5 December 2007
Interim Results
West Pioneer, which intends to become a leading developer and operator of shopping malls in west and southern India, announces its interim results for the six months ended 30 September 2007.
Highlights
- Kalyan shopping mall development on track for year end opening
- Permissions for Aurangabad mixed mall/hotel development progressing in line with expectations
- Senior appointments to further strengthen team
- Successful placing of new ordinary shares to raise £6 million
Post period
- Acquisition of land in Nashik for third development project completed in December 2007
Chairman's statement
Over the period the Group has made significant steps to achieving its objectives. Construction of our first shopping mall, the Kalyan Project, continues in line with expectations and we have also acquired a number of new sites for the development of additional projects.
Kalyan Project
Construction of our first shopping mall in Kalyan continues in line with expectations. Approximately 85 per cent. of the construction of Phase I, which comprises approximately 500,000 sq. ft. of gross leasable area, has been completed. We also expect to commence construction of Phase II, comprising approximately 250,000 sq. ft. of gross leasable area by the end of the first half of 2008.
One of our anchor tenants Big Bazaar has taken occupation of 61,000 sq. ft. in the lower ground floor of the Kalyan Project. Additional tenants are also taking occupation currently.
Aurangabad
Following its agreement to acquire approximately 750,000 sq. ft. of land in Aurangabad, the Group is progressing as planned with the project, which is intended to be a mixed-use shopping mall/ hotel development. Good progress has been made in obtaining necessary permissions and the Concept & Design Plan has been finalised. There is continued interest from retailers to lease space within the site and negotiations with potential anchor tenants are in progress.
Strengthening of Management
We continue to build key strengths in the Group and continue to recruit exceptional staff for key positions. Following an extensive international search we appointed Mac Daniels as Vice President, Mall Management in July 2007. During the period, we also announced the appointment of Nitin Dattani as an Executive Director of West Pioneer.
Further Fundraising
In July the Group raised a further £6 million which will be used to aid the Group pursue its objectives.
Nashik
As announced recently the Group has acquired a 17 acre site in a prime location in Nashik for the development of a shopping mall or a mixed-use shopping mall and hotel complex on the site. This will be the Group?s third development project and a major step towards achieving the Group?s initial target of four million square feet of built-up area.
Outlook
Development at all of our projects continues and we expect the Kalyan Project to be opening by the end of the year. The projects at Aurangabad and Nashik are at an earlier stage and we hope to inform the market of progress at each in due course. Both projects are in excellent locations and will enable us to effectively accomplish our strategy to open "consumer-centric" shopping malls in "Tier II cities" in west and southern India. We are also in advanced discussions to acquire further land parcels in other areas which meet our investment criteria.
The economic and business landscape of India continues to be strong and we believe that West Pioneer will be able to capitalise on the continued growth in the Indian economy. We are particularly satisfied with the recent repeal of the Urban Land Ceiling and Regulation Act (ULCRA) which will speed up the approval process to acquire land and also release thousands of more acres of land for sale in our target markets and this should help stabilize land prices.
We have made significant progress during this period in delivering against our strategy. We look forward to the opening of the Kalyan Project and together with the land in Aurangabad Nashik we have made substantial progress to achieving our commitment of 4 million square foot of gross leasable area.
Amit Jatia, Chairman
5 December 2007
For further information, please contact:
| West Pioneer |
|
| Amit Jatia, Chairman |
Tel: +44 (0) 20 7398 7700 |
| Libertas Capital |
|
| Aamir Quraishi / Andrew Hardy |
Tel: +44(0) 20 7569 9650 |
Media Enquiries
Notes to Editors
West Pioneer is a leading developer and operator of high-quality consumer/retail centric shopping malls in India. It was established by the prominent Mumbai based Jatia family to pursue opportunities in the rapidly growing organised retail and hotel sectors in India. The Group intends to acquire land in strategic locations in west and southern India, primarily in Tier Two cities. The land will be used to build, own and manage shopping malls, hotels or mixed mall/ hotel complexes.
The real estate and property development skills of the Jatia family, and Amit Jatia in particular, have been integral to the establishment and ongoing development of McDonald's operations in India, providing expertise in site acquisition (identification, feasibility studies and negotiation) and site development (design, tendering, engagement and management of external consultants).
The shopping centres' design will focus upon a contemporary style with the aim of reducing development costs and ongoing energy consumption. West Pioneer has already commenced the development of its first shopping mall in Kalyan, 30 miles north-east of Mumbai. A thorough selection process of the retail mix has taken place and the project is expected to be completed by the second half of 2007.
The retail market opportunity in west and southern India is derived from a combination of a virtually unpenetrated organised retail environment, growth in the middle class population, greater transparency in the property market and improved infrastructure development which provides access to the market.
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