Salcon Aurum Office for Sale, Jasola New Delhi

Salcon Aurum is a finished Grade A office building on Plot No 4 of Jasola District Centre, South Delhi, completed in 2007 and about 0.4 km from Jasola Apollo metro. It has seven floors of about 23,696 sq ft over three basements, about 1,65,874 sq ft in all, and tenants that include Volvo Group India, Bose and Messe Dusseldorf India. The row this page replaces printed a band of about Rs 22,000 to Rs 30,000 per sq ft. The bottom of that is right; the top is well above any ask found.

Offices sell at about Rs 21,000 to Rs 24,000 per sq ft and let at Rs 100 to Rs 120 a month for most units, which is a gross yield of about 5.5 to 6.5 per cent. That is the same market as DLF Towers and Elegance Tower, the other two big buildings in the district centre.

What sellers ask, and what the numbers work out to

The evidence is two figures, and one of them has to be worked out from a listing's own numbers:

• A coworking page gives resale offices in the building from Rs 21,000 per sq ft.
• A leasing site offers a let 5,500 sq ft office at a rent of Rs 120 per sq ft a month, on a nine-year lease with a three-year lock-in, and prints a 6 per cent return. It does not print the price. Work it out: 5,500 x 120 = Rs 6,60,000 a month; times twelve is Rs 79,20,000 a year; divided by 0.06 is Rs 13.2 crore; over 5,500 sq ft that is Rs 24,000 per sq ft.

A broker listing and a portal page for the building offer resale offices without a readable price, and they are left out. On what can be tied to the building, the rate is about Rs 21,000 to Rs 24,000, the higher figure belonging to a unit that comes with a nine-year tenant.

Why the old top of Rs 30,000 does not hold

For an office at Rs 30,000 per sq ft to earn the 6 per cent the let unit is sold on, it would need a rent of Rs 150 a month: 30,000 x 0.06 = Rs 1,800 a year, or Rs 150 a month. No office in Salcon Aurum is quoted anywhere near that; the highest ask is Rs 130 on a coworking page and the highest signed rent Rs 120. At Rs 120, a Rs 30,000 purchase yields 4.8 per cent, which is below a fixed deposit. That top is Saket money, not Jasola money. The Saket buildings on this site, DLF South Court among them, price at Rs 24,900 to Rs 33,200 because they rent at Rs 145 to Rs 180.

The rent, and the yield it produces

Offices here let at about Rs 90 to Rs 130 per sq ft a month: furnished space from Rs 90 to Rs 100 on a broker listing, an entry quote of Rs 100 on a leasing site, a 3,100 sq ft office at Rs 115, the let unit at Rs 120, and premium space at Rs 130 on a coworking page. The detail is on this building's rent page.

Those are gross. Two things come off. First, stamp duty: in Delhi 6 per cent for a man, 4 per cent for a woman and 5 per cent jointly, plus a 1 per cent registration fee. On the Rs 13.2 crore unit bought by a man that is about Rs 92.4 lakh, and the 6 per cent gross becomes 79.2 lakh over 14.12 crore, about 5.6 per cent. Second, maintenance: tenants usually pay it, but a vacant unit's owner pays it. Salcon Aurum's rate is not published; the neighbours charge Rs 14.60 and Rs 15.74 a month, so a year's vacancy on 5,500 sq ft costs about Rs 10 lakh in maintenance alone.

The building

• Size: seven floors of about 23,696 sq ft over three basement levels; seven times 23,696 is 1,65,872, which squares with the 1,65,874 sq ft total printed. A broker's line that the project spreads over 4.5 acres could not be reconciled with that and is not relied on.
• Age: completed in 2007, described as Grade A.
• Metro: Jasola Apollo, about 0.4 km.
• Tenants: Volvo Group India, Bose, Messe Dusseldorf India, Innocean, Coloplast, Promega Biotech and others, on an undated list.
• Developer: the Salcon Group of Delhi, which also built Rasvilas in Saket and Platina Tower on MG Road, Gurugram. No company website for it surfaced in searches.

How it compares in Jasola

The three buildings price alike, and Salcon Aurum's let unit at Rs 24,000 is dearer only because it comes with a nine-year tenant paying Rs 120. Rent for rent, the district centre is one market. Tenants looking at the same building should read DLF Towers' rent page for a fully itemised Jasola bill.

Who this suits

It suits an investor who wants a let office in Delhi proper, at the metro, with a long lease, and who accepts about 6 per cent gross and 5.5 per cent after stamp duty. It suits an owner-occupier of 3,000 to 6,000 sq ft who wants to stop paying rent in South Delhi. It does not suit a buyer chasing 8 to 9 per cent, which older Gurugram stock such as Delta Square on MG Road can offer on paper, or one who wants a new building. More let stock is on the pre-leased property page.

Before you pay anything

1. The title: the seller's registered deed, whether the plot is leasehold or freehold, and a search for charges.
2. The lease, if let: tenant, rent, lock-in, escalation and expiry, and the deposit that transfers to you.
3. Maintenance: the rate, and any arrears on the unit.
4. Carpet and super area: which one the price and the rent are quoted on.
5. The arithmetic: rent times twelve over the price plus stamp duty.

Looking to lease rather than buy? The Salcon Aurum rent page covers asking rents, maintenance, deposits and lock-ins in the building.

Frequently asked questions

What is the price of office space in Salcon Aurum, Jasola?

About Rs 21,000 to Rs 24,000 per sq ft. A coworking page puts resale offices from Rs 21,000. A let 5,500 sq ft unit paying Rs 120 a month is offered at a printed 6 per cent return, which works out to Rs 13.2 crore, or Rs 24,000 per sq ft. Next door, DLF Towers asks about Rs 22,000 and Elegance Tower Rs 21,000 to Rs 22,000.

What rental yield does an office in Salcon Aurum give?

About 5.5 to 6.5 per cent gross. At a Rs 110 rent an office bought at Rs 21,000 per sq ft yields 6.3 per cent; the let unit at Rs 120 on Rs 24,000 yields 6.0 per cent. At the furnished Rs 90 quote on Rs 24,000 it falls to 4.5 per cent. Stamp duty and any maintenance the owner pays come off that.

Is there a pre-leased office for sale in Salcon Aurum?

Yes. A leasing site offers 5,500 sq ft let at Rs 120 per sq ft a month on a nine-year lease with a three-year lock-in, at a printed 6 per cent return. That is Rs 6.6 lakh a month and Rs 79.2 lakh a year, which puts the price at about Rs 13.2 crore. The listing does not print the price itself, so confirm it.

When was Salcon Aurum built, and how big is it?

It was completed in 2007. It has seven office floors of about 23,696 sq ft each over three basement levels, about 1,65,874 sq ft in all. It predates the real estate regulator, so no registration number applies.

What rent can an owner in Salcon Aurum expect?

About Rs 100 to Rs 120 per sq ft a month for most offices, with quotes from Rs 90 for furnished space to Rs 130 for premium space on a coworking page. The building's own rent page on this site sets out every quote.

Who are the tenants in Salcon Aurum?

Tenants named on a coworking page include Volvo Group India, Bose Corporation India, Messe Dusseldorf India, Innocean Worldwide Communication, Coloplast India and Promega Biotech. The list is not dated; a buyer of a let unit should read the tenant's own lease, not the building's list.

What are the costs of buying an office in Delhi besides the price?

Delhi stamp duty is 6 per cent for a man, 4 per cent for a woman and 5 per cent jointly, plus a registration fee of 1 per cent. On a Rs 13.2 crore unit bought by a man that is about Rs 92 lakh on top, which takes a 6 per cent gross yield to about 5.6 per cent on the money actually paid.