Embassy Developments Limited · NSE:EMBDL
Embassy Developments — Indiabulls Real Estate — Investor Presentation (April 2024)
42 slides from Embassy Developments's investor presentation, Apr 5, 2024
Slide 1: Investor Update cover letter to stock exchanges
Date: April 05, 2024 Scrip Code – 532832 IBREALEST/EQ BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, “Exchange Plaza”, Bandra-Kurla Complex, Dalal Street, Mumbai – 400 001 Bandra (East), Mumbai – 400 051 Sub: Investor Update Dear Sirs, Pursuant to applicable regulati
Slide 2: Indiabulls Real Estate Limited Investor Update
Indiabulls Real Estate Limited Investor Update April 5, 2024
Slide 3: Table of Contents
Table of Contents I. Executive Summary 3 II. Asset Factsheet ❑ Mumbai 15 • Blu Annex 20 ❑ Bengaluru 25 • Embassy Eden 29 • Embassy East Avenue 34 ❑ Chennai • Embassy Residency 38 2
Slide 4: I. Executive Summary
Il. Executive Summary
Slide 5: Key Transaction Highlights
Key Transaction Highlights IBREL announces preferential allotment to Embassy Group, Baillie Gifford & Co., Blackstone Real Estate Fund, and other investors for up to ~₹3,911 Cr, while acquiring certain assets from Embassy Group & Blackstone Real Estate Fund for ~₹1,853 Cr • Preferential allotment of
Slide 6: Key Benefits
Key Benefits New Projects New Markets FY2025 New Launches New Investors • Penetration into key south Indian • Induction of new marquee • BLU Annex 100% markets of Bengaluru and investors Blackstone Real Estate • 5 new projects Chennai Fund, Quant Active Fund, • Embassy Eden 100% Poonawalla Finance,
Slide 7: Enhanced Portfolio & Scale
Enhanced Portfolio & Scale Quick Facts Geographical Footprint Area (msf) 6 Cities 16 12.2 msf Presence Projects Portfolio Existing ~₹272 Cr 10.5 msf | 1.7 msf ~₹7.3k Cr NCR 0.8 Gross Debt Residential | Commercial Net Surplus from Projects Jodhpur 0.2 Vadodara 0.1 2.1 Indore 8 Cities 20 15.6 msf MMR
Slide 8: Improved Capitalization & Float
Improved Capitalization & Float Proposed capitalization plan increases market capitalization by 65% to ~₹12.3k Cr, while increasing float by ~351 million shares Illustrative Market Capitalization as of April 5, 2024 Shareholding Pattern – Pre & Post (₹ Cr) (In %) Embassy 12,266 Group 19% 65% Embassy
Slide 9: New Project Launches
New Project Launches Proposed deal provides ~₹932 Cr of new working capital, which in turn helps launch new projects with GDV in excess of ~₹11k Cr Total Total Land Nature Saleable Area GDV(1) Existing / Estimated Location Micro-market Product New Target Launch (Acres) (msf) (Share) (₹ Cr) Mumbai Wo
Slide 10: Attractive Acquisition Basis
Attractive Acquisition Basis Asset acquisitions basis enterprise valuation from two independent valuers, at an ~8-20% discount to average of two independent valuations BLU Annex(1) Embassy Eden (₹ Cr) Discount to Average of two (₹ Cr) Average: ₹1,437 Cr Average: ₹555 Cr Discount to Average of two In
Slide 11: Indicative Capitalization Plan
Indicative Capitalization Plan Asset acquisitions proposed to be funded by preferential allotment (equity Shares & warrants) • Embassy Group ~₹10 Cr Preferential Allotment • Ballie Gifford & Co. ~₹209 Cr ~₹1,019 Cr (Equity Shares) • Blackstone Real Estate Fund ~₹375 Cr • Other Investors ~₹425 Cr • E
Slide 12: Acquisition Process and Timelines
Acquisition Process and Timelines Governance framework in line with Indian regulators & leading global practices Event Timeline Activities • Approval by Board • Approval by Audit Committee and Shareholders • Asset valuations done by two independent valuers and assets purchased at an ~8% - 20% discou
Slide 13: Summary of Assets Proposed to be Acquired
Summary of Assets Proposed to be Acquired BLU Annex(1) Embassy Eden Embassy Residency Embassy East Avenue Key Stats: Key Stats: Key Stats: Key Stats: • Location: Mumbai, Worli • Location: Whitefield, Bengaluru • Location: North Bengaluru • Location: OMR, Chennai • Land: ~1.93 Acres • Land: ~3.75 Acr
Slide 14: Project Surplus from New Assets
Project Surplus from New Assets Proposed asset acquisitions increases existing project surplus by ~₹4k Cr to ~₹11.3k Cr; helps penetrates key south Indian market of Bengaluru & Chennai Area (msf) Price(1) Unsold Sold Pending Net Particulars (₹ Cr) Category (₹/psf) Inventory Receivables Costs Surplus
Slide 15: II. Asset Factsheet
II. Asset Factsheet
Slide 16: Mumbai
Mumbai
Slide 17: Housing Market Trends
Housing Market Trends The Mumbai luxury real estate sales (> ₹10 Cr), registered record setting sales in the first six months of 2023. The sharp increase at the top end of the market coincides with a boom in residential property sales overall & is indicative of the return of confidence since 2021 ₹8
Slide 18: Origins & Demographics
Origins & Demographics 27% Buyers from top 10 localities for luxury housing in Mumbai have their origins in localities situated beyond South Mumbai. This implies upgrade of lifestyle and non-stickiness to their original locality; buyers ranging across age groups of 25 – 65 years Buyers of Luxury Age
Slide 19: Primary vs Secondary
Primary vs Secondary Despite interest rates going up, the momentum in luxury sales has continued. Luxury housing market witnessed a 47% increase in sale of units in H1 CY’23 vs H2 CY’22. The primary luxury market witnessed 3.4x times sales value in H1 CY’23 vs the secondary market Surge in Demand St
Slide 20: Sales & Pricing
Sales & Pricing Top 10 localities contributed 86% of total value sold in primary luxury housing of Mumbai in H1CY’23. In unit terms, this contribution stood at 80%. While Worli contributed 31% to luxury sales, ₹10 – 20 Cr segment still commands ~71% of total sales in the luxury segment Top Localitie
Slide 21: BLU Annex
BLU Annex
Slide 22: BLU Annex – Luxury Residential Project | Worli, Mumbai
BLU Annex – Luxury Residential Project | Worli, Mumbai Post successful completion of BLU (Phase 1) & to meet the increasing demand traction, we plan to launch phase 2 in 2025. Proposal to buy balance FSI rights from Blackstone Real Estate Fund for a consideration of ~ ₹1,150 Cr. IBREL already owns m
Slide 23: View Corridors
BLU Annex – Luxury Residential Project | Worli, Mumbai (Cont’d) View Corridors 22
Slide 24: Neighborhood Site Plan
BLU Annex – Luxury Residential Project | Worli, Mumbai (Cont’d) Connectivity from Site Location Approximate SN. Landmarks Distance (Mtrs / kms) Acharya Atre 1 Chowk Metro 80 mtrs Station The Four Seasons 2 500 mtrs Neighborhood Site Plan Hotel 3 Atria Mall 2 kms High Street Phoenix 4 2 kms Mall Lowe
Slide 25: BLU Annex – Section Layout Massing Views
BLU Annex – Luxury Residential Project | Worli, Mumbai (Cont’d) Section Layout Massing Views 24
Slide 26: Bengaluru
Bengaluru
Slide 27: North Bengaluru | Evolution of New Real Estate Market
North Bengaluru | Evolution of New Real Estate Market North Bengaluru has established itself as a formidable force in the real estate market, owing to its well-developed infra & impressive growth potential. The region has become a sought-after destination for developers looking to capitalize on the
Slide 28: North Bengaluru | SWOT Analysis | Big Infra Push
North Bengaluru | SWOT Analysis | Big Infra Push Big Infrastructure Push SWOT Analysis Underway/Proposed Description • Proximity to Int'l • Growth potential Airport • Government Aerotropolis- Airport India’s first aerotropolis development. By 2030, would employ • Good connectivity initiatives City ~
Slide 29: North Bengaluru | Residential Market Overview
North Bengaluru | Residential Market Overview 77,500 Units 63,800 Units 13,700 Units ₹40 – 80 ₹5,510 25% Share in Bengaluru 25% Share in Bengaluru 24% Share in Bengaluru lacs Per Sq.ft. Launches Sales Available Inventory Predominant Ticket Size Average Quoted Base Selling Price Housing Price Index L
Slide 30: Embassy Eden
Embassy Eden
Slide 31: Embassy Eden – Plots & Luxury Villa | North Bengaluru
Embassy Eden – Plots & Luxury Villa | North Bengaluru Proposal to acquire 100% stake in freehold land at Embassy Eden in North Bengaluru for ~₹466 Cr. The project is an ultra luxury villa project, offering exquisite lifestyle with good connectivity to major social & entertainment centers, catering t
Slide 32: Development Perspectives
Embassy Eden – Plots & Luxury Villa | North Bengaluru (Cont’d) Development Perspectives 31
Slide 33: Infra Developments Around the Project
Embassy Eden – Site Analysis | Infrastructure & Connectivity Infra Developments Around the Project 32
Slide 34: Grade A Developments Around the Project
Embassy Eden – Site Analysis | Grade A Developments Grade A Developments Around the Project 33
Slide 35: Embassy East Avenue
Embassy East Avenue
Slide 36: Embassy East Avenue – High-Rise Residential | Whitefield
Embassy East Avenue – High-Rise Residential | Whitefield Proposal to acquire 67.98% JDA share in Embassy East Avenue project for ~₹117 Cr. The project is a premium high-rise development, offering exquisite lifestyle with good connectivity to major social infrastructure in the key micro-market of Whi
Slide 37: Embassy East Avenue – Site Analysis | Infrastructure & Connectivity
Embassy East Avenue – Site Analysis | Infrastructure & Connectivity | Whitefield 36
Slide 38: Chennai
Chennai
Slide 39: Embassy Residency
Embassy Residency
Slide 40: Embassy Residency – Premium Integrated Township | OMR Chennai
Embassy Residency – Premium Integrated Township | OMR Chennai Proposal to acquire 100% stake in Embassy Residency, OMR Chennai for ₹120 Cr. The project is a premium gated community & is the highest occupied township project in OMR. With over ~2500 homes, once fully developed will be the most vibrant
Slide 41: Notes & Glossary
Notes & Glossary Notes: ► Figures has been rounded off to nearest single decimal / integer for ease of presentation ► Area (msf) represents unsold residential saleable area including commercial area sold on strata sale basis / leasable commercial area unless otherwise stated ► The Company has secure
Slide 42: Thank You! Disclaimer
Disclaimer This presentation (“Presentation”) is and is intended exclusively for the intended recipients. It is only current as of its date, has not been independently verified and may be subject to change without notice. This Presentation and the information contained herein may not be disclosed, r
Indiabulls Real Estate — Investor Presentation (April 2024) on 6ix