Update on Aurangabad Project (5630R)

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RNS Number : 5630R

West Pioneer Properties Limited

07 November 2011

 
 Press Release   7 November 2011 
 

West Pioneer Properties Limited

("West Pioneer" or "the Company")

Update on Aurangabad Project

West Pioneer Properties Limited (AIM:WPR), a leading developer and operator of shopping malls and mixed use developments in west and south India, announces that it has entered into a non-binding Memorandum of Understanding ("MoU") to develop and sell, subject to contract, its asset in Aurangabad, India ("Aurangabad") to Golden Crown Realtors Limited Liability Partnership ("GCR") for a total cash consideration of approximately $15.2 million. Under the terms of the MoU, the Company will develop the project in three phases which will include built up retail space of approximately 148,000 square feet and built up warehousing space of approximately 398,000 square feet as per GCR's requirement on the site prior to completing the transaction. The cash consideration is expected to be payable in instalments on completion of each phase over the next 12 months. West Pioneer will fund the construction costs up to a maximum amount of approximately $2.8 million, with all further costs being borne by the purchaser.

The proposal to develop and sell the Aurangabad asset follows the Board's decision to focus efforts and resources on the projects on which it has the greatest visibility and those which it considers will generate the most value for shareholders, namely its mixed use development in Kalyan and its development project in Nashik. Accordingly, the sale proceeds will be used to accelerate and expand the existing projects at Nashik and Kalyan.

Aurangabad has a carrying value in the Company's books of approximately $12.2 million.

A further update will be provided in due course.

-Ends-

For further information:

 
 Evolution Securities Limited, NOMAD 
  and Joint Broker 
 Jeremy Ellis / Chris Clarke           Tel: [phone] 
                                                       4300 
 
 
 Religare Capital Markets plc, Joint 
  Broker 
 Tim Davis, Director, Corporate Finance   Tel: [phone] 
                                                          0539 
 Daniel Briggs, Director, Corporate       Tel: [phone] 
  Broking                                                 0503 
 

Media enquiries:

 
 Abchurch Communications 
 Sarah Hollins / Mark Dixon / Oliver     Tel: [phone] 
  Baxendale                                              7729 
 [e-mail]         www.abchurch-group.com 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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