Salcon Platina Tower Office for Sale, MG Road Gurgaon

Salcon Platina Tower is a finished office building of eight levels on MG Road at Bristol Chowk, Sector 28, Gurugram, about 0.3 km from Sikanderpur metro, the interchange between the Yellow Line and Rapid Metro. It has about 2,01,195 sq ft on floors of about 25,149 sq ft. WeWork runs five of those floors as coworking, a multinational holds a whole floor, and car showrooms take the ground-floor frontage. The row this page replaces printed a band of about Rs 18,000 to Rs 24,000 per sq ft and nothing else.

That band is close to right for an office floor on super area: this page puts it at about Rs 18,000 to Rs 23,000 per sq ft, a gross yield of about 5.5 to 7 per cent on rents of Rs 100 to Rs 125. What the old row missed is that the one priced listing reads Rs 29,000 because it is on carpet area, and that the ground-floor showrooms are a different market altogether.

The one priced ask, on two areas

A portal lists an office of 862 sq ft carpet at Rs 2.5 crore and prints Rs 29,002 per sq ft: 2,50,00,000 / 862 = 29,002. That rate is on carpet area. MG Road offices are priced and let on super area, which is about a third larger. The same portal lists a ready office of 1,150 sq ft in the building; if that is the same unit's super area, and 862 is 75 per cent of 1,150, which is a normal ratio, the price is 2,50,00,000 / 1,150 = Rs 21,739 per sq ft. That link could not be confirmed, so treat it as the likely reading, not a fact. The portal's own average ask for Sector 28 is Rs 26,350 and for the wider micro-market Rs 17,100; neither is a figure for this building.

The let units, and what their rents say they are worth

A leasing site offers four let units, with rents and terms but no prices:

The arithmetic is rent times twelve divided by the yield: Rs 107 x 12 = Rs 1,284 a year per sq ft, over 0.07 is Rs 18,343. The listing's own figure for the 6,000 sq ft unit, Rs 6,42,000 a month, checks: 6,000 x 107 = 6,42,000. At a 6.5 per cent yield that unit is worth about Rs 11.85 crore in all, and at 7 per cent about Rs 11 crore.

So office floors are worth about Rs 18,300 to Rs 23,100 on their rents, and the Rs 21,739 reading of the priced unit sits inside that. The ground-floor showrooms are worth about Rs 29,500 to Rs 36,100, because car brands pay Rs 172 to Rs 195.50 for MG Road frontage. An office buyer should not let a showroom's price set expectations, and a showroom buyer should check the lease: the Nexa unit's nine-year lease is what makes its value, the Renault unit's two-year lock-in much less so.

The yield on an office bought today

Take the Rs 2.5 crore unit on about 1,150 sq ft. Offices here let at about Rs 100 to Rs 125 a month, as this building's rent page sets out. At Rs 100 it earns 1,150 x 100 x 12 = Rs 13,80,000 a year, 5.5 per cent; at Rs 107, Rs 14,76,600, 5.9 per cent; at Rs 125, Rs 17,25,000, 6.9 per cent. Gurugram stamp duty is 7 per cent for a man, 5 per cent for a woman and 6 per cent jointly, plus the registration fee; for a man, 5.9 per cent gross becomes about 5.5 per cent on the money paid. Maintenance is not published for the building; an empty unit's owner pays it.

What the building is

• Size: a total area of about 2,01,195 sq ft over eight levels, three basements below, floors of about 25,149 sq ft. Eight times 25,149 is 2,01,192, which settles it. One listing's "over 8,70,000 sq ft" is four times too big, and a portal's "5,200 sq ft of exclusive commercial space" is a fraction of one floor; both are wrong.
• Metro: Sikanderpur, about 0.3 km, Yellow Line and Rapid Metro.
• Occupiers: WeWork across five floors, a multinational on a full floor, car showrooms on the ground floor.
• Developer: the Salcon Group of Delhi, which also built Salcon Aurum in Jasola and Rasvilas in Saket. No company website surfaced. The completion year could not be established from the sources read.

How it compares on MG Road

Platina prices with DLF Corporate Park and a little below Sewa's let units, and above Delta Square, whose furnished rents make its yield look high. What Platina has that the others do not is the interchange 300 metres away. The corridor's offices are on the MG Road office page, and more let stock on the pre-leased property page.

Who this suits

It suits an investor who wants a let office at a metro interchange on MG Road at about 6 per cent, and an owner-occupier of 1,000 to 6,000 sq ft who wants to own near Sikanderpur. It suits a larger investor who can buy a whole floor with a multinational on it. It does not suit a buyer who compares a carpet-area rate with a super-area one, a buyer who wants 8 per cent, or an office buyer being quoted showroom prices.

Before you pay anything

1. The area: carpet and super, in writing, and which one the price is on.
2. The lease, if let: tenant, rent, lock-in, escalation, expiry and deposit.
3. The title: registered conveyance deed, occupation certificate and a charge search.
4. Maintenance: the rate and any arrears.
5. Parking: bays allotted to the unit.

Frequently asked questions

What is the price of office space in Salcon Platina Tower, MG Road?

About Rs 18,000 to Rs 23,000 per sq ft on super area for an office floor. The one priced ask is Rs 2.5 crore for 862 sq ft of carpet area, which a portal prints as Rs 29,002 per sq ft; on a super area of about 1,150 sq ft the same price is Rs 21,739. The let offices on offer at Rs 107 and Rs 125 rent are worth Rs 18,343 to Rs 23,077 at a 6.5 to 7 per cent yield.

Why does one listing show Rs 29,000 per sq ft?

Because it divides by carpet area. Rs 2.5 crore over 862 sq ft of carpet is Rs 29,002. Offices on MG Road are usually priced and let on super area, which is about a third larger than carpet; over about 1,150 sq ft the same price is Rs 21,739. Always ask which area a rate is on before comparing it.

Are there pre-leased units for sale in Salcon Platina Tower?

Yes, four on one leasing site: a 6,000 sq ft office at Rs 107 a month with a three-year lock-in; a 25,000 sq ft floor let to a multinational at Rs 125 with six months' deposit; a 1,670 sq ft ground-floor car showroom at Rs 172 with a two-year lock-in; and a 3,976 sq ft showroom at Rs 195.50 on a nine-year lease. None prints a price.

What rental yield does an office in Salcon Platina give?

About 5.5 to 7 per cent gross. The Rs 2.5 crore unit at about 1,150 sq ft earns Rs 13.8 lakh a year at a Rs 100 rent, 5.5 per cent, and Rs 17.25 lakh at Rs 125, 6.9 per cent. Gurugram stamp duty of 7 per cent for a man takes about 0.4 of a point off.

How big is Salcon Platina Tower?

About 2,01,195 sq ft over eight levels with floors of about 25,149 sq ft, three basements below. Eight times 25,149 is 2,01,192, which settles it. A listing claiming over 8,70,000 sq ft and a portal line about 5,200 sq ft of commercial space are both wrong.

Who occupies Salcon Platina Tower?

WeWork runs a coworking centre over five floors, and a multinational has a 25,000 sq ft floor. Car showrooms, a Renault dealer and a Nexa showroom on the listings, take the ground-floor frontage.

How far is Salcon Platina Tower from the metro?

About 0.3 km from Sikanderpur station, where the Yellow Line meets Rapid Metro. The building is at Bristol Chowk on MG Road in Sector 28, opposite the Bristol hotel.