Manas Properties is a Mumbai real estate company that makes its living from a single, long-term bet: it owns a hotel building and collects rent from the operator, a contract that runs until 2038 with built-in increases. Founded in 2004 and listed on the BSE’s small-company platform in 2017, the firm operates with just three permanent employees, outsourcing everything from construction to management. The recurring approach is simple - acquire a property, lock in a tenant on a multi-year lease with step-up clauses, and run the business on a skeleton crew while the rental income compounds. # Business segments A single engine - a hotel property under a long-term lease with contractual rent escalations - that generates all the company’s operating cash flow, supplemented by small-scale property trading and development activity. ## 1. Property leasing: the company’s cash-flow engine **A single hotel premises, leased to an operator until 2038, provides a contractual, rising income stream with almost no ongoing cost.** - **One building, one tenant** - the company owns a hotel premises carried on its books at about Rs.32.6 crore and leases it to a hotel operator under a non-cancellable agreement that runs from October 2018 to December 2038. - **Rent that rises on a schedule** - the lease includes step-up clauses: a 12% increase from January 2027 to December 2029, then 9% every three years until the lease ends, so the income grows predictably without renegotiation. - **A pandemic stress test, resolved in court** - when Covid-19 hit hospitality, the company stopped recognising rental income from March 2020 to December 2021, but a court later ordered the tenant to pay Rs.2.5 crore per month from January 2022 onwards, restoring the cash-flow stream. - **Future cash locked in** - as of March 2024, the minimum lease payments the company is entitled to receive were Rs.3 crore within one year and Rs.15.8 crore over the following four years, giving visibility on income regardless of hotel occupancy. ## 2. Real estate development and construction: opportunistic project work **The company buys land, builds or redevelops properties, and sells or commissions them - but this is episodic, not a steady factory.** - **Full-cycle capability, lean execution** - the company handles everything from finding land and getting approvals through construction and marketing to managing finished buildings, but it does this with only three permanent staff, relying entirely on outsourced contractors and partners. - **Revenue recognised as work progresses** - for construction and development projects, the company books income using the percentage-completion method, meaning it records revenue in step with the physical progress of a build rather than waiting until the end. - **Capital tied up in land advances** - the company had Rs.169.39 Lakhs in advances paid to a related party as of March 2024, showing it parks money in future development sites while the leasing income covers the wait. - **A 2-to-3-year cycle** - the company’s operating cycle for development projects runs from acquiring land to turning it into cash, which means any project it starts today is unlikely to generate returns for at least two years. # Group structure and partners **The company is a standalone entity with no subsidiaries or joint ventures, and its only related party is a promoter-owned firm that provides office space and management services.** - **No corporate web** - as of March 2025, Manas Properties has no holding company, no subsidiaries, no joint ventures, and no associates, so all its assets and liabilities sit on one balance sheet. - **One related party, multiple transactions** - Dev Land & Housing Private Limited, which holds 4.82% of the equity, rents office space to the company, provides management services, and engages in property sales and purchases with it, all on an arm’s-length basis. - **Office lease from a promoter entity** - the company operates from premises leased from Dev Land & Housing under a cancellable agreement running to December 2026, paying Rs.1.2 crore in annual rent. - **Promoter control** - Mr. Vijay Thakordas Thakkar owns 68.50% of the equity, giving him effective control over all decisions, while the company has never paid a dividend since it was founded.