Trading Update
West Pioneer Properties Limited, which intends to become a leading developer and operator of shopping malls in west and southern India, today announces a trading update to the market.
Kalyan Project
Construction of the Kalyan Project continues on schedule with approximately 55 per cent. of construction now completed. Management confirms that the project remains on target in terms of budget and timing, with Phase I (approximately 500,000 sq. ft. of gross leaseable area ("GLA")) becoming operational by the end of 2007 and Phase II (approximately 250,000 sq. ft. of GLA) completed by the end of 2008.
Additionally, agreement has been reached with retailers to occupy approximately 60 per cent. of Phase I GLA and approximately 10 per cent. of Phase II GLA. It is anticipated that the lower ground floor will be handed over to one of the major anchor retailers for occupation during Q3 2007.
Aurangabad
Following the announcement in January 2007 of the agreement to acquire approximately 750,000 sq. ft. of land in Aurangabad, the Company is progressing as planned with the project, which is intended to be a mixed-use shopping mall/ hotel development. A preliminary survey of the land has been completed and the necessary permissions are being filed with all permissions expected to be obtained prior to the end of 2007. Preliminary discussions on design and planning are underway, and negotiations with a major retailer to occupy 5 per cent. of the development's GLA have already begun.
Other initiatives
Pune - Agreement has been reached in principle to acquire up to one million square feet of land situated in Pune. The acquisition is subject to contract and subject to the outcome of due diligence, and at this stage there is no guarantee that the acquisition will be completed or that all of this land will be acquired by the Company. Pune is recognised as a major industrial and IT hub and the Company intends to construct a mixed-use shopping mall/hotel development at this site. The Company anticipates that the InterContinental Hotel Group will manage the hotel aspect of this proposed development, a relationship that was highlighted at the time of Admission in December 2006.
Other opportunities - As part of its expansion through west and southern India and its strategy to focus on Tier Two cities, the Company has also commenced preliminary negotiations on specific locations in Nashik, Indore and Nagpur. Preliminary due diligence has also commenced on these sites.
The Company will update shareholders on these initiatives in due course. In addition, full year results to 31 March 2007 are expected to be released around mid-May 2007.
For further information, please contact:
Media Enquiries
| Abchurch Communications | |
| Heather Salmond / George Parker | Tel: +44 (0) 20 7398 7700 |
| heather.salmond@abchurch-group.com | www.abchurch-group.com |
| Libertas Capital | |
| Aamir Quraishi / Andrew Hardy | Tel: +44(0) 20 7569 9650 |
Notes to Editors
West Pioneer Properties Limited intends to become a leading developer and operator of shopping malls in west and southern India. It was established 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 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.