400 acres 700 acres

THE MAGARPATTA MODEL OF FDI - FARMERS DIRECT INVESTMENT!

A Innovative Joint Venture Model under Land Pooling!

By

Mr. Satish Magar CMD, Magarpatta City, Pune

 BASIC OUTLINE OF THE MODEL
OBJECTIVE:

To create long term wealth for the farmers from their landholdings

To create opportunity for the farmers to turn into entrepreneurs

To give a sense of ownership to the farmers over the development

To create a source of long term annuity for the farmers

To create a strong real estate franchise in order to enable development of other

larger scale projects

BASIC OUTLINE:

The farmers contribute their individuals landholdings under a JDA to the

Project SPV, for a refundable security deposit and Revenue Share

In addition to Revenue Share, the farmers also hold equity position in Project
SPV hence also share in the upside of the entire development.
MAGARPATTA CITY LAND-OWNERS, NOW
ENTREPRENEURS
 ADVANTAGES TO THE FARMERS

Large scale development enables better realisation on the Revenue Share

portion of the JDA.

Realisation of Revenue Share from the first phase of the development itself,
irrespective of which part of the land is developed first.

Creates greater transparency over the development process sense of

belonging and ownership.

Equity position in the development, enables sharing in the upside and also in
creation of long term annuity income from leased commercial assets

Large scale development, enables creation of strong real estate franchise and
enabling Project SPV to leverage on it to undertake other real estate projects

Large scale development provides opportunity for farmers to turn into

entrepreneurs
 EXPERIENCE SO FAR

The model created a strong franchise Magarpatta City 430 acres of integrated
Township.

Magarpatta City created long term wealth for the farmers

Magarpatta City, with 5 million sq ft of leased space created long term annuity for
the farmers

Magarpatta City enabled farmers to become entrepreneurs most of the farmers

became contractors, building material suppliers and building machinery owners

Due to the creation of a strong franchise, the farmers invested their share of profits
and revenues share amounts, back with Magarpatta City, making its financial
position much stronger.

The strong franchise and surplus free cash flows enabled Magarpatta to start the
development of Nanded City, on similar model, with the landowners of Nanded City
Magarpatta owns control equity, with the rest of equity held by farmers of Nanded
City
MASTER PLAN OF MAGARPATTA CITY
 BENEFITS OF THE MODEL TO DEVELOPERS

Offering equity positions to landowners enables negotiations of betters

terms for the JDA, vis--vis a traditional JDA.

Enables acquisitions of larger tracts of land, with minimal capital.

Locks in the landowners mitigates the risk of landowners being litigious

later

No specific time lines in JDA for completion of the development, as found

in typical JDAs.

No specific minimum selling prices conditions, as found in typical JDAs.

Enables raising of debt, based on mortgage of land; which in typical

JDAs the landowners does not permit.
WELCOME TO MAGARPATTA CITY (RESIDENTIAL)
(IT PARK)
ZERO GARBAGE CITY
EXTENSIVE PLANTATION
SPORTS AND RECREATION
SECURITY
ENTERTAINMENT
BENEFITS TO RESIDENTS
Thank You
Visit us at www.magarpattacity.com