REAL ESTATE ROADMAP -

Transcription

1 REAL ESTATE ROADMAP - INVESTMENT OPPORTUNITIES December 2017

2 Preface Largely sunny skies with a few cloudy patches, is how we would describe the current state of the Indian real estate horizon. While most asset classes are doing well and attracting a fair share of investment flows, the residential sector still appears to be in some strife. The spate of reforms in recent times though appears to be the light shining through these clouds. It is quite pertinent to note that the investment flows in to real estate over the previous year have been more than the combined total of the past four years. Private equity investments in Indian real estate have now crossed USD 42 bn. In 2016, the sector attracted over USD 6.9 bn investment. It is relevant now to not only understand the various funding structures that are evolving but also analyse which asset classes and which geographies the funds are going to. Whilst the current level of platform level investments are at over USD 5 bn, they are also growing. The focus is towards building long term relationships with the developer; for the investor willing to take the plunge of participating in the development risk once again. Investor philosophy has changed from opportunistic in 2007 to patience in A spate of patient capital from long-term sovereign and pension funds has also made its way in to the sector with renewed force. Though commercial markets and retail markets seem to show an overcrowding of investors for select quality assets; equity participation still remains low in residential markets. However, new asset classes like student housing and senior living are emerging in this sector and they look promising. Hospitality markets are set for an upward trend with future demand outstripping supply. New hotel supply in the country is anticipated to slow to 3-4% (y-o-y) over the next 2-3 years - from a high of 6-8% over the past five years and the opportunity to invest in the sector is ripe. This paper seeks to outline the opportunities across asset classes and emerging trends such as Tier II cities being evaluated by investors for retail markets. We anticipate that investment flows will continue to be healthy as the reforms process in the real estate sector continues and past success stories of healthy returns provide fuel for a bright future outlook. We hope you enjoy reading our views on these investment trends. Ramesh Nair CEO & Country Head JLL, India

3 Real Estate Roadmap Realty Sector Investment Overview PE Investment peaked in USD terms; More than 30 developers raised money USD 4.7 bn; 65% equity Improved economic scenario and later on election results bringing in a new government; equity rose steadily Improved confidence; Equity platforms created but deployment pending; Structured equity continues to be higher The composition of inflows has witnessed a change post GFC with equity having dipped to just 48% of total inflows of USD 4.7 bn post GFC in , compared with it contributing 76% to total inflows of USD 1.1 bn in In 2016, the sector attracted over USD 6.9 bn investment flows and with the current spate of reforms, viz. RERA, GST, Benami Transactions Bill, demonetisation - all indicating toward a cleaner sector environment, investor confidence is back. Only 5% of total investment flows in the residential sector over the past four years were in the form of equity, while the commercial and IT sector has commanded a greater share of equity participation at an average of 78% over the corresponding period. FDI opened up in fast growing Indian real estate industry; Higher focus on IRR Shaken by GFC, investors reduced equity exposure and shifted to safer option of structured equity Focus on portfolios rather than single assets USD 1.1 bn; 76% equity USD 4.7 bn; 48% equity USD 16.5 bn; 50% equity Source: JLL Capital Market Research

4 Image Realty Sector Investment Overview Sector-wise Private Equity Investments across Asset Classes (2014-YTD 2017) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 5% 16% 40% 38% % 10% 17% 20% 47% % 5% 2% 30% 59% % 9% 11% 1% 40% 35% 2017 YTD Residential & Township IT & Commercial Entity Retail Warehousing & Infra Others Total investment flows - INR 125,000 crores from 2014 till date; 42% in the form of equity IT & Commercial sector has been finding increasing favour from private equity investors. A substantial amount is still being invested in the residential sector, though most of it is in the form of debt structures. 11.5% 5.0% 11.4% Tracking investment flows for Cities 71.5% TIER I (A) TIER I (B) TIER II TIER III & Others Source: JLL Capital Market Research Tier I cities have accounted for 83% of total investment inflows since Interestingly, equity inflows worth INR 20,000 crores have been deployed in Tier II cities, largely for well-performing retail assets in these urban centres. Residential Sector

5 Residential Sector: Investment Trends Investment Flow in Residential Real Estate Asset Class across Cities 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 29% 71% % 47% YTD TIER I (A) TIER I (B) Others Tier 1 cities specially A category comprising Mumbai, Bangalore and Delhi NCR have attracted maximum investment flows. This is on account of relatively lesser risk, presence of big, branded developers with national footprint, high demand and developer s comfort with the city dynamics. The participation of equity investments in residential projects has been slow on account of the general sluggishness in the residential markets and investors unwilling to take the downside risk. With increased transparency and regulations we expect a return of equity to residential markets. Examples of small ticket size investments: JV between Unique Builders and Keemaya Build raised approximately INR 25 crore through non-convertible debentures to facilitate a residential project at Kandivali East in Mumbai. Altico Capital India Pvt. Ltd., as a part of its plan to invest INR 3,000 crore in realty projects, has provided debt of INR 36 crore to Divyasree Developers in Bangalore 100% 100% Investment inflows in residential since 2014 have been INR 59,000 crores; approximately 47% of the total invested money in real estate over the same period Pure equity investments comprise just 5% of total investment flows in the residential sector Debt structures dominate the fund inflows in residential; developers overleveraged; RERA compliance should create a conducive environment for return of equity participation Residential Sector: Key Opportunities Affordable Housing: Launches in the affordable homes (within the price range of INR 40 lakh) category has been the highest between 1Q17 and 3Q17 across the country. Affordability has gained preference over all other factors and developers have tweaked their strategy accordingly. 52% of the launches across the country were in the below INR 40 lakh category followed by the INR lakh category which recorded the next highest at 32%. Bangalore, Mumbai Metropolitan Region (MMR), National Capital region (NCR) and Pune account for approx % of the total launches in the sub INR 40 lakh category across the country. With affordability likely to remain a key criterion for home buyers, investors would do good to look at this asset class, specially with reducing risk. Developers are keen to meet RERA timelines for completion, hence project delays will be minimized. New asset classes like senior housing, student housing are newer asset categories to look at in the near future. Student Housing: The unmet demand for student housing is very high in India. The ten leading states in terms of number of students in the higher education space experience an unmet demand of 30-60%, as per official statistics available. The Student Housing market in India is similar to the market of USA, where the demand comes from domestic migration While the market is small and unorganized currently, it has considerable potential and cities like Hyderabad, Indore and Kota look attractive for this asset class as land prices are reasonable and unmet demand from students is high. With a growing number of women seeking higher education, there exists an opportunity in catering to their specific needs. Bangalore based affordable housing firm VBHC Value Homes is backed by a number of investors including Japanese real estate conglomerate Daiwa House Industry Co, Caspian Investment Advisors, The Carlyle Group, International Finance Corp, Tano Capital and HDFC Bank. The PE funds and small investors own over 60 per cent stake in the company valued at over INR 800 crore. The developer which sells homes in INR lakh price bracket is planning to launch one million sq. ft. consisting of residential projects across Bangalore, Pune and Mumbai over the next year. Senior Living: Families are no longer equipped to take care of their aged family members. In this changing social environment, concepts such as contemporary retirement resorts are becoming acceptable and popular in India but the integrated continuing care retirement communities offer opportunities. The estimated senior population in India currently is 98 mn and expected to touch 240 mn by While most of the housing units are priced in the economy and medium to semi luxury class (upto INR 66 lakh category), developers can explore opportunities in the high end category. This will take into account the need of NRIs wishing to see their aged parents in comfort in India. With the market getting streamlined and becoming increasingly transparent, more of equity investments may be witnessed in the near future. Source: JLL Capital Market Research

6 Commercial Sector Commercial Markets: Investment Overview Market share of developers in Lease Only Stock 3.1% 3.4% 3.6% 2.4% 4.0% 2.4% 2.3% 4.8% 4.9% 8.5% 5.9% 7.1% DLF K Raheja Corp Embassy Property Developments Brookfield RMZ Corp Ascendas Prestige Group Panchshil Realty Divyasree Developers Bagmane Developers Blackstone Salarpuria Group The top 12 players combined hold a 52.6% share of lease only stock (total 306 mn sq ft) and their respective market share is shown in the chart. Bengaluru has the highest contribution in terms of number of such lease only assets, followed by Delhi NCR and Mumbai. Substantial opportunities still exist with these players in their portfolios for tie-ups. Key Ownership Trends JLL data shows that 306 mn sq ft of speculative Grade A office stock is held under single ownership/lease only model; this is more than 61% of total Grade A office stock across the top seven cities. The developer share data in the graph assumes only complete ownership of physical assets. Wherever, assets are held in SPVs, entire share has been attributed to the developer. This explains why while Blackstone s share (pie explosion piece) is shown at only 2.4% keeping in mind its direct ownership of assets, its tie-ups with Embassy, Panchshil and investments in K Raheja Corp make it the market leader. Blackstone is the biggest holder of physical commercial real estate in the country with more than 11.0% share. Interesting to note that two pure private equity funds, Blackstone and Brookfield feature in the top five commercial asset owners in the country. All the top developers have already received investments from large private equity and sovereign funds. Major stakeholders and platform level partners include GIC and QIA. Apart from the developers listed here, we have identified another 40 developers with stock holdings of least 0.9 mn sq ft of quality assets, who can offer more opportunities for core assets investments. Source:JLL REIS 2017

7 Commercial Markets: Investment Trends Commercial Sector: Forecast 100% 16,000 90% PE Investment in INR Cr. 14,000 80% 12,000 We expect more new project announcements going forward by individual as well as established players which have tied up with private equity players. 70% 10,000 60% 8,000 50% Nearly 60% of this upcoming supply is lease only in nature, with over 83% of this quality stock geared towards IT and SEZ development. 40% 6,000 30% 4,000 20% 2,000 0 Approximately 192 mn sq ft of office space under construction and announced till % 10% Office Total Investement YTD 0% 3.1% Market share of developers in Lease Only Stock % share of Equity 3.1% Total investments in the Office asset class are clearly on an improving trend since Equity participation has always been the preferred mode for investment by PE players and the good news is that volumes have improved significantly over the past 4 years. Private equity inflows in Office & IT for YTD are 150% higher than the previous seven years inflows combined. Most of the low-hanging fruits in the form of core asset portfolios have already been invested in to. We expect more focus to remain towards core assets and falling yields are indicative of the strong demand for such assets. There are opportunities for single assets and with developers who have smaller and localised portfolios. The opportunity in our opinion is now moving towards platforms for brownfield/greenfield development. 7.0% 2.9% 4.8% 3.6% 3.2% 3.3% 3.4% K Raheja Corp Embassy Property Developments Brookfield DLF Phoenix Group Panchshil Realty Shapoorji Pallonji Group Brigade Group Divyasree Developers Blackstone Source: JLL REIS, 2017 Of the top 12 quality office stock holders, 8 feature in the top 10 who are likely to add the most supply going forward over the next five years The top 10 players adding new supply are contributing 37.0% of this upcoming supply. In brief, the same key players feature prominently in the current stock positions as well as in future supply projections in commercial markets. Source:JLL Capital Markets Research Commercial Markets: Key Opportunities Key Results and Opportunities: Core asset yields trending at 8.0% and lower. Most core asset portfolios already invested in to by larger PE players. Substantial opportunities also exist in captive campuses and built to Suit complexes owned by corporates for investments. Along with existing investment-grade stock, opportunities with new players adding fresh supply exist with the right development partner. Vacancy in major commercial corridors across prime office city markets are currently in single digits. Ongoing space requirements point towards healthy demand in the future. Hence, development of commercial projects remains attractive. New investments are chasing brownfield/ build to core developments through platform level tie-ups between established commercial office developers and global PE players. A few platform partnerships outlined below show how the focus remains towards equity participation in commercial assets, but investment strategies are being tweaked to take on more development risk for ensuring higher portfolio returns. Year Investor Partner Developer Partner Mode Asset Class Investment (USD million) 2012 Baring Pvt Equity India RMZ Equity Office QIA RMZ Equity Office CPPIB Shapoorji Pallonji Group Equity IT Park Standard Chartered Tata Realty & Infrastructure (TRIL) Debt & Equity Office CPPIB & QIA RMZ Equity Office 1, Allianz Group Shapoorji Pallonji Group Equity Office 500 Source: JLL Capital Markets Research Investors are willing to undertake development risk by exploring greenfield/brownfield projects through unique transaction structures

8 Retail Sector Retail Sector: Equity Investment Trends Private equity (PE) players are back investing in retail real estate (based on rising consumption levels) through investments in superior retail malls across cities largely due to the limited supply of retail space across the country 58.1% TIER I (A) TIER I (B) TIER II 4.6% INR 10,000 crore invested over last 3 years - share of pure equity is 93% Source: Real Estate JLL Roadmap Capital - Market Investment & Retail Outlook Research 3Q % ~ INR 5900 crores invested in retail malls in Tier II cities - increasing retail consumption for smaller urban centres and better valuations for completed, operational and quality assets driving this shift Over 58% of total investments in the Indian Retail Mall universe have been invested in Tier II cities. The growth potential of rising consumption is resulting in such investments. PE investments include platform and entity-level deals as well as acquisition of stakes in leading malls. Examples of Blackstone which has set up a subsidiary - Nexus Malls for managing its retail investments across Tier I as well as smaller cities, CPPIB-Phoenix Mills partnership and the Xander-APG platform readily spring to mind. Institutional investments in the retail real estate sector have been increasing in recent years. A substantial amount has been in the form of equity-93% of total funds invested, with preference for established, superior retail projects. Available retail assets have become more expensive as many investors are targeting the same property

9 Retail Sector: Equity Investments in Grade A malls across cities RETAIL INVESTMENT STRATEGIES ADOPTED IN GRADE A MALLS ACROSS CITIES Blackstone through its subsidiary Nexus malls has picked up stakes in successful malls of not only Tier I but also in retail assets of Tier II cities viz. Ahmedabad One mall, Elante Mall in Chandigarh and Treasure Island mall of Indore Strategic Investment platform, (2017): Between Canada Pension Plan Investment Board (CPPIB) and Island Star Mall Developers Pvt. Ltd (ISMDPL); CPPIB will initially own 30% stake in Island Star Mall Developers (a Phoenix Mills subsidiary which owns Phoenix Market City Bangalore), will serve as the platform for this alliance Virtuous Retail South Asia Platform (VRSA): APG Asset Management and Xander Group s Virtuous Retail (VR) have formed a Joint Venture called Virtuous Retail South Asia (VRSA) and have acquired prominent retail assets - VR Bangalore, VR Surat, North Country Mall, Mohali and an upcoming mall in Chennai. YEAR PROJECT NAME BUYER 2015 Koregaon Park Plaza Mall (now Nitesh Hub), Pune Nitesh Estates, Goldman Sachs 2015 Elante Mall, Chandigarh Carnival Group 2015 Ahmedabad One (erstwhile Alpha One mall) 2015 Mall of Amritsar (erstwhile Alpha One mall) Blackstone 2016 Viviana Mall, Mumbai; (50% stake) GIC 2016 Seawoods Grand Central, Mumbai 2016 Westend Mall, Pune; (50% stake) 2017 Treasure Island (50% stake) Blackstone 2017 Treasure Island Next, Indore (70% stake) 2017 Elante Mall, Chandigarh 2017 VR Punjab, Mohali Virtuous Retail South Asia (VRSA) Retail Sector: Investment Opportunities Just around 50% of total retail stock in the top seven cities can be considered as superior, investment-grade PE investors have invested over USD 724 million in Indian retail realty till September 2017 as against USD 846 million invested in two years between 2015 and 2016 Hospitality- Sector The retail sector has limited number of developers who have managed to show sustained performance and are managing superior retail assets. Some of these assets have been already invested in to while some developers are holding on to their other trophy assets. Retail Investors are increasingly focusing on emerging retail destinations (Tier II& III) over metros due to better growth prospects. These (Tier II&III) cities have witnessed a much higher investment (6,192 USD million) compared to Tier I metro cities (1,296 USD million) from We expect new opportunities to continue in Tier II and III cities. High urbanisation rate, rising young population base, increasing disposable income levels, rising aspirations and increasing proportion of nuclear families which influence urban consumption base and subsequent rapid growth of retail industry, offers huge potential for investors to cash in on the large consumer base in India. Based on less availability of existing high quality retail mall assets across cities, investors have adopted a multi-fold approach where they have started investing in portfolio of assets through greenfield and brownfield projects. We expect such opportunities to remain attractive. By 2018, the Indian retail sector is likely to grow at a CAGR of 13 per cent to reach USD 950 billion and increasing participation from foreign and private players is likely to boost creation of retail infrastructure

10 Positive Outlook for Strategic Investors in Hospitality Transaction Volume 2001 to 2017 PE Activity in Hospitality Pre INR Millions 25,000 20,000 15,000 10,000 5, ,317 11,362 1,030 Trends Dictating Acquisitions 320 6, , , , , ,700 10, , , , , , , Hyatt Hotels Invests In Juniper Hotels New Vernon & Bessemer Ventures Invest In Sarovar Hotels Warburg Pincus Invests in Lemon Tree Hotels India Blue Mountain Fund Set Up In Collaboration With Accor Citi Property Investors Invests With Auromatrix to Develop 4 Aloft Hotels & With Nitesh Estates For Developing The Ritz Carlton In Bangalore Hilton Worldwide forms a Joint Venture With DLF Temasek Holdings invests in GL hotels Berggruen Hotels Founded To Build And Operate Keys Brand Of Hotels Source: JLL Hotels and Hospitality Group Whitehall - Goldman Sachs Real Estate Fund Invests with Century Real Estate Xander invests in the hospitality division of Panchshil group Pacifica Partners (GIC and Host Hotels) invests in a fund with Accor and Interglobe for developing 7 hotel assets in India with an inventory of 1,750 keys Equity international and GTI Capital Invest In SAMHI to develop and acquire multi-brand Hotels IL&FS Invests In Aria Hotels, a Subsidiary Of Asian Hotels West IHG Group Invests With Duet India Hotels to Jointly develop Holiday Inn Express Hotels In India Marriott International invests with SAMHI to jointly develop the Fairfield brand of hotels in India. Dutch pension fund APG invests in Lemon Tree hotels SAMHI buys majority stake in Barque hotels, an SPV of Accor Group Goldman Sachs invests in the hospitality division of Gurgaon based Vatika Group Blackstone along with the Embassy Group acquire the City View development in Bengaluru from Goldman Sachs and Century Real Estate APG raises stake in Lemon Tree hotels and Fleur Hotels within two years of its first investment International Finance Corporation (IFC) invests in SAMHI to support its investment plan for expanding its portfolio of hotels Goldman Sachs acquired minority stake in SAMHI with investment of USD 66 million Louvre Hotels acquires Sarovar Hotels in India Hotel buyers in the market today are strategic investors, who firmly believe that the boom in the hotel economic cycle is resuming, making it ideal to acquire operating hotels. New hotel supply in the country is anticipated to slow to 3-4% (y-o-y) over the next 2-3 years - from a high of 6-8% over the past five years and the opportunity to invest in the sector is ripe. Greenfield developments, which have in the past been dogged by unprecedented development hurdles are being shunned. Most hotel transactions are occurring at replacement values, or at slight discount to replacement values, keeping both the seller and the buyer contented with the target price. The ongoing pressure on the banking industry to recast its distressed debt is also contributing to the growth in transaction activity. Outlook Investments by strategic investors in single assets will be the norm as there aren t too many large size portfolios in the market. Financial investors can also look at acquiring single assets to form a portfolio. While transaction volumes since 2016 to date appear to be visibly depressed, on the ground JLL is aware that many hotel transactions are afoot and delays are largely due to procedural matters. In August 2017, JLL brokered the sale of British hotel chain Premier Inn s five hotel properties in India for INR 220 crore to hotel investment and development firm Samhi Hotels. The Louvre Hotel Group (part of Jin Jiang International Holdings) acquired majority stake in Sarovar Hotels Nearly USD 500 million worth of hotel assets are presently in discussion with a total valuation of close to USD 300 million under our fold as per current mandates, amounting to 11 hotels with about 1,800 rooms. Source: JLL Hotels and Hospitality Group

11 Hospitality Performance: RevPAR positive, Occupancy Up Outlook: Growing Demand, Declining Supply ADR/RevPAR (in INR) Year 8,000 6,000 4,000 2,000 0 Bengaluru Chennai Goa Gurgaon Hyderabad Kolkata Mumbai New Delhi Pune Ahmedabad % 6% 5% 13% -3% 12% 1% 7% -23% -9% % -2% 7% -9% -4% 0% 1% -16% -10% -14% % -12% 4% -8% -7% 1% -7% -6% 4% 3% YTD 4% -17% 7% -15% -9% -8% 0% -12% -2% -11% -3% -1% 12% -3% 12% -9% 4% -9% -2% -6% 11% 5% -3% 0% 7% -2% 5% 6% 10% 13% 1% 4% 10% 9% 12% 9% 6% 2% 9% 3% 10% 5% 0.1% 0.7% 4.3% 2.1% 6.5% 2.8% 10.8% 30.1% 7,225 4, Top 10 cities growth rate in RevPAR over historic years - Positive growth in all major markets for the first time since the start of the decade 63% 59% 61% 6,867 4, ,662 4, % 6,303 3,766 60% 5,973 3,573 62% 5,793 3,573 66% 5,742 3, ADR RevPAR Occupancy 67% 5,863 3, % 5,729 3, YTD 68.6% 5,888 4, YTD Note: Top 10 Cities include Mumbai, Bengaluru, Kolkata, Hyderabad, Pune, Chennai, Goa, New Delhi, Gurgaon and Ahmedabad 70% 65% 60% 55% 50% Occupancy Hotel Rooms Available 160, , , ,000 80,000 60,000 40,000 20,000-90, , % Source: JLL Hotels and Hospitality Group 103, % 109, % 115, % 4.6% 120, , % 130, % 135, % 140, % 143, % 147, % 1.0% 149, Growing hotel demand and declining future supply is bringing momentum back to the hospitality sector and this will be the likely trend going forward 2017 onwards supply growth continues to slow down, subsiding to 1.0% by 2021 Among the existing supply the rooms in midscale hotels have the highest traction pointing towards an increasing customer base and focus on capturing India s growing middle class. With a steady economy and increased business travel, demand from domestic and foreign tourists and the government s push to tourism through the e-visa programme, the sector is looking up. Investment opportunities for strategic investors will continue to be good. 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Occupancy The hospitality market in India has gone through a full economic cycle of strong growth followed by a severe downturn witnessed a four fold increase in supply. The onset of the Global Financial Crisis in 2008 and the addition of large inventory impacted the market severely. From 2009 to 2014, hotel markets witnessed decline in both hotel occupancy and average daily rates, though demand grew at an average rate of 7.8% in the same period. Since 2015, the market has shown recovery in trading performance. Source: STR, JLL Hotels & Hospitality Group

12 Conclusion- Way Forward The Indian real estate industry is reaping the benefits of a reform-driven environment that is improving investor confidence while preparing the template for a more organised and transparent sector. The regulatory environment demands greater accountability from developers and only those who adapt and change shall be able to sustain their business while also improving their chances for attracting private investments. India s share of global capital flows still remains around just 1%, while the number of developers who have managed to attract private equity has been limited. The change that is afoot is likely to improve the investment scenario considerably. In recent years, the slowdown in India s residential sector has accentuated the liquidity problems while compounding the debt positions of many developers. We believe the improved regulatory environment will throw up the right development partners who will be able to inspire confidence in their business, corporate governance and capital structure, to enable pure equity play to return to the sector. Newer asset categories, such as student housing and senior living are going to be explored much more actively by private equity players. Opportunities still remain in the affordably priced and mid-segment housing categories, though a higher degree of recovery needs to be visible to enable more equity participation. Debt structures will continue to dominate in the interim. While the office sector remains quite buoyant in terms of investments, limited core asset portfolios and reducing yields are likely to result in more platforms being set up for brownfield/build to core developments. The retail sector is likely to find investors for core assets in smaller urban centres while platform structures will also gain prominence with players who have managed to show sustained performance. Hospitality industry is showing signs of continued revival and growth and with large hotel operator-investor partnerships already afoot, we expect that private equity players will look to this sector for strategic investments. Current hotel transactions are at replacement value levels or lower, making such investments attractive.

13 About GRI Club The GRI Club is a global fraternity of real estate leaders. Members find the club a useful way to maintain valuable relationships, find new business partners, and strengthen their global networks. GRI Club India organises Club Meetings in Mumbai, Delhi and Bangalore to cover a specific theme, sub-sector or micro-market and are exclusive to members. In addition, Open Events bring nonmembers and members together for high level debates with global investors. The relaxed and collegial environment helps members build personal friendships with like-minded business partners. About JLL JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 companyh, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $136 billion. At the end of the first quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of more than 78,000. As of March 31, 2017, LaSalle Investment Management had $58.0 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit JLL has over 50 years of experience in Asia Pacific, with 36,800 employees operating in 95 offices in 16 countries across the region. The firm won the World s Best and Best in Asia Pacific International Property Consultancy at the International Property Awards in 2016 and was named number one real estate investment advisory firm in Asia Pacific for the sixth consecutive year by Real Capital Analytics and ranked among Fortune Magazine s World s Most Admired Companies list third year in a row. About JLL India JLL is India s premier and largest professional services firm specializing in real estate. With an extensive geographic footprint across 11 cities (Ahmedabad, Delhi, Mumbai, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of 9,300 the firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy, transactions, project and development services, integrated facility management, property and asset management, sustainability, industrial, capital markets, residential, hotels, health care, senior living, education and retail advisory. The firm was awarded the Property Consultant of the Decade at the 10th CNBC-Awaaz Real Estate Awards 2015 and the Best Property Consultancy in India at the International Property Awards Asia Pacific For further information, please visit Authors Srija Banerjee Assistant Manager Research and REIS srija.banerjee@ap.jll.com Business Contacts: Ashutosh Limaye Head Research and REIS ashutosh.limaye@ap.jll.com Rohan Sharma Associate Director Research and REIS rohan.sharma@ap.jll.com Editor Niharika Bisaria Editor Research niharika.bisaria@ap.jll.com Special Acknowledgements: Akash Datta and Akshit Shah jll.co.in Jones Lang LaSalle 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.