WHAT ARE THE MAJOR RISK FACTORS AND HOW IS IT COVERED?
a) Drastic reduction in tourists´ arrivals could jeopardize the project?Kerala is getting a good mix of both overseas and domestic tourists. If both the channels dry up at the same time, there could be a fall in revenues. Going by the last few years´ pattern, tourist flow to Kerala is showing a consistent upward trend.
b) Local disturbances, riots etc. could delay the project implementation? Vagamon & Munnar known as peaceful and serene hill stations with the local population keenly waiting for its development as a tourist destination. This could open up lot of employment opportunities for local people. There have been no incidents of riots or arson in Vagamon & Munnar in the recent past.
WHAT IS THE TRACK RECORD OF THE PROJECT IMPLEMENTATION TEAM?
The Orion Group has an In-house Team of Architects, Planners, Engineers and Construction Experts having more than 2 decades of experience in construction of resorts/hotels/housing complex and this highly proficient team will be primarily responsible for the project implementation.
WHAT IS THE STATUS OF THE PROJECT AND WHEN WILL IT BE COMPLETED?
All preliminary works including land acquisition, main road works, drawings, design and planning have been completed. Architects and Project Consultants have worked out the overall project implementation schedule. Building of check dams, compound walls and common facilities are in progress. Overall project is scheduled for completion by December 2017.
DO I GET RETURNS FROM FARMING?
Yes. Income from farming will be shared on 75 : 25 basis.
DOES THE ROI OF 18-20% SHOWN INCLUDE PROPERTY VALUE APPRECIATION?
No. Property value appreciation in Vagamon is quite substantial and would accrue to the owners over the years.
DO I HAVE TO PAY ANY MONTHLY MAINTENANCE CHARGES FOR MY COTTAGE/VILLA?
No. Once you lease back, it becomes part of the running costs of the Resort and hence paid out of the Resort´s income.
DO I GET MY OWN VILLA FOR USE, WHEN ON VACATION?
Yes. Since it will be a fully operational resort, the resort management may have to offer an alternate Villa if the Owner´s Villa is occupied by tourists. In any case, all Villas have identical layouts and furnishings.
WHAT ARE THE ASSUMPTIONS BASED ON WHICH THE RETURN ON INVESTMENT (ROI) IS CALCULATED?
Average room occupancy at major tourist locations in Kerala like Munnar, Thekkady&Kumarakom during the last three years was over 260 room nights / year (exceeding 70% occupancy levels). At the proposed Vagamon Properties, assuming an average of 40% occupancy, we can get about 150 room nights / year.
A decent one-bedroom villa of 4 Star categories can fetch a daily rent of Rs.5000/- plus in all major tourists locations in Kerala. To be conservative for purposes of estimation, we have assumed the daily rent for a one bedroom Villa @ Rs. 4000/-. After earmarking 50% of the rentals (Rs. 2000/-) towards resort running expenses, the owners of the villas could get a net return of Rs.2000 per day. Hence annual net return for owner of a one bedroom villa could be in the range of Rs.3, 00,000/- (Rs.2000 x 150). The same benchmarks are used for arriving at the ROI for 2 Bedroom Cottage, Suite and Executive Bungalows.
WHAT HAPPENS IF TOURIST OCCUPANCY AT MY VILLA IS LESS? WILL IT AFFECT MY RETURNS?
No. There is no need to monitor the occupancy level at your Villa. All leased back Villas and cottages will be run as one entity.
HOW WILL THIS PROPERTY BE RUN AS A RESORT?
Orion Holiday Resorts Ltd. will construct the Villas, Cottages and the basic infrastructures, common facilities etc. and hand it over to the owner. Then if the owners are interested, they can enter into an agreement with Orion Holiday Resorts according to which the Resort will market their villas and cottages as a part of the Resort to international as well as domestic tourists and holiday seekers and 75% of the net profit from the room tariff shall be paid to the owner.
CAN THE OWNERS SELL THE COTTAGES / VILLAS?
Yes. Saleable, Bequeathable, Transferable
WHAT ARE THE DOCUMENTS?
Absolute Sale and Sales Deed will be registered.
Are there any conditions applicable?
Yes. All future developments in Orion Properties shall be done only with the permission of the ´Orion Farmers Society´ Club, the Society of Property Owners in Orion Properties. This condition is for keeping the serenity of the place intact.
Is Orion Properties a time-share?
No. It is on ownership basis. In time-share scheme you get the right to use the property for 7/8 days a year subject to certain conditions. In Orion properties, you get absolute title of ownership.