Near Divine School, Hindaun City, Rajasthan
24.5%
Asset CAGR
1.82x
Buying Alpha
22Mos
Vintage
1. The Investment Thesis
"Capturing high-velocity residential demand by transforming raw land into liquid inventory near localized institutional anchors."
In 2009, while the broader market faced uncertainty, we identified a hyper-local opportunity in Hindaun City. The proximity to Divine School created a permanent "educational anchor," ensuring a steady stream of demand from faculty and families. By adopting a "Builder Acting" strategy, we bypassed the delays of third-party developers, allowing us to acquire 4 Bigha of land and immediately provide structured, ready-to-build plots. This agility allowed us to deliver value to the local market while capturing a significant developer's spread that would otherwise be lost to intermediaries.
2. Valuation Bridge
| Line Item | Amount (PER SQ FT) | Notes |
|---|---|---|
| Land Acquisition | ₹12,50,000 | Acquisition of 4 Bigha at ₹2.5 Cr total. |
| Technical Construction | ₹2,25,000 | Internal roads, leveling, and boundary wall work. |
| Approvals & Liaising | ₹1,10,000 | Local authority clearances and sub-division fees. |
| Total Cost Basis | ₹15,85,000 | The "Hard" cost to bring a finished plot to market. |
| Buying Alpha | ₹8,65,000 | Value added via land conversion and location premium. |
| Exit Valuation | ₹24,50,000 | Final retail sale price per plot (55% Profit Margin). |
In residential real estate, we don't just look at cities; we look at anchors. The Divine School proximity wasn't just a 'nice to have'—it was our entire exit strategy. By acting as the builder ourselves on this 4-Bigha patch, we captured the developer's margin that usually gets lost to third parties. We turned raw dirt into a 'Residential Scheme' in record time because we knew exactly who the end-buyer was: the local professional class looking for security and status near the city’s top school. It was a clean, high-velocity play that proved Property Bank assets thrive on agility.
— BK Agarwal, Chief Advisor & Partner
Execution Timeline
May 2009
Land Acquisition
Purchased 4 Bigha land parcel near Divine School for ₹2.5 Cr. Secured at a price reflective of raw agricultural land despite residential potential.
Aug 2009
The "Conversion" Phase
Initiated land-use change and sub-division into 20 distinct residential units. Infrastructure work commenced.
Dec 2009
Utility Deployment
Completion of internal road networks and basic electrification. First 5 plots released to test market pricing.
Mar 2011
The Strategic Exit
Final plot sold. Achieved a total project profit margin of 55%, successfully exiting the position in 22 months.