MINISTRY OF RAILWAYS RAIL LAND DEVELOPMENT AUTHORITY (RLDA)

PROJECT INFORMATION

MEMORANDUM

FOR

Commercial Plot – Hotel Cum Retail

AT Model Katra

Rail Land Development Authority

NearRequest Safdarjung for Railway Qualification Station, Moti Bagh -1 New Delhi – 110021

For

PPP Projects

Development of Hotel Cum Retail at Katra Rail Land Development Authority

DISCLAIMER

This Project Information Memorandum (the “PIM”) is issued by Rail Land Development Authority (RLDA) in pursuant to the Request for Proposal vide to provide interested parties hereof a brief overview of plot of land (the “Site”) and related information about the prospects for development of Hotel cum Retail project at the Site on long term lease.

The PIM is being distributed for information purposes only and on condition that it is used for no purpose other than participation in the tender process. The PIM is not a prospectus or offer or invitation to the public in relation to the Site.

The PIM does not constitute a recommendation by RLDA or any other person to form a basis for investment. While considering the Site, each bidder should make its own independent assessment and seek its own professional, financial and legal advice. Bidders should conduct their own investigation and analysis of the Site, the information contained in the PIM and any other information provided to, or obtained by the Bidders or any of them or any of their respective advisers.

While the information in the PIM has been prepared in good faith, it is not and does not purport to be comprehensive or to have been independently verified and neither RLDA nor any of its officers, employees, advisers or consultants accept any liability or responsibility for the accuracy, reasonableness or completeness of, or for any errors, omissions or misstatements, negligent or otherwise, relating to, or makes any representation or warranty, express or implied, with respect to, the information contained in the PIM or on which the PIM is based or with respect to any written or oral information made or to be made available to any of the Bidder or its professional advisers and, so far as permitted by law and except in the case of fraudulent misrepresentation by the party concerned, any liability therefore is hereby expressly disclaimed.

The information contained in the PIM is selective and is subject to updating, expansion, revision and amendment. It does not, and does not purport to, contain all the information that a Bidder may require. Neither RLDA nor any of its advisers undertakes to provide any Bidder with access to any additional information or to update the information in the PIM or to correct any inaccuracies therein, which may become apparent. Each Bidder must conduct its own analysis of the information contained in the PIM and is advised to carry out its own investigation into the prospects of developing the Site, the legislative and regulatory regime which applies to commercial development in India, and all matters pertinent to the Site and to seek its own professional advice on the legal, financial, regulatory and taxation consequences of entering into any agreement or arrangement relating to the proposed Site.

The PIM is for use only by the Bidders. The PIM may not be copied, or distributed by any Bidder to third parties (other than in confidence to that Bidder’s professional advisers) or prospective consortium members. Under no circumstances should Bidders make contact with officers or employees of MOR unless invited by the MOR or in accordance with the PIM.

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Development of Hotel Cum Retail at Katra Rail Land Development Authority

TABLE OF CONTENTS

S.NO PARTICULARS

Katra

1.1 Katra City Profile 4

1.2 Executive Summary 5

1.3 Location On City Map and Connectivity 6

1.4 Demography 8

1.5 Rail Passenger Traffic 9

1.6 Site Location and Attributes 10

1.7 Site Layout Plan 11

1.8 Site Photographs 12

1.9 Plot Details and Area Assessment 16

1.10 Hospitality/Retail Market 16

1.11 Suggested Product Mix 19

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Development of Hotel Cum Retail at Katra Rail Land Development Authority

Please refer to General PIM-Knight Frank for the Tender Process chart, Project Potential, Guidelines on EOI and Clustering and Group Bidding on the RLDA website.

CITY PROFILE

1.1 INTRODUCTION

Katra is a small town in Reasi district of the Indian state of Jammu and Kashmir situated in the foothills of the Trikuta Mountains, where the holy shrine of Vaishno Devi is located. It is located 42 km from the city of Jammu.

District Reasi is situated in the Shivalik hills and is located at 1528 mt. above mean sea level. The district having area 15,1701 Hect. and population 314,714 (Census 2011) got carved out of district Udhampur on April 01, 2007. The District is surrounded by Udhampur, Ramban, Rajouri, Jammu and Shopian Districts. District Reasi has been commanding worldwide fame due to bless and presence of world famous shrine of Shri Mata Vaishno Devi.

In the year 2012, 10.4 million people across the globe reached this District to pay homage at the holy shrine. This number has been growing every year. The River Chenab which is one of the major rivers of India happens to pass through the District.

The following map presents the location and connectivity of major tourist destinations across Jammu.

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Development of Hotel Cum Retail at Katra Rail Land Development Authority

1.2 EXECUTIVE SUMMARY

 Location: Near Katra Railway station

 Total land area 15,325 sq. mt.

 Total built-up area potential 412,396 sq. ft.

 Land Area proposed for Phase I 7,341 sq.mt.

 Built up Area for Phase I: 197,541 sq.ft.

 Existing development at site: Vacant land

 Surroundings: North: 20 feet road South: Railway tracks East: Railway building West: Vacant land

 Accessibility: The site is accessible from 20 feet connecting road which leads to Railway Station Road.

1.3 LOCATION AND CONNECTIVITY

Katra is well connected to the other Indian cities through rail and road.

1: Location of Katra

Katra is a small town in Reasi district of the Indian state of Jammu and Kashmir situated in the foothills of the Trikuta Mountains, where the holy shrine of Vaishno Devi is located. It is located 42 km from the city of Jammu.

District Reasi is situated in the Shivalik hills and is located at 1528 mt. above mean sea level. The district having area 15,1701 Hect. and population 314,714 (Census 2011) got carved out of district Udhampur on April 01, 2007. The District is surrounded by Udhampur, Ramban, Rajouri, Jammu and Shopian Districts. District Reasi has been commanding worldwide fame due to bless and presence of world famous shrine of Shri Mata Vaishno Devi.

In the year 2012, 10.4 million people across the globe reached this District to pay homage at the holy shrine. This number has been growing every year. The River Chenab which is one of the major rivers of India happens to pass through the District.

The following maps present the location overview of Katra.

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Development of Hotel Cum Retail at Katra Rail Land Development Authority

Hisar

Roadways

Major roads, which connect Katra with other districts and state is as below;

. Katra – Panthal – Tikri Road which meets with NH-1C at Tikri and ultimately connects to Udhampur, Rajouri, Poonch. . Katra – Domail Road – Jammu, it is also called as Jammu road which connects Katra with Jammu. . Katra – Reasi Road, which connects Katra with Reasi District.

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Development of Hotel Cum Retail at Katra Rail Land Development Authority

Present bus stand is located in the heart of the town and spread over an area of 1.012 Ha (including taxi stand). Bus stand and taxi stand has a parking capacity of only 25-30 buses and 50-60 taxies/cars respectively. The KDA has already notified the area for the proposed bus stand as per existing master plan document and work is under progress. This will relieve the existing chaotic conditions created in the town during peak season of the year. Villages do have an accessibility of bus stand and buses.

There is a reserved parking stand for Auto-walas near to bus stand area in main town centre. Considering the capacity and space available at a time, approximately 50 autos are parked. Another Auto stand is near Banganga.

Railways

Katra railway station belongs to Firozpur Division Northern Railway zone in Jammu and Kashmir. It serves Katra town and the Sri Mata Vaishno Devi Temple. The existing rail line from Udhampur has been extended to Katra and in future it shall be extended to valley via Katra. Hence, Katra will emerge as an important destination on rail and tourism map.

1.4 DEMOGRAPHY

Katra used to be small hamlet which can be gauged from the population count of 1911, which were of the order of 828 i.e. there lived only 168 families. This growth of population increased to 3,315 in 1971 and 8,083 in 2001 A.D. respectively.

Census year Population Decadal growth 1911 828

1921 868 4.83% 1931 950 9.45% 1941 1005 5.79% 1951 1267 26.07% 1961 1529 20.68% 1971 3315 116.81% 1981 4573 37.95% 2001 8083 76.75% 2011 9008 11.44%

With the increase in pilgrim flow the resident population also grew to a decadal increase of 116.80 % during 1961-71 decade. The Govt. of Jammu & Kashmir State notified the settlement of Katra under the provisions of J&K State Municipal Act, making Katra as an urban town with constitution of Notified Area Committee.

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Development of Hotel Cum Retail at Katra Rail Land Development Authority

Besides, the increase in resident population, the floating population has also increased multifold, especially after the constitution of Shri Mata Vaishno Devi Shrine Board in 1986. Population component (both resident & floating) is one of the most vital components, which is taken as a base for arriving at the inferences which decide the planning strategy of the township or the city.

1.5 TOURISM - KATRA

Katra town, lying in the foothills of Trikuta Mountains has an importance due to location of the Holy Cave of Goddess Shree Mata Vaishno Devi Ji. The shrine is located at an altitude of 5,200 feet (1,584.96 mt.) above mean sea level and a distance of approximately 14 km from Katra town. Originally, Shri Vaishno Devi patronized primarily by devotees from the local region, which meant not only a small number of worshipers but also greater homogeneity in their socio-economic characteristics. In more recent decades, there has been a major increase in pilgrims from members of the prosperous and educated mercantile, industrial, and professional classes from urban areas. Concurrent with this growth in pilgrimage is the tremendous increase in tourism.

Town receives the huge amount of floating Pilgrim/ Yatri population almost through the year. An annual pilgrim flow was approx. 87.49 lacs during the year of 2010. About 20,000-50,000 pilgrims visits Katra per day. Annual tourist flow in Katra has increased substantially from 1990 onwards. Year 2009 shows the highest pilgrim flows in Katra. The following table presents the tourist inflow witnessed in Katra in the period 2006-10.

Tourist Arrivals (lacs)

Months 2006 2007 2008 2009 2010 Average

January 2.64 2.93 3.40 4.14 4.00 3.42

February 2.55 2.55 2.25 2.98 3.77 2.82

March 5.55 4.89 6.18 6.74 7.22 6.12

April 6.46 5.84 6.24 6.99 8.78 6.86

May 7.32 7.99 9.66 8.16 9.15 8.46

June 9.56 9.57 11.18 19.14 9.66 11.82

July 7.18 7.15 5.31 9.10 8.71 7.49

August 6.30 7.04 2.72 8.25 8.30 6.52

September 6.20 7.56 4.25 7.83 6.29 6.43

October 6.46 7.71 6.57 7.65 8.15 7.31

November 4.68 5.63 5.07 4.75 6.64 5.35

December 4.60 5.32 5.10 5.63 6.83 5.50

TOTAL 69.51 74.18 67.92 91.35 87.49 78.09

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Development of Hotel Cum Retail at Katra Rail Land Development Authority

Source: Tourism Development Corporation, Govt. of J&K (JKTDC)

Variation can be seen in pilgrim/ yatri flow during different months in a year. It generally varies based on peak, lean and average season. Peak season is during the months of April to October.

1.6 SITE LOCATION AND ATTRIBUTES

As informed by the client the subject property is a freehold as on date of valuation. Property size as per information provided by the client is 15,293 sq.mt.

The following map presents the location overview of Subject Property.

Source: www.maps.google.co.in

1.7 Site Layout Plan

The following map presents the location overview of the subject site,

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Development of Hotel Cum Retail at Katra Rail Land Development Authority

1.8 SITE PHOTOGRAPHS

Figure 2 Figure 2

Figure 3 Figure 4

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Development of Hotel Cum Retail at Katra Rail Land Development Authority

1.9 PLOT DETAILS AND AREA STATEMENT

The area of subject land plot is approximately 15,325 sq. mt. Depending upon the type and nature of the property, availability of data, proposed development, development potential of the property, market dynamics, we have proposed utilization of land parcel admeasuring 7,341 sq. mt. for Phase I of the development.

AREA STATEMENT FOR THE PROPOSED COMMERCIAL

Area Statement

15,325 in SQM Total Site Area 164,958 In sft. Total Built up Area 412,396 In sft.

7,341 in SQM Area for Phase I 79,018 In sft. Built up Area for Phase I 197,541 In sft.

The following map presents the layout of the site along with the proposed division of the site for Phase I.

(52 mt.)

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Development of Hotel Cum Retail at Katra Rail Land Development Authority

(140 mt.)

Utilized land area

1.10 Hospitality/Retail Market

The following table presents the supply of star category hotels in Katra:

Star Avg Total S.No. Name Occupancy Location Category ARR Rooms

1 White Hotels 5 3,000 200 50% Reasi Road

The Atrium On The 2 4 3,400 66 55% Reasi Road,Railway Road

Greens

3 Hotel KC Residency 4 3,200 56 30% Reasi Road

4 AMR Lords Eco Inn 4 3,200 28 50% City Centre-Main Market

5 Country Inn & Suites 4 3,100 77 40% Jammu-Katra Highway

6 Hotel Devi Grand 4 3,100 70 40% Near Toll Barrier Reasi Road

7 Hotel Subash International 3 3,000 60 30% City Centre-Main Market

8 Hotel JMK International 3 3,000 52 50% Railway Road

9 Hotel Jagdambay 3 2,800 50 N/A Railway Road

10 Hotel Swing High 3 2,600 45 55% Jammu Road, Katra

11 Hotel Asia Vaishno Devi 3 2,300 36 60% Reasi Road

Near Shrine Board Head

12 Hotel Maharaja Katra 3 2,100 48 70% office Tea garden , Katra

13 Hotel Shree Hari Niwas 3 2,000 39 50% Centre-Main Market

14 Anurag Hotel 3 2,000 33 40% City Centre-Main Market

15 Hotel Kashmir Residency 2 1,800 40 50% Jammu Road

16 Hotel AP Broadway 3 1,700 41 20% City Centre-Main Market

17 Ginger Katra 3 1,700 41 20% City Centre-Main Market

18 Hotel Surya Palace 2 1,600 55 40% City Centre-Main Market

Hotel Mountview 19 3 1,500 40 45% Jammu Road

International

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Development of Hotel Cum Retail at Katra Rail Land Development Authority

Star Avg Total S.No. Name Occupancy Location Category ARR Rooms Gurudwara Sunder Singh

20 Hotel Swastik Katra 3 1,400 32 50% Road

21 IRCTC Guest House 3 1,700 30 90% Railway Station Source: Knight Frank Research

The following map presents the location overview of each of these hospitality developments located in Katra.

Source: Knight Frank As may be noted from the table above, White Hotel is the only 5 star hospitality development having 200 rooms with an average ARR of INR 3,000 per room night for the year 2014 with an overall occupancy of 50% only. The other hotels indicate an ARR in the range of INR 1,400 to INR INR 3,400 per room night with an average of INR 2,500 per room night, and occupancy in the range of 20% to 70% with an average of 40%.

The operating profit margins for hospitality industry generally vary from 40% to 45% on a stabilized basis.

The following tables present the operating profit margins for established hospitality players in recent years,

Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Company '14 '13 '12 '11 '10 '09 '08 '07 '06 '05

Indian Hotels 20.18 21.55 22.15 25.1 25.81 30.18 40.12 36.82 29.53 22.57

Hotel Leela 20.21 17.23 3.25 32.12 31.25 35.73 46.13 49.92 49.82 46.81 Venture

Taj GVK Hotels 21.07 24.12 30.73 37.16 37.77 42.93 48.04 47.91 45.94 39.46

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Mahindra Holidays and 20.45 18.86 18.91 25.64 32.69 26.63 34.1 30.95 26.78 21.41 Resorts India

The asking rentals for retail shops in the vicinity of the railway station are as follows,

. Along Jammu highway in the range of INR 50 to 60/- per sq. ft. per month. . Along main market in the range of INR 70 to 90/- per sq. ft. per month. . Along Katra Railway Station in the range of INR 40 to 60/- per sq. ft. per month.

AMR Mall is an established mix use development in Katra which has hotel, retail and multiplex. The development houses brands like Dominos, Sagar Ratna etc. and is located at a distance of 1.2 km from Subject Property. Based on our interaction with the market intermediaries, the expected rental for available space within AMR Mall is as follows,

Area Available Asking Rent Floor (sq. ft.) (INR p sq. ft. p month) Ground 3,500 125 First 5,000 75 Second 7,000 60 Third 7,000 60 The above rentals would attract discounts on basis of location, space and negotiation margin. In view of current scenario of retail developments of the town and on the basis of the factors like  average location and the accessibility  superior construction quality,  superior amenities (parking space, etc) and  upcoming hospitality project

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Development of Hotel Cum Retail at Katra Rail Land Development Authority

1.11 SUGGESTED PRODUCT MIX

The products that are envisaged to be developed on the commercial site as per the Indian Railways are:

RETAIL Hotel • Retail Budget and Luxury category hotel Retail Shops/Dining • Anchor/Food Court/Food Plaza Vanilla Shops Lounge Shops

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