Master Sun Consulting Business Opportunity Evaluation,Need for One-Stop Shop in Real Estate,OpportunityDevelopment and Asset ManagementNRI & HNI : Vacation Home s Middle Class : Sales & MarketingConclusions,Opportunity,Economy growing at least 7-8 % per annumUnorganized & fragmented real estate sales & marketing channelGrowing affluence and investment appetite fuelling the concept of Vacation Home for lifestyle and investment needs Demand for world class developmentGrowing asset management & development opportunity for budget hotels and service apartments,Target Consumers,1.6 million luxury consumers 6-7 million very affluent 9-10 mid affluent 11-12 million mass affluent,40 million upper middle class72 million up graders,140 million bottom of the pyramid,Rich,Middle Class,Bottom of the pyramid,OpportunityDevelopment and Asset ManagementNRI & HNI : Vacation Home s Middle Class : Sales & MarketingConclusions,Land Development Value Chain,Vacant Land,Developable Land,Pre-construction Land,Completed Project,Value (example)Rs 50 CrRs 200 CrRs 250 CrRs 1000 Cr,Concept, plans, approvals, financial models, business plans etc,Infrastructure (if required),Construction finance, Contractors, Project Management, pre-sales,Land Development Process,Market research,Design brief,World class architects,Design and concept,Modelling and forecasting,Marketing plan,Business plan,Fundraising agent,Fundraising,Project management,Construction,Sales and marketing,Asset management,Realisation,PRE-CONSTRUCTION,Detailed plans,Building approvals,Financial analysis,Self,Outsourced,Development Snapshot,Customers : LandownersInitial Value Proposition Maximize the value of assetSustainable Value Proposition Market based concepts ROI Quality of Development World class design Case studies,Development Methodology Pre-Construction,Financial analysis What options are there and which is most profitable? Benefits of doing this are Differentiated product able to sell your product in a crowded market Delivering what the market wants = building a brand Price premium and faster sales rates = more profit and less risk Then, translating this concept into a site plan and design A collaborative effort between Promoters, we and panel architects.,Development Methodology Business Plan,BUSINESS PLAN = Who is going to do what to make this project work? How are we intending to SELL what we build? Who will construct it? Who will oversee construction? What is the operational and marketing plan? How much money do we expect to make and what funds do we require? How will we manage the risks of the project? Requires decisions on branding and marketing strategy. Need full business plan in order to proceed to fundraising .,Development Methodology Design Brief,NOT “what can I build?” but “what can I sell?” DESIGN BRIEF = What are you going to build and why? Market research Not just a matter of ordering a report, it needs to be properly analysed Need to consider the potential audience for the development and how to reach them. Need to understand market depth and likely acceptance of concept Need hard data (market research) and soft data (customer research) Need to identify price points, user preferences, demographics, competitive analysis, required features, value drivers etc. Financial analysis What options are there and which is most profitable? Benefits of doing this are Differentiated product able to sell your product in a crowded market Delivering what the market wants = building a brand Price premium and faster sales rates = more profit and less risk,Development Methodology Construction & After,As your development partner, we will provide services as required during the construction and asset management / exit phases. These may include any of the following: Project management services (quality, cost control, timeliness) Asset management services (retail mall, hotels, golf course maintenance etc) Non-executive project management services Development of exit routes / sales strategies to maximise the return to Promoters,Asset Management Snapshot,Assets: Budget Hotels, Commercial Complexes, Apartments, etc. Asset Owners : Builders, Business Families Initial Value Proposition Cheaper, more efficient alternative Sustainable Value Proposition ROI, Asset Value Appreciation Credentials & Quality of Assets Capability in sales & marketing, development & other ends of the value chain,Asset Management : Role,The asset manager provides the following major services. This is not an exhaustive list. Maximises the overall profitability of site. Analysis, options and recommendations to owner for decisions to be made by them Implementation to achieve the objectives and decisions of owner As required decisions for the general manager and management team based on those objectives Ensures that the strategy is converted to tactics and implemented with changes as required Looks at each Area of Operations (see above list) and look for efficiencies, improvements, structure, operations and quality Create Standard Operating Procedures to capture hotel policy on standards, quality, performance measurements Leads creation of operating budgets, capex priorities, recommendations and implementation Builds management team including hiring, reshaping and firing of senior staff, setting objectives, performance reviews and bonuses. Ensure non-financial objectives are achieved (eg quality, social justice programs, PR etc),