A Fast Growing and Profitable Coworking Group Is Looking For Investment Partners for Goa Project

Product / Service

Co-working cum Start-up Accelerator
Co-living and Collaborative Spaces

Clientele type

We cater to clients in IT/ITeS, FMCG and Media domain.
The upcoming GOA project is targetting Entrepreneurs, Digital Nomads, Travel Addicts.who are looking for remote working spaces.

Premises

We presently have more than 2,50,000 sq.ft under management.
Details of the upcoming space are :
Carpet Area: 90,000 Sq. Ft.
Leased Age: 5 Years lock in
Co-working Seats - 250 | Villas - 22 | No. of Beds - 80

Asking Price Includes

Furniture & Fixtures, Complete Development Cost, Interior Designing & Execution

Reason

Expansion in Goa

Other Details

We are currently spread across 5 Indian cities. The current area of operation is close to 3 lakhs Sq. ft.
We are setting up India's first beach-side Co-Working space in Goa. It is designed around the theme of Walk-to-Work and is a Gated Community of Entrepreneurs. Through the project, we are inviting investments through the Debentures instrument.

Investment Rationale: We are raising a total of INR 7 crores through Investment in multiples of INR 35 lakhs. With each investment, a villa is assigned to you for revenue share.

Expected Returns:
1. Minimum Guaranteed of 9% returns
2. 30% share in the revenues generated by the villa
For monthly revenue projections and total expected return, please contact us.

Common questions:

Is there an option to select the villa against investment OR is it randomly allocated OR revenue share equated for each investor?

Ans: The idea is to align/link an Investment with a Villa. However, returns generated are at an organization level from the co-living business. Instead of generating revenue only from one villa and sharing, it might be biased towards a few investors. In the interest of all the Investors, Revenue Share is equated to the entire business of co-living.

What is the exit clause at the end of 5 years?

Ans: Tenure of 5 Years: We have signed LOI with the Landlord for 9 years while 5 years is the Lock-In term i.e. Company has the freedom to move out of the property after 5 years of lock-in while the Landlord is bound to provide us space till 9 years which acts as a lock-in for him. Ideally, if the business is flourishing and after a hefty investment, we would like to continue the business on that property for the entire tenure of 9 years. An Investor would have the freedom to reap Revenue Generation benefits till the tenure we are operating from the property.

Is the Investment amount returned?

Ans: The return of the Investment amount is planned and directly proportional to the Minimum Guarantee and Revenue Share. A sharing of 35% is quite aggressive as per Industry standards, the primary reason being it acts as a quality ROI for you. An effective IRR of 15.3% in 5 years and 16.4% in 7 Years, translates to an Investor becoming a partner in the Business rather than a mere Investor. A partner who’s part of the upside but doesn’t have liability on the downside of the business. INR 35 lakhs invested today, roughly generates a cumulative total return of INR 71,40,000/-, which is inclusive of the amount invested, and hence there’s no additional release of Capital from the company.

What is the mechanism/commercial expectation after the end of Year 5?

Ans: Minimum Guarantee and Revenue Share terms continue after the end of 5 years as well. There would be an additional investment requirement of 20% of the Capital invested i.e. INR 7 lakhs after the end of 5 years, for asset maintenance and redesigning. Morjim is a Strategic Location wherein a new and upcoming GOA airport is being planned for. The new airport project should be live within 3 years of timeframe. Hence, it is expected that we shall be able to generate higher revenue, post it.

What are safeguards against downside if the GOA space is shut down within the first 5 years?

Ans: Ethics: As an organization, it is not a practice that we follow. Even during tough times like COVID, when office Commercial Office Space leasing is going through a tough phase, we’ve stayed true to our contractual obligations while our peers are closing down their office spaces by breaching the contracts. Contractual Obligation: We are bound to pay the Landowner for the next 5 years. Hence, we'll fulfill that obligation. Secondly, the 9% MG that is committed against the Investments is a lock-in commitment for the next 5 years. In a scenario wherein we do not generate a penny on the revenue front, Investors are bound to receive 9% committed MG from the company. The return of the Investment amount is planned and directly proportional to the Minimum Guarantee and Revenue Share. A sharing of 35% is quite aggressive as per Industry standards, the primary reason being it acts as a quality ROI for you. An effective IRR of 15.3% in 5 years and 16.4% in 7 Years, translates to an Investor becoming a partner in the Business rather than a mere Investor. A partner who’s part of the upside but doesn’t have liability on the downside of the business. INR 35 lakhs invested today, roughly generates a cumulative total return of INR 71,40,000/-, which is inclusive of the amount invested, and hence there’s no additional release of Capital from the company.