System: 
    Consider you are a market news analyser who analyses the news and announcements related to a particular stock.
    You are given with the text extracted from the body of the pdf file 
    attached to the news. 
    You are given with the list of categories from which you have to choose the category, if suppose there is no suitable category in
    the list then give the category name which best fits but it should be in consistency with the pdf text.

    The category field should not be empty.
    The categories are:
    ['Company Update', 'Board Meeting', 'Insider Trading / SAST', 'AGM/EGM', 'Corp. Action', 'Result']
    
    Give output in the following JSON format:
    {
        "category":"name of the category from the list given or the best fit category after analysing the text, it should not be empty.", 
        "reason": "brief reason why this news appropriately falls in the category mentioned by you"
    }

    Do not print anything else.
    
User: 
        The text extracted from the pdf is:
         
October  17, 202 4 
To, 
The Corporate Relations Department,  
The National Stock Exchange of India Limited,  
Exchange Plaza, 5th Floor,  
Plot No. C/1, G -Block, Bandra -Kurla Complex,  
Bandra (East), Mumbai − 400051  The Corporate Relations Department,  
Department of Corporate Services,  
BSE Limited,  
25th Floor, Phiroze Jeejeebhoy Towers,  
Dalal Street, Mumbai − 400001  
Re: Script Symbol “NXST”, Scrip Code 543913  
Scrip Code for NCDs: 974908 and 974909; Scrip Code for CPs: 726784 , 727657 and 727658  
Dear Sir/ Madam,  
Subject: Submission of Valuation Report of Nexus Select Trust . 
With reference to the Outcome of the Board Meeting of Nexus Select Mall Management Private Limited, 
Manager to Nexus Select Trust held on October 16, 2024, we wish to inform that we have taken on 
record the valuation report issued by iVAS Partners, represented by Mr. ArvindKumar C, the 
independent valuer of the Trust  along with value assessment services provided by CBRE South Asia 
Private Limited, received in connection with the proposed acquisition and is enclosed herewith . 
The Valuation Report  referred above is also uploaded on the website of the Trust at 
https://www.nexusselecttrust.com/ . 
Kindly take the same on record.  
Thanking you  
For and on behalf of Nexus Select Trust  acting through its Manager, Nexus Select Mall Management 
Private Limited (Previously known as “Nexus India Retail Management Services Private Limited”)  
 
 
Charu Patki  
Company Secretary and Compliance Officer  
Membership No. A18140  
 
Encl:  As above  
 
 
 VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 1 of 44 
 
VALUATION REPORT  
 
Issued to:  
Vijaya Productions Pvt. Ltd.   
(NXST SPV) 
 
VEGA CITY MALL , BANGALORE  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DATE OF VALUATION: AUGUST 31 , 202 4 
DATE OF REPORT:  OCTOBER  16, 2024  
 
 Valuer under Securities and Exchange Board of India 
(Real Estate Investment Trust) Regulations, 2014  
VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 2 of 44 
“Legal Notice and Disclaimer ” 
 
This valuation report (the “Report”) has been prepared by iVAS Partners. (“iVAS”) exclusively for Vijaya 
Productions Pvt. Ltd.  (the “Instructing Party”), in accordance with the Agreement entered into between iVAS 
and the Instructing Party dated 28th August  2024  (the “Agreement”). The Report is confidential to the 
Instructing Party and any other Addressees named herein and the Instructing Party and the Addressees may 
not disclose the Report unless expressly permitted to do so under the Agreement.  
Where iVAS has expressly agreed that persons other than the Instructing Party or the Addressees can rely 
upon the Report (a “Reliant Party” or “Reliant Parties”) then iVAS shall have no greater liability to any Reliant 
Party than it would have if such part y had been named as a joint client under the Agreement.  
iVAS’s maximum aggregate liability to the Instructing Party and to any Reliant Parties howsoever arising 
under, in connection with or pursuant to this Report and/or the Agreement together, whether in contract, tort, 
negligence or otherwise shall be limited  to the professional fee received by iVAS under the Agreement.  
iVAS shall not be liable for any indirect, special or consequential loss or damage howsoever caused, whether 
in contract, tort, negligence or otherwise, arising from or in connection with this Report. Nothing in this Report 
shall exclude liability which ca nnot be excluded by law.  
If you are neither the Instructing Party, an Addressee nor a Reliant Party then you are viewing this Report on 
a non -reliance basis and for informational purposes only. You may not rely on the Report for any purpose 
whatsoever and iVAS shall not be liable for any loss or damage you may suffer (whether direct, indirect or 
consequential) as a result of unauthorised use of or reliance on this Report. iVAS gives no undertaking to 
provide any additional information or correct any inaccuracies in the Report.  
For the avoidance of doubt, nothing in our Report will constitute any recommendation, investment advice or 
an offer or solicitation for the purpose of or for sale of any securities, financial instrument or products or 
other services. Any investors should m ake their own investment decisions in relation to any investments. If 
you do not understand this legal notice, then it is recommended that you seek independent legal advice.  
   
 
 
 
 
 
 
 
 VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 3 of 44 
Contents  
1 Instruction  ................................ ................................ ................................ ................................ ........  10 
1.1 Purpose  ................................ ................................ ................................ ................................ ..... 10 
1.2 Reliant Party  ................................ ................................ ................................ ..............................  10 
1.3 Limitation of Liability  ................................ ................................ ................................ ..................  10 
1.4 Scope of Services  ................................ ................................ ................................ .......................  11 
1.5 Valuation Capability  ................................ ................................ ................................ ...................  12 
1.6 Scope of Appraisal  ................................ ................................ ................................ .....................  12 
1.7 Valuer’s Interest  ................................ ................................ ................................ .........................  12 
1.8 Qualifications  ................................ ................................ ................................ ............................  13 
1.9 Disclosures  ................................ ................................ ................................ ................................  13 
1.10 Heightened Market Volatility  ................................ ................................ ................................ ....... 15 
1.11 Assumptions, Disclaimers, Limitations & Qualifications to Valuation  ................................ ...............  15 
2 Valuation Approach & Methodology  ................................ ................................ ................................ .... 18 
2.1 Scope of Valuation  ................................ ................................ ................................ .....................  18 
2.2 Basis of Valuation  ................................ ................................ ................................ ......................  18 
2.3 Approach and Methodology  ................................ ................................ ................................ ....... 18 
2.3.1 Direct Comparison Approach  ................................ ................................ ..........................  18 
2.3.2 Income Approach  ................................ ................................ ................................ ...........  18 
2.4 Approach and Methodology Adopted  ................................ ................................ ..........................  19 
2.5 Information Sources for Valuation  ................................ ................................ ...............................  19 
3 Subject Property at a Glance  ................................ ................................ ................................ ..............  23 
3.1 Nature of the Interest of the Subject Property  ................................ ................................ ................  23 
3.2 Capitalization Rate Adopted  ................................ ................................ ................................ ........  23 
3.3 Discount Rate Adopted  ................................ ................................ ................................ ...............  23 
3.3.1 Cost of Equity  ................................ ................................ ................................ ................  23 
3.3.2 Cost of Debt  ................................ ................................ ................................ ..................  24 
3.3.3 Weighted Average Cost of Capital (WACC)  ................................ ................................ ...... 24 
4 Valuation Certificate ................................ ................................ ................................ ..........................  25 
5 Vega City Mall, Bangalore  ................................ ................................ ................................ .................  27 
5.1 Property Description  ................................ ................................ ................................ ...................  27 
5.1.1 Site Details  ................................ ................................ ................................ ....................  27 
5.1.2 Legal Details  ................................ ................................ ................................ ..................  30 
5.1.3 Town Planning  ................................ ................................ ................................ ...............  30 
5.1.4 Statutory Approvals, Sanctions & Approvals  ................................ ................................ ...... 31 
5.1.5 Area Details, Type and Age of Existing Structures  ................................ ..............................  31 
5.1.6 Site Services and Finishes  ................................ ................................ ................................  32 
5.1.7 Condition & Repair  ................................ ................................ ................................ .........  32 VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 4 of 44 
5.1.8 Property Photographs  ................................ ................................ ................................ ..... 33 
5.2 Tenancy Analysis  ................................ ................................ ................................ ........................  34 
5.2.1 General Overview  ................................ ................................ ................................ ..........  34 
5.2.2 Lease Rental Analysis  ................................ ................................ ................................ ...... 35 
5.2.3 Historical Trends  ................................ ................................ ................................ ............  35 
5.3 Assumptions Rationale  ................................ ................................ ................................ ................  36 
5.3.1 Demand and Supply Dynamics  ................................ ................................ .......................  36 
5.3.2 Lease Rent Analysis  ................................ ................................ ................................ ........  37 
5.3.3 Assumptions Adopted for Valuation Exercise  ................................ ................................ ..... 38 
5.4 Value Assessment  ................................ ................................ ................................ .......................  39 
5.4.1 Adopted Methodology  ................................ ................................ ................................ .... 39 
5.4.2 Area Statement  ................................ ................................ ................................ ..............  39 
5.4.3 Construction Timelines  ................................ ................................ ................................ .... 39 
5.4.4 Absorption/ Leasing Velocity and Occupancy Profile  ................................ .........................  39 
5.4.5 Assumptions – Rental Revenue  ................................ ................................ .........................  40 
5.4.6 Assumptions – Non-Rental Revenue  ................................ ................................ .................  41 
5.4.7 Rent Escalation  ................................ ................................ ................................ ...............  41 
5.4.8 Capital Expenditure  ................................ ................................ ................................ ........  41 
5.4.9 Other Assumptions  ................................ ................................ ................................ .........  42 
5.4.10  Capitalization Rate  ................................ ................................ ................................ .........  42 
5.4.11  Discount Rate  ................................ ................................ ................................ .................  42 
5.5 Value of the Subject Property  ................................ ................................ ................................ ....... 42 
6 Exhibits and Addendums  ................................ ................................ ................................ ...................  43 
6.1 Site Layout Plan  ................................ ................................ ................................ .........................  43 
6.2 Permissible Land Use  ................................ ................................ ................................ .................  44 
 
 
 
  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 5 of 44 
DEFINITIONS AND ABBREVIATIONS  
 
This Valuation report uses the definitions and abbreviations set forth below which you should consider when reading the 
information contained herein  
 
Definitions  
 
Term  Description  
Absorption  Represents the total urban consumption centre space known to have been let out to tenants or 
owner -occupiers during the survey period. A property is deemed to be taken -up only when 
contracts are signed or a binding agreement exists.  
Anchor stores  The category of stores with Leasable Area (as defined below) equal to or more than 7,500 sq. 
ft. excluding entertainment area, food court and F&B  
Anchor tenant  A tenant type in an urban consumption centre with a larger space requirement, typically at or 
over 7,500 sq. ft. of Leasable Area (as defined below). It acts as a major footfall driver for an 
urban consumption centre  
Base rent  Base Rentals (as defined below) for the specified period  
(Occupied Area (as defined below) x Monthly factor)  
Base Rentals  Rental income (as defined below) contracted from the leasing of Completed Area (as defined 
below); does not include fit -out and car parking income  
Cap rate  Cap rate is a real estate industry metric. Cap rate for office, urban consumption centre space 
or hotels refers to the ratio of the NOI from rentals from the office or urban consumption centre 
space (or EBITDA for hotels) to their Gross Asset Value  
Capital values  Quoted capital values measured in Rs. per sq ft representing the average asking (quoted) sale 
price for all available space in existing buildings at the end of the period  
Carpet Area or Covered Area  Means the net leasable area, excluding the area covered by external walls, areas under service 
shafts, exclusive balcony or veranda area and exclusive open terrace area, but includes the 
area covered by the internal partition walls, shaft, columns inside t he store  
Catchment  The influence area from which an urban consumption centre is likely to attract its visitors  
CBD Central business district  
Churn  The percentage share of area of tenants that have left the development over a certain period 
of time  
Committed Occupancy (%)  Sum of Occupied Area and Leasable Area for which letters of intent have been signed with 
the lessee of the urban consumption centre(s)  
Completed Area (as defined below)  
Completed Area  Leasable Area (as defined below) for which occupancy certificate has been received and 
includes area for which construction has been completed and occupancy certificate is awaited  
Consumption  Personal spending on goods and services by the households  
CY Calendar year  
Developable Area  The total area which is developed on each property, and includes Carpet Area (as defined 
above), common area, service and storage area, as well as other open area, including car 
parking  
Disposable income  Income less income tax  
EBITDA  Earnings before finance costs, depreciation, amortization, share of net profit/(loss) of 
investment accounted for using equity method, exceptional items and tax  
EBITDA Margin (%)  EBITDA (as defined above)  
Revenue from operations  
Effective Rents  Lease rentals (as defined below)  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 6 of 44 
Term  Description  
Occupied Area (as defined below) x Monthly factor  
F&B Food and beverage  
FAR or FSI  Floor area ratio or floor space index is the measurement of a building's floor area in relation 
to the size of the lot/parcel that the building is located on  
Fit-outs The process of making a retail space ready with respect to furnishings/interiors for occupation 
by a retailer  
Footfalls or Shopper traffic  The number of people entering a shop or shopping area part of the urban consumption centre 
in a given time  
Fully furnished/fitted  A “plug -and-play” facility ready for tenant to move in  
Gross Asset Value or GAV  Gross Asset Value is the Market Value  (as defined below) of the subject  property  as of August  
31, 202 4 (unless otherwise specified)  
Grade A  An urban consumption centre type where the disposition model observed is lease only (owned 
and operated by a single developer/operator) and the building Leasable Area (excluding city 
centric locations) is usually not less than 0.3 mn sq. ft. Further, the O ccupancy observed across 
Grade A urban consumption centres is typically above 70%.  
Grade B  An urban consumption centre type where the disposition model observed is full/part strata sale 
regardless of the building leasable area. Further, any urban consumption centre with a 
Leasable Area (excluding city centric locations) of less than 0.3 mn sq. f t is also typically 
classified as Grade B.  
Gross Rentals  Rental income (the sum of Minimum Guaranteed Rentals (as defined below) and Turnover 
Rentals (as defined below)).  Gross rentals for the month ended  August  31, 202 4 are computed 
basis average monthly Tenant Sales for last one year from date of valuation  
HVAC  Heating, ventilation and air -conditioning  
IGBC certification  Indian Green Building Council certification is a rating system which aims to enable a 
sustainably built environment  
Inflation  A sustained rise in the general price level. The inflation rate is the percentage rate of change 
in the price level  
Information technology or IT  Refers to a development type; includes buildings developed for occupiers involved in IT/ITeS 
operations (as defined in the National and State Level IT Policies)  
In-line stores  The category of stores with Leasable Area of less than 7,500 sq. ft. excluding F&B, food court 
and kiosk area. Also referred to as “vanilla stores”  
In-line tenant   The tenants occupying space in in -line stores. Also referred to as “vanilla store tenant”  
In-place Rent  Gross Rentals (as defined above) for the month of August 31, 2024 (unless otherwise 
specified)  
Occupied Area (as defined below) x Monthly factor  
IT services  IT services involve a full range of engagement types that include consulting, system integration, 
IT outsourcing/ managed services/ hosting services, training and support/maintenance  
Last three fiscal years  Period covering financial years 202 4, 202 3 and 202 2 (i.e., April 1, 20 21 to March 31, 202 4) 
Leasable Area  Total area of a property that can be occupied by, or assigned to a tenant for the purpose of 
determining a tenant’s rental obligation.  
Letter of intent  Non-binding agreements with tenants to lease space in urban consumption centres (defined 
above) or offices units  
Mark -to-market or MTM  Growth potential between Market Rent (as defined below) over Effective Rent  
Marketing income  Income generated through marketing, promotional activities, leasing of signages, space on 
hire, collaborative marketing charges and marketing vouchers received from tenants  
Market Rent  Valuer’s  estimate of Effective Rent (as defined above) for each category of stores that can be 
expected from leasing of the store to a tenant  
Market Value  Market Value as determined by the Valuer as of August  31, 2024. VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 7 of 44 
Term  Description  
Market Value is defined in accordance with IVSC International Valuation Standards  (IVS), the 
definition is outlined in Section  2.2 of this report.   Market Value is not a recognized measure 
under Ind AS or IFRS and does not reconcile with the carrying amounts of property, plant and 
equipment, investment properties, goodwill and intangibles assets appearing in our combined 
balance sheet as of August  31, 202 4. 
Minimum Guaranteed Rentals  Minimum guaranteed rental income as per terms contractually agreed with the tenant(s)  
Minimum Guaranteed Rent  Minimum Guaranteed Rentals (as defined above)  
Occupied Area (as defined below) x Monthly factor  
Mn or mm  Million  
msf Million square feet  
Multiplex  A movie theatre comprising of multiple screens within a single facility  
Net Absorption  Absorption net of exits witnessed in the Total Stock during the specified period  
NOI Net Operating Income calculated by subtracting other operating expenses from revenue from 
operations excluding any IndAS adjustments. For further details on calculation of NOI, refer to 
“Management’s Discussion and Analysis of Factors Affecting Financial C ondition and Results 
of Operations —Non-GAAP Measures —Net Operating Income (“NOI”) and NOI Margin”  
NOI Margin (%)  NOI (as defined above)  
Revenue from operations  
Occupancy (%)  Occupied Area (as defined below)  
Completed Area (as defined above)  
Occupied Area  Completed Area (as defined above) for which lease agreements have been signed with the 
lessee(s)  
Outsourcing  A type of engagement, such as consulting and integration that can be sourced from any of the 
lower -cost regions  
psf Per square feet  
psf pm  Per square feet per month  
Re-leasing Spread  Refers to mark -up in rental achieved on the Minimum Guaranteed Rental (as defined above), 
by re-leasing during the respective period  
Rent free period  Represents the typical number of months of rent free period offered to tenants by landlords as 
an incentive, which is typically used by tenants to cover fit -outs. The variable can be expressed 
as a range  
Rent-to-Sales Ratio (%)  Rent payable to the lessor as a percentage of tenant sales (as defined below)  
Rental income or Lease rentals  Sum of Minimum Guaranteed Rentals (as defined above) and Turnover Rentals (as defined 
below) for relevant period.  
Rental values  Quoted rental values; measured in Rs. per sq. ft. per month representing the average asking 
(quoted) rental rate for all available space in existing buildings at the end of a period. This rate 
indicates an average of what landlords would charge to lease sp ace in that market, with 
operating costs covered by the tenant. Rental values provided are exclusive of property tax  
Site area  The total extent of the land over which the Developable Area (as defined above) is situated  
Sq. ft. or sf  Square feet  
Submarket  Areas within the city, where real estate activity has emerged over time at different intervals with 
varied market dynamics. Since positioning, pricing and development may differ in different 
parts of the city, hence, these parts are considered as submarkets for ease of analysis  
Supply  In the context of asset space, represents the total area of new floor space that has reached 
practical completion and is occupied, ready for occupation or an occupancy permit, where 
required, has been issued during the survey period. The status of the buil ding will have been VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 8 of 44 
Term  Description  
changed from space ‘under construction’ to ‘completed’ during the quarter. Development 
completions are also known as ‘new supply’ in some markets  
Tenant sales  Net sales generated by tenant(s) from sale of merchandise or provision of services from the 
stores located within the subject property  
Tenant Sales Per Square Foot or 
Trading Density  Tenant sales (as defined above) for respective period  
Carpet Area (as defined above) x Monthly factor  
Total Stock  Represents the total completed space (occupied and vacant) in the market at the end of the 
quarter or year  
Turnover Rentals  Higher of (i) contracted turnover rent percentage applied to tenant sales of the respective 
period, less applicable Minimum Guaranteed Rentals for the same period, or (ii) nil  
Urban consumption centre or 
consumption centre  Any retail mall/centre irrespective of their Grade. Also referred to as “UCC”  
Vacancy allowance  Provision made to account for unforeseen exits, any unanticipated delays in lease -up of existing 
area, re -leasing or leasing of area pursuant to new developments  
Vacancy rate (%)  Vacant Area expressed as a percentage of Total Stock  
Vacant area  The Completed Area (as defined above) of a property less Occupied Area less Leasable 
Areas for which Letters of Intent have been signed with the lessee. Also referred to as “Vacant 
space”  
WALE  Weighted average lease expiry (weighted according to Gross Area) assuming  tenants exercise 
their renewal options after the end of their initial commitment period.  
Warm shell  The space delivered to the tenant in air and watertight condition, including centralized AC 
infrastructure, elevators, common area electrical wiring, utility and backup power and 
plumbing. In a warm shell lease, the client may decide to do the fit -out or a sk the developer 
to undertake the same  
 
 
 
 
 
 
 
 
 
 
 
  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 9 of 44 
Abbreviations  
Term  Description  
BBMP  Bruhat Bengaluru Mahanagara Palike  
BSE Bombay Stock Exchange Limited  
Companies Act or Companies Act, 
2013  Companies Act, 2013, along with the relevant rules made thereunder  
Companies Act, 1956  Companies Act, 1956, along with the relevant rules made thereunder  
Financial year or Fiscal year or Fiscal 
or FY  Period of 12 months ended March 31 of that particular year, unless otherwise stated  
LG Lower Ground Floor 
UG Upper Ground Floor  
Ind AS  Indian Accounting Standards notified under Section 133 of the Companies Act, 2013 read with 
the Companies (Indian Accounting Standards) Rules, 2015, as amended  
Indian GAAP  Generally Accepted Accounting Principles in India notified under Section 133 of the Companies 
Act, 2013 and read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and 
Companies (Accounting Standards) Amendment Rules, 2016  
Indian GAAS  Generally Accepted Auditing Standards in India  
NOI Net Operating Income  
NOI Margin (%)  NOI 
Revenue from operations  
NSE The National Stock Exchange of India Limited  
REIT Real Estate Investment Trust  
REIT Master Circular  SEBI Master Circular for Real Estate Investment Trusts dated April 26, 2022  
REIT Regulations  Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014, as 
amended  
Rs. or Rupees or INR or ₹ Indian Rupees  
SARFAESI Act  Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 
2002  
SEBI Securities and Exchange Board of India  
SEBI Act  The Securities and Exchange Board of India Act, 1992, as amended  
SEBI AIF Regulations  Securities and Exchange Board of India (Alternative Investments Funds) Regulations, 2012  
SEBI FPI Regulations  Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019  
SEBI VCF Regulations  The erstwhile Securities and Exchange Board of India (Venture Capital Fund)  
SEBI ICDR Regulations  Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) 
Regulations, 2018, as amended  
Stock Exchanges  Together, BSE and NSE  
  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 10 of 44 
1 Instruction  
iVAS Partners (Valuer Registration Number: IBBI/RV -E/02/2020/112), represented by its partner Mr. Vijay 
Arvindkumar C is a registered valuer under the Companies Act 2013 with IBBI (Valuer Registration 
Number: IBBI/RV/02/2022/14584) , has been instructed by Vijaya Productions Pvt. Ltd  (‘NXST SPV ’) 
herein referred to as ‘the Client’  to advise upon the Market Value (MV) of  urban consumption centre 
located along Bannerghatta Road, Bilekahalli  village and N.S Palaya, Begur Hobli, Bangalore  (herein 
referred as the ‘ Subject Propert y’ across the report).  
The details of the subject property under the purview of this valuation exercise is tabulated below:  
*Note that Approx.4000 sft  of façade extension area is under -construction and expected completion for the same is 9 -12 months  
1.1 Purpose  
We understand that the valuation is required by the Client  for Acquisition purpose.  
1.2 Reliant Party  
The Reliant Party to the valuation report will be Vijaya Productions Pvt. Ltd. ( ‘NXST SPV’ ), Nexus Select 
Mall Management Pvt Ltd. (NSMMPL) in its capacity as manager of Nexus Select Trust (the “Instructing 
and Reliant Party”), for the purpose of the valuation as highlighted in this report.  
This report can be included in any transaction document, communication to the unitholders, regulatory 
filings and any other document in connection with proposed acquisition by Nexus Select Trust and 
submitted to regulatory authorities if required, and subj ect to the Valuer’s prior consent.  
The valuation has been prepared strictly and only for the use of the parties as stated above  (Reliant 
Party(ies)) and for the Purpose specifically stated. The  Client  would make all Reliant Part y(ies) aware of 
the terms and conditions of this agreement under which this exercise is being undertaken and take due 
acknowledgements to the same effect.  
1.3 Limitation of Liability  
▪ iVAS Partners  provide the Services exercising due care and skill, but ‘ iVAS Partners ’ do not accept 
any legal liability arising from negligence or otherwise to any person in relation to possible 
environmental site contamination or any failure to comply with environmental legislation which may 
affect the value of the propert y. Further, ‘ iVAS Partners ’ shall not accept liability for any errors, 
misstatements, omissions in the Report caused due to false, misleading or incomplete information 
or documentation provided to the  ‘iVAS Partners ’ by the Client .  
▪ iVAS Partners  maximum aggregate liability for claims arising out of or in connection with this 
valuation report shall be limited to the professional fee received by iVAS Partners under the 
Agreement . Development Name  City Leasable Area ( sft) 
Vega City Mall  Bangalore  452,975*  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 11 of 44 
▪ iVAS Partners  will neither be responsible for any legal due diligence, title search, zoning check, 
development permissions and physical measurements nor undertake any verification/ validation of 
the zoning regulations/ development controls, etc.  
▪ Valuer is not operating under any financial services license when providing the full valuation report 
or the summary valuation report and those documents do not constitute financial product advice. 
Investors should consider obtaining independent advice fro m their financial advisor before making 
any decision to invest in Nexus Select Trust.  
▪ Our compensation as a valuer and industry assessment service provider is not contingent upon 
reporting of a predetermined value or direction in value that favors the Client . 
▪ The valuation report does not purport to contain all the information that a potential investor or any 
other interested party may require. They do not consider the individual circumstances, financial 
situation, investment objectives or requirements. They ar e intended to be used as guide and for 
information purposes only and do not constitute advice including without any limitation, investment, 
tax, legal or any other type of advice. The valuations stated are only best estimates and are not to 
be construed as  a guarantee. Potential investors should not rely on any material contained in th is 
valuation report  as a statement or representation of fact but should satisfy themselves as to its 
correctness by an independent analysis.   
1.4 Scope of Services  
Services will be provided solely for the benefit and use of the Reliant Party(ies) by our qualified valuer(s). 
The report(s) and valuation(s) may not be used for any other purpose other than the expressly intended 
purpose as mentioned in the report(s). The y are not to be used, circulated, quoted or otherwise referred 
to for any other purpose, nor are they to be filed with or referred to in whole or in part in any document 
without the prior written consent of the iVAS Partners  where such consent shall be giv en at the absolute, 
exclusive discretion of the iVAS Partners . Where they are to be used with iVAS Partners ’s written consent, 
they shall be used only in their entirety and no part shall be used without making reference  to the whole 
report unless otherwise expressly agreed in writing by the iVAS Partners .  
iVAS Partners  do not purport to provide a site or structural survey in respect of the property(ies) to be 
valued. iVAS Partners  do not purport to be suitably qualified to provide professional advice in respect of 
building or site contamination. The Reliant Party(ies) should seek independent advice on these issues. The 
Services are provided on the basis that the Instructing Party h as disclosed to  iVAS Partners  all information 
which may affect the Services. All opinions expressed by  the iVAS Partners , or its employees are subject 
to the statement of valuation policies and any conditions contained in written valuation report. The Letter 
of Engagement (LOE) along with amendments sets out the full scope of services that shall be covered by 
the valuation report.  
 VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 12 of 44 
1.5 Valuation Capability  
Valuer under SEBI (REIT) Regulations, 2014: iVAS Partners, represented by Mr. Vijay Arvindkumar C  
iVAS Partners , (Valuer Registration Number: IBBI/RV -E/02/2020/112), represented by its partner Mr. 
Vijay Arvindkumar C (Valuer Registration Number: IBBI/RV/02/2022/14584) delivers reliable and 
independent valuation (across categories viz. land & building and plant & mac hinery), advisory and 
technical due diligence services, that combine professional expertise with comprehensive databases, 
analytics and market intelligence across various asset classes and locations in India.  
Vijay Arvindkumar, Partner at iVAS Partners is a Civil Engineer with close to 10 years of experience in the 
valuation of real estate. Vijay has experience in providing real estate valuation services to a wide spectrum 
of clients including financial institutions, private equity funds, developers, NBFCs, corporate houses, 
banks, resolut ion professionals, landowners, etc. Vijay has worked on a variety of valuation and technical 
due-diligence assignments for various purposes including investment related due dil igence, 
mortgage/collateral appraisals, financial reporting, etc. across a range of asset classes such as 
commercial (office and retail) projects, residential projects, integrated township developments, hospitality 
assets, warehouses, etc. for both nationa l as well as international clients.  
1.6 Scope of Appraisal  
The appraisal has been undertaken to ascertain the Market Value of the subject property given the 
prevalent market conditions. In consideration of the same, a detailed assessment of the site and 
surroundings has been undertaken with respect to the prevalent activities, change in dynamics impacting 
the values and the op timal use of the subject propert y vis-à-vis the surrounding submarket, etc. The table 
below highlights the subject property under the purview of this valuation:  
Development Name  Location  Submarket  Catchment Area for the Valuation 
Exercise  
Vega City Mall  Bangalore  South Bangalore  Bannerghatta Road  
A detailed assessment of the site and surroundings has been undertaken with respect to the prevalent 
activities, change in dynamics impacting the values and the optimal use of the propert y vis-à-vis their 
surrounding submarket, etc. A primary and secondary research exercise has been carried out in the 
aforementioned catchment areas to ascertain the transaction / leasing activity of urban consumption 
centres. This has been achieved through i nteractions with various market players such as developers, 
real estate brokers, key retail tenants, etc.  
1.7 Valuer’s Interest  
The Valuer certify that; he/they do not have a pecuniary interest, financial or otherwise, that could conflict 
with the proper valuation of the property (including the parties with whom the Instructing Party  is dealing, 
including the lender or selling agent, if any ); accepts instructions to value the property only from the 
instructing party . VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 13 of 44 
1.8 Qualifications  
This valuation is prepared in accordance with the International Valuation Standards (IVS) 2022. 
The team involved in this engagement comprises of IBBI and RICS members with significant experience 
of valuations in Indian real estate market. The detailed professional profiles of key personnel in the team 
have been annexed as part of this report.  
1.9 Disclosures  
▪ iVAS Partners (Valuer Registration Number: IBBI/RV -E/02/2020/112), represented by its Partner 
Mr. Vijay Arvindkumar C (Valuer Registration Number: IBBI/RV/02/2022/14584) hereinafter 
referred to as the “Valuer ”, is eligible to be appointed as a valuer in terms of Regulation 2(1)(zz) 
of the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014, 
as amended and that the valuation report has been prepared in accordance with the REI T 
Regulations.  
▪ iVAS Partners (represented by Mr. Vijay Arvindkumar C - Partner, iVAS Partners) is an associate 
of instructing party . 
▪ The valuer through its representative signatory and partner (Mr. Vijay Arvindkumar C) has a 
minimum of five years of experience in the valuation of real estate . 
▪ The Valuer has not been involved with the acquisition or disposal of the subject property in the 
last twelve months, other than such cases where the valuer was engaged by the Nexus Select Trust 
for such acquisition or disposal.  
▪ The Valuer has adequate and robust internal controls to ensure the integrity of the valuation 
reports  
▪ The Valuer has sufficient key personnel with adequate experience and qualification to perform 
services related to property valuation at all times . 
▪ The Valuer has sufficient financial resources to enable them to conduct their business effectively 
and meet their liabilities . 
▪ The Valuer has acquainted itself with all laws or regulations relevant to such valuation . 
▪ The Valuer and any of its employees/ iVAS Partners  involved in valuation of the REIT assets are 
not invested in and shall not invest in units of the REIT or in the assets being valued till the time 
such entity/person is designated as valuer of such REIT and not less than 6 months after ceasing 
to be value r of the REIT .  
▪ The Valuer has acted with independence, objectivity and impartiality in performing the valuation . VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 14 of 44 
▪ The Valuer has discharged its duties towards the Nexus Select Trust in an efficient and competent 
manner, utilizing its knowledge, skills and experience in best possible way to complete the said 
assignment . 
▪ The Valuer has not and shall not accept remuneration, in any form, for performing a valuation 
of the REIT assets from any person or entity other than the Nexus Select Trust or its authorized 
representatives.  
▪ The Valuer has no present or planned future interest in the Client , Trustee, Nexus Select Trust, the 
Sponsor to the Nexus Select Trust and its sponsor group or the Special Purpose Vehicles (SPVs), 
holdcos, investment entity and the fee for this Report and the valuation exercise is not contingent 
upon the values reported herein. Our valuation analysis should not be construed as investment 
advice ; specifically, we do not express any opinion on the suitability or otherwise of entering into 
any financial or other transaction with the Client  or the SPVs/ holdcos/ investment entity . 
▪ The Valuer shall before accepting any assignment from any related party to the Nexus Select 
Trust, disclose to the Nexus Select Trust, any direct or indirect consideration which the Valuer may 
have in respect of such assignment . 
▪ The Valuer shall disclose to the trustee of the Nexus Select Trust, any pending business 
transactions, contracts under negotiation and other arrangements with the Client  or any other 
party whom the Nexus Select Trust is contracting with and any other factors which may interfere 
with the Valuer’s ability to give an independent and professional valuation of the subject propert y; 
as on date of valuation, there are no impediments for Valuer to give an independent professional 
value opinion of the subject propert y. 
▪ The Valuer has not made false, misleading or exaggerated claims in order to secure assignments . 
▪ The Valuer has not and shall not provide misleading valuation, either by providing incorrect 
information or by withholding relevant information  
▪ The Valuer has not accepted and shall not accept an assignment that includes reporting of the 
outcome based on predetermined opinions and conclusions required by the Nexus Select Trust  
▪ The Valuer is competent to undertake the valuation, is independent and has prepared the report 
on a fair and unbiased basis and has valued the subject propert y based on the valuation 
standards as specified under regulation 21 of SEBI (REIT) Regulations 2014  and the Companies 
(Registration of Valuers and Valuation) Rules, 2017.  
▪ The valuation undertaken by the Valuer abides by international valuation standards for valuation 
of real estate assets as stipulated by the REIT Regulations  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 15 of 44 
▪ The Valuer understands that the asset is owned by related party, hence, the acquisition of the 
asset from the related party being valued would be related party transaction . 
▪ The Valuer notes that there are encumbrances, however, no options or pre -emptions rights in 
relation to the assets based on the title report prepared by SNG & Partners (hereinafter collectively 
referred to as ‘Legal Counsels’).  
1.10  Heightened Market Volatility  
We draw your attention to current heightened geopolitical tensions, low economic growth in many major 
countries, and a “higher for longer” interest rate sentiment which have increased the potential for 
constrained credit markets, negative capital value mov ements and continued volatility in some property 
markets over the short -to-medium term.   
Experience has shown that consumer and investor behaviour can quickly change during periods of such 
heightened volatility.  Lending or investment decisions should reflect any heightened level of volatility 
and potential for changing market conditions.  Len ding and investment caution is advised in this regard.  
It is important to note that the conclusions set out in this report are valid as at the valuation date only.  
Where appropriate, we recommend that the valuation is closely monitored, as we continue to track how 
markets respond to evolving events.    
1.11  Assumptions, Disclaimers, Limitations & Qualifications to Valuation  
Valuation Subject 
to Change:  The subject valuation exercise is based on prevailing market dynamics as on the date of valuation 
and does not take into account any unforeseeable developments which could impact the same in 
the future  
Our 
Investigations:  IVAS Partners  are not engaged to carry out all possible investigations in relation to the subject 
propert y. Where in our report IVAS Partners  identify certain limitations to our investigations, this is 
to enable the reliant party to instruct further investigations where considered appropriate or where 
the IVAS Partners  recommend as necessary prior to reliance.  IVAS Partners  are not liable for any 
loss occasioned by a decision not to conduct further investigations  
Assumptions:  Assumptions are a necessary part of undertaking valuations. The Valuer adopts assumptions for 
the purpose of providing valuation advice because some matters are not capable of accurate 
calculation or fall outside the scope of the Valuer’s expertise, or the  instructions. The reliant parties 
accept that the valuation contains certain specific assumptions and acknowledges and accepts the 
risk that if any of the assumptions adopted in the valuation are incorrect, then this may have an 
effect on the valuation  
Information 
Supplied by 
Others:  The valuations are based on the information provided by the Client  (Vijaya Productions Pvt. Ltd. ). 
The same has been assumed to be correct and has been used for valuation exercise. Where it is 
stated in the report that another party has supplied information to the ‘ IVAS Partners ’, this VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 16 of 44 
information is believed to be reliable but ‘ IVAS Partners ’ can accept no responsibility if this should 
prove not to be so  
Future Matters:  To the extent that the valuation includes any statement as to a future matter, that statement is 
provided as an estimate and/or opinion based on the information known to ‘ IVAS Partners ’ at the 
date of this document. ‘ IVAS Partners ’ do not warrant that such statements are accurate or correct  
Map and Plans:  Any sketch, plan or map in this report is included to assist reader while visualizing the propert y 
and IVAS Partners  assume no responsibility in connection with such matters  
Site Details:  Based on title due -diligence information provided by the Client , the Valuer understands that the 
subject property is free from any encroachments and is available as on the date of the valuation  
Property Title:  For the purpose of  this valuation exercise, the Valuer has relied on the Title Reports prepared by 
SNG & Partners , the Legal Counsels for the subject property and has made no further enquiries 
with the relevant local authorities in this regard. The Valuer  understands that the subject property 
may have encumbrances, disputes and claims. The Valuer does not have the expertise or the 
preview to verify the veracity or quantify these encumbrances, disputes or claims. For the purpose 
of this valuation, the Value r has assumed that the asset has title deed that is clear and marketable  
Environmental 
Conditions:  The Valuer has assumed that the subject propert y is not contaminated and is not adversely affected 
by any existing or proposed environmental law and any processes which are carried out on the 
property is regulated by environmental legislation and is properly licensed by the appropriate 
authorities  
Town Planning:  The current zoning of the subject  propert y has been adopted on the basis of review of various 
documents (title deeds & approval documents) provided by the Client  and the current land use 
maps for the subject region. The same has been considered for the purpose of this valuation 
exercise. Further, it has been assumed that the development on the subject propert y adheres/ 
would adhere to the development regulations as prescribed by the relevant authorities. The Valuer 
has not made any enquiries with the relevant development authorities to val idate the legality of 
the same  
Area:  The total leasable area considered for the purpose of this valuation exercise is based on the rent 
roll provided by the Client . It must be noted that the above information has been provided by the 
Client  and has been verified based on the approvals/ layout plans/building plans provided by the 
Client . However, the Valuer has not undertaken additional verification and physical measurement 
for the purpose of this valuation exercise  
Condition & 
Repair:  In the absence of any information to the contrary, the Valuer has assumed that there are no 
abnormal ground conditions, nor archaeological remains present which might adversely affect 
the current or future occupation, development or value of the property; the property is free from 
rot, infestation, structural or latent defect; no currently known deleterious or hazardous materials 
or suspect techniques will be used in the construction of or subsequent alterations or additions to 
the property and comments mad e in the property details do not purport to express an opinion VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 17 of 44 
about, or advice upon, the condition of uninspected parts and should not be taken as making an 
implied representation or statement about such parts  
Not a Structural 
Survey:  The Valuer states that this is a valuation report and not a structural survey  
Legal:  Unless specifically disclosed in the report, the Valuer has not made any allowances with respect 
to any existing or proposed local legislation relating to taxation on realization of the sale value of 
the subject property  
Others:  Considering the unorganized nature of real estate markets in India, all comparable evidence (if 
any) provided in the valuation report has been limited to the basic details such as the area of 
asset, rate at which transacted, broad location, etc. other spec ific details would be provided only 
if the information is available in public domain  
Other 
Assumptions:  Please note that all the factual information such as tenant’s leasable area, lease details such as 
lease rent, lease commencement and lease end date, lock – in period, escalation terms, etc. 
pertaining to the subject propert y are based on the rent roll provided by the Client  and the same 
has been adopted for the purpose of this valuation exercise. The rent roll have been cross -checked 
with the lease deeds on a sample basis to verify. Additionally, wherever possible, Valuer has 
independently revalidated the information by reviewing the originals as provided by the Client . 
Any change in the above information will have an impact on the assessed value and in that case 
the Valuer will have to relook at the assessed value. The relevant information sources are 
represented in section 2.5 
All measurements, areas and ages quoted in our report are approximate . 
We are not advisors with respect to legal, tax and regulatory matters for the transaction. No 
investigation of the respective Special Purpose Vehicles (SPVs) holding the asset claim to title of 
asset has been made for the purpose of this report and the SPV s’ claim to such rights have been 
assumed to be valid. No consideration has been given to liens or encumbrances against the asset. 
Therefore, no responsibility is assumed for matters of a legal nature  
Kindly note that the Valuer has undertaken a quarterly assessment of cash flows for the purpose 
of the valuations  
  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 18 of 44 
2 Valuation Approach & Methodology  
2.1 Scope of Valuation  
The valuation exercise is aimed at the assessment of the Market Value (MV) of the subject propert y. In 
considering the value of the subject propert y, the Valuer has considered the guidelines laid out in the 
Appraisal and Valuation Manual published by the International Valuation Standards.  
2.2 Basis of Valuation  
The valuations have been conducted in accordance with the IVSC International Valuation Standards 
effective from 31 January 2022) and is in compliance with the International Valuation Standards (IVS). 
The valuation exercise has been undertaken by appropriat ely qualified Valuer and would be aimed at 
assessing the Market Value of subject propert y. 
As per the Valuation and Guidance Notes issued by the IVS, the market value is defined as:  
‘The estimated amount for which an asset or liability should exchange on the valuation date between a 
willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the 
parties had each acted knowledgeably, prudently an d without compulsion’.  
2.3 Approach and Methodology  
The purpose of this valuation exercise is to estimate the Market Value (MV) of the subject properties. 
Market Value is derived through the following Methodologies:  
 
2.3.1  Direct Comparison Approach  
In ‘Direct Comparison Approach ’, the property is compared to similar properties that have actually been 
sold in an arms -length transaction or are offered for sale (after deducting for value of built -up structure 
located thereon). The comparable evidence gathered during research is adjus ted for premiums and 
discounts based on property specific attributes to reflect the underlying value of the property.  
2.3.2  Income Approach  
The income approach is based on the premise that value of an income - producing asset is a function of 
future benefits and income derived from that asset. There are two commonly used methods of the income 
approach in real estate valuation namely, direct ca pitalization and discounted cash flow (DCF).  
VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 19 of 44 
2.4 Approach and Methodology Adopted  
A large number of leases at the subject propert y were executed at rentals prevalent at the time of signing 
of such leases or at a discount to prevailing market rental (for a few anchor tenants). Since the real estate 
industry is dynamic and is influenced by various factors (such as existing supply, tena nts looking at 
spaces, quality of spaces available in the market, overall health of the economy, existing rentals, future 
growth plans, etc.) at a particular point in time, contracted rentals may tend to move away from the 
prevalent market rents over a per iod of time. It has also been witnessed that the market rents for some 
properties or submarkets increase or decrease at a rate significantly different from those agreed to in 
initial leases. These factors reinforce the need to review each of these leases i n isolation to assess the 
intrinsic value of the property under review.  
Considering the objective of this exercise and the nature of assets involved, the value of the urban 
consumption centre s in the subject propert y has been assessed through the Discounted Cash Flow 
Method using Rental Reversion .  
2.5 Information Sources for Valuation  
Table below highlights various data points referred throughout the course of this valuation report and 
the data sources for the same. Property related documents referred to in the table below have been 
provided to iVAS Partners by the Client unless otherwi se mentioned. iVAS Partners have assumed the 
documents to be a true copy of the original.  
Particulars  Details  Units Source  
Area Details  Land Area  Acres  Title report prepared by Legal Counsels  
Carpet Area (Covered)  Sf Rent Roll  
Leasable Area  Sf Rent Roll  
Leasable Area – Future Development 
(if applicable)  Sf NA 
No. of Floors  No. Occupancy Certificate  
Stacking Plan  NA Floor Plans  
No. of Basements  No.                 Occupancy Certificate  
Number of car parks  No. Occupancy Certificate  
Documents/ 
Approvals  Land Use / Zoning  NA Title report/Zoning Plan/ Land use 
document  
Title Deeds  NA Title report  
Approved Sanction Plan  NA Copy as applicable  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 20 of 44 
Particulars  Details  Units Source  
Building Plan / Site Plan  NA Copy as applicable  
Floor Plans  NA Copy as applicable  
Height Clearance Approvals (AAI)  NA Copy as applicable  
Fire NOC  NA Copy as applicable  
Environment Clearance  NA Copy as applicable  
Commencement Certificate  NA Copy as applicable  
Occupancy Certificate  NA Copy as applicable  
Building Certification  NA Copy as applicable  
Lease Agreements with Tenants  NA Rent roll  
Sample Maintenance Services 
Agreements  NA NA 
Services Offered  HVAC (Tonnage)  TR Client  
Power Back -up KVA Client  
No. of Lifts with capacity  No.  Client  
No. of staircase  No. Client  
Cost Assumptions  Pending Construction Cost (if any)  INR Mn  Client  
Total Budgeted Cost – Land Stage 
Block (if applicable)  INR Mn  Client  
Total Budgeted Cost – Under 
Construction Block (if applicable)  INR Mn  Client  
Cost Already Incurred – Under 
Construction Block (if applicable)  INR Mn  Client  
Cost towards fit outs (if any)  INR psf pm / INR Mn  Client  
Cost provisioned towards 
refurbishment / renovation  INR Mn  Client  
Maintenance Service Charges  INR Mn  Client  
Insurance Cost  INR Mn  Client  
Property Tax  INR Mn  Client  
Margin on Maintenance  % of Maintenance 
Services Charges  Valuer’s assessment  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 21 of 44 
Particulars  Details  Units Source  
Property Management Fee  % of revenues from 
operations  Agreement between Management and 
SPVs holding subject property  
Repair & Maintenance Reserve  % of revenues from 
operations  Valuer’s assessment  
Exit Assumptions  Capitalization Rate  % Valuer’s assessment  
Quarter of Capitalization  Quarter, Year  Valuer’s assessment  
Discount Rate  % Valuer’s assessment  
Transaction cost on Exit  % Valuer’s assessment  
Operational 
Assumptions  Leased Area  Sf Rent roll  
Vacant Area  Sf Rent roll  
Pre- Committed Area  Sf Rent roll  
Lease Dates (Start, End, Lock in, 
Escalation etc.) for existing leases  MM/DD/YYYY  Rent roll  
Rent Achieved  INR psf pm  Rent roll  
Pre-Committed Rent  INR psf pm  Rent roll  
Security Deposit  No. of months/ INR 
Mn Rent roll  
Parking income & expenses  INR Mn  Client Inputs / Valuer’s assessment  
Marketing income & expenses  INR Mn  Client Inputs / Valuer’s assessment  
Other Income & expenses  INR Mn  Client Inputs / Valuer’s assessment   
Interest on Security Deposit  NA Valuer’s assessment   
Market Rent INR psf pm  Valuer’s assessment   
Reversion Threshold  % Valuer’s assessment   
Escalation in Rent / Maintenance 
Services / Sales growth  % Valuer’s assessment   
Lease Dates (Start, End, Lock in, 
Escalation etc.) for vacant area  MM/DD/YYYY  Valuer’s assessment   
Lease escalation on Renewal for 
New/Future Leases  % Valuer’s assessment   
Security Deposit for New/Future 
Leases  No. of months  Valuer’s assessment   VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 22 of 44 
Particulars  Details  Units Source  
CAM Under -recoveries  INR psf pm  Valuer’s assessment   
Rent Free Period  No. of Months  Valuer’s assessment   
Brokerage  No. of months  Valuer’s assessment   
Vacancy Allowance  % of revenues from 
operations  Valuer’s assessment   
Construction 
Timelines (if 
applicable)  Construction Commencement  Quarter, Year  Client Inputs / Valuer’s assessment  
Construction Completion  Quarter, Year  Client Inputs / Valuer’s assessment  
Absorption 
Timelines (for 
vacant space)  Respective spaces in each 
development  Quarter, Year  Valuer’s assessment  
Market assessment 
characteristics  Opinions expressed on relative 
performance of submarket, asset 
quality and characteristics of asset, 
etc. Not applicable  Valuer’s Assessment  
 
  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 23 of 44 
3 Subject Pro perty at a Glance  
3.1 Nature of the Interest of the Subject Propert y 
The table below highlights the nature of interest of the Subject Propert y: 
Property  Interest Valued  
Vega City Mall, Bangalore  Freehold  
3.2 Capitalization Rate Adopted  
The capitalization rate adopted for valuing various assets has been based on factors such as:  
▪ Historical entry yields (going in cap rates) for yield/ core retail asset transactions across various 
key markets in India have steadily shown a downward trend over last 7 - 8 years from 10.5  - 
11.5% to about 7.5% - 8.5% in last 3 years . 
▪ The increased appetite for income producing assets and availability of various modes of finance 
(real estate credit flows) backing such acquisitions . 
▪ The demand supply situation in the respective city and expected dynamics of demand leading 
supply - given the barriers to entry such as land availability, higher initial cost outlays, etc. 
Developers are expected to focus on other emerging locations with p ositioning of neighbourhood 
urban consumption centres  
▪ Inflation – inflation (and interest rates) expected to be maintained in check with interventions from 
regulators in case of severe swings.  
▪ Liquidity associated with REIT listed/ public listings (multiplicity of buyers and relatively lower 
budgets per buyer)  
▪ Valuer has adopted an exit cap rate  considering the above market performance, premium in 
rentals than the submarket, limited competition, tenant mix, asset quality, etc.  
Based on the above highlighted attributes, the following cap rate have been adopted for the subject 
property  for the purpose of our valuation:  
Asset/ Property Name  Details  
Vega City  Mall, Bangalore  8.00% 
3.3 Discount Rate Adopted  
For discounting the cash flows, an appropriate discount rate has been calculated on the basis of 
estimated ‘Weighted Average Cost of Capital’ (WACC).  
3.3.1  Cost of Equity  
The Valuer has computed the cost of equity as per the Capital Asset Pricing Model (CAPM), which is 
derived as follows:  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 24 of 44 
Cost of equity = Risk Free Rate (Rf) + Beta ( β) * (Market Return (Rm) – Risk Free Rate (Rf))  
As mentioned above, the cost of equity computed using CAPM constitutes of the following components:  
• Risk free rate (Rf) i.e., long term (10 -year) treasury bond rate in India . 
• Market return (Rm) based on the returns of Broad -Based BSE 500 stock index for the past 10 to 
15 years . 
• Computation of ‘Beta ( β)’ of key listed realty stocks in India with respect to the Broad -Based BSE 
500 stock index  
The cost of equity adopted for specific projects has been adjusted for market/ project specific risk 
pertaining to a real estate project such as execution risk (construction status), approval risk, marketing 
risk, etc. and adjusted for taxation. While the assumptions regarding the quantum of these risks have no 
quantitative basis, we have adopted them based on our understanding of the market and our opinion 
on the project performance.  
3.3.2  Cost of Debt  
Completed Blocks  
The cost of debt for competed urban consumption centres has been considered based on prevalent Lease 
Rental Discounting (LRD) rates for Grade A office / urban consumption centres across Bangalore micro 
market s which are in the range of 7.5% – 9.0% depending upon the location, asset quality, occupancy, 
etc. 
3.3.3  Weighted Average Cost of Capital (WACC)  
Completed Blocks / Urban consumption centres.  
As highlighted earlier, the cost of debt has been assumed based on the prevalent LRD rates while the 
cost of equity assumed has been adjusted for asset and market specific attributes to reflect the market 
expectations from an operational Grade A urban cons umption centre. Further, the proportion of debt 
and equity has been derived considering the prevalent LRD tenures and its contribution in the overall 
asset value.  
Based on above, the following WACC rate has been assumed for the subject property : 
Asset / Property Name  Particular  Proportion  Cost WACC  
Vega City, Bangalore  Debt 50.00%  8.25%  11.50%  
Equity  50.00%  14.75%  
The cash flows are assumed to realize evenly during the course of every quarter; hence a mid -quarter 
discounting convention has been adopted for the purpose of this valuation. Additionally, we have not 
factored any cash flows attributable to working capita l requirement/expenses for valuation as the same 
is immaterial.  
  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 25 of 44 
4 Valuation Certifi cate 
Property Name:  Vega City Mall  
Property Address:  The Subject Property  bearing municipal No. 1335/172/1 & 75 situated at  Bilekahalli 
village and N.S Palaya, Begur Hobli,  Bannerghatta Road,  Bangalore South Taluk . 
Interest Valued:  Freehold  Rights  
Basis of Valuation:  Market Value  
Land Area:  The subject property is a part of larger land admeasuring approx. 4.6 acres comprising 
Hotel, Mall & proposed office block. As per inputs from the client, the Undivided Share 
(UDS) in land corresponding to mall area is 12,748 sqm of larger land.  In addition, as 
per information shared by the Client , we understand that the  total leasable  area of 
452,975  sft is under the purview  of this valuation exercise  and the same has been 
considered.   
Brief Description:  The subject property is an operational retail development  christened “Vega City Mall” 
located along Bannerghatta Road, Bilekahalli village and N.S Palaya, Begur Hobli, 
Bangalore South Taluk.  Based on the review of the data provided by the Instructing Party , 
we understand that the subject property forms part of a larger development which 
comprises of Hospitality, Retail (Subject property) and a proposed Commercial block. 
However, based on the specific information provided by the Instructing Party  we 
understand that this valuation exercise pertains only to the retail development measuring 
the leasable area of approx. 0.45 Mn sft spread over a 4B+LG+UG +6F+Terrace  
configuration.  
Based on visual inspection, we understand that the property is access ible via Bannerghatta 
Road , which abuts west side of the subject property.  The subject property house prominent 
tenants like Lifestyle, Spar, H&M, Azorte, Max, etc.  
Statement of Asset  (sf): Based on review of rent roll,  we understand that  the subject property is an operational 
urban consumption center measuring approximately 0. 45 msf of leasable area. 
Occupancy is approximately 95.8% as on the date of valuation.  
Table below highlights the leasable area of the subject property : 
Particulars  Leasable Area (sf)  
Vega City Mall  452,975  
Source: Rent rol l; Note that Approx.4000 sft of façade extension area is under -construction  and 
expected completion for the same is 9 -12 months.  
Valuation Approaches:  Completed Blocks  Valuation Approach  
Urban consumption centre  Discounted Cash Flow Method  
(using rent reversion approach)  
 VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 26 of 44 
Date of Valuation:  31st August  2024  
Date of Inspection:  10th September  2024  
Ready Reckoner Rate  
(as per documents 
published by State 
Government):  Land Rate: INR 84,000 per sqm of land area . 
The table below highlights the rate applicable across floors in the subject property . 
Commercial Building  Built up Rate (INR per sqm ) 
Basement  12,122  
Ground Floor  18,183  
Upper Floors  16,298  
 
  
Value Conclusion as of 
August  31, 202 4: Component  Market Value (INR Mn)  
Vega City Mall  9,850  
 
Assumptions, 
Disclaimers, Limitations 
& Qualifications  This valuation report is provided subject to assumptions, disclaimers, limitations and qualifications 
detailed throughout this report which are made in conjunction with those included within the 
Assumptions, Disclaimers, Limitations & Qualifications sectio n located within this report. Reliance on 
this report and extension of our liability is conditional upon the reader’s acknowledgement and 
understanding of these statements. This valuation is for the use of the party to whom it is addressed 
and for no other  purpose. No responsibility is accepted to any third party who may use or rely on the 
whole or any part of the content of this valuation. The valuer has no pecuniary interest that would 
conflict with the proper valuation of the property . 
 
 
Official Signatory:  
 
  
  
 Name:  Mr. Vijay Arvindkumar C  
Designation:  Partner, iVAS Partners  
Valuer Registration Number:  IBBI/RV -E/02/2020/112  
  
VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 27 of 44 
5 Vega City Mall, Bangalore  
5.1 Property Description  
Brief Description  
Particulars  Details  
Property Name  Vega City Mall  
Address  Subject property bearing municipal No.1335/172/1 & 75  situated  at Bilekahalli 
Village , Bannerghatta Road , Bengalur u-560076  
Land Area  Based on review of the title report, the Valuer understands that the subject property is 
a part of larger land admeasuring approx. 4.6 acres comprising Hotel, Mall & 
proposed office block. As per inputs from the client, the Undivided Share (UDS) in 
land corresponding to mall area is 12,748 sqm of larger land.  
Leasable Area  Urban consumption centre - 0.45 msf 
Source: Title report /Rent Roll  
5.1.1  Site Details  
Situation:  Subject property – ‘Vega City Mall ’ is an operational urban consumption centre 
located along  Bannerghatta Road , Bangalore . 
Location:  Bannerghatta Road, wherein the subject property is located, is a prominent arterial 
road with the significant presence of prominent IT/ITeS companies and existing 
residential apartment developments. The initial stretch is an established commercial 
hub and has witnessed substantial spillover real estate activity from the City Centre 
and Hosur Road. The area has witnessed the presence of prominent IT parks viz. 
Divyasree Towers, Salarpuria Infinity, Kalyani Magnum, etc. The aforementioned 
parks cater to promi nent IT/ITeS companies’ viz. Accenture, IBM, Oracle, Adobe, etc.  
In addition to the established commercial areas, it is observed that the entire stretch 
of Bannerghatta Main Road from Dairy Circle to Nice Ring Road there are many 
small retail/ commercial individual buildings. Reliance Central Mall, Meenakshi Mall, 
Gopal an Innovation Mall, and Forum South Bangalore have increased retail activity 
in South Bangalore, in the subject Micro market. Also, Bannerghatta Road has 
established residential hubs with individual residential buildings in JP Nagar, BTM 
Layout, Jayanagar,  Koramangala, etc. in its vicinity  
The distances from key hubs to the subject property are presented in the table below:  
Landmark  Distance (Km)  
Dairy Circle  / Koramangala  5 – 6 
NICE Road  6 – 7 
MG Road (CBD of Bengaluru)  8 – 10 
Kempegowda International Airport  40 – 45 
Source: iVAS Partners ’ research  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 28 of 44 
Catchment 
Analysis:  The subject influence region comprises of dense residential catchment of middle 
income to upper middle -income populace. The subject property is o ne of the  two 
prominent  operational grade A  urban consumption centr e (the other one being  
Forum South Bangalore ) in the micro -market. The urban consumption centre will 
also attract  footfalls from across the city due to the upcoming metro  station (JP Nagar 
4th phase)  in the vicinity . Major residential pockets in the vicinity would be  Sobha  
Opal , Brigade Millenium , Brigade Gardenia  and Wilson Manor , etc. 
Surrounds:  The subject property is surrounded as follows:  
• North:  Green Park Hotel   
• South:  Private property  
• East: Private property  
• West:  Bannerghatta Road (Primary Access Road)  
Potential 
changes in 
surroundings:  Bannerghatta Road in Bangalore is a major stretch that passes through key areas 
such as JP Nagar, Jayanagar, and BTM Layout. The region has seen a rise in IT/ITeS  
firms, with ongoing connectivity projects expected to further enhance its accessibility. 
The under -construction pink line of the Bangalore metro will connect Kalena 
Agrahara station on Bannerghatta Road in the south to Nagawara Station on Outer 
Ring Road in the north. Additionally, the planned Sampige and Kanaka lines of the 
Suburban Rail network are set to improve connectivity along this stretch. A proposed 
flyover between Ittamadu and Kamakhya Junction aims to streamline traffic and 
enhance access betwee n Bannerghatta Road and Mysuru Road. . 
Suitability of 
existing use:  Considering the profile of surrounding developments, the subject property is opined 
to be suited for its current use viz. Urban consumption centre.  
 
  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 29 of 44 
The following map indicates the location of the subject property and surrounding developments:  
 
Location Map for the Subject Property  
Source: iVAS Partners ’ research  
 
Shape:  Based on site plan provided by the Client  and visual inspection during the site visit, 
it is understood that the subject property is a regular shaped land parcel.  
Topography:  Based on the site plan and as corroborated with our site visit, the site appears to 
be even and on the same level as abutting access roads and adjoining properties.  
Frontage:  Based on review of site plan, visual inspection we understand that the subject 
property enjoys good frontage along the Bannerghatta  Road.  
Accessibility:  The subject property is located along Bannerghatta Road  which serves as the 
primary access.  
Please refer Section 6 - Exhibit & Addendums for the site  layout  plan of the subject 
property.  
VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 30 of 44 
5.1.2  Legal Details  
As per the title report, we understand that the exact address of the subject property is  Survey No.  
No.1335/172/1 & 75 situated at Bilekahalli Village, Bannerghatta Road, Bengaluru -560076  
Further, this appraisal exercise is based on the premise that the subject property has a clear title and is 
free from any encumbrances, disputes, claims, etc. iVAS Partners  have not made any inquiries in this 
regard with the relevant legal/ statutory authorities.  
5.1.3  Town Planning  
Zoning  Based on review of the Bengaluru Revised Master Plan 2015, we understand that the 
land underlying the subject property is zoned for “Industrial” use. However , the 
property falls under the ‘Mutation Corridor’ which permits retail usage and hence, 
the current use of the subject property (retail development) is permissible within the 
regulations.  The same has been considered for the purpose of this appraisal. iVAS 
Partners  have not made any further enquires with relevant authorities to validate the 
legality of the same.  
 
 
 
 
 
 
 
 
 
Approved 
Usage:  Based on Occupancy Certificate  provided by the Client  and visual inspection during 
our site visit , we understand that the subject property is an operational urban 
consumption centre comprising of 4B+LG+UG+ 6+Terrace  floors.  The current use 
of the subject property has been provided by the Client  and is broadly in agreement 
with the rules and regulations as prescribed by the local development authority. 
However, iVAS Partners  have not made any enquiries with the relevant local 
authorities to validate the same for its specific applicability to the subject property.  
Restrictions:  As per feedback received from the Client , there are no restrictions on the current use 
of the property.  
NVALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 31 of 44 
Natural or 
induced 
hazards:  We are of the opinion that the project/ site has been developed to withstand natural 
or induced hazards (with the exception of extreme/ out of the ordinary hazards).  
5.1.4  Statutory Approvals, Sanctions & Approvals  
5.1.4.1  Statutory Approvals received and to be received  
As per the review of documents provided by the Client , we understand that all requisite approvals along 
with the occupancy/ completion certificates have been received for the subject property . 
The details of the Occupancy/ Completion Certificates for the subject property shared by the Client  have 
been tabulated below:  
Subject Property  Authority  Date of Issue (DD -MM-YY) 
Vega City Mall   Bruhat Bangalore Mahanagara 
Palike  27-03-17 
Source: Approval documents provided by the Client  
The table below highlights the status of other approvals for the subject property:  
Approval/NOC  Status (Applied / 
Received)  Authority  Date of Issue  
(DD-MM-YY) 
Building Sanction Plan  Received  Bangalore Development Authority  05-08-09 
Height Clearance  Received  Airport Authority of India (AAI)  05-09-23 
(Renewed)  
Fire NOC  Received  Karnataka State Fire and 
Emergency Services, Director 
General of Police  31-10-23 
(Renewed)  
Environment Clearance  Received  Government of India, Ministry of 
Environment & Forest  06-12-23 
(Renewed)  
Commencement  Certificate  Received  Bruhat Bangalore Mahanagara 
Palike  21-02-11 
Consent to Establish  Received  Karnataka State Pollution Control 
Board  06-03-09 
Consent to Operate  Received  Karnataka State Pollution Control 
Board  24-09-16 
Source: Approval documents provided by the Client   
5.1.5  Area Details, Type and Age of Existing Structures  
The table below highlights the area details of the subject property:  
Subject Property  Building Elevation  Carpet Area (sf)  Leasable Area (sf)  Leased Area (sf)  
Vega City Mall  4B+LG+UG+6F+ 
Terrace   336,048  452,975   433,83 9  
Source: Rent Roll, Occupancy Certificate  
 VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 32 of 44 
The table below highlights the detailed occupied area break -up of the subject development:  
Category  Leasable Area (sf)   
Anchor   1,08,489  
Mini – Anchor   78,937  
Vanilla   81,511  
Entertainment   15,154  
Multiplex   87,031  
F&B  35,338  
Food Court   12,265  
Others*   15,114  
Vacant  15,136 
Façade Extension (Under Construction)  4,000  
Total  452,975  
Source: Rent roll, Client  inputs, *includes Kiosk, Services  and Storage Space  
The table below highlights other specifications of the subject development:  
Details  Completed Blocks  
Grade of the Building  Grade A  
LEED Certification  NA 
Structural Design  4B+LG+UG+ 6F+Terrace  
Status of Finishing  Warm Shell  
Comments on Obsolescence  The building is currently well maintained.  
Source: Site visit, Occupancy certificate  
5.1.6  Site Services and Finishes  
Particulars  Details  
Handover condition  Warm Shell  
Passenger elevators  Provided  
Service elevators  Provided  
Power back -up Provided  
Building management system  Provided  
Security systems  Provided  
Air conditioning (HVAC)  Provided  
Firefighting services  Provided  
Car parks provided  Basement, Covered and Open car parks.  
4W slots -941 
Source: Information provided by the Client , site visit  
5.1.7  Condition & Repair  
Based on information provided by the Client  and corroborated with our visual inspection during the site 
visit, it is understood that the subject property is in good condition and is being maintained well.  
The table below highlights the major repairs and maintenance work/ infrastructure upgrade works to be 
undertaken over the next few quarters:  
Expense Head  Total Pending Cost  
(INR Mn)  Quarter of Completion  
Capex Expense  200 FY 2026 Q1  
Source: Information provided by the Client   VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 33 of 44 
5.1.8  Property Photographs  
Please refer to the property photographs highlighted below:  
Vega City Mall  
 
 
External view of the Subject Property  Internal view of the atrium in the Subject 
Property  
  
View of Food Court   View of Basement  
  
 
View of the  Entrance   
View of the Primary Access Road  
  
  
  
 
VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 34 of 44 
5.2 Tenancy Analysis  
5.2.1  General Overview  
This section provides a summary of the current tenancy configuration of the property as extracted from 
the tenancy schedule provided by the Client . A brief overview of the type of tenants, area split across 
various tenant categories, rental share, etc. as of 31st August  2024 has been provided below:  
Current Tenant Category Mix  
Tenant Category  Leased Area (sf)  % of area 
leased  % Share (of gross 
rental income)  No. of Brands   
Anchor   1,08,489  25.0%  16.4%  3 
Mini - Anchor   78,937  18.2%  17.0%  9 
Vanilla   81,511  18.8%  28.2%  48 
Entertainment   15,154  3.5%  2.2%  2 
Multiplex   87,031  20.1%  13.0%  1 
F&B  35,338  8.1%  7.4%  11 
Food Court   12,265  2.8%  5.7%  14 
Others*   15,114  3.5%  10.1%  44 
Total 4,33, 839 100.0% 100.0% 132 
Source: Assessment based on rent roll  provided by the Client , *includes Kiosk, Services  and Storage Space  
The table below highlights the top 10 tenants in terms of gross rental  at the subject development:  
Sr 
no. Tenant Name  Leased Area (sf)  % of area 
leased  % Share (of 
gross rental 
income)  Tenant Category  WALE based on 
area (in years)  
1 Tenant 1  87,031  20.1%  13.0% Multiplex  18.5 
2 Tenant 2  62,544  14.4%  10.4%  Anchor  8.4 
3 Tenant 3  13,745  3.2%  3.6%  Mini-Anchor  23.3 
4 Tenant 4  17,150  4.0%  3.0%  Anchor  12.1 
5 Tenant 5  28,795  6.6%  3.0%  Anchor  18.9 
6 Tenant 6  12,833  3.0%  2.9%  Mini-Anchor  8.4 
7 Tenant 7  12,124  2.8%  2.4%  Mini-Anchor  8.4 
8 Tenant 8  9,278  2.1%  2.2%  F&B 8.3 
9 Tenant 9  13,810  3.2%  2.0%  Entertainment  3.1 
10 Tenant 10  11,192  2.6%  1.9%  Mini-Anchor  14.4 
 Total  2,68,501  61.9% 44.4%   13.8  
Source: Assessment based on rent roll provided by the Client   
 
 
  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 35 of 44 
5.2.2  Lease Rental Analysis  
The table below depicts the area leased (as  on date of valuation) across the operational space at the 
subject development:  
Tenant Category  Leased Area (sf)  % of area leased  
Anchor  2,74,457  63.3% 
In-line 81,511  18.8% 
Entertainment  15,154  3.5% 
F&B 35,338 8.1% 
Food Court  12,265 2.8% 
Others*  15,114 3.5% 
Total 433,839 100.0%  
Source: Assessment based on rent roll provided by the Client , *includes Kiosk, Services  and Storage Space  
As highlighted in the table above, the development has a diverse mix of tenants across categories with 
higher share of Anchor stores (63.3%) v/s non -Anchor stores based on leased area.  
In addition, we have also analysed the type of rental obligations for various tenants as summarized 
below:  
Rent type  Leased Area (sf)  % of area leased  % of gross rental  
MG + TR*   4,09,185  94.3%  91.8%  
Pure MG   7,858  1.8%  4.2%  
Pure TR   16,796  3.9%  4.0%  
Total 433,839 100.0 % 100.0%  
Source: Assessment based on rent roll provided by the Client ; *MG – Minimum Guarantee; TR – Turnover Rent  
As a prevalent market practice, majority of the tenants are charged rental based on minimum guarantee 
or as a percentage of tenant sales whichever is higher. This gives the benefit to the lessor in achieving 
higher rentals during high season and protect the downside in case of limited business by the tenants. 
Since over 9 4.3% of the area is contracted with MG + TR, this gives the benefit of achieving higher rentals 
than the fixed contractual rentals for the subject property in the long term.  
5.2.3  Historical Trends  
The table below highlights the historical trends of various parameters at the subject development:  
Source:  Information provided by the Client   Particulars  FY19  FY20  FY21  FY22  FY23  FY24  
Occupancy (%)  89% 91% 91% 88% 88% 90% VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 36 of 44 
5.3 Assumptions Rationale  
The subject micro -market is located towards South of Bengaluru city and is bounded by established 
residential areas such as JP Nagar, Arekere, Hulimavu, BTM Layout, etc. The subject micro -market is 
primarily a residential location with presence of commerci al developments along Bannerghatta Road . 
Bannerghatta Road is also evolving as a significant residential hub with several prominent developers 
having large scale residential projects in various stages of development . Strong demand has been 
witnessed from retailers in this region on account of the established nature of the location, presence of 
limited quality Grade -A stock.  
The following sections will further deep dive into the demand -supply  dynamics and upcoming competition 
in the subject region.  
5.3.1  Demand and Supply Dynamics  
5.3.1.1  Demand, Supply and Vacancy Trends – City and subject region submarket  
The table below highlights the key statistics pertaining to the Grade -A Urban consumption centre:  
Particular  Details  
Total completed stock (Q 2 2024)* – msf Approximately  10.2 
Current occupied stock (Q 2 2024) – msf Approximately  9.2 
Current vacancy (Q 2 2024)  Approximately  9.4%  
Future supply – msf CY 2025 : 0.2  
CY 2026 : 0.9 
Source: iVAS Partners  
 VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 37 of 44 
Demand – Supply Dynamics ( Bangalore ) 
 
Source: iVAS Partners ; Note: Q 2 2024 is as of June 2024. 2025F & 2026  F numbers indicate supply addition that is under 
construction as of Q 2 2024 and is expected to be completed in 2024, 2025 & 2026.  Vacancy numbers are as of June 30  for 
respective years (Q 2’24 is as of June 30) 
Bengaluru has witnessed 3.6 msf of new supply addition in the last three years , net absorption of 1.9 msf 
from 202 2 – Q2 2024 and 1.1 msf of future supply is expected to be completed in the year 2025 and 
2026 . The vacancy levels in Q 2 2024 stood at approx. 9.4% and is expected to decrease to approx.  
8.7% and remain range bound for the next 2 -3 years.  
5.3.1.2  Key Developments in Submarket  
The table below highlights the prominent development in the subject submarket:  
Development Name  Year of completion  Leasable Area  
(in msf)  Approx. 
Occupancy (%)  Quoted Rent for GF 
In-line (INR psf pm)  
Development 1  2022  0.96 97% 210 - 300 
Source: iVAS Partners  
5.3.1.3  Future Supply  
Based on the market research, we understand that there is 1.1 msf of new supply will be added in the 
subject region till 202 6. Further, there are also few planned developments which will be introduced in 
later years.  
5.3.2  Lease Rent Analysis  
The current rental in subject submarket at a n urban consumption centre level typically varies between 
INR 75.0 – 120.0 psf pm on leasable area basis comprising of both anchor & non -anchors based on 
location, size, positioning and accessibility of the development (viz. along/off the main arterial roads), 
quality of construction, developer brand, amenities offered, etc. Furt her, the rentals for ground floor In -
lines would range between INR 200 – 350 psf pm across floors, categories, etc.  
VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 38 of 44 
In addition, the maintenance service charges for these developments varies in the range of INR 15.0 – 
45.0 psf  pm depending upon the tenant category, size, floor, etc.  
The table below highlights some of the recent tra nsacted rent for urban consumption centres in the 
submarket of the subject property:  
Date of Transaction  Tenant Name  Leasable Area 
(msf) Category  Transacted Rent Value  
(INR psf pm)*  
Q3 2023  Tenant 1  1,990  Jewellery  175 
Q2 2023  Tenant 2  4,638  Others  125 
Q3 2023  Tenant 3  1,238  Apparel  & Accessories  160 
Q3 2023  Tenant 4  566 Apparel & Accessories  175 
Q3 2023  Tenant 5  1,212  Apparel & Accessories   175 
Source: Valuer’s assessment; *  Rent value is base MG rent on leasable area basis  
5.3.2.1  Rent ~  Overview  for Submarket  
Based on the market research we understand that there are limited  operational retail grade A 
development s in this micro market  and rental ranging  with the comparable developments is  tabulated 
below : 
Tenant Category  Rental Range  
(INR psf pm)  
Anchor  50-80 
Mini-Anchor  110-150 
Vanilla  190-205 
F&B / Food Court  225-260 
Considering the limited supply of grade A urban consumption centres in the short term coupled with the 
dense residential and youth friendly catchment area with reasonably good disposable income, we believe 
that the subject region will remain attractive to majority of the retailers. We believe that the rentals will 
remain steady with upward bias and would continue to grow in the short to medium term. Based on the 
market feedback and research undertaken, we understand that the rentals are expected to grow at 5.0% 
p.a. from FY25 Q3 onwards.   
5.3.3  Assumptions Adopted for Valuation Exercise  
5.3.3.1  Leasing Velocity  
The absorption period assumed for the subject development is based on market dynamics and extent of 
development in the relevant submarket, nature of subject development, competing supply of same nature, 
location within the respective submarket, etc. Consid ering the limited vacancy at the subject development , VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 39 of 44 
the balance space is opined to be leased by the next 3-4 quarters with an additional rent -free period of 
2 months. Thus, we expect that the space to be fully leased by FY26 Q1  onwards.  
5.3.3.2  Rental Value  
The subject property has been commanding one of the highest rentals in the influence region. Further, 
the vacant space primarily comprises of In -line & mini -anchor category space located on upper  ground 
floor and third floor . Hence, considering the same, we have adopted a weighted average rental of INR 
150.1 psf pm  for the vacant space. Further, the weighted average market rental opinion for the overall 
urban consumption centre is approx. INR 119.3 psf pm  across floors and categories. The detailed 
explanation has been given in section  5.4.5.1 . 
5.4 Value Assessment  
5.4.1  Adopted Methodology  
We acknowledge that the approaches to valuation differ considerably and that for a particular purpose, 
alternative approaches to the valuation can be utilized. Considering the objective of this exercise and the 
nature of the asset involved, the value of the subject property has been assessed through the following 
approach:  
Particulars  Valuation Methodology   
Urban consumption centre  Discounted Cash Flow (using rent reversion approach)  
5.4.2  Area Statement  
Based on the rent roll provided by the Client , the table below highlights the area configuration of the 
subject property:  
Block  Total Area (msf)  Vacant Area (msf)  
Urban consumption centre  0.45 0.02 
Source:  Rent roll  
5.4.3  Construction Timelines  
5.4.3.1  Completed Blocks  
The property is operational since 201 7 and comprises of one block only.  
5.4.4  Absorption/ Leasing Velocity and Occupancy Profile  
5.4.4.1  Completed Blocks  
As explained in sectio n 5.3.3.1 , the balance space is opined to be leased by next 3-4 quarters with 
additional rent -free period of 2 months. Thus, we expect that the space to be fully leased and operation 
by FY26 Q1onwards.  
 VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 40 of 44 
The table below highlights the absorption assumptions adopted for the subject development:  
Source: Valuer’s  assessment   
5.4.5  Assumptions – Rental Revenue  
5.4.5.1  Lease rent assumption s 
For the purpose of this appraisal exercise, the lease rent adopted for the area already leased is based 
on the rent roll shared by the Client . Further, an in -depth market research exercise has been undertaken 
to assess the prevailing rental values in the subject submarket. The same has been adopted for the vacant 
space for the purpose of this valuation exercise.  
Based on our market study and based on the analysis of the rent roll provided by the Client , following 
rent has been adopted for the purpose of value assessment at the subject property:  
Component  Leasable Area (sf)  Leased Area (sf)  Basis Rent Adopted*  
(INR psf pm)  
Urban consumption 
centre  452,975  433,839 In-place rent for leased 
area  107.6^ 
Market rent             119.3 
Source: Rent roll provided by the Client ; Valuer’s assessment  
* The rent mentioned above exclude other income such as Maintenance service charges, parking income 
received from the tenants, etc.; ^weighted average warm shell rent for area already leased  excluding kiosk, 
storage and others  – as per rent roll  shared by the Client   
The above market rent assumption is adopted for the entire subject development. In addition to 
undertaking an in -depth market analysis, a detailed analysis of the rent roll was also undertaken to 
understand aspects such as area occupied, current rent and expiry analysis of  the key tenants in the urban 
consumption centre.  
Based on the size and scale of operations of tenants the Valuer has adopted individual market rent 
assumptions for varied category of tenants and assumed that post lease expiry, these spaces will revert 
to market rent prevailing at that point in time.  
In addition, typically most of the leases signed in urban consumption centre also have a component of 
turnover rent (TR%) in the form of turnover rentals. Depending upon the performance of individual 
categories, the lessor is entitled to the potential upsi de on the rentals in case of better performance / 
tenant sales. Considering the same, Valuer has factored tenant sales for each category of tenants based 
on their historical performance and escalated with potential growth rate to factor turnover rental fro m 
high performing tenants.  Block  Absorption Schedule  Occupancy  
(as on date of valuation)  FY26  Total 
Urban consumption 
centre  Percentage (%)  95.8% 4.2% 100.0%  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 41 of 44 
Kiosk Income  – Based on the current performance of the development , Kiosk income has been adopted 
as a 11.2% of other gross rentals for the purpose of cash flows projections.  
5.4.6  Assumptions – Non-Rental Revenue  
The following table highlights the details of non -rental income and related expenses for the subject 
development comprising of marketing, maintenance services, parking and other incomes. Based on the 
inputs from the Client , we have been provided with FY2 4 nos. and have been escalated with stabilized 
growth rates for future projections. The same is broadly in line with the market practices.  
Source: Client  inputs; Valuer’s assessment  
5.4.7  Rent Escalation  
Escalation on renewal  – Based on the analysis of existing lease rent roll and recent leasing at the subject 
property, it was observed that the typical escalation clause in the subject property is 12.0% - 15.0% over 
the next 3 – 5 years, which is in -line with the trend observed  in the market. The same has been adopted 
by the Valuer for the vacant area and renewals at the subject property.  
Market Rental & Sales Growth – Based on the historical growth trends, increase in the disposable income 
and feedback from market players, we opine that the rental and sales growth is expected to be healthy 
and would grow as per the following table:  
Particulars  Unit Details  
Tenant sales growth rate  % p.a.   FY25 Q3 onwards: 5.0%   
Market rent growth rate  % p.a.  FY25 Q 3 onwards: 5.0%  
Source: Valuer’s assessment  
5.4.8  Capital Expenditure  
5.4.8.1  Major Repair and improvements  
The table overleaf highlights the assumptions towards the pending expenses/ infrastructure upgrade 
works in the subject development:  
Expense Head  Total Pending Cost (INR Mn)  Quarter of Completion  
Capex Expense  200 FY 2026 Q1  
Source: Client inputs  Nature  Details  
Net Marketing Income  4.7% of rental income  
Net Maintenance Services Income  15.9% of rental income  
Net Parking Income  6.4% of rental income  
Net Other Operating Revenues  1.5% of rental income  
Security Deposit  INR 249 Mn is collected as on date of valuation.  
Further, 6 months rental has been adopted for future 
leases  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 42 of 44 
5.4.9  Other Assumptions  
A development typically has few recurring operation expenses required for the upkeep running of the 
development. Based on information provided by the Client  and market assessment, following recurring 
expense assumptions have been adopted for the purpose of this valuation exercise:  
Nature of Expense  Details  
Reserves & Maintenance (R&M) Provision^ 2.0% of gross rentals  
Property Management Fee^ 4.0% of revenues from operations  
Property Tax  INR 26.25 Mn for FY2 5 as per the Client  input with 
5.0% p.a. escalation from FY2 6 onwards  
Insurance  INR 5.64 Mn for FY2 5 as per the Client  input and 
5.0% p.a. escalation from FY2 6 
Vacancy Allowance  5.0% of revenues from operations  
Rent Free Period  2 Months  
Brokerage  0.23 Months**  
Source: Client inputs ; Valuer’s assessment; ^fees has been considered as below the NOI line item  
**Typically,  brokerage is charged for 1 -2 months of rental as per the prevailing market practice. However, as per the Client  input, we 
understand that approx. 70 – 80% of the deals are direct with no brokerage pay -out and as per review of historic brokerage expenses , 
the effective brokerage is approx. 0.23 months of the total rental. The same has been adopted for the valuation workings.  
5.4.10  Capitalization Rate  
As highlighted in section 3.2, the capitalization rate adopted is  8.0%.   
5.4.11  Discount Rate  
For discounting the cash flows, the appropriate discounting rate has been calculated on the basis of 
estimated ‘Weighted Average Cost of Capital’ (WACC). The detailed analysis of WACC rate adopted for 
the subject property has been detailed in Section 3.3 of this report . 
5.5 Value of the Subject Property  
Based on the above -mentioned analysis, the value of the subject property is estimated as follows:  
Component  Value (INR Mn)  
Vega City Mall  9,850  
  VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 43 of 44 
6 Exhibits and Addendums  
6.1 Site Layout Plan  
 
  
      
                    
             
      VALUATION REPORT - VEGA CITY MALL, BANGALORE , KARNATAKA  
 
Valuation Report | Page 44 of 44 
6.2 Permissible Land Use  
 
 

        
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