When & how will I receive my returns?

Returns on your investment are paid monthly and transferred to your bank account on or before the 10th working day of each month. Here’s a detailed overview of when and how you will receive your returns:

Timing of Returns

• Monthly Payments: Returns are paid out monthly.
• Payment Schedule: The returns are transferred to your bank account on or before the 10th working day of each month.
• Receipt Dependent: Payments are subject to the receipt of rents from the tenant.

Mechanism of Returns

1. Form of Returns:

1. • Interest on Debentures: Returns are primarily in the form of interest (coupon rate) on the debentures you hold.
   • Source: This interest is a function of rents generated from the property and interest earned on the security deposit held by the SPV.

2. Calculation:

1. • Rents Generated: Monthly rental income from the property.
   • Interest on Security Deposit: Interest earned on the security deposit associated with the property.

3. Distribution:

1. • Bank Account Transfer: Returns are transferred directly to your verified bank account.

Detailed Steps for Receiving Returns

1. Interest on Debentures

• Monthly Calculation:
  • Rents: The SPV calculates the total rental income received from tenants.
  • Interest on Deposit: Adds any interest earned on the security deposit.
• Interest Rate: The interest rate on debentures is determined based on these calculations.

2. Return Distribution

• Transfer Process:
  • Account Verification: Ensure your bank account details are verified on the LRP platform.
  • Monthly Transfer: The calculated returns are transferred to your bank account on or before the 10th working day of the month.

Key Points to Remember

• Verification: Ensure your bank account is verified on the LRP platform for smooth transfer.
• Regular Updates: You can check the status of returns and any updates via your LRP dashboard.
• Tenant Dependency: Timeliness of returns is dependent on rent receipt from tenants.

Example of Return Calculation

Suppose:

• Property Rent: ₹200,000 per month.
• Security Deposit Interest: ₹10,000 per month.
• Debenture Holding: Your debentures yield an interest rate of 8%.

Return Calculation

1. Total Monthly Income: ₹200,000 (rents) + ₹10,000 (interest) = ₹210,000.
2. Interest on Debentures: 8% of ₹210,000 = ₹16,800.

Distribution

• Bank Transfer: ₹16,800 will be transferred to your bank account on or before the 10th working day of the next month.

This example illustrates the typical process and calculation of monthly returns, demonstrating how the rental income and interest on security deposits contribute to your debenture returns.

When is my investment process complete?

Your investment process is considered complete once the opportunity is fully funded, and the private placement of your investment in the SPV is finalized. Here’s a detailed breakdown of the process:

Investment Completion Process

1. Initial Steps

• Account Setup: You need to create and verify your LRP account, which involves completing KYC procedures.
• Document Submission: You submit necessary documents such as PAN Card, address proof, and bank details.

2. Investment Commitment

• Expression of Interest: You sign an Expression of Interest (EOI) and transfer an initial token advance (usually 10% of your total investment).
• Virtual Account: Funds are transferred to your virtual account on the LRP platform.

3. Funding Phase

• Full Funding Requirement: The investment opportunity needs to achieve full funding, which involves commitments from all interested investors.
• Remaining Investment: Once 100% commitment is reached, you transfer the remaining investment amount to your virtual account.

4. Private Placement and SPV Finalization

• Escrow Mechanism: Your total investment amount is routed through an escrow mechanism to ensure secure handling.
• SPV Subscription: Funds are allocated to the share subscription accounts of the SPV, and eventually to its current account.
• Equity and Debentures: You receive equity shares and compulsorily convertible debentures (CCDs) in the SPV, representing your fractional ownership of the property.

5. Completion

• Finalization: The process concludes when the property receives complete funding and your investment is officially placed in the SPV.
• Time Frame: LRP typically ensures that the property achieves full funding within a 60-day time frame.

Steps to Finalize Your Investment

1. Account Creation and Verification: Ensure your LRP account is KYC verified.

1. • Documents Needed: PAN Card, address proof, and bank statement/cancelled cheque.
   • NRI Investors: NRE/NRO account details are required.

2. Investment Commitment:

1. • Expression of Interest: Digitally sign the EOI and transfer the initial token advance.
   • Virtual Account: Use this account for your initial and subsequent fund transfers.

3. Funding Process:

1. • Full Funding: Wait for the opportunity to achieve 100% funding.
   • Remaining Investment: Transfer the rest of your investment once full funding is confirmed.

4. Private Placement:

1. • Escrow and Allocation: Funds are securely routed to the SPV.
   • Shares and Debentures: Receive your allocation in the SPV as equity shares and CCDs.

5. Completion:

1. • Finalization: Investment is completed once funding and private placement are done.
   • Time Frame: Expect the process to complete within 60 days.

Key Points to Remember

• Ownership: Your investment translates into equity and debenture ownership in the SPV.
• Documentation: All processes, including EOI and fund transfers, are handled digitally through LRP’s platform.
• Time Frame: The entire process aims to be finalized within 60 days to ensure timely investment completion.

This streamlined process ensures that your investment is efficiently managed from initial commitment to finalization, providing clarity and security throughout your investment journey with LRP.

Who manages the tenant and the asset?

LRP (Luxury Residential Projects) manages both the tenant and the asset. Here’s a detailed overview of the responsibilities and processes involved:

Tenant Management

1. **Tenant Selection & Leasing

1. • Tenant Selection: LRP identifies and screens potential tenants for the property. This includes background checks, credit evaluations, and verification of rental history.
   • Lease Negotiation: LRP negotiates lease terms to ensure favorable conditions for both the tenant and the investors.
   • Lease Agreement: Drafts and executes the lease agreement with the tenant, covering aspects such as rent amount, duration, security deposit, and maintenance responsibilities.

2. Rent Collection & Administration

1. • Rent Collection: Collects monthly rent payments from tenants.
   • Rental Administration: Manages all aspects of rent administration, including issuing receipts, handling late payments, and addressing rent-related queries.

3. Tenant Relations & Support

1. • Communication: Acts as the point of contact for tenant queries and issues.
   • Issue Resolution: Handles any disputes, maintenance requests, or other tenant concerns.
   • Renewals & Vacancies: Manages lease renewals and addresses vacancies by finding new tenants.

Asset Management

1. **Maintenance & Repairs

1. • Routine Maintenance: Conducts regular inspections and routine maintenance of the property to ensure it remains in good condition.
   • Repairs: Arranges for repairs and addresses any damage or issues reported by tenants.
   • Vendor Coordination: Works with third-party vendors for specialized maintenance services and repairs.

2. Property Operations & Financial Management

1. • Operational Management: Oversees daily operations of the property, including utilities, security, and amenities.
   • Financial Management: Handles property-related financial matters such as budgeting, accounting, and payment of property taxes.

3. Reporting & Compliance

1. • Investor Reporting: Provides regular updates to investors regarding property performance, rental income, and any significant developments.
   • Compliance: Ensures compliance with local regulations, zoning laws, and lease agreements.

4. Enhancements & Upgrades

1. • Property Upgrades: Plans and implements property enhancements or upgrades to increase value and attract high-quality tenants.
   • Market Analysis: Conducts market analysis to determine competitive rents and identify opportunities for value enhancement.

Roles and Responsibilities

Process Flow for Tenant and Asset Management

1. Tenant On-boarding

• Screening: Potential tenants are screened for suitability.
• Agreement: Lease terms are negotiated and formalized.
• Move-In: Tenants move in, and LRP handles the logistics.

2. Ongoing Tenant Relations

• Rent Collection: Monthly rent is collected and administered.
• Support: Tenants can contact LRP for any issues or support.

3. Maintenance and Repairs

• Routine Checks: Regular property inspections are conducted.
• Issue Resolution: Any reported issues are addressed promptly.

4. Financial and Operational Management

• Budgeting: LRP manages budgets and financials for the property.
• Operations: Daily operations and property needs are overseen by LRP.

5. Investor Reporting

• Regular Updates: Investors receive periodic reports on property performance and financial status.
• Decision Making: Investors are involved in major decisions regarding the property.

6. Enhancements and Compliance

• Upgrades: LRP plans and implements property improvements.
• Compliance: Ensures the property adheres to all relevant regulations and agreements.

Conclusion

LRP handles all aspects of tenant and asset management, allowing investors to benefit from a hands-off investment experience while ensuring the property is well-maintained and managed effectively for optimal returns.

What are the ways if I want to exit my Investment?

To exit your investment with LRP, you have three options available after the initial 1-year lock-in period:

1. Asset Sale:
   • If a profitable opportunity arises, LRP, as the asset manager, will assess the potential sale. They will then present the opportunity to investors through an online poll. If at least 75% of shareholders vote to sell, LRP will proceed with the liquidation process.
   • All necessary reports and documents supporting the decision-making process will be provided by LRP. After the asset is sold, the resulting gains (after deducting any taxes and fees) will be distributed among shareholders and deposited into their respective registered bank accounts.
   • If shareholders opt to retain the asset, the investment will continue until the next poll is conducted, repeating the decision-making process.
2. Private Sale:
   • Investors can sell their fractional holdings privately to individuals they know, such as friends or family. For this, you’ll need to execute the required transfer documents.
   • LRP can assist by providing a valuation of your holdings if needed, helping you determine a fair price for the transaction.
3. Resale Market:
   • Utilizing LRP’s online dashboard, investors can list their fractional holdings for resale at LRP’s recommended Net Asset Value (NAV).
   • Similar to a private sale, you’ll need to complete the necessary transfer documentation. Once a new investor purchases your fraction, any resulting gains (after taxes and fees) will be credited to your registered bank account.

These options provide flexibility for investors to exit their investments based on their preferences and market conditions, ensuring a transparent and accessible process facilitated through LRP’s platform.

How will I be updated on the performance of my investments?

Performance Updates for Your Investments.

Regular Updates

1. Online Dashboard Access

1. • Purpose: You can monitor the performance of your investment directly through LRP’s online dashboard.
   • Features: The dashboard provides comprehensive details about your investment, including rental income, occupancy status, maintenance activities, and overall financial health of the property.

2. Net Asset Value (NAV) Updates

1. • Frequency: The NAV of your property is updated on a half-yearly basis.
   • Calculation: NAV is determined based on the latest property valuations, taking into account market conditions, rental income, and other financial metrics.

Dashboard Insights

1. Investment Summary

1. • Overview: Snapshot of your overall investment performance.
   • Details: Includes total invested amount, current value, and returns generated so far.

2. Financial Reports

1. • Monthly Rent Statements: Detailed breakdown of rental income received each month.
   • Expense Reports: Summaries of maintenance costs, management fees, and other operational expenses.

3. Property Metrics

1. • Occupancy Rates: Information on the current occupancy status of the property.
   • Tenant Details: Insights into tenant profiles and lease terms.

4. NAV Reports

1. • Valuation Updates: Semi-annual updates on the property’s NAV.
   • Market Analysis: Contextual information about market trends and property valuations.

Additional Reporting

1. Periodic Email Updates

1. • Content: Summaries of key financial metrics, property performance, and market insights.
   • Frequency: Typically sent every quarter or as significant updates occur.

2. Annual Reports

1. • Content: Comprehensive review of the property’s performance over the year.
   • Includes: Financial statements, audit reports, and strategic updates.

3. Notifications & Alerts

1. • Purpose: Real-time alerts for important events such as changes in tenancy, major repairs, or significant financial updates.
   • Method: Notifications through email or the dashboard.

User-Friendly Features

1. Interactive Charts

1. • Purpose: Visual representation of your investment’s performance over time.
   • Functionality: Allows you to analyze trends, compare metrics, and forecast potential returns.

2. Downloadable Reports

1. • Purpose: Access detailed reports in PDF or Excel format for personal records or analysis.
   • Functionality: Easy downloading and sharing of financial summaries, NAV updates, and other key documents.

3. Customizable Views

1. • Purpose: Tailor the dashboard to display the most relevant information according to your preferences.
   • Functionality: Options to filter, sort, and organize data for personalized insights.

Conclusion

By using LRP’s online dashboard, you have continuous access to detailed information about the performance of your investments. Regular updates on NAV, monthly financials, and periodic reports ensure transparency and keep you informed about every aspect of your investment.