SP Infocity Office for Sale, Udyog Vihar Gurgaon

SP Infocity is an IT office building of two towers at Plot 243, Udyog Vihar Phase I, Gurugram, built by Shapoorji Pallonji & Company and let in whole floors to large back-office tenants: Citigroup, Sun Life, Concentrix, Accenture and others. The row this page replaces printed a sale price of Rs 12,000 to Rs 16,000 per sq ft and gave the developer as "SP Infocity". The developer was wrong, and the price had nothing behind it: no sale listing for an office in SP Infocity was found on any page read for this refresh.

What the building does publish is rent: about Rs 75 to Rs 95 per sq ft a month. That is the only honest basis for a price, and this page works one out from it, labelled as arithmetic rather than a market.

What the building is

• Tower A: three basements, ground and seven floors; floors of about 42,000 sq ft; about 3,36,000 sq ft built up.
• Tower B: about 2,80,000 sq ft over eight floors.
• Together about 6.16 lakh sq ft, adding the two listings' figures.
• At Plot 243, Udyog Vihar Phase I, close to NH-48 and the Delhi border.
• The Rapid Metro's IndusInd Bank Cyber City station about 1 to 2.5 km away on listings; the IGI Airport about ten minutes by road.
• Shapoorji Pallonji runs SP Infocity buildings in Pune and Chennai as well as this one.

The year the building was completed could not be established from the pages read. It is operational and let, and has been for long enough to carry a tenant list of global processing centres.

Why there is no sale price

Strata buildings in Gurgaon, sold floor by floor or suite by suite to investors, leave a trail: resale listings, pre-leased units with a rent and a price, a yield printed on a flyer. SP Infocity has none of that on any page found. Every listing for it is a lease: a floor, a block, a rent. That is the pattern of a building held by one owner and let whole, the way a developer's own IT park is run. If that is the case here, there are no office units to buy, and a page selling "office space for sale in SP Infocity" at a per-sq-ft rate is describing a market that does not exist.

Whether Shapoorji Pallonji still owns the whole building, or has sold it or part of it to a fund, could not be established from the pages read. A buyer offered a floor here should start there: who owns it, and on what title.

The rent, which is the building's real number

A 42,000 sq ft floor at Rs 85 is 42,000 x 85, or Rs 35.7 lakh a month, and Rs 4.28 crore a year. Udyog Vihar as a whole lets at about Rs 40 to Rs 90 for plot-built space and Rs 85 to Rs 115 for Grade A; SP Infocity sits at the top of Phase I and the bottom of the belt's Grade A. The rent side is covered on the Udyog Vihar office rent page.

What a floor would be worth on its rent

A let office is priced from its rent. Let strata offices on this corridor trade at about 7 to 8 per cent gross: Signature Towers at 6.9 to 7.3 per cent and let suites in Vatika Towers at 6.6 to 7.5 per cent. Apply that to SP Infocity's rents:

So a floor let at Rs 85 would be worth about Rs 12,750 to Rs 14,600 per sq ft to an investor at those yields. The old row's Rs 12,000 to Rs 16,000 happens to bracket the same range, which means it was probably worked out the same way and printed as if it were a market. On a whole 42,000 sq ft floor, Rs 12,750 is about Rs 53.6 crore, a ticket for a fund, not an individual.

One Phase I listing surfaced in search gives a check from the other end: a 10,000 sq ft office let at Rs 40 and offered at Rs 10 crore. That is Rs 10,000 per sq ft, and Rs 480 a year on Rs 10,000 is a 4.8 per cent gross yield. A plot-built building at half SP Infocity's rent asks two-thirds of its implied value. That is what small Phase I buildings trade at; a Grade A floor let to a global tenant would be priced on its lease, and more tightly.

How it compares

An investor who wants what SP Infocity offers, a let office near NH-48 and Cyber City, can buy it in MVL iPark or Signature Towers in units of a few hundred to a few thousand sq ft. More let stock is on the pre-leased property page, and the city's rates on the Gurgaon office price page. IT buildings across the city are on the IT park office page.

Who this suits, and who should look elsewhere

As a purchase, it suits almost no one on the evidence found: there is nothing on offer. A fund buying a whole let floor or tower would price it on its leases. A company that wants a large floor near Cyber City should rent here, at Rs 75 to Rs 95, rather than look for a sale. An individual investor with Rs 1 crore to Rs 5 crore should buy a let unit in a strata building instead.

If someone offers you a floor here

1. The owner: Shapoorji Pallonji, a fund, or someone else, and the title chain from the developer.
2. Strata or whole: can the floor be sold separately, and is there a registered conveyance for it.
3. The lease: tenant, rent today, escalation, lock-in and expiry.
4. The arithmetic: rent times twelve over price; at Rs 85, anything above about Rs 14,600 is under 7 per cent.
5. The occupation certificate for the tower.

Frequently asked questions

What is the price of office space for sale in SP Infocity, Udyog Vihar?

No sale listing for an office in SP Infocity was found. The building is let in whole floors to large companies, and no unit or floor was on offer on any page read. What its rent implies: at Rs 85 a month and a 7 to 8 per cent gross yield, a let floor would be worth about Rs 12,750 to Rs 14,600 per sq ft. The old Rs 12,000 to Rs 16,000 band was never tied to a sale.

What rent does office space in SP Infocity earn?

About Rs 75 to Rs 95 per sq ft a month. A bare-shell block of about 44,000 sq ft is quoted at Rs 75, a floor of 43,697 sq ft at Rs 85, and furnished blocks of 25,000 and 50,000 sq ft at Rs 95. That sits at the top of Udyog Vihar Phase I, where plot-built space lets from about Rs 40.

Who developed SP Infocity in Gurgaon?

Shapoorji Pallonji & Company, which runs SP Infocity buildings in Pune, Chennai and Udyog Vihar, Gurgaon. The old row gave the developer as 'SP Infocity', which is the building's name, not its developer.

Which companies are in SP Infocity, Udyog Vihar?

Leasing listings name Citigroup's global processing centre, Sun Life's India service centre, Concentrix and WebHelp in Tower A, and Li and Fung, Accenture and Virtusa in Tower B. Virtusa's own office list places it on the first floor of Tower B.

How big is SP Infocity?

Tower A is listed as three basements, ground and seven floors, with floors of about 42,000 sq ft and about 3,36,000 sq ft built up. Tower B is listed at about 2,80,000 sq ft over eight floors. Together that is about 6.16 lakh sq ft, adding the two listings' figures.

Where is SP Infocity, and how far is the metro?

At Plot 243, Udyog Vihar Phase I, Gurugram, close to NH-48 and the Delhi border. Listings put the Rapid Metro's IndusInd Bank Cyber City station about 1 to 2.5 km away and the IGI Airport about ten minutes by road.

Is SP Infocity a good office investment?

It is not one you can buy into on the evidence found: no unit or floor is on offer. An investor wanting a let office on this corridor can buy strata units in Signature Towers at about 6.9 to 7.3 per cent gross or MVL iPark in Sector 15, and should price any SP Infocity offer against its Rs 75 to Rs 95 rent.