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Credence Pre-Leased Edge · The Depth

Yield you can still defend in year five.

Pre-leased commercial assets for HNIs, NRIs, family offices and funds across Mumbai and MMR, Bhiwandi and Ahmedabad. Title, tenancy and compliance diligenced before the price is discussed — and the yield quoted after the deductions most sellers leave out.

7–9%Net yields, with the assumptions shown
3 checksTitle, tenancy, compliance — before we present
4 flagsVacancy, covenant, escalation, lock-in — stated
A dolphin leaping clear of the water
The Depth What surfaces is the easy part. The reason it can surface at all is everything underneath.

Start here

The advertised yield is the least reliable number in the deal.

A pre-leased asset marketed at 9% is usually marketed at 9% because something in it has not been priced. That is not always fraud. Most often it is arithmetic that stopped early.

Yield is an output, not an input. It is a function of the covenant behind the rent, the balance left on the lease, what the escalation actually compounds on, what the exit looks like — and of every cost between the headline rent and the money that reaches your account.

We quote yields after those deductions. It is why our numbers routinely look lower than the ones you are being shown for the same building, and it is the only version of the number you can still defend to a family council in year five.

Capital does not buy from brokers. It buys curated, well-papered opportunities from people it trusts. So this page shows you the papering standard rather than describing it.

The hygiene checklist

Three files. If any one fails, you never see the deal.

This runs before an asset reaches your desk, not after you have expressed interest. A deal that fails here is declined by us, which is why the list we send is short.

Title

Does the seller own what they are selling

  1. Chain of title traced back, with the search report in hand rather than promised
  2. Encumbrance certificate current, and any charge or mortgage identified
  3. Approved plans, occupation certificate and building completion status
  4. Land use, NA conversion and whether the present use is permitted in writing
  5. Society, association or condominium consent where a transfer needs it
  6. Litigation search on the seller entity and on the property itself
  7. For a company seller — board authority, and whether this is a related-party sale

Tenancy

Is the income what the sheet says

  1. Registered lease deed read in full, not the one-page summary
  2. Balance lease term, and the lock-in remaining on the tenant’s side
  3. Escalation percentage, frequency, and the base it compounds on
  4. Rent receipts and bank credits for the last twelve months, matched to the deed
  5. Deposit held, who returns it at exit, and how it is adjusted at sale
  6. The tenant’s own financials — the covenant is the asset, not the building
  7. Renewal terms, and whether the tenant has an option you are bound by
  8. Any rent-free period, fit-out contribution or side letter not in the main deed

Compliance

What the building owes and to whom

  1. Property tax paid to date, and any assessment under dispute
  2. Fire NOC current, and valid for the tenant’s actual use
  3. Pollution consent where the use requires it, and its expiry
  4. Electricity and water dues cleared, meters in the correct name
  5. Maintenance and CAM dues to the association, and any special levy pending
  6. GST position on the transaction, and TDS obligation on the consideration
  7. For NRI buyers — repatriation route and FEMA position, confirmed before you commit

The arithmetic

How a 9% asset becomes a 7.4% asset.

Nothing below is unusual or hidden. Every line is ordinary and every line is routinely left out of the yield you are quoted. The figures here are illustrative — the structure is what matters, and we run the same bridge on every asset before we present it.

LineEffect on yield
Gross yield as advertised — annual rent ÷ asking price9.00%
Property tax borne by the owner, not the tenant−0.35%
CAM shortfall — what the association charges above what the tenant pays−0.20%
Building and liability insurance−0.08%
Vacancy and re-letting provision — one month every three years−0.25%
Stamp duty and registration, amortised across the holding period−0.55%
Brokerage, legal diligence and valuation at acquisition−0.30%
Interest-free deposit held — benefit added back+0.15%
Defensible net yield7.42%

Illustrative only. Not a live asset, not an offer, and not investment advice — the percentages shown are a worked structure rather than a quotation. Actual figures depend on the asset, the lease, the holding period and your tax position.

And four things the bridge cannot price for you

Covenant

The rent is only as good as the company paying it. A 9% yield from a tenant with two years of runway is not a better deal than 7% from one that will still be there in a decade — it is a different asset class.

Lease balance

Three years remaining means you are buying a re-letting exercise with an income attached. Price it that way, or find out you did when the notice arrives.

Escalation basis

15% every three years on rent alone compounds very differently from 15% on rent plus CAM — and neither continues past a lease term nobody has renewed yet.

Exit

Who is the next buyer, and what will they diligence? An asset that is hard to paper is hard to sell. Your exit is decided by the file you inherit today.

What you actually get

Five things, in this order.

  1. Mandate and filterTicket size, target yield, hold period, risk appetite, sector and geography preferences, and your tax and repatriation position. Written down, so we decline on your behalf rather than forward everything.
  2. Sourcing against the filterFrom our own pipeline and the Mumbai, Bhiwandi and Ahmedabad market. Most of what we see never reaches you — that is the service, not a gap in it.
  3. Hygiene checklist and the yield bridgeTitle, tenancy and compliance run before presentation. The bridge above run on the actual numbers. Assets that fail are declined and you are told why they were declined.
  4. NegotiationOn yield, on the deposit treatment at transfer, and on the downside clauses — what happens if the tenant exits early, what the seller warrants, and what survives completion.
  5. Diligence orchestration and completionYour lawyers, the seller’s, the tenant’s confirmations and the registration process, coordinated so the file closes. Optionally, a portfolio roadmap if this is one of several.

To be clear about what we are not

We are not a law firm, we do not draft the documents, and we are not licensed investment advisers — nothing here is a recommendation to buy any security or asset. What we do is source, diligence, model and negotiate, then put your lawyer and your accountant in a position to do their jobs properly.

Commercials

Paid on acquisition, not on introductions.

Success-based brokerage on the acquisition, agreed in writing before diligence starts.

No fee for the assets we decline, and no fee for the ones you decline. If you buy nothing this year because nothing cleared the checklist, that is the checklist working and we are not paid for it.

Portfolio planning — if you want a roadmap across several assets rather than one purchase — is a separate advisory fee, quoted up front and independent of whether you transact.

We ask for proof of funds before diligence begins. Not to be difficult, but because sellers of clean pre-leased assets take exactly one meeting to decide whether you are real, and we would rather you arrived credible.

Fair questions

What investors ask before they engage us.

Someone is showing me 9.5% on a similar building. Why is yours 7.4%?

Because we have subtracted the property tax, the CAM shortfall, the insurance, the vacancy provision and the acquisition costs, and they have not. Ask them to run the same bridge. If the number holds up, buy theirs — and we will tell you so.

How do I know the asset is clean?

You do not take our word for it. You get the search report, the encumbrance certificate, the registered lease, twelve months of bank credits matched to the deed, and the compliance file — and your lawyer reads all of it. Our job is that the file exists and is complete before you spend money finding out it is not.

I am an NRI. How complicated does this get?

Manageable, but it has to be settled before you commit rather than at completion. Repatriation route, FEMA position, TDS on the consideration and who holds the power of attorney are all on the checklist for exactly that reason.

Can you just send me whatever comes up?

No, and that is the point of engaging us. A feed of everything available is a listing service and it is free elsewhere. We agree a filter and then decline on your behalf — including declining assets we could have earned a fee on.

Do you take a fee from the seller as well?

Whatever the arrangement is, it is disclosed in writing before diligence begins. You will know exactly who is paying us and how much before you spend anything on lawyers.

What ticket size do you work with?

Most of what we do sits meaningfully above a crore, and the diligence effort is similar whether the asset is small or large — which is why very small tickets rarely justify the process. Tell us the number on the call and we will say honestly whether we are the right firm for it.

An eagle soaring against an open sky

The strategy session

Forty-five minutes. No pitch.

Bring an asset you are already considering and we will run the hygiene checklist and the yield bridge on it, on the call. You keep the output whether or not you work with us — including if the honest answer is that the deal is fine and you should take it.

Booking calendar to be embedded here.

Worth bringing to the call

  • The asset you are looking at, or the filter you want us to source against.
  • Ticket size and target hold period — five years and fifteen are different mandates.
  • Whether you are buying personally, through a company, or from abroad.
  • The yield you have been quoted, and by whom, so we can run the bridge against it.
  • Your lawyer’s details, if you already have one who does property work.

Not what you were after?

The other two mandates.

For operators · The Ground

Commercial Fit

You need space that fits how the business actually works — and will still fit it in five years.

Commercial Fit

For landlords & developers · The Still Water

TenantMatch

You have the asset. You want a tenant who pays on time and leaves it as they found it.

TenantMatch