect of the project. Mr. Apurva Amin is a renowned architectural consultant in Ahmedabad. He has been associated with many well-known residential as well as commercial projects. Also, he was associated with some of the past projects of bsafal. Structural consultant Ducon Consultancy is the structural consultant for the project. Mr. Devendra Shah is the chief consultant for Paarijat Residences. Ducon Consultancy was also associated with some of the past projects of bsafal. Civil Engineers The civil construction work is overseen by Mr. Chandramauli, one of the Chief Civil Engineers of SCPL. Project Legal status The title search for the entire land (5,173 sq. mt.) has been done for 30 years and the land title is clear and free from encumbrances since 1992, as the registration record of the year 1970, 1977, 1980 to 1987, 1988, 1990, 1991 and 1992 of the Sub Registrar s office was destroyed / torn out. The draft agreement to sale, although is adequately detailed, does not mention the details of conveyance deed. The draft agreement to sale specifies time frame from the booking date instead of quoting a particular date. The draft agreement to sale specifies a penal clause for delays in payment by the buyer but it has no specific penal clause for delays in project execution by developer. Project Financial Status The total project cost of Rs.56 crore is envisaged to be funded by way of promoter funds of Rs.28 crore and the remaining amount by customer advances of Rs.28 crore. As on May 31, 2012, the project has already incurred Rs.21 crore towards the land cost and Rs.18 crore towards construction cost. This cost incurred as on May 31, 2012 is funded through promoter funds of Rs.16 crore and customer advances of Rs.23 crore. In addition SCPL has received sanction of working capital limit of Rs.15 crore from Axis Bank as a fallback arrangement. The company has received bookings for 34 units out of total 44 units valuing for Rs.43.09 crore. Also, it has received comfortable payment against booked units which shall facilitate timely completion of the project. DISCLAIMER CARE s rating of real estate projects is an opinion on the developer s ability to execute the real estate project in timely manner and with the agreed upon quality standards. Besides, it is an opinion of the legal quality of the project. The analysis draws heavily from the information provided by the developer and information obtained from sources believed by CARE to be accurate. However, CARE does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Also, CARE does not guarantee the adequacy of title search done to arrive at the legal quality of the project. CARE s Real Estate Project Star rating is also not a recommendation to buy, sell or hold the rated real estate property. CARE shall also not be liable for any losses incurred by users from any use of such rating. Most of the developers whose real estate projects are rated by CARE have paid a rating fee. Credit Analysis and Research Limited proposes, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its equity shares and has filed a draft red herring prospectus ( DRHP ) with the Securities and Exchange Board of India (the SEBI ). The DRHP is available on the website of SEBI at www.sebi.gov.in as well as on the websites of the Book Running Lead Managers at www.investmentbank.kotak.com, www.dspml.com, www.edelcap.com, www.icicisecurities.com, www.idbicapital.com, and www.sbicaps.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled Risk Factors of the DRHP. This press release is not for publication or distribution to persons in the United States, and is not an offer for sale within the United States of any equity shares or any other security of Credit Analysis and Research Limited. Securities of Credit Analysis and Research Limited, including its equity shares, may not be offered or sold in the United States absent registration under U.S. securities laws or unless exempt from registration under such laws. 3
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About CARE Credit Analysis & Research Ltd. (CARE) was promoted in 1993 by some of the leading Indian banks and financial institutions. Major shareholders of CARE include IDBI Bank, Canara Bank and State Bank of India. CARE is amongst the premier credit rating agencies in India and provides credit rating, research and information services. CARE Ratings is well equipped to rate all types of debt instruments including Commercial Papers, Fixed Deposits, Bonds, Debentures, Hybrid Instruments, Preference Shares, Loans, Structured Obligations, Asset Backed Securities, Residential Mortgage Backed Securities etc. CARE s rating methodologies are in line with the best international practices. Row houses 22/12/2011 Interior Kitchen finishing 22/12/2011 Transformer and underground water storage 22/12/2011 5
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