West Pioneer Properties Limited
28 March 2007
Press Release 28 March 2007
West Pioneer Properties Limited
('West Pioneer' or 'the Company')
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.
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
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.
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.
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.
Heather Salmond / George Parker Tel: +44 (0) 20 7398 7700
For further information:
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.
This information is provided by RNS
The company news service from the London Stock Exchange