Magnum Towers Office for Sale, Sector 58 Gurgaon

Magnum Towers are two finished IT and office towers on about 6.78 acres in Sector 58, on Golf Course Extension Road, Gurugram, built by the Galaxy Magnum group. Tower 1 is about 3.5 lakh sq ft, Tower 2 about 80,000 sq ft, and floor plates run to about 30,000 to 33,000 sq ft. The row this page replaces put the building in the wrong sector, named no developer, called it coming soon and gave no price. None of that held up. There are tenants in both towers, let units are on sale with their rents printed, and a rate can be worked out.

The short version: the priced asks found run from about Rs 12,100 to Rs 16,500 per sq ft, the building lets at about Rs 85 a month, and the two let units on offer yield 5.75 and 6.5 per cent gross on their own figures. This site also carries a sale page for the same building under the Galaxy Magnum name, which works the price out from the rent; this page adds the asks.

What sellers ask, divided by the area

• A pre-rented 8,200 sq ft unit at Rs 9.92 crore, let to MEDDO at Rs 58 per sq ft a month. Rs 9,92,00,000 over 8,200 is Rs 12,098 per sq ft.
• A pre-rented 8,264 sq ft unit let to Hashtag Orange at Rs 72, with four months' deposit, a 42-month lock-in and 15 per cent every three years, advertised at a 6.5 per cent return. No price is printed, but the return fixes it: Rs 72 times 12 is Rs 864 a year, and Rs 864 over 0.065 is Rs 13,292 per sq ft, about Rs 10.98 crore for the unit.
• A 15,000 sq ft fully furnished office at Rs 16,500 per sq ft, which is about Rs 24.75 crore (15,000 times Rs 16,500). It is sold vacant, and the furniture is part of the price.
• A pre-rented unit of about 1,440 sq ft is also advertised, with no price or rent in what could be read.

So the building trades in a band of about Rs 12,100 to Rs 16,500, and where a unit sits in it is set by the lease: a low rent pulls the price down, a vacant furnished floor sells on what a new tenant would pay. The Galaxy Magnum sale page, dividing the Rs 85 rent by the 6.5 to 8.7 per cent this corridor pays, reached about Rs 11,700 to Rs 15,700. The asks found here fall almost exactly inside that, which is a useful check on both.

The rent, and the yield it produces

A leasing page quotes about Rs 85 per sq ft a month for office space in the building. The two let units carry less: Rs 58 and Rs 72. That gap is the first thing to ask about. A Rs 58 lease signed some years ago, with escalations still to come, can be a fair buy at a low price; a Rs 58 lease with no escalation left is simply a low rent.

Now divide. The MEDDO unit earns Rs 696 a year per sq ft (Rs 58 times 12). On Rs 12,098 that is 5.75 per cent gross. The Hashtag Orange unit is advertised at 6.5 per cent; its own figures give exactly that at Rs 13,292, so the listing is internally consistent. A vacant floor bought at Rs 16,500 and let at the building's Rs 85 would earn Rs 1,020 a year per sq ft, which is 6.2 per cent. At Rs 12,098, the same Rs 85 would give 8.4 per cent, which is why a buyer of the MEDDO unit is really betting on the rent reaching the building's level at the next review or re-letting.

The maintenance rate is not published. The developer's own page says maintenance covers common areas, utilities, security and housekeeping, but gives no figure. On a standard lease the tenant pays it; on a gross lease, or while a floor is empty, the owner does. On 8,200 sq ft, every Rs 10 of monthly maintenance is Rs 82,000 a month of cost during a vacancy, so ask for the current rate and the last year's bills.

The one-unit page that folds into this one

This site also carried a separate page for a pre-rented office for sale in this building, with the same wrong sector and no price. It folds into this page. The table also shows, as a calculation, what the sizes other Magnum Towers stubs on the site carry would cost at the ends of the band.

The old unit page had two faults. It gave no size, so no price could be attached to it, and it called a let office in a finished building coming soon. A let office cannot be a launch. The three calculated rows are the band multiplied by the area; none of them is a quote, and small units often ask more per sq ft than a whole floor.

The building and its tenants

The developer's own site presents Magnum Towers as commercial and IT office space in Sector 58, with floor plates of about 30,000 to 33,000 sq ft. One broker listing names the company as Galaxy Monnet Infraheights; this site's page for the neighbouring Magnum Global Park names Galaxy Magnum Infraheights. The sale deed will carry the company name, and that is the one to check. The completion year could not be established from the sources read, and no RERA registration was found; the towers are finished and let, and units change hands on resale.

One portal lists the tenants of Tower 1 as Getronics, PENTAX Medical, Cians Analytics, NNR Global Logistics, Akzo Nobel India, CO-OFFIZ, Accolite, Safeguard World Payroll Services and an Axis Bank branch, and those of Tower 2 as Mahou India, Alcobrew Distilleries and Chqbook. That is a mix of mid-size firms, not one large anchor, which spreads the risk of an empty building but also means each lease is smaller and shorter.

The nearest rail is the Sector 55-56 rapid metro, about 2.5 km away on one coworking page. That is too far to walk, and it is one reason the rent sits below the Golf Course Road towers.

Several buildings share the name

This matters more on a purchase than on a lease. Magnum Tower 1, Magnum Tower 2, Magnum Global Park next door and a Magnum Global Tower Park listing are separate buildings, at very different sizes and prices. Magnum Global Park sells vacant at about Rs 18,000 per sq ft and pre-leased at Rs 23,000 to Rs 27,000, well above this building. A price quoted for one is not a price for another. Get the tower, floor and unit number in writing and match them to the conveyance deed, not the brochure. This site's older Magnum Towers building page covers the same two towers.

How it compares nearby

Splendor Spectrum One in Sector 58 lets at Rs 60 to Rs 80 and offers floors at about Rs 11,000 per sq ft, a 6.5 to 8.7 per cent gross yield. Magnum Global Park is dearer at Rs 18,000 vacant. Magnum Towers, at Rs 12,100 to Rs 16,500 with Rs 85 rent, sits between the two, closer to Splendor on price and closer to Global Park on rent. The rent page for this building covers the tenant's side, and more let stock across the city is on the pre-leased property page. The corridor as a whole is on the Golf Course Extension Road page.

Who this suits, and who should look elsewhere

It suits an investor who wants a let office of about 8,000 sq ft on Golf Course Extension Road at a yield of 5.75 to 6.5 per cent, with the chance that a low rent rises toward Rs 85 at the next review. It suits an occupier who wants to own a floor of 15,000 sq ft or more, ready and furnished. It does not suit a buyer who needs a single large corporate tenant on a long lease, or one who needs staff to walk to the metro, or one who will not check which Magnum building a price refers to.

Before you pay anything

1. The building: tower, floor and unit number, matched to the conveyance deed.
2. The lease: tenant, rent, start date, lock-in, escalation and deposit, read against the landlord's bank statement.
3. The arithmetic: rent times 12 over the price per sq ft. On Rs 58 rent, Rs 12,098 gives 5.75 per cent; anything higher gives less.
4. Maintenance: the rate, who pays it under the lease, and any arrears.
5. The title: the occupation certificate for the tower, the seller's registered deed and a charge search.
6. Stamp duty: 7 per cent for a man, 5 per cent for a woman and 6 per cent jointly in Gurugram, plus the registration fee; see the registration charges guide.

Frequently asked questions

What is the price of office space for sale in Magnum Tower, Gurgaon?

The priced asks found run from about Rs 12,100 to Rs 16,500 per sq ft. A pre-rented 8,200 sq ft unit asks Rs 9.92 crore, which is Rs 12,098 per sq ft, and a 15,000 sq ft furnished office is offered at Rs 16,500 per sq ft, about Rs 24.75 crore. A second let unit of 8,264 sq ft is advertised at a 6.5 per cent return on a Rs 72 rent, which works out to about Rs 13,292 per sq ft.

What rent does an office in Magnum Tower earn?

A leasing page quotes about Rs 85 per sq ft a month for the building. The two let units on sale are below that: Rs 58 on the 8,200 sq ft unit and Rs 72 on the 8,264 sq ft unit. Ask for the lease, because the rent on the unit you buy sets its value more than the building average does.

What rental yield does a pre-rented office in Magnum Tower give?

The 8,200 sq ft unit at Rs 58 rent and Rs 9.92 crore gives 5.75 per cent gross: Rs 58 times 12 is Rs 696 a year per sq ft, over Rs 12,098. The 8,264 sq ft unit is advertised at 6.5 per cent on Rs 72. A vacant unit bought at Rs 16,500 and let at Rs 85 would give about 6.2 per cent.

Which companies are tenants in Magnum Towers?

One portal lists Getronics, PENTAX Medical, Cians Analytics, NNR Global Logistics, Akzo Nobel India, Accolite, Safeguard World Payroll Services and an Axis Bank branch in Tower 1, and Mahou India, Alcobrew Distilleries and Chqbook in Tower 2. The two let units on sale carry a furniture firm (MEDDO) and an advertising firm (Hashtag Orange).

Is Magnum Tower in Sector 58 or Sector 59?

Sector 58, on Golf Course Extension Road. The developer, leasing sites and portals all place Magnum Towers in Sector 58. The page this one replaces named the next sector and called the building coming soon; it is a finished pair of towers with tenants in them.

How big are Magnum Towers and who built them?

Two towers on about 6.78 acres: Tower 1 of about 3.5 lakh sq ft and Tower 2 of about 80,000 sq ft, about 4.3 lakh sq ft in all, with floor plates of about 30,000 to 33,000 sq ft. The developer's own site is Galaxy Magnum Group; one broker listing names the company as Galaxy Monnet Infraheights.

How far is Magnum Tower from the metro?

About 2.5 km from the Sector 55-56 rapid metro station, on one coworking page. That is close enough to run a shuttle and too far to walk, which matters when you judge how quickly an empty floor would re-let.