Future Prospects

+
Business Opportunity Evaluation

Need for One-Stop Shop in Real Estate
Opportunity
Development and Asset Management
NRI & HNI : Vacation Home s
Middle Class : Sales & Marketing
Conclusions
www.mastersungroup.com,
Opportunity
Economy growing at least 7-8 % per annum
Unorganized & fragmented real estate sales & marketing channel
Growing affluence and investment appetite fuelling the concept of Vacation Home for lifestyle and investment needs
Demand for world class development
Growing asset management & development opportunity for budget hotels and service apartments
Target Consumers +
Rich
Urban Population 10%
1.6 million luxury consumers 6-7 million very affluent 9-10 mid affluent 11-12 million mass affluent
50% 40%
Middle Class
40 million upper middle class 72 million up graders
Bottom of the pyramid
Middle Class
Rich
Bottom of the pyramid
140 million bottom of the pyramid
Opportunity
Conclusions
Land Development Value Chain

Value (example)
Rs 50 Cr
Vacant Land Concept, plans, approvals, financial models, business plans etc Developable Land
Rs 200 Cr
Infrastructure (if required)
Pre-construction Land Construction finance, Contractors, Project Management, pre-sales Completed Project
Rs 250 Cr
Rs 1000 Cr
Land Development Process +

Market research World class architects Financial analysis PRE-CONSTRUCTION Design brief
Design and concept
Marketing plan
Modelling and forecasting Building approvals
Business plan
Fundraising agent
Fundraising
Project management Sales and marketing
Detailed plans Asset management
Construction
Realisation
Self Outsourced www.mastersungroup.com,
Development Snapshot
Customers : Landowners
Initial Value Proposition
Maximize the value of asset
Sustainable 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. What options are there and which is most profitable? 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
Financial analysis
Benefits of doing this are

= 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
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)
Opportunity
NRI & HNI : Vacation Homes
Conclusions
Understanding Vacation Home +

Vacation Ownership
Property owned generally for personal use
Timeshare
A timeshare is a form of vacation property ownership. The use and costs of running the resort are shared among the owners
Vacation Rentals
Renting out a furnished apartment or house on a temporary basis to tourists as an alternative to a hotel
Vacation Exchange
You trade your interval or week for new and different vacation experiences at comparable resorts across the country and around the world
Segmentation of Vacation Home market internationally

International Demand Drivers
Economy Population Propensity to spend
Baby Boomers
Income Levels Rate of borrowing
Interest Rates
Growth rate
Tourism
Attracting investment
Government Initiatives
movers Conferences Key of the Vacation Home market
+ Vacation Homes-Internationally
Leisure Ac tivities Preferred
Tennis
9% 10%
Mode Of Purchase F or A Vacation Home

14%
5% 29%
18%
Golf
11% 20%
Real Estate Owners
68%
16%
Builders
Water Sports
Boating
Hunting/Fishing
Golf
Biking/Hiking
Skiing
Tennis
D esirable Attributes In A Vacation Home
18%
Key Learning's: Internationally activities are critical aspects of Vacation Homes Brokers / real estate agents play a critical role as channel partners Locational advantage needs to be broadcast for each individual property
22% 22%
38%
Close To Ocean/Lake/River Close To Resort Ares
Sporting Activities Mountains/Natural Destinations
Source: National Association Of Realtors 2006
+ Vacation Home Buyers: Internationally

Distance (Miles) 25 25-99 100-199 200-499 500-999 1000-1499 1500 and more Median Distance * Less than 1 % Vacation Home % 44 19 22 1 3 * 10 49 Investment Property % 69 9 5 * 3 6 8 18
Distances between residence & Vacation Home Usually less than 100 miles
Home Size (Sq.ft) 500 501-1000 1001-1500 1501-2000 2001-2500 2501-3000 3000 and more Median Size
Vacation Home % 4 14 56 11 9 5 1 1290

Format Studio 1 BDR 2 BDR 3 BDR
Investment Property % 1 14 22 31 12 10 10 1700

California Coastal 600 590 480 NA 50-150 South Florida 600 600 600 NA 50-300 Golf Destinations 700 550 450 400 50-150 Ski Destinations NA 550 580 600 50-100
Size of home : 1000-1500 sqf
Average value per sq.ft
Premiums ($ 000)
Source: Economic Realtors Research
US Vacation Home Market
14 12 10 8
GDP (In Billion USD) 14000 12000 10000 8000
Vacation home Industry (In Billion USD)
International Vacation Home market is maturing and seeing considerable growth
0.10 %
The US$ 13 billion Vacation Home industry in US is 0.10% of GDP as of 2005
0.08 %
6000 4000 2000 0 1990 2000 2005 6 4 2 0
0.05 %
Multiple players having unlimited product offerings
GDP of US playing an integral role for burst of Vacation Home industry
Vacation Home market is growing @ 9.7% worldwide & @ 14% in U.S Along with high growth rates comes heightened competition Brands would soon start at exploiting other geographies
India Vacation Home
GDP (In Billion USD) 900 800 700 600 0.5 500 0.4 400 300 200 100 0 1990 0.3 0.2 Vacation home Industry (In Billion USD) 0.8
Given the current economic trends we can draw the following hypothesis:
0.10 %
0.7 0.6
0.08 %
- The Size of the Vacation Home industry is approximately US$ 0.757 billion or INR 34,150 Crore
0.05 %
0.1
Experts predict the GDP growth rate to be close to 8%, the same would see a rise in income levels A factor which is one of the key growth drivers Generation X will boost the growth of Vacation Homes in India India the next growth driver for international companies
0 2000 2005
Indian Luxury Consumer: HNI +

Married and has kids
Average age = 36-40

CWE= Mostly Male 42% live in joint families Residing in posh localities 35% of wives working Owns D/E segment car 44% traveling abroad for vacation, at least once a year Disposable income 9 lac p.a
Affluent Map Of India
Predominantly luxury consumers are resided in the north and west of the country
Source: Technopark
Vacation Home : Snapshot
Vacation Home

100-200 kms from metros around a natural attraction primarily hill stations, beaches International Vacation Homes in Dubai, London etc.
Customers
HNIs & NRIs
Initial Value Proposition
Variety & convenience of one stop shop

Needs based development Reach & access to NRIs Destination development and marketing
Indian HNI : Primary Target

Products
Needs
Prestige, Ego Value
Vacation Home
High Service Quality
Purchase/Lease of Commercial
Investment in Real Estate Funds/ REITs
Large portfolio of options
Customized Advisory
Relationship Building
Credibility & Accountability
Competitive Landscape
Wealth Managers proffering Equity & Debt instruments Dedicated sales team representing high value assets Advertising & PR by builders & marketers
Opportunities
Convenience of one stop shop for real estate needs
Advice rather than push
Broaden the horizon to look at new emerging opportunities like equity involvement
Wealth Management perspective
NRI : Secondary Target

Needs
High Service Quality Large portfolio of options Customized Advisory Relationship Building Credibility & Accountability
Products

Vacation Home Equity investment in Commercial , Hotel Real Estate Development
Competitive Landscape
Opportunities
Wealth Managers proffering Equity & Debt instruments Dedicated sales team representing high value assets
Convenience of one stop shop for real estate needs Advice rather than push Broaden the horizon to look at new emerging opportunities like equity involvement Reach to micro-segments
Key Success Factors
Direct Selling & Marketing for HNIs, NRIs

Dedicated sales and service team for HNIs / NRIs Dedicated processes and systems to manage service & sales issues Dedicated telemarketing & call centre support
Direct marketing strategy comprising of internet marketing and other channels
Pioneering new and exciting initiatives
Example :Halfshare.com specializes in the shared ownership of luxury vacation properties throughout North America.
They help buyers find their ideal vacation property or Vacation Home while matching them with the right co-owner through a Buyer Match Plan
+ Key Success Factors
Continuous inventory acquisition by a dedicated team

Dedicated team to scout for projects under development, completed projects, re-sale inventory Acquisition could be followed by Re-packaging the real estate to make it more appealing to the target buyer
Sound Real Estate Knowledge Base

Ability to track trends and assess impact for HNIs Ability to give a wealth management perspective and offer
Good Service Quality

Training & People development to offer good service experience Personalized service to HNIs/NRIs Robust processes for transaction management Strong performance management system
Opportunity
Conclusions
Sales & Marketing to Middle Class
Customers : Middle class
Initial value proposition
Good Deal & Good Service Quality
Sustainable value proposition

Distribution channel Width and depth One stop shop Good Deal Service Quality
Differentiated Distribution Strategy
Development Potential
Franchisee
Full Fledged Company Operations
Average / Low
High
Franchisee
Company Operations + Franchisee
Average / Low
High
Purchasing Power
Benefits to Franchisees
Business Support Business Operations Manual Exciting Inventory & Inventory Management Software Experienced Management & Franchise Advisory System Referral& Lead Management System New Business Generation Performance Monitor Staff Recruitment Assistance Programme Regional Managers and Franchise Operations Centres Effective Marketing Mix Advertising & Public Relations After Sales Service Regional Marketing Programme Branded Promotional Merchandising, Brochures etc Loyalty Card Programme Personal Business Development Comprehensive Introductory Programme Comprehensive Sales Training Programme Field Support Recognition Groups for Outstanding Achievers Software Support & Training
Distribution Development Plan
Amritsar Ludhiana
Gurgaon Jaipur Ahmedabad
Chandigarh Dehradun Delhi Lucknow Siliguri Guwahati
Indore
Vadodara Mumbai Pune Secunderabad Nagpur Raipur
Ranchi Kolkata
Bhubaneswar Vizag
Goa
Hyderabad Hubli Bangalore
Vijayawada
Chennai Mysore Kochi Coimbatore
Primarily Branches Franchisee + Branches Franchisee Only
Thiruvanantpuram
Wide Reach to Increase Convenience & Access

Branch network in class A cities Branch offices in strong NRI markets Extensive network of agents & franchisees on a win-win model
Wide Choice to Facilitate a One Stop Shop Experience

Continuous inventory acquisition by a dedicated team Effective Tie-Ups & Alliances to offer complementary & supplementary services Incentivizing the network to add inventory Effective inventory management software and systems Attractive inventory display & merchandising
Key Success Factors
Good Service Quality

Training & People development to offer good service experience Effective systems for inventory management Effective software and systems for CRM Robust processes for transaction management Strong performance management system
Continuous inventory acquisition by a dedicated team

Dedicated team to scout for projects under development, completed projects, re-sale inventory Acquisition could be followed by

Re-packaging the real estate to make it more appealing to the target buyer Small value additions to make the inventory more valuable
Exclusive marketing and sales rights to add to distribution power
Incentivizing the network to add inventory

Win-Win model for agents/franchisees to populate the site with inventory Outsourcing of inventory acquisition to agents/franchisees in areas with low development potential and/or low purchasing power
Integrated Software

A low cost suite of an easy-to-use integrated software systems Cover every key aspect of successful real estate agency practice Full technical and training support supplied by the team at Technology. Software system has a database, lead management , activity scheduler, diary and presentations package designed to create efficiency, lift sales and allow accountability in the office Software system are fully integrated.
This means that data only needs to be entered once. It is then available for use in all modules of the system
Opportunity
Conclusions
High Differentiation
Vacation Differentiation vs. Returns
Home/Retirement & Other Specialized Concepts
Average Differentiation
Asset Management
Development
Low Differentiation
Immediate Returns
Medium Term Returns
Long Term Returns
+
Sounds interesting ?
Contact Us
Sarvajeet Chandra
+91 9920803060,sarvajeet@theadiva.com sarvajeetchandra@gmail.com
Visit Us at www.mastersungroup.com

Future Prospects

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+

Business Opportunity Evaluation

Development and Asset Management

NRI & HNI : Vacation Home s

Middle Class : Sales & Marketing

Economy growing at least 7-8 % per annum

Unorganized & fragmented real estate sales & marketing channel

Demand for world class development

40 million upper middle class 72 million up graders

Bottom of the pyramid

Bottom of the pyramid

140 million bottom of the pyramid

Development and Asset Management

NRI & HNI : Vacation Home s

Middle Class : Sales & Marketing

Land Development Value Chain

Infrastructure (if required)

Land Development Process +

Design and concept

Modelling and forecasting Building approvals

Project management Sales and marketing

Detailed plans Asset management

Self Outsourced www.mastersungroup.com,

Initial Value Proposition

Maximize the value of asset

Sustainable Value Proposition

Development Methodology Pre-Construction

What options are there and which is most profitable?

Benefits of doing this are

Development Methodology Business Plan

BUSINESS PLAN = Who is going to do what to make this project work?

Development Methodology Design Brief

NOT what can I build? but what can I sell?

Benefits of doing this are

= more profit and less risk

Development Methodology Construction & After

Asset Management Snapshot

Assets: Budget Hotels, Commercial Complexes, Apartments, etc.

Cheaper, more efficient alternative

Sustainable Value Proposition

ROI, Asset Value Appreciation

Credentials & Quality of Assets

Asset Management : Role

Development and Asset Management

NRI & HNI : Vacation Homes

Middle Class : Sales & Marketing

Understanding Vacation Home +

Segmentation of Vacation Home market internationally

International Demand Drivers

Economy Population Propensity to spend

Income Levels Rate of borrowing

movers Conferences Key of the Vacation Home market

Mode Of Purchase F or A Vacation Home

D esirable Attributes In A Vacation Home

Close To Ocean/Lake/River Close To Resort Ares

Sporting Activities Mountains/Natural Destinations

Source: National Association Of Realtors 2006

+ Vacation Home Buyers: Internationally

Vacation Home % 4 14 56 11 9 5 1 1290

Investment Property % 1 14 22 31 12 10 10 1700

Size of home : 1000-1500 sqf

Average value per sq.ft

Source: Economic Realtors Research