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%

3.94%

-0.03%

0.75%

-0.49%

-0.74%

7.09%

-1.87%

-0.08%

-0.01%

1.08%

-0.08%

-3.15%

1.89%

-1.24%

3.79%

-0.20%

0.44%

-1.48%

75227

78192

78165

78752

78363

77779

83291

81734

81670

81663

82549

82481

79880

81389

80382

83432

83269

83632

82392

-7.00%

-2.00%

3.00%

8.00%

13.00%

18.00%

23.00%

28.00%

70000

72000

74000

76000

78000

80000

82000

84000

Jul'1

2 -

Se

p'1

2

Oct

'12

-

Dec

'12

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'13

-M

ar'1

3

Ap

r'1

3 -

Ju

n'1

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Jul'1

3 -

Se

p'1

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Oct

'13

-

Dec

'13

Jan

'14

-M

ar'1

4

Ap

r'1

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Ju

n'1

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Jul'1

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p'1

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Oct

'14

-

Dec

'14

Jan

'15

-M

ar'1

5

Ap

r'1

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n'1

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Jul'1

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'15

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Dec

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'16

-M

ar'1

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'16

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7 -

Mar

'17

% C

han

ge

Ave

rage

Pri

ce (

Rs

psm

)

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 feedback.newsletter@gera.inHead 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.