SAS Tower Office for Sale, Sector 38 Gurgaon

SAS Tower is three finished office towers built by the SAS Group in Sector 38, Gurugram, beside Medanta, The Medicity, and about 100 metres off NH-48. The one priced office for sale found is 5,000 sq ft at Rs 6.25 crore, or Rs 12,500 per sq ft. Against the building's furnished rents of about Rs 70 to Rs 75 a month, that is a gross yield of about 6.7 to 7.2 per cent. The row this page replaces printed a band of about Rs 10,000 to Rs 14,000 with no listing behind it and never set the price against the rent; this page does both, and says plainly how thin the sale evidence is.

The buildings, by one directory's count: Tower A of five floors at about 25,000 sq ft each, some 1,21,000 sq ft; Tower B of fourteen floors at about 15,000 sq ft, some 2,10,000 sq ft; and Tower C of eight floors at about 17,505 sq ft, some 1,40,036 sq ft, dated about 2012 by a coworking page. That is about 4.7 lakh sq ft of offices, most of it let.

What sellers ask, divided by the area

The arithmetic: Rs 6,25,00,000 divided by 5,000 is Rs 12,500 per sq ft. It falls inside the old row's band. The portal's Rs 15,300 does not, and it is an average with no unit, floor or date attached. The two figures conflict, and only a priced unit can settle it. This page prints Rs 12,500 as the headline because it is the only number with an area and a price on the same document. The same portal lists office availability here from about 1,000 sq ft to 1,00,000 sq ft, which tells a buyer the building is sold in pieces of every size, but not at what price.

Whether the 5,000 sq ft unit is vacant or let is not stated on the listing. That matters. A let unit is priced from its rent; a vacant one is priced lower, because the buyer carries the months it takes to find a tenant and the cost of a fit-out.

The rent, and the yield it produces

Furnished offices in SAS Tower let at about Rs 70 to Rs 75 per sq ft a month: a 2,600 sq ft office at Rs 70 (Rs 1,82,000 a month) and a 3,240 sq ft office at Rs 75 (Rs 2,43,000 a month), each with about Rs 20 of maintenance paid by the tenant. The lowest ask found is Rs 60, on a 2,500 sq ft office offered only to a pharma company; the highest is a coworking page's Rs 100 for Tower A, with no unit behind it. The full letting picture is on nearby rent pages and on this building's own rent page.

Now divide, gross, before vacancy and property tax:

• At Rs 12,500 and Rs 70 rent: Rs 70 times 12 is Rs 840 a year; Rs 840 over Rs 12,500 is 6.72 per cent.
• At Rs 12,500 and Rs 75 rent: Rs 900 over Rs 12,500 is 7.2 per cent.
• At Rs 12,500 and Rs 60 rent: Rs 720 over Rs 12,500 is 5.76 per cent.
• At the portal's Rs 15,300 and Rs 70 rent: Rs 840 over Rs 15,300 is 5.49 per cent.

On the whole 5,000 sq ft unit, Rs 70 a month is Rs 3,50,000 a month, Rs 42 lakh a year, on Rs 6.25 crore: the same 6.72 per cent. But Rs 70 is a furnished rent. A bare unit lets for less, and furnishing 5,000 sq ft costs money the yield sum leaves out. If the unit is bare, ask what the owner thinks it will let for bare, and redo the sum.

How it compares nearby

This site has checked the offices on the same side of the city. Welldone Tech Park in Sector 48 trades at about Rs 7,100 to Rs 8,800 per sq ft on a Rs 55 rent, a yield of 7.5 to 9.3 per cent in a 2010 building. JMD Megapolis on Sohna Road sells let units at about Rs 10,100 to Rs 11,100 on rents of Rs 60 to Rs 65, about 7 per cent. Raheja Mall on Sohna Road has an office ask of about Rs 14,900. SAS Tower at Rs 12,500 sits above Welldone and a little above JMD Megapolis, for a better site on NH-48 beside a large hospital and a tenant list that includes Medtronic and Olympus. The wider market is on the Sohna Road office page and the ready-to-move office page.

Registration and title

No Haryana RERA registration for SAS Tower turned up, and none is expected for finished towers of this age; Tower C is dated about 2012. A purchase rests on the seller's registered conveyance deed, the occupation certificate for the tower, and the lease if the unit is let. One portal files the building under residential projects; it is an office building, and a buyer should not rely on that portal's other fields either. No SAS Group website for this building surfaced, so each unit is bought from its owner, and the title chain should be read back to the first sale.

Costs on top of the price

Stamp duty in Gurugram is 7 per cent for a man, 5 per cent for a woman and 6 per cent jointly, plus the registration fee. On Rs 6.25 crore, 7 per cent is Rs 43.75 lakh. That alone takes the yield at Rs 70 rent from 6.72 per cent to about 6.3 per cent on the money actually spent: Rs 42 lakh over Rs 6.69 crore. Maintenance of about Rs 20 is paid by a tenant while the unit is let, and by the owner while it is empty: on 5,000 sq ft that is Rs 1 lakh a month of vacancy cost.

Who this suits, and who should look elsewhere

A unit here suits an investor who wants an office beside Medanta, where health-care and med-tech tenants have a reason to stay, at a gross yield near 7 per cent. It suits an occupier from that sector who would rather own than rent. It does not suit a buyer who needs a metro at the door, since the nearest station is about 3.6 km away, or one who wants a new building. And with a single priced listing, it does not suit a buyer in a hurry: the market here is thin, and the price is found by asking several owners.

Before you pay anything

1. Which tower and floor, and whether the area is super or carpet.
2. Vacant or let: if let, the tenant, rent, lock-in, deposit and next escalation.
3. The arithmetic: rent times twelve over price, against 6.7 per cent.
4. At least two more priced units, to test Rs 12,500 against the portal's Rs 15,300.
5. The title: the conveyance deed, the occupation certificate and a charge search.
6. Maintenance arrears on the unit, which pass with it.

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

Frequently asked questions

What is the price of office space in SAS Tower, Sector 38 Gurgaon?

The one priced ask found is a 5,000 sq ft office at Rs 6.25 crore, which is Rs 12,500 per sq ft. One portal prints an average of about Rs 15,300 per sq ft for the building, against about Rs 12,000 for Sector 38, but gives no unit behind it. Treat Rs 12,500 as the evidence and Rs 15,300 as a portal's figure until a second priced unit appears.

What rental yield does an office in SAS Tower give?

About 6.7 per cent gross at the priced ask. Furnished offices here let at about Rs 70 per sq ft a month, which is Rs 840 a year; Rs 840 over Rs 12,500 is 6.72 per cent. At Rs 75 it is 7.2 per cent. At the portal's Rs 15,300 average, the same Rs 70 gives only 5.5 per cent.

What rent can an owner in SAS Tower expect?

Most furnished offices ask Rs 70 to Rs 75 per sq ft a month, with about Rs 20 of maintenance that the tenant pays on top. The widest spread found runs from Rs 60, on a 2,500 sq ft office offered only to a pharma company, to Rs 100, a coworking page's headline for Tower A.

Is SAS Tower registered under RERA?

No registration was found. SAS Tower is three finished, let office towers, with Tower C dated about 2012 by a coworking page, so a purchase rests on the seller's registered conveyance deed, the occupation certificate and any lease in place rather than on a RERA number. One portal files the building under residential projects, which is an error; it is an office building.

How big is SAS Tower and how large are its floors?

Three towers of about 4.7 lakh sq ft in all, by one building directory's count: Tower A with five floors of about 25,000 sq ft, Tower B with fourteen floors of about 15,000 sq ft, and Tower C with eight floors of about 17,505 sq ft. Units change hands from about 1,000 sq ft up to whole floors.

Which companies lease offices in SAS Tower?

A building directory names Medtronic India Development Centre and State Bank of India in Tower A; Dr Lal PathLabs, AiRo Digital Labs, Mytrah and PredOmix Technologies in Tower B; and Olympus Medical Systems India in Tower C. The tenant base leans to health care because the building stands beside Medanta.

How far is SAS Tower from the metro?

Millennium City Centre, the old HUDA City Centre station on the Yellow Line, is about 3.6 km from Sector 38 by one route site; a portal puts it within 6 km. Nothing is within walking distance. The towers are about 100 metres off NH-48, beside Medanta, The Medicity.