Land Acquisition and Update
Agreement to acquire land in Aurangabad and Kalyan Project update
Aurangabad Land Acquisition Agreement
West Pioneer Properties Limited, which intends to become a leading developer and operator of shopping malls in west and southern India, is pleased to announce it has agreed to acquire land in Aurangabad, Maharashtra. The land is situated in a prime location and covers approximately 750,000 square feet. The Company proposes to build a shopping mall and possibly a hotel on the site. Following signing of the agreement, the necessary permissions for development of the land will be sought. The permissions are expected to be in place before the end of the year.
Aurangabad is situated approximately 390 km north-east of Mumbai with a population in excess of 1 million and with some 32% of households classified as middle-class. It is a major tourist destination in India, with two world heritage sites in close proximity. In addition to tourism, Aurangabad is the major manufacturing centre in eastern Maharashtra.
The proposed acquisition of land in Aurangabad builds upon West Pioneer's strategy of early acquisition of land in tier two cities for shopping centre or mixed mall-hotel complex developments. An initial payment is due upon execution of the agreement with further payments to be made as permissions are received.
Kalyan Project update
West Pioneer also announces that agreement has been reached with retailers accounting for almost 60 per cent. of the gross leasable area of its shopping mall development in Kalyan. Additionally, good progress has been made with the construction of the Kalyan Project with approximately 40 per cent. of construction completed. The Kalyan Project is still on course to be operational during the second half of 2007, as stated at the time of Admission in December 2006.
Commenting on the agreement to acquire land in Aurangabad, Jayant Sohonie, Chief Executive of West Pioneer Properties, said: "We are very pleased with the agreement to acquire land for development in Aurangabad. Following a comprehensive site selection process, we believe Aurangabad possesses the desired key growth drivers to deliver a meaningful return on our investment. The site provides West Pioneer with an excellent opportunity to benefit from the specialist retail and property knowledge which the management team possesses."
For further information, please contact:
| West Pioneer | |
| Amit Jatia, Chairman | Tel: +44 (0) 20 7398 7700 |
| Jayant Sohonie, Chief Executive Officer |
| Libertas Capital | |
| Aamir Quraishi / Iek van Cruyningen | Tel: +44(0) 20 7569 9650 |
Media Enquiries
| Abchurch Communications | |
| Heather Salmond / Leena Patel | Tel: +44 (0) 20 7398 7700 |
| leena.patel@abchurch-group.com | www.abchurch-group.com |
Notes to Editors
West Pioneer intends to become 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.
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 greater accessibility.