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BEST CONSUMER-CONNECT INITIATIVE, REALTY PLUS
“My husband and I run a highly rated
restaurant “Ritz Classic” at Gera’s
Imperium II.
It is our honor to be associated with
the GERA brand since the last
couple of years and the experience
with LINT should take our
experience with GERA one notch
higher. Your brand philosophy of
“OUTDO” is what we ourselves are
here to achieve. In fact after we
opened Ritz Classic and delivered on
trust, quality and impeccable
services, we too OUTDID ourselves at
Gera’s Imperium II, and expanded
with two new restaurants, Ritz Classic
Patto and Ritz Classic Mall de Goa.
For us, this announcement brings
hope for more growth, more satisfied
cus tomers through cons tant
improv ing under ‘Learn ing,
I n s p i r a t i o n , Tr a i n i n g a n d
Networking’. We look forward to
your next announcement.”
-Smruti and Rajesh Desai
Gera’s IMPERIUM II
MAY 2017 Issue 2 | For Private Circulation Only |
The rating grades straddle both,
publicly listed as well as privately held
brands. A snapshot of some of the best
represented Real Estate brands with
their ‘CURRENT RATING’ are as
follows: There are some brands
namely Shapoorji Pallonji and Co. Ltd.,
Tata Housing Development Co. Ltd.
that are rated an AA and whose rating
as wel l as quantum remains
unchanged.
There are those brands like Indiabulls
Real Estate Limited, K. Raheja Corp.,
Mahindra Integrated Township Limited
and Godrej Properties that are rated an
AA- and whose rating as well as
quantum remains unchanged.
Across the A Series categories, Gera
Developments has the unique
distinction of being the only real estate
brand in the country whose quantum
has increased. That, with a significant
33% while retaining its rating of an A+.
Other brands in the A+ listed category
are Sunteck Realty Limited, Prestige
Estates Projects Limited, Kolte-Patil
Developers Limited, RMZ Infotech
Private Limited and Mahindra Homes
Private Limited whose rating as well as
quantum remains unchanged. CARE’s
ratings have rated the ‘DEBT
I N S T R U M E N T S ’ f r o m G e r a
Developments an A+ moving from Rs.
485 Cr. to Rs. 639.85 Cr. This is a
significant increase of a 33% and was
on the basis of the audit carried out of
the operational and financial
performance of the company.
T h e c r e d i t r a t i n g o f G e r a
Developments has gone up largely due
to the ‘High Collection Efficiency’ and
‘Stable Cash Flows’ that have been
managed over the on-going projects.
The ‘Ring-Fencing’ of the ‘Project-
Specific Cash Flows’ with the singular
prioritization of debt servicing
capabilities have been maintained.
There is also full coverage of
construction costs to complete all on-
going projects against clearly tied-up
receivables which comprehensively
justifies the company’s ability to service
its’ debt. Lastly, the comfortable
booking status has rendered adequate
future revenue visibility.
The sustained market momentum
that GERA has always been able to
produce is attributable to the
following factors:
The distinguished legacy and track
record of the promoters of the
company with the Chairman, Mr.
Kumar Gera being the Founder
President of CREDAI, a member of
the State Planning Board, Govt. of
Maharashtra and the task force of
the National Housing Policy (NHP),
Govt. of India (GOI). Mr. Rohit
Gera, Managing Director of Gera
Developments and Vice President of
CREDAI Pune since 2007 and has
been on the managing committee
for almost two decades since 1999.
An Advisory Board that comprises
of stalwarts in the Industry with
names like Mr. Deepak Parekh,
Chairman of HDFC, Mr. Farhad
Forbes, Managing Director of
Forbes Marshal and Mr. Ganesh
Natarajan, Ex-CEO of Zensar
Technologies.
CREDIT RATING REAFFIRMED AT A+. QUANTUM LEAP IN
CAPACITY OF 33%
CUSTOMER'S TESTIMONIAL
“The announcement of LINT was one
of the best things that I have
experienced in a long time. The Q&A
session between your chairman
Mr. Kumar Gera and the media
celebrity was relevant to what’s being
discussed within business circles today.
While the Group is endeavoring to
ensure “Learning, Inspirat ion,
Networking and Training” for the
entrepreneurial capital of Goa, you will
see the best impact when business
owners come with an open mind and
are seeking and wanting to imbibe the
good that is being taught and spread
by your selected speakers.
Specifically coming to “Integrity” being
referred to as the ‘single biggest virtue
in business’, resonated with me and my
practice completely. The code of ethics
and Integrity are very close to my heart.
It is true that there are no shortcuts to
success and it takes years of sacrifice
and sweat to build a brand.”
-Dr. Irineu A Pereira
& Dr. Preethi Pereira
Gera’s IMPERIUM GRAND
The last six months have probably been the most turbulent in the history of Indian real estate. We saw demonetization in November 2016. Wild predictions were made about an imminent crash in the real estate market across the country. The demonetization as well as these base les s p red i c t ions c rea ted additional headwinds for the industry that was already facing challenges. There was an expectation that the Union Budget would take steps to boost the sector, which also did not happen. The last couple of months have seen a frenzy of media stories on the introduction of the Real Estate Regulation & Development Act. RERA, as it is now called, can potentially be a game changer for the entire industry. Despite the challenges and the headwinds at Gera, we continued to OUTDO, with the year 2016 - 17 being our best year ever. Some noteworthy milestones of the last few months include the launch of our commercial project Gera's Imperium Rise at Hinjewadi, that met with a tremendous response from customers.
TMThe next version of our GeraWorld App for customers was launched. Customers will be able to download their project documents on demand as and when they require. The
TMGeraWorld App also allows for the m a n a g e m e n t o f t h e e n t i r e
T MChi ldCentr ic project , where customers can reserve coaching for the children and themselves across various disciplines, using the app.On the financial side, an assessment by the credit rating agency has reiterated our rating of an A+ and increased total borrowing eligibility at this level from Rs. 485 crores last year to Rs. 639.85 crores this year. This third party validation is a matter of pride especially as it comes at a time when the industry is seeing default and downgrades of ratings of many developers. We believe that this is a result of our conservative fiscal approach over many years.We bel ieve that RERA, when implemented in spirit, will help to transform the industry and we look forward to being a part of the new real estate order in the near future.
Mr. Rohit Gera
Managing Director
www.gera.in
SIX MONTHS IN REVIEW
LINT COMMUNITY ENGAGEMENT - COMMERCIAL REAL ESTATEAimed at providing qualitative inputs, to their commercial customers in helping accelerate business success. LINT is Gera’s community building initiative consisting of Learning, Inspiration, Networking & Training for its commercial customers of the IMPERIUM projects in Goa. This initiative was borne out of its corporate philosophy, “OUTDO” to help their customers increase their business productivity by adding valuable insights under an annual calendar of events.L INT was launched w i th i t s ‘INSPIRATIONAL’ section along with Mr. Rajdeep Sardesai, a renowned and accomplished media legend and
professional with an illustrious Goan lineage. This was followed up with a workshop in En t rep reneur ia l Leadership Development along with Dale Carnegie. Others that followed were a workshop in Financial Modeling under the ‘LEARNING’ section and then successive ‘TRAINING’ sessions in Personal Grooming & Personal Etiquette and Selling Skills and Performance Building. Mr. Rohit Gera, Managing Director, Gera Developments, said, “We have received tremendous response and support from Goa for all our projects and hence we are delighted to launch LINT for our customers here. This is reflective of our brand’s core
LINT 2 WITH DALE CARNEGIE UNDER �ENTREPRENEURIALLEADERSHIP DEVELOPMENT�FOR ITS IMPERIUM OWNERS & TENANTS Learning, Inspiration, Networking & Training (LINT), is an initiative borne out of company’s corporate philosophy
OUTDO for its commercial customers
philosophy to ‘OUTDO’, which drives us into newer, uncharted territories by providing our customers excellent product quality, services and brand offerings. We believe customers buy our commercial properties with a view to maximize their returns, be it by occupying or renting or merely through capital appreciation. We therefore believe that we can help our customers and their tenants truly OUTDO in their own investments and therefore have embarked upon this ambitious plan to provide Learning & Inspiration to the business owners, Networking amongst our customers and Training for the employees of the customers and their tenants.
Goa, January 23, 2017: Following the very successful launch of the community building initiative (LINT) with their commercial customers of IMPERIUM in Goa, Gera Developments, one of the pioneers of the real estate industry and creators of premium residential & commercial projects in Pune, Goa & Bengaluru recently followed up with their 2nd program ‘Entrepreneurial Leadership Development’ along with Dale Carnegie, one of the world’s dominant leadership training brands in the world. This program was designed to help the entrepreneurs, owners & tenants with the IMPERIUM brand build or reconnect with their vision and solidify their strategic plans that enable them to accelerate towards success. LINT is a
This initiative was borne out of its corporate philosophy, “OUTDO” to help their customers increase their business productivity by adding valuable insights under an annual calendar of events.
LINT, a unique
‘COMMUNITY
BUILDING’
initiative from Gera for its
IMPERIUM customers
“I was a part of your LINT program held on the 19th of November, exclusively for all Imperium owners and Imperium tenants. I have been an owner at Gera’s Imperium since the last eight years and this place has been lucky for me. I started with humble beginnings from Madgaon, and gradually moved to a rented office premise in Panjim and finally bought myself a commercial place in Gera’s Imperium. I have been blessed and my journey of growth has been fantastic. What your chief guest said about Integrity being an important quality in business, is indeed very true. Personally, I have always been open and honest with my clients specially because there is so much trust that they have put in me and my Brand. Hence the fact that GERA also speaks about Customer centricity and trustworthiness being one of its core values, endorses my belief system.
As a business entrepreneur, I wish to OUTDO in enhancing the name of my company and continuing to improve all aspects of client servicing.
As LINT brings us new exposures of ‘Learning’, ‘Inspiration’, ‘Networking’ and ‘Training’ all of which are extremely critical to growth, I do believe that we will all OUTDO in our specific domains of expertise. I look forward to your next announcement.”
one-of-a-kind endeavor to be taken by any Real Estate brand, in this case for its commercial customers, to build a meaningful engagement platform to aid their customers in their journey to success!Three very simple words when asked at the right time catapult you to success at an unforeseen pace. WHY, WHAT and HOW? The WHY when asked at the right time ensures that strategic planning lends direct clarity to an entrepreneur’s tactical planning. The impact of this is directly measurable in the goals
achieved as a result. The “WHY” challenges the way things are usually done and puts perspective on how it can be done. The “WHY” also brings to focus the entrepreneur’s vision for his business and life. The same “WHY” also enables the entrepreneur chart down his strategic path to attain his vision and set his mission, thereby empowering him with absolutely clarity in the tactical strategy. All that comes from one single word “WHY”.
The aim of this LINT (Learning. Inspiration. Networking. Training.) session of “Entrepreneurial Leadership Development” was to arm the entrepreneurs and owners/renters of the Imperium properties with the power of this word, “WHY”. The first time this one word question showed its impact was when the entrepreneurs were asked why they tended to undo the changes that they made in themselves after a simple game. When the “WHY” struck for the first time, they realized that it is was innate tendencies as a human being to go back to their old ways also known as the Comfort Zone and that was probably one of the reasons behind their reduced pace of growth. You need to remain agile and accept change at a fast pace as a small business to grow! The second time the word “WHY” struck, was when the entrepreneurs were asked to share their vision and their picture of where business would be in a few years’ time. The third and the last time the “WHY” really moved the entrepreneurs into an action oriented direction was
when they were asked to identify their strategic growth areas based on the analysis that they had just completed. Commenting on the objective of this exercise Mr. Rohit Gera, Managing Director, Gera Developments said that, “Our objective of LINT is to help our customers and our tenants outdo both in terms of their business endeavors as well as in their real estate returns. In today’s turbulent and evolving market
conditions, the only way to really stay on track and OUTDO is when you find for yourself a North Star. The vision of what you want your business to signify and where you want it to go to can only arise from asking questions continually. We wanted to share with our customers the path to finding their own North Star and to get them to ask the right questions by introducing them to the power of the word WHY.”
Dinesh P. Dhulapkar - Gera’s IMPERIUM
Goa, March 4, 2017: Following the
very successful launch and the second
in a series of the community building
initiative (LINT) with their commercial
customers of IMPERIUM in Goa, Gera
Developments, one of the pioneers of
the real estate industry and creators of
premium residential & commercial
projects in Pune, Goa & Bengaluru
recently hosted their 3rd program
‘Workshop on Financial Modeling’.
This program was designed to help the
entrepreneurs, owners & tenants with
the IMPERIUM brand get a first-hand
re-think of what are the metrics
i nvo l ved in eva lua t ing the i r
organization’s financial model and
plan. From being able to decode
income statements to being able to
assess cash-flow position and other
metrics critical to assessment of the
LINT 3 �WORKSHOP IN FINANCIAL MODELING� FOR IMPERIUM CUSTOMERS IN ITS ANNUAL CALENDAR
financial health of the company, LINT is
a one-of-a-kind business endeavor
taken by Gera Developments for its
commercial customers to add strategic
business value and construct a
meaningful engagement platform to
help their customers in their
entrepreneurial journey.
The aim of this LINT (Learning.
Inspiration. Networking. Training.)
session - ‘Workshop on Financial
M o d e l i n g ’ w a s t o a r m t h e
entrepreneurs and owners/tenants of
the Imperium commercial spaces with
an understanding of how their
business models need to be in place
and then the co-relation to the financial
model being able to deliver and reflect
the overall health of the company. The
customers benefitted hugely through
this workshop as it was an eye-opener,
to re-visit and evaluate relevant
financial drivers to run one’s business
effectively and most importantly plan
alternative scenarios f inancial
scenarios for the desired business
results.
One of the most critical deliveries
during this workshop would be
‘Creating Positive First Impressions’
The other would on ‘VOCAL
IMPACT’ – This essent ia l ly
constitutes the ability to modify
one’s vocal delivery to create
maximum impact
‘DRESSING STYLE’ - Is absolutely
critical in a formal & a business
context and therefore, is given
emphasis
There is ‘business & dining
etiquette’
And lastly, considerable emphasis
on ‘Networking Skills’. ‘It’s not
about who you know but who knows
you’ – Dr. Ivan Misner
LINT 4 PERSONAL GROOMING & BUSINESS ETIQUETTE
The COMMUNICATION module
constituted of networking, modulating
the vocal impact and being able to
standardize, modify and cut the cloth
according to the requirement, given
the situational context in which the
elevator pitch needed to be made.
T h e A P P E A R A N C E m o d u l e
constituted wearing the right colors to
work. This involves the rules of
dressing, professional dressing and
grooming.
The BEHAVIORAL etiquette section
was supported by the business
etiquette model. There were a lot of
group interactivity sessions, Physical
Role Playing Sessions and Experiential
Takeaways for the IMPERIUM
customers and tenants.
LINT aims to help each and every one
of our commercial customers to
OUTDO in their ENTREPRENEURIAL
journeys. It is meant to deliver higher
value and productivity to them to
optimize in their individual businesses.
And hence, through each and every
one of these programs, LINT will
deliver ‘strategic business value’ and
help the entrepreneurs and every
IMPERIUM owner and tenant reflect on
the knowledge delivery through LINT
and to help them in their business.
Commenting on the objective of this
exercise Mr. Rohit Gera, Managing
Director, Gera Developments said that,
“We’ve started this as a business
relationship program wherein we aim to
deliver Strategic Business Value for each
and every one of our commercial
customers through LINT. Our objective
of LINT is to help our customers and our
tenants outdo both in terms of their
business endeavors as well as in their
real estate returns. In today’s turbulent
and evolving market conditions, the only
way to really stay on track and OUTDO
is when you find for yourself a North Star.
We wanted to share with our customers
the path to finding their own North Star
and to get them to ask the right questions
by introducing them to the power of
financial modeling in the 3rd edition of
LINT.”
TMThe GeraWorld App, which provides
a hassle-free customer interaction, has
gone through a few developments and
innovations to ensure that the bridge
between the brand and the customer is
fur ther s t rengthened. Ear l ier,
customers had to place a request for
the issue of documents such as
Sanctioned Plans, Loan Related
Documents, Receipts etc.
But now with the upgraded ‘Document
Request’ feature, one can download
the documents from the App itself.
The next is the ‘Feedback For CRM’
feature. This simply allows you to place
on record your honest feedback on our
CRM personnel who interact with you
on a continual basis.
Yet another is the ‘Time Enhancement
& the Flexibility’ given to the Customer
TMCUSTOMER-FIRST GERAWORLD APP_2.0
to Close the Request.
Earlier, on issues pertaining to
Common Areas of the Building related
to Gera’s 5 Year Warranty, the
customers could ‘create & track
requests’. The warranty feature
permitted the customer to upload
photographs of the problem and while
this has led to a 75% reduction in visits
to the customers’ premises, there
previously existed ONLY a window of 2
days to provide feedback and close the
request, failing which the request
would get closed automatically. Now,
you have the time flexibility of being
able to respond to the closure of your
request by a total of 5 days.
The new version can now be
downloaded from Google Play Store or
the Apple App Store.
3.53%
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Fig 1 - Quarterly Price Movements
Quarterly % change
Average Price
Panjim’s residential real estate prices have
appreciated at a sluggish pace of 1.33%
CAGR from March’13 to March’17 ,
indicating a neutral sentiment (in
March’13 they were Rs 78165 per sq. m.
and in March’17 they are Rs 82392 per
sq. m). Since, March’14 they have fluctuated
within a narrow band of Rs 79880 per sq. m.
to Rs 83632 per sq. m. The prices also seem
to hug an upward sloping trendline and have
never penetrated below it. If the trend in
prices holds ( like it has since 2012 ), there is
little possibility of prices going down further
as they have already bottomed out.
MARKET RESEARCH CUSTOMER'STESTIMONIAL
“I work in a real estate firm and had
the privilege of participating in this
workshop, by Gera Developments for
the employees of Gera Imperium
owners in Goa. It was indeed a very
good experience for us. We got to
learn a lot of important things
pertaining to basic etiquettes for usage
of email, mobile & also the office
etiquette required today. This
workshop under LINT also gave us a
platform to communicate & interact
with others coming from different
professional fields & different
backgrounds. I would like to thank
GERA for giving us this opportunity &
would love to be a part of such
seminars that enable us to be a
better version of ourselves & push us
to 'OUTDO'. Warm regards to the
teams who conceptualized & executed
this.”
Sudheer Naik, employee
at Abhiyant Realty
- Gera’s IMPERIUM GRAND
Looking forward to hear from you at [email protected] Office: 200, Gera Plaza, Boat Club Road, Pune - 411001| Goa Office: G-18, Gera's Imperium, Patto Plaza, Panjim-403001 | www.gera.in
Dubai Representative Office: Office No. 1804, Dubai Burjuman, Burjuman Tower, 18th Floor, Sheikh Khalifa Bin Zayed Road, PO Box 121828, Dubai, UAE
WITH RERA, COMMENCES A NEW ERA IN REAL ESTATE
The most defining change in the real
estate sector is the introduction of
RERA. It is not that there has never
been legislation for the sector before.
Maharash t ra in t roduced the
Maharashtra Ownership Flats Act in
1963. The challenge has been
implementation - the MOFA was
never implemented as it had been
envisaged, leading to rampant
breaking of promises to customers.
This time however, the scenario is
different. Customers are no longer
willing to take broken promises lying
down. They are willing to act and
fight for their rights. More importantly,
every state is required to set up a
regulator and complaints are
necessarily to be redressed in 60
days.The introduction of RERA will require a
business approach transformation for
many of the Developers who have
been used to a life without
restriction.Delivery as promised will
be the norm. Fiscal prudence,
something that was practised by a few
of us, will now be forced upon all
developers, with 70% of the customer
payments only being released to the
developer based on the progress of the
work at the project site. From an era of
being able to change the product at
will, developers will now need to plan
their product mix far better, as
obtaining consent from customers to
make changes will now be near
impossible. Finally, all developers will
need to stand behind the product
quality for 5 years. We had introduced
a 5 year warranty 13 years ago - this
has finally become the law of the land.While these aspects will make life
difficult for developers, there is finally a
lot of clarity for the developers for
multi-phase projects. Changes in
product are locked in for the phase that
has been declared. Developers are
free to create future phases as per the
market demand. This will help in
reducing litigation. The Maharashtra
RERA Rules also clarify the formation of
the society (or condominium/other
body) for each building as the requisite
percentage of customers book the flats.
On the whole, though restrictive, there
is far greater clarity and in the long run
this is good for professional developers
interested in building a business in the
long run.
Some of the provisions of RERA that
provide for a positive outcome for flat
purchasers: Delivery on time Reduced risk of title defects Changes in the project requires
approvals from purchasers Formation of society upon
booking of 51% of flat buyers Defect liability period of 5 years 70% of funds go to a designated
account for use of the project only No siphoning off funds for other
uses No sale before approvals
All this will reduce the total cost of
ownership for the flat purchaser. The
total cost of ownership is the base cost
paid to the developer for the flat plus
the interest during construction plus the
rent paid in case of delay in possession
plus the cost of repairs for defective
construction. This will now be borne by
the developer thereby increasing his
cost structure. While the total cost of
ownership goes down, some of the
increased costs of the developer will be
reflected in an increased cost of the
basic rate paid to the developer.
While RERA certainly provides clarity
and protection in a number of areas,
there are challenges generated as a
result of the law. Ongoing projects
where amounts drawn are in excess of
the percentage of work done will not be
able to draw money from the
designated account. As a result they
may face a working capital crunch. A
large part of the funds needed for
projects was provided through
customer funds; this will no longer be
the case. In fact, more capital will be
required as sales are not permitted
without approvals. Unless there is new
source of capital, many developers will
face capital constraints.All in all, RERA will change the way the
real estate developers do business.
Many fly-by-night operators who
followed the business model of over-
promise and under-deliver will be
forced to find other pastures. In the
long run, the business of real estate
deve lopmen t w i l l be l e f t to
professionals who are willing to stand
behind their promises. A time worth
looking forward to.