Leasing agreement and Trading Update (8291A)

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RNS Number : 8291A

West Pioneer Properties Limited

08 February 2011

 
 Press release   8 February 2011 
 

West Pioneer Properties Limited

("West Pioneer" or "the Company")

Kalyan Metro Junction Mall leasing agreement

and Trading Update

West Pioneer Properties Limited (AIM:WPR), a leading developer and operator of shopping centres and mixed use developments in west and south India, is delighted to announce that one of India's leading department store operators has entered into an agreement to lease 43,750 sq. ft. of retail space at the Company's Metro Junction Mall in Kalyan. As a result, leasing at the mall has now increased to 74 per cent. and the Company expects the majority of the remaining space to be leased over the next six months. The store is a premium lifestyle brand; helping diversify the tenant mix and improving choice for the mall's consumers.

West Pioneer is also pleased to provide the following update on current trading following its interim results announcement on 21 December 2010. At the Metro Junction Mall in Kalyan, footfall numbers continue to increase year on year with the average monthly number of visitors reaching approximately 700,000 as at the end of January 2011, up from approximately 520,000 at the same point last year.

At the Company's residential development in Kalyan, construction of the first two towers is progressing well. The first two towers will comprise 356 apartments of which some 267 or 75% have now been pre-sold. Prices achieved on recent sales were approximately 43 per cent. higher than the initial launch price. The residential development at Kalyan will ultimately be in excess of 500,000 sq. ft.

West Pioneer intends to commence construction of a new mall at its site in Nashik during the first half of its financial year ending 31 March 2012. The mall will comprise 300,000 sq. ft. of retail and entertainment space. The Company has recently commenced marketing to a number of major retailers and has already entered into memoranda of understanding with several leading international brands with a view to leasing space at the mall.

The site is at a prime location within Nashik, with Company research showing that there are more than 900,000 people living within a twenty minute drive of the site.

Ajay Gupta, Chief Executive Officer of West Pioneer commented: "We are delighted that one of India's leading department store operators has chosen West Pioneer's Metro Junction Mall as its outlet location of choice and we look forward to securing further leases at the mall of a similar calibre. The Company is encouraged by the strong progress made across some of our key projects and we remain confident in our ability to deliver value to shareholders from retail, hospitality, residential and commercial development."

-Ends-

For further information:

 
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 Jeremy Ellis / Chris Clarke   Tel: [phone] 
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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.

Development of the Nashik site is progressing according to plan and the 300,000 sq. ft. mall has been met with a good response from potential tenants. The Company is expecting to commence construction during the first half of its financial year ending 31 March 2012. Prospective anchor tenants for the mall have been identified and several memoranda of understanding have been signed with major international brands. There are also plans for a 200 room 3/4 star hotel to be managed by the InterContinental Hotels Group.

Development of Aurangabad will follow development of the Nashik site. The plans include 300,000 sq ft of retail space, commercial units and a hotel with an overall development envisaged similar to that of Kalyan. A management agreement with IHG remains in place for the development of a Holiday Inn hotel.

Further information on West Pioneer Properties can be found at www.west-pioneer.com

This information is provided by RNS

The company news service from the London Stock Exchange

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