REQUEST FOR PROPOSAL

VOLUME I

PROJECT INFORMATION MEMORANDUM

FOR DEVELOPMENT OF INTEGRATED COMMERCIAL / RESIDENTIAL COMPLEX OVER 3.260 HECTARES ( 8.056 ACRES) OF LAND AT CHANDRASEKHARPUR , , , THROUGH PRIVATE SECTOR PARTICIPATION (PSP)

ISSUED BY

“BHUBANESWAR DEVELOPMENT AUTHORITY”

RFP No. 886/EM/BDA, Bhubaneswar

Akash Shova Building, Pandit Jawaharlal Nehru Marg Bhubaneswar – 751001, Odisha

November 2012

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, through Private Sector Participation (PSP)

Table of Contents

1. DISCLAIMER……………………………………………………03

2. ABBREVIATIONS………………………………………………05

3. SCHEDULE OF BIDDING PROCESS……………………….06

4. PROJECT SUMMARY…………………………………………07

5. PROJECT DEVELOPMENT & BIDDING PROCESS……………………………………………………….13

6. INTRODUCTION TO BHUBANESWAR………………….....15

7. SITE APPRECIATION…………………………………….…...18

8. DEVELOPMENT CONTROLS………………………………..24

9. ESTIMATED PROJECT COST…………………………….....26

10. ANNEXURES- COMMERCIAL MARKET

SCENARIO IN BHUBANESWAR………………………….....28

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

1. DISCLAIMER

Though adequate care has been taken in the preparation of this Request for Proposal (hereinafter referred to as “RfP”) document, the Bidders should satisfy themselves that the document is complete in all the respect and the information provided is correct. In case of discrepancy, if any, intimation should be given to the Officer Concerned in Bhubaneswar Development Authority (whose contact details is mentioned in this document) immediately on or before the due date specified in the Schedule of Bidding Process. If no intimation is received by the said officer within the date as mentioned in Schedule of Bidding Process as mentioned in this Document, it shall be deemed that the bidder is satisfied that the RfP document is complete in all respects.

Neither BDA nor their employees or Project Consultants make any representation or warranty as to the accuracy, reliability or completeness of the information in this RfP and it is not possible for BDA to consider the investment objectives, financial situation and particular needs of each party who reads or uses this RfP concerning the project. Certain prospective bidders may have better knowledge of the project compared to the others and BDA encourages all the prospective bidders to conduct their own due diligence, investigations & analysis and check for accuracy, reliability and completeness of this RfP. The bidders are free to obtain the independent advice from the sources appropriate to them.

Neither BDA nor their employees or Project Consultants will have any liability to any prospective bidder or any other person under the law of contract, tort, the principles of restitution or unjust enrichment or otherwise for any loss, expenses or damage which may arise from or to be incurred or suffered in connection with anything contained in this RfP, any matter deemed to form part of this RfP, the award of the project, the information and any other information supplied by or on behalf of BDA or their employees or their consultant or otherwise arising in anyway from the selection process of this project. BDA reserves the right to reject any or all of the bids submitted in response to this RfP at any stage without assigning any reasons whatsoever and without any liability of BDA in any manner. BDA also reserves the right to hold or withdraw or cancel the process at any stage under intimation to the bidders, who submit the RfP, without assigning any reasons whatsoever. BDA reserves the right to modify or amend or add to any or all of the provisions of this RfP Document or annul the present process. Such change would be intimated to all the parties procuring this RfP.

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

Neither BDA nor their employees or Project Consultants will have any liability in case addition, modification, amendment, alteration, cancellation and /or of non-receipt of any correspondence from them to the bidders due to the postal delays.

The Applicable law for the purpose is the laws in India. Civil Courts of Bhubaneswar will have jurisdiction over the matter concerning and arising out of this RfP.

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

2. ABBREVIATIONS

BDA Bhubaneswar Development Authority

PSP Private Sector Participation

EoI Expression of Interest

RfQ Request for Qualification

RfP Request for Proposal

IE Independent Engineer

LOA Letter of Award

SPV Special Purpose Vehicle

ULP Upfront Lease Premium

INR Indian National Rupee(s)

CF Commercial Facility

LP Lease Premium

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

3. SCHEDULE OF BIDDING PROCESS

(a) Issue of Advertisement : 20 November 2012

(b) Last date of receiving queries : 05 December 2012

(c) Pre-Bid Meeting (at BDA Conference Hall) : 11 December 2012

(d) Last date of receipt of Bids : 11 January 2013 (by 5:00 PM )

(e) Opening of Technical Bids : 11 January 2013 (at 6: 00 PM) (f) Opening of Financial Bids : 20 January 2013

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

4. PROJECT SUMMARY (For details please refer to the RFP documents (Vol I, IIand III )

Development of Integrated Commercial cum Residential Complex over 8.056 Acres of land at Mauza 1. NAME : Gadakana Plot Nos: 4704 (Pt), at Chandrasekharpur, Bhubaneswar, Odisha through Private Sector Participation (PSP). 2. LOCATION Bhubaneswar, Odisha 3. NODAL AGENCY Bhubaneswar Development Authority Integrated Commercial cum Residential Complex • Commercia l Zone comprising Office space, PROJECT COMPONETS Retail etc : Minimum 5,87,697 sq.ft. (approx) of 4. (as per DCR prevailing built up space. in Bhubaneswar) • Residential Zone: Maximum 3,74,216 sq.ft (approx) of built up space

3.2 60 hectares ( 8.0 56 acres ) 5. LAND AREA (approx.) The developer has the flexibility to develop combination of various type of commercial, office , retail and residential 6. ZONING FLEXIBILITY units confirming to the minimum and maximum built up space defined in 4 above. ESTIMATED BUILT -UP 7. 9,61,913 sq.ft . (approx.) utilizing an FAR of 2.75; AREA EST IMATED PROJECT 8. INR 235 Crores (approx.) COST Long Term Lease (90 years ) of 6,61,913 sq.ft. of BUA IMPLEMENTATION 9. along with lease hold right of proportionate land area. FORMAT

90 years (renewable on mutually agreed terms) from the 10. LEASE FORMAT date of signing of the Lease Deed

INSTITUTIONAL • Project to be implemented by the Special Purpose 11. STRUCTURE Vehicle (SPV)- a company to be formed by the

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

preferred bidder, who is selected through this selection process, under Company’s Act 1956.

• Complete all approval, clearance process within 12 months from signing of Development Agreement; CONSTRUCTION 12. • Complete the Project within 4 ( four) Years from PERIOD signing of the Lease Deed

• The Developer has to hand over 3, 00,000 ( three lakhs) sq.ft. (approx) of Commercial Built up area to BDA free of cost within a period of 48 months from signing of the Leased Deed. The area to be decided solely by BDA during finalization of the Development scheme. FIXED PARAMETERS

13. ** If FAR is increased in the subsequent period by

amendment to the existing regulation or on enactment of new Regulation , then a proportion ( i.e.3,00,000 / 9,61,913 ) of the additional area will have to be provided to BDA over and above the fixed parameter of 3,00,000 sq.ft.

Upfront Lease Premium (ULP) - payable to BDA in 14. BID PARAMETER installments

The Developer to pay BDA

• 25% of ULP to be paid before signing of Development Agreement (1 st installment)

• 25% of ULP within 12 months from the date of signing of Development Agreement (2 nd UPFRONT LEASE 15. installment) and before signing of Lease Deed * PREMIUM (whichever is earlier). No interest charged for this period.

• 50% of ULP before completion of 24 months from the date of signing of Development Agreement plus interest thereof (3 rd installment)** 8

Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

*Along with payment of 2 nd installment, the Developer is required to submit a Bank Guarantee equivalent to 50% of ULP amount . ** The compound interest annually charged on the outstanding amount will be SBI Base Rate + 5% as interest thereof and will be charged for period from the submission of BG till payment of the full amount. The Base Rate, as published, will be the rate of the last of day of the preceding month. The Lease Deed will be signed on payment of full amount of Lease Premium or on payment of 2 nd Installment plus BG of 50% of ULP. The Developer has the option of making pre payment at every stage. Annual Lease Rental at the rate of Rs. 300.00 ( three hundred ) per acre per annum is to be paid by the ANNUAL LEASE Developer.. The rent and cess shall be subject to variations 16. RENTAL AND CESS and modification at the rate to be specified by the Govt. of Odisha from time to time.

• 0.25% of Project Cost* (plus ST thereof) to be payable to Bhubaneswar Development Authority (BDA) before signing of Development Agreement; PROJECT DEVELOPMENT FEE & • 0.25% of Project Cost* (plus ST thereof) to be 17. EXPENSES (NON- payable to Jones Lang LaSalle Property REFUNDABLE AND Consultants (India) Private Limited {JLL} before NON-ADJUSTABLE) signing of Development Agreement;

* Estimated Project Cost indicated in the Technical Bid of the Preferred Bidder will be adopted for this purpose. • Envelope A: General Documentation & Technical Bid 18. BID SUBMISSION • Envelope B: Financial Bid

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

General Documentation: Duly filled up formats as specified 19. ENVELOPE A: in Annexure A-1 to Annexure A-15 , Annexure B1 of Vol-II of ITB along with all the specified supporting documents. Price Bid Letter quoting Upfront Lease Premium Payable to 20. ENVELOPE B: BDA

• A Consortium of maximum three members will be allowed to participate in the Bid • Lead Consortium Member to have minimum 26% CONDITION TO equity in Project SPV 21. CONSORTIUM BIDDERS • Other members to have minimum 10% equity in SPV • Consortium to demonstrate implementation Capability to execute project Bidder (Single or Consortium) to demonstrate the capability of: a. Minimum Development/ Construction capability of: • at least 24,000 sq. mt., Residential/Commercial / combination of both built up space in the last 5 years, in a Single Project; or 22. ELIGIBILITY CRITERIA • at least totaling 38,000 sq.mt., Residential /Commercial/ combination of both built up space in the last 5 years, through a maximum of 4 Projects, with minimum 9,000 sq.mt. built-up space for each project. b. Combined Minimum Net Worth: Rs.25 Crores Envelope A: General Documentation: Pass/Fail. 23. BID EVALUATION Envelope B: Highest Upfront Lease Premium INR 52,500/- (non-refundable) to be payable in the form of COST OF RFP Demand Draft/ Pay Order in favour of “Bhubaneswar 24. DOCUMENT Development Authority” payable at Bhubaneswar

25. BID VALIDITY 180 days from the last date of submission of bid

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

INR 50 ( Fifty) lakhs along with Technical Bid 26. BID SECURITY

10% of the Bid Amount PERFORMANCE 27. (Bid Amount would be the Upfront Lease Premium) SECURITY

RELEASE OF On issuance of Project Completion Certificate by BDA to 28. PERFORMANCE the developer. SECURITY VALIDITY OF 29. PERFORMANCE Up to issue of completion certificate – 5 years or any extension thereof SECURITY BDA signs Development Agreement for the project over 8.056 acres , where the minimum development obligations are: Maximum Residential – 3,74,216 sq. ft. Minimum. Commercial – 5,87,697 sq. ft. The private developer, to complete the building plan approval and financial closure within 12 months from CONTRACTUAL 30. signing the development agreement; FRAMEWORK As per the Building Plan, BDA to identify the 3,00,000 ( three lakhs) sq. ft of built-up space which will be retained by BDA;

The lease deed will be signed for the built-up area available to private developer 6,61,913 sq.ft. along with equivalent land rights (i.e. 5.53 acres). DEVELOPER’S • Forfeiture of Performance Security DEFAULT – BEFORE • Return of Lease Premium without any interest thereon 31. SIGNING OF LEASE • Cancellation of Development Agreement DEED • No compensation to be paid by BDA DEVELOPER’S • Forfeiture of Performance Security DEFAULT – AFTER • Forfeiture of the Lease Premium paid as on that date 32. SIGNING OF LEASE • No compensation to be paid by BDA DEED • Cancellation of Development Agreement and Lease

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

Deed or keep the option of a substitute party to be responsible for any compensation to the developer at the discretion of BDA. 1 acre=4046.85 Sq.m 1 Sq.m=10.763 Sq.ft

33. ASSUMPTIONS The project summary is a brief precise of facts for immediate reference. In case any dispute arises and / or inconsistency existed the detailed particulars of the RFP documents (Vol I, IIand III ) shall prevail and over ride the particulars specified in this clause.

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

5. PROJECT DEVELOPMENT & BIDDING PROCESS

The Project Information Memorandum (PIM) is being issued to bidders as Volume I of the Request for Proposal (RfP) and must be read in conjunction with the other volumes of the RfP as given below:

Volume – II: Instructions to Bidders (ITB) and Bidding Formats

Volume – III: Draft Development Agreement and Draft Lease Deed, to be signed between Bhubaneswar Development Authority (BDA) and with the Developer .

This Project Information Memorandum comprises the following:

Part 1: Summary – Project Development & Bidding Process

Part-2: Site Appreciation

Part-3: Development Controls

The Bhubaneswar Development Authority (BDA) has been constituted by the Housing & Urban Development Department, Government of Odisha, to plan and regulate development within its plan area. The objective behind constitution of the Authority was to take up planned and systematic development, prepare development plans including zonal development plans, undertake works pertaining to construction of housing colonies, shopping centers, markets, industrial estate, provide public amenities, regulate development and use of land and undertake schemes for improvement and clearances of slums and urban re-generation programs.

BDA proposes to develop an Integrated Commercial / Residential Complex over 3.260 Hectares ( 8.056 Acres) of land at Chandrasekharpur , Bhubaneswar , Odisha, with commercial land-use . BDA proposes to develop the ‘ Project ’ with the participation of a private sector developer who would Design, Engineer, Finance, Construct, Operate & Maintain and Market its share of built up

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

area for the Lease Period of 90 years including 4 ( four) years of Construction Period. The Development Agreement forms the legal basis for the Project.

On completion of the lease period (90 years) the leasehold built up area along with equivalent land rights shall be handed over to BDA by the Developer ( Project SPV) . All sub leases by the project SPV / Developer will co terminate with the original lease deed. However, the Lease may be renewed after 90 years, based on mutually agreed terms and conditions.

BDA has appointed M/s Jones Lang LaSalle Property Consultants (India) Private Limited , as Transaction Advisor for development of the Project.

The Preferred Bidder (Single or Consortium) would be required to incorporate a Special Purpose Vehicle (SPV), as the Lessee, under the Companies Act, 1956 for implementing the Project. In case the Preferred Bidder is a consortium, all members of the consortium would then become confirming party to the Development Agreement and Lease Deed. The Lead Member of the consortium identified in the Technical Bid would hold at least 26% of the equity of the SPV during the Lease Period. Other members in case of Consortium of Firms shall hold at least 10% equity each in the SPV.

The Preferred Bidder will be selected through a transparent and competitive Single Stage Bidding process and would be given the right to recover its investment through the leasing / sub-leasing of proportionate share of built up area within the plot.

The financial bid variable for selection of the preferred bidder, subject to other qualification criteria being met, would be the Maximum Lease Premium (LP) that the bidder would pay to BDA apart from meeting the fixed parameters of the Bid. Bidders are required to submit separate technical and financial bids. The financial bids of only those bidders that comply with the General Documentation submitted as a part of their technical submission will be opened. The detailed instructions for preparation of technical and financial bids are provided as Volume 2 of this RfP document.

The Preferred Bidder to pay BDA liquidated damages for delay beyond the Scheduled Construction Completion Date (48 months from the date of signing the Lease Deed) @ INR 10,00,000/- (Rupees Ten Lakhs Only) per month of delay or part thereof subject to a maximum period of twelve(12) months after which it will be construed as Developer’s default.

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

6. INTRODUCTION TO BHUBANESWAR, ODISHA

Location and Regional Setting

Bhubaneswar is the Capital city of the State of Odisha, one of the largest States in Eastern India. Bhubaneswar is also popularly known as the "Temple City of India".

Broad historic growth dynamics of the city

Once the capital of ancient Kalinga, the city has a long history and is today a bustling centre for commerce and religious activity. Bhubaneswar became the modern capital of the state of Odisha in 1948, a year after the independence of India. The city is inhabited by over a million people and maintains a high rate of population growth. Odisha Bhubaneswar is situated between 21°15' North Latitude 85°15' Longitude and at an altitude of 45 m above sea level. Geographically, Bhubaneswar is situated in the eastern coastal plains of Odisha and south-west of river Mahanadi whose tributaries Kuakhai, Bhargavi and Daya wash the fringes of this city.

The city is bounded on the North by Nandan Kanan the famous wild life Sanctuary, on the South by river Daya, on the east by river Kuakhai and on the west by reserve forests.

Physiography: The city forms the part of mid-coastal plains of Odisha with average elevation of 45 m above the mean sea level. Connectivity Regional Connectivity Bhubaneswar is well connected with the rest of the country and the state of Odisha by air, rail and roads. The modes of connectivity are discussed in detail below:

Air Connectivity

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

Bhubaneswar is connected to the cities of Kolkata, , , , Vishakhapatnam, Hyderabad and Raipur through regular flights. Biju Patnaik Airport in Bhubaneswar is the only major airport in the state.

Rail Connectivity Bhubaneswar is directly connected by rail with Kolkata, Chennai, Delhi, Mumbai, Bhubaneswar, Guwahati, Hyderabad, Tirupati and Trivandrum. A total of around 50 (fifty) trains pass daily through Bhubaneswar. Additionally, there are around 20 more non-daily trains which connect the city with the rest of the country.

Bhubaneshwar does not have local rail service connecting different parts of the city. However, a few passenger trains connect the city with the adjoining region and cities such as Cuttack, Puri, Bhadrak, Balugan etc.

Road Connectivity

The city lies on the National Highway No. NH-5 and is linked to the two metro cities of Kolkata and Chennai directly. Within the State, it has good linkages with Berhampur, Chilka, Cuttack, Konark, Paradip, Puri, Rourkela and Sambalpur. Interstate bus services operate daily between Kolkata and Puri via Bhubaneswar and Tatanagar (Jamshedpur).

Growth directions of Bhubaneswar and Linkages

CBD areas: Janpath, Sachivalaya Marg and Bidyut Marg, Areas such as Shahid nagar and Ashok nagar

Upcoming areas: Chandrashekharpur, Patia in the north Khandagiri and Khurda Road in the south Cuttack Bhubaneswar Road in the East

Local Linkages:

• Inter-city transport – Regular buses between Bhubaneswar and other important towns of

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

Odisha such as Berhampur, Chilka, Cuttack, Konark, Paradip, Puri, Rourkela, Sambalpur etc. Interstate buses ply between Kolkata () and Tatanagar (Jharkhand) • Intra-city transport – Mostly dependent upon auto and cycle rickshaw services, however taxis areavailable in the city.

Fig: Growth directions of the region

Urban Structure:

The urban structure of the city exhibits three different zonal characteristics – the Old Town area on the eastern side of the rail line, the Capital Town area designed by Otto H. Koenigsberger, the famous German architect and the New Town area along Chandrashekharpur, which is being developed of late.

The Capital Town, designed by Otto Koenigsberger has well defined and a planned road layout with a hierarchical system of collector and feeder streets. There is adequate capacity for links and intersection with scope for handling increases in traffic volume.

The New Areas being well designed and developed towards Chandrashekharpur and Patia, north of NH-5 have been developed to cater to the new developments constituting of IT parks, education / health campus developments and residential townships along National Highway No. NH-5 and Nandankanan road.

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

7. SITE APPRECIATION

Location The site measuring 3.260 Hectares (8.056 Acres) of land is located at Chandrasekharpur , Bhubaneswar , Odisha . The entry to the site is through a 100 ft service road . The Site is around 9 Km from the Biju Patnaik Airport; and enjoys excellent linkages with other parts of the city.

Map showing the location of the site

THE SITE

Nandanan Kanan Road

5 y - wa igh l H na tio Na

Bidyut Marg C

Airport N

Source : Google Earth

SITE AREA AND LAND USE

As per the Comprehensive Development Plan for the city of Bhubaneswar the area of the Site falls in the “Commercial Use” Zone. The FAR applicable in this Site is 2.75 m and Maximum Permissible Built-up Area is 9,61,913 sq.ft . (approx.). 18

Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

Site on the Google map SITE SURROUNDINGS

The immediate surroundings of the Site are as below:

North: Internal Road , Government Residential colony

South: Internal Road , Government Residential colony

West: 100 ft. wide road

East: Commercial Project being developed by Unitech Ltd. Colony , Shops

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

Views of the Site

Fig: Site view 1

Fig: Site view 2

Infrastructure The Site is located in a prime area the city. . . The site is in close proximity of Sainik School , Apollo Hospital , Kalinga Hospital etc. Unitech Ltd is doing the construction of a Commercial Complex adjacent to the site. Physical infrastructure like power, water, sewerage and solid waste management are available at the Site

Site Potentials Strength: • Its location is the major strength; a very popular destination for the City of Bhubaneswar Opportunities: • Located within a commercial setting, similar kind of development has excellent opportunity • Surrounded by Residential areas so there is an existing demand for Commercial and Retail developments

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

Illustrative Concept Layout -

Parking provision

As per the development regulations, the parking for a Commercial Development should be 60% (sixty percent) of the total buildable area i.e. 18,763 sq. m. Area of 17,932 sq. m. (8,966 sq. m. at 21

Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

each level) can be achieved by providing two levels of basement parking as shown in the figure. As per the regulation 3 m of setback is provided from the plot line to provide for envelope based parking. Along with the basement parking a small lot is given for the surface parking of area 831 sq. m.

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

Topographic Survey of Site

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

8. DEVELOPMENT CONTROLS & ESTIMATED PROJECT COST

Development Regulations  The Development Controls prevailing in the site is governed by the ‘Planning & Building Standards Regulations 2008’, of the Bhubaneswar Development Authority and any modifications / alteration if any made there and / or any regulation brought in place of Planning and Building Standards Regulation 2008.

 Any addition, alteration and modification in the FAR speceified in Regulation 2008 shall be permissible to the bidders subject to such condition(s) stipulated in the development agreement. The same benefit shall also be extended in case new regulation brought in extending better benefits, but however shall be subject to the terms and conditions specified in the development agreement.

 The Floor Area Ratio is decided on the basis of the road width on which the plot/site abuts. In case of commercial development the maximum permissible FAR shall be 2.75.

 The height of the building shall be governed by the limitations of Floor Area Ratio, open space (setbacks), and the width of the street facing the plot. The maximum percentage of coverage is as per setback specified in Planning & Building Standards (regulations 2008).

 The Parking area shall be 50% (fifty percent) of the total buildable area as per the Odisha Gazette notification no. 408 0f Planning and Building Standards Regulations , 2008.

 Clause no. 12 and 14 of the Odisha Gazette notification no. 408 elaborates the provisions of basement parking.

 Besides the above, planning, design, materials and construction of all buildings and infrastructure have to follow the building bye-laws and shall be in accordance with the relevant sections of India Standard Specifications and Codes; and the National Building Code of India.

Design Guidelines as per Bhubaneswar Planning & Building Standards Regulations, 2008

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

 Maximum Height of a building shall in no case exceed 1.5 times the width of the road on which the plot abuts plus the front set back. However, higher height on account of premium FAR may be permitted with the approval of the Government.

 In every building area, at least 10% of the land shall be covered by plantation, but in case of multi-storied buildings/ group housing/ apartment building/ industrial/ assembly/ educational/institutional buildings, at least 20% of the land shall be covered by plantation.

Area calculation The area of the Site is 3.260 hectares ( 8.056 acres) . So, accordingly the permissible built up area of the Site is shown below:

Site Area 8.056 Acres FAR Refer Table 7, Bhubaneswar Planning & Building Standards 2.75 Regulations,2008 Total sq.ft 9,61,913 . Buildable (approx.) Area Total Parking Parking area to be provided for commercial use building is area Required 60% of the total built up area as per Bhubaneswar Planning & 43204 sq.mt. Building Standards Regulations,2008

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

Estimated Project Cost (ILLUSTRATIVE))

The following table shows an indicative computation of the estimated Project Cost

Total Area 8.056 Acres 32496.206 Sq.mtr 349786.8 Sq.ft FAR 2.75 Total permissible Built-up area 89364.565 Sq.mtr 89364.56513 961913.7 Sq.ft Commercial Built up area ( 54618.6803 minimum) 587697 Sq.ft Residential Built up area ( 34745.88483 maximum) 374216.7 Sq.ft Commercial Built up area to be 27881.04089 transferred to BDA ( free of cost) 300000 Car parking area ( Commercial) 60% of the Commercial BUA 352618.2 Sq.ft 32771.20818 Car parking area ( Residential) 30% of the Residential BUA 112265.01 Sq.ft 10433.55112 Total car parking area 464883.21 Sq.ft 43204.75929 Covered car parking area 55% of the total car parking area 255685.77 Sq.ft 23762.61761 Particulars Rate Unit/ Remarks Costs Cost for land development, site infrastructure, landscaping & Rs.69,95736.00 hardscaping….(A) 20 INR/ sq.ft of land area Civil Cost ( Residential ) 1500 INR/ Sq.ft of permissible BUA 561325050 Civil Cost ( Commercial) 1800 INR/ Sq.ft of permissible BUA 1057854600 Electricity 115 INR/ sq.ft of permissible BUA 110620075.5 Sanitary & Water Supply 115 INR/ sq.ft of permissible BUA 110620075.5 Fire fighting 5 INR/ sq.ft of permissible BUA 4809568.5 Passenger lifts 12 INR/ sq.ft of permissible BUA 11542964.4 Back up facilities 10 INR/ sq.ft of permissible BUA 9619137 Cost of construction of Rs.186,63,91471.00 BUA….(B) Cost of construction of Rs.127842882.8 covered Parking area….(C) 500 INR/sq.ft of covered parking area Construction and Development Rs.200,12,30090.00 Cost…(D)= (A+B+C) Other soft costs Architecture, Planning & Landscaping 3% PMC 2% Legal & Admin 2% EIA 0.50% Assuming 14% Interest rate on Debt Rs.35,02,15265.70 Component (50% of the Const.& Dev. Cost) with an average holding Interest During Construction 7% period of 1 year Advertisement, Brokerage, Marketing etc 3%

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

Total Soft Costs…(E) 17.50% of (D) Rs. Total Project Cost….(F)=(D+E) 235,14,45355.00

N.B. BDA’s estimated project cost which is tentative and may vary on variable factors. The approximate project cost is not final, the bidder may treat the same as information data and accordingly the bidders are free to quote their project cost as per their best assessment principle adopted with respect to their planning, designing and other allied factors.

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

Annexure

(Commercial and Real Estate Profile of Bhubaneswar)

1.1 INTRODUCTION

The city of Bhubaneswar has a strong historical milieu wherein its roots can be traced back to 6th century BC, yet there has not been much organic growth in the city. Astoundingly, Bhubaneswar is one of India’s earliest planned cities designed by the German Architect Otto H Koeingsberger. The real estate development trend in Bhubaneswar especially in case of residential market has resulted in a popular saying that ‘given a choice, the whole of Odisha would come to Bhubaneswar’. Residential sector has also undergone changes in terms of being a potential destination for plotted and group housing development. However, organized retail and commercial development is in the nascent stage. Following were some of the major factors that were driving forces behind real estate development of Bhubaneswar in the past:

• As Bhubaneswar is a planned city most of the land holdings are with Government. Land availability in the prime residential micro markets is low and prices are high, developers in the city are aggressively constructing apartment projects in these micro markets primarily through the joint venture route with local landlords. • The price range for the apartments in the residential market lies between INR 3,000 – 4,500 per sq ft, the specific pricing based on the address and project profile. All apartments that were launched in the market during the past 2 years were sold within 6-9 months’ time. Thus the absorption is moving in tandem with supply. • Retail development is slow but steady. Brands like Pantaloons and Big Bazar are popular but the retail paradigm changing phenomenon with high street being replaced with large malls and indigenous cinema halls swapped with multiplex hasn’t yet arrived in Bhubaneswar. • Commercial space requirement especially in the Grade A typology is also in its nascent stage. 1.2 COMMERCIAL SECTOR OVERVIEW OF BHUBANESWAR , ODISHA

Bhubaneswar being the State capital, the influx of people in and out of the city is high. The occupancy level of the hotels in Bhubaneswar is around 60% (sixty percent), some of the rooms are permanently booked by the companies all the year round, however this trend cannot be ascertained as a sustainable occupancy pattern. In addition to this, there are a number of company guest-houses etc. being operated in the city.

Central Business District (CBD)

CBD of Bhubaneswar extends to a radius of 2-3 km from Sachivalaya road and Janpath. The locations, which fall under CBD, include Bapuji Nagar, Kharavela Nagar, Ashok Nagar and Keshari 28

Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

Nagar. CBD has been the traditional commercial hub of Bhubaneswar city, housing prime offices as well as retail occupiers. The size of occupiers’ space requirements in CBD area typically ranges from 5,000 sq. ft. – 20,000 sq. ft.

Secondary Business District (SBD)

SBD can be categorized into two major clusters:

• Chandrashekharpur

• Along Khurda road – upcoming

Chandrashekharpur is developed as a major IT/ITeS destination of Bhubaneswar. IT SEZ ‘Info city I’ developed by Odisha Industrial Infrastructure Development Corporation (IDCO) is under operation. Info City II is being planned along the Khurda Road along with the Biotechnology Park, Knowledge Park. Pictorial representation of the commercial development in Bhubaneswar

Citi Mart Commercial Complex

Nirmal Plaza

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

Fortune Towers

Name of Name of the Date of Total Area Percentage Main occupants the developer completion (in sq. ft.) occupancy Buiding

Info city I Infocity – 1983 205 acres 100% , , TCS STPI

Fortune IDCO 1998 3.53 L sq. 100% , Mittal Steel Towers ft. India, Essar Steel, Microsoft Associates, POSCO India Pvt. Ltd., Mitsubishi Corporation India Pvt. Ltd., Exilant Consulting Pvt. Ltd.

Tower 2000 IDCO 2004 94,000 sq. 100% Royal School Of ft. Management and Technology, Mindfire Solutions, TTSL, Airtel, Aircel, Mind Fire Solutions, Nethawk Networks India Pvt. Ltd.

IDCO IDCO 2005 125000 sq. 100% OIL, SBI, JSS Towers ft. Consultancy Services Pvt. Ltd., SRB &

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

Associates, Reliance Telecom Ltd.

Nirmala Utkal 2006 36,000 sq. 100% Magma Finance, BSNL, Plaza Builders ft. Tata AIG, Sea Ways Limited Shipping, AXIS bank.

Citi Mart Utkal 2003 33,000 sq. 100% City Finance, ICICI Commercial Builders ft. Prudential, Vedanta, Complex Limited Barclays Bank.

Pal Heights Harman Pal 2008 12,000 (out 100% Transcend Telecom, Singh of 200,000 HDFC sq. ft.)

Metro - 1998 100,000 85% Tower sq. ft.

Narula - 2005 25,000 sq. 85% Axis Bank, Kingfisher Complex ft. Airlines, Indigo, Share Khan etc.

Sri Vinayak - 2002 20,000 sq. 85% ING Vyasa, HDFC Bank, Tower on ft. Vacancy is Ground Floor – United Janpath available at Colour of Benetton, first floor Central Bank.

IIPM Local 2009 60,000 sq. 100% The whole building is Building ft. leased to IIPM.

Source: JLL Market Survey: September-October, 2009

Retail Sector Overview Bhubaneswar was developed essentially as an administrative city, but transformed into vibrating centre of trade and commerce as well as tourism during the last decade. Earlier, Cuttack was the most important business centre between Kolkata and Visakhapatnam, the two major ports. Paradip, the younger major port in the Odisha coast located near to Cuttack, has not significantly contributed to the further growth of Cuttack, as there is no facility in the old and congested city for logistics support. Instead, Bhubaneswar having enough available land and better social 31

Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

infrastructure, supported by the state government decision to become the Capital city of Odisha, has been growing at an enormous pace. As people choose to stay in the Capital city, this has fuelled the growth of all kinds of life support systems covering all aspects of urbanisation. Growth in retail is obvious in this context.

High-street retail is the predominant typology in Bhubaneswar, which includes organically developed road side shops and showrooms, shopping centres built by various private developers as well as BDA in different locations of the city. Largest markets in Bhubaneswar are located in Shahid Nagar, Bapuji Nagar and the Unit-2 and Unit-1 market complexes. Being a thoroughly planned city, Bhubaneswar always had organized high-street retail areas.

Organized Retail in Bhubaneswar:

Forum mart, operational from the year 2003 is till date the major organized retail operating in Bhubaneswar. A number of retail developments are being envisaged in the city. The Janpath, Shaheed Nagar and the linking road to CBD are prime destination of the organized retail.

Existing commercial (Retail) development in Bhubaneswar

Forum Mart

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

Maruti Mall

Pal heights

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP)

1.3 RESIDENTIAL MARKET OF BHUBANESWAR

Following points are noted for residential market of Bhubaneswar

• Land availability in the prime residential micro markets is low and prices are high, developers in the city are aggressively constructing apartment projects in these micro markets primarily through the joint venture route with local property owners. • The supply in the prime apartment market is predominantly of 2 BHK and 3 BHK. However in large-scale developments 4 BHK apartments are also being developed, mainly towards the outskirts of the city. • Bhubaneswar is expected to see a substantial amount of supply in residential sector in o Khandagiri area, o Chandrashekharpur, o Jaidev Vihar around Kalinga Stadium o Shahid Nagar area

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Request for Proposal (Volume I): Project Information Memorandum

Integrated Commercial cum Residential Complex over 3.251 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through PSP

1.4 DETAILS OF MAJOR PROJECTS IN BHUBANESWAR

Table 4.1 – Some of the Major Residential Developments in Bhubaneswar Name of Price the No of (INR/s Launch project Developer Location units q ft) date Absorption Present Status Utkal Utkal Heights Builders Pahal 320 3500 1Q 2010 80% UC Shankarpur Vipul Vipul Mouza, Kalinga 578 (10 Gardens Limited Nagar towers) 3600 1Q 2009 98% UC Near Cosmopo Assotech Khandagiri 3800- lis Limited Square 750 4000 2009 99% UC 261 - Laxmi Near Sum Apartm Builders Hospital ents & Palm and Acrux (Khandagiri 32 Heights Realcon Square) Villas 3000 2008 90% UC 18 - 2200 - Duplex; apartm Tomando, 125 ent; G Next Raj Anand Khandagiri apartm 2400 Valley Builders Square ent duplex 2008 80% UC Northern Patia, Heights DN Homes Kalarahanga 256 3000 Jan-10 80% UC Acrux Aeropolis Realcon Gothapatna 1062 2150 Q1 2011 40% UC Tamarind Aryans Terraces Infra Patia 96 3700 Q1 2011 80% UC SJ Developers Royal and Patia, Lagoon Ashiana Raghunathpur 509 3350 Q2 2010 90% UC 1.8 Km from DN Khandagiri OxyPark DN Homes Square 300 3750 Q1 2012 25% UC Near 124 Covent Phulnakhara (bunga Nearing Garden OSL crossing ows) 2000 Q2, 2010 100% completion Source: JLL Market Survey: 2012

35 Request for Proposal (Volume I) : Project Information Memorandum