RNS Number : 4098A
West Pioneer Properties Limited
29 March 2012
The following amendment has been made to the 'Acquisition of Land at Kalyan' announcement released on 29 March 2012 at 16:42 under RNS No 3975A.
The figure for amount of land acquired should read 35,035 square feet and not 35,035,45 square feet as previously reported.
All other details remain unchanged.
The full amended text is shown below.
Press Release 29 March 2012
West Pioneer Properties Limited
("West Pioneer" or the "Company")
Acquisition of Land at Kalyan
West Pioneer Properties Limited (AIM:WPR), a leading developer and operator of shopping malls and mixed use developments in west and south India, announces the acquisition of 35,035 square feet of land adjacent to the Company's existing mixed use development at Kalyan. The land has been acquired from Hardcastle and Waud Manufacturing Company Limited, a company in which the family of the Chairman of West Pioneer Mr Amit Jatia, owns a majority interest.
As part of the transaction West Pioneer has also acquired the freehold rights to the entire and enlarged land parcel which had until now been held under a renewable 99 year lease.
The total consideration payable will be 190 million Rupees (US$3.7 million) in cash, payments will be spread over a period of 18 months and payable out of existing cash balances. The land will be used in order to expand the Company's existing 1.1 million square feet retail, residential and commercial space at the Kalyan site.
The independent directors of West Pioneer, namely Nitin Dattani, Chris Hough, Hugh Sandeman and Ajay Gupta consider, having consulted with the Company's nominated adviser, Evolution Securities Ltd, that the terms of the acquisition are fair and reasonable insofar as the Company's shareholders are concerned.
Commenting on the acquisition, Chief Executive Ajay Gupta said: "This additional land will enable the Company to significantly enhance the value of our existing highly successful development at Kalyan. It is also excellent that West Pioneer has acquired the freehold rights to the entire land parcel as this will greatly simplify the process of transferring ownership and title of the residential apartments currently under construction."
For further information:
Evolution Securities Limited
Jeremy Ellis Tel: +44 (0) 20 7071
Mark Dixon / Oliver Baxendale Tel: +44 (0) 20 7398
Notes to Editors
West Pioneer Properties Limited (AIM:WPR) is a leading developer and operator of retail-led, mixed use developments in west and southern India, primarily in Tier II cities. West Pioneer was established to capitalise on the virtually unpenetrated organised retail environment in India, the rapidly increasing middle class, greater transparency in the property market, and improved infrastructure development which provides access to the market.
The retail side to West Pioneer acquires the land and then develops, leases and manages the shopping malls. The residential development segment develops and sells residential property. West Pioneer currently has three developments in Kalyan, Aurangabad and Nashik.
West Pioneer's first shopping mall, The Metro Centre, in Kalyan, 30 miles north-east of Mumbai is fully operational. Leasing at the mall stands at approximately 74 per cent, and the mall is operationally profitable and generating surplus cash. The residential development at Kalyan currently consists of two towers, which are under construction. Each tower consists of 178 apartments and as of 31 January 2011, a total of 267 apartments have been sold. The Company is nearing completion on the design of Metro Plaza, the commercial office space development at Kalyan.
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