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West Pioneer Props (WPR)

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Friday 20 July, 2012

West Pioneer Props

Preliminary Results

RNS Number : 0871I
West Pioneer Properties Limited
20 July 2012
 



Press Release

20 July 2012

 

West Pioneer Properties Limited

("West Pioneer" or the "Company")

 

Preliminary Results

 

West Pioneer Properties Limited (AIM:WPR), a leading developer and operator of shopping malls and mixed use developments in west and south India, announces its preliminary results for the year ended 31 March 2012.

 

Highlights

·    

Planning approval process is underway for phase IV at the Kalyan development on the additional land that the Company acquired during the period, which provides an additional opportunity of more than 250,000 sq. ft. of residential space    

·    

Successfully renegotiated Company's existing bank loans by securing considerably longer repayment terms and decreasing yearly outlay towards servicing the facility

·    

Balance sheet remains robust as a result of prudent cash management and low gearing with year end cash and cash equivalents of US$0.8m, while maintaining good levels of ongoing investment into inventory, together with an additional US$5m unutilised bank facility in place   

·    

Retail leasing at Metro Junction Mall remains steady at 74% with Shoppers Stop, a leading national departmental store, currently under fit-out at the Mall and other major brands also in advanced stages of negotiation

·    

The Metro Junction Mall's repositioning exercise continues to progress well with the focus on tenant mix and quality of tenants in order to position the mall as a leading value and lifestyle destination

·    

First residential tower at Kalyan development expected to be completed and with a positive contribution to income for the financial year ended 31 March 2013

·    

The Commercial Plaza development at Kalyan is also anticipated to be completed with a positive contribution to income for the financial year ended 31 March 2013

·    

Nashik ground break currently held back due to a delay in receiving development approvals. These are expected to be obtained within the first half of the current financial year

·    

Management actively investing cash and resources into exploring opportunities to generate value in the retail, residential, commercial and leisure spaces, with the focus predominantly on relatively smaller but promising development opportunities

·    

Indian Rupee has fallen in value significantly depreciating by more than 14% against the US Dollar, materially impacting the Company's reported Net Asset Value during the 12 months ended 31 March 2012

·    

An increase in the discount rate to 14% has resulted in a material impairment in the carrying value of the Company's properties for the 12 months ended 31 March 2012

·    

The Company has continued to focus its efforts on positioning the Kalyan mall as a leading value shopping and lifestyle destination.  This has led to a re-engineering of the tenant mix towards larger lifestyle retailers which has had a short term impact on rental income, however the Board believes the benefits will flow through in the longer term

 

Commenting on the results, Amit Jatia, Chairman of West Pioneer, said: "It has been a challenging year for the Indian economy with high inflation continuing, an increasing current account deficit and a steep depreciation of the Indian rupee.

 

"The wider economic environment and tight monetary conditions have affected the Company's operations, in particular within the Company's retail operations. However the Board remains positive about the unique position that the Kalyan mall has created for itself in the catchment area and we remain committed to providing the best in terms of convenience, shopping experience and a compelling entertainment destination for our customers. 

 

"We have made a significant improvement in the pace of our residential and commercial development at Kalyan and are confident of delivering high quality products to our customers. They have acknowledged our commitment to transparency and quality and we are confident of garnering positive responses to future developments as well.

 

"The Nashik development is moving at a slower pace due to a delay in receiving development approvals. However the Board has confidence in the intrinsic value the Nashik site offers to the Company and the disposal of Aurangabad enables a greater focus on accelerating the rate of other core developments."

 

-Ends-

 

 

 

 

 

 

For further information:

 

West Pioneer Properties Limited

 


Nitin Dattani, Executive Director

Tel: +44 (0) 20 8424 0690

 

Shore Capital:

 


Anita Ghanekar / Edward Mansfield

 

Tel: +44 (0) 20 7408 4090

Media enquiries:

 

Abchurch Communications:

 


Joanne Shears / Oliver Baxendale

 

Tel: +44 (0) 20 7398 7720

[email protected]

www.abchurch-group.com



Chairman's Statement

 

Indian Economy

Whilst the macro-economic fundamentals of the Indian economy continue to remain attractive, persistently high inflation rates and ensuing tightening of monetary policy by the Central Bank are contributing to lower than expected rates of growth.  Since the release of the Company's Interim Results in December 2011, the Central Bank has revised its growth forecast for India down from 7.6% to 6.5% for the financial year 2011/12.  

 

Impact on change of discount rate

As a result of the increased risk free rate within India, the Board has continued to review the appropriateness of the discount rates it is using in valuing the Company's investment properties. As a result of an increase in the discount rate from 13% to 14% there has been a material impairment in the carrying value of these properties which are recognised in the 31 March 2012 results.

 

Impact of depreciation of Rupee

During the current financial year the Indian Rupee has fallen in value significantly, depreciating by more than 14% against the US Dollar, falling from 45.4 rupees to the US Dollar as at 31 March 2011 to 52.08 rupees as at 31 March 2012. As the Company manages its accounts in rupees but reports to the market in US dollars, the depreciation of the rupee has had a negative impact on the reported value of the Company's revenues and assets. As such, this has materially impacted the Company's reported Net Asset Value during the 12 months ended 31 March 2012. The Indian Rupee has continued to depreciate since the year end which will further impact the Company's reported Net Asset Value going forward. 

 

Retail

The outlook for the organised retail sector in India remains promising with its share of total retail sales expected to rise from the current 6% to 11% by 2013 according to Knight Frank, although developing at a slower pace than expected. Relaxation in Foreign Direct Investment ("FDI") regulations will boost growth in the organised retail segment. Retailers continue to look for expansion but have become more cautious given the economic uncertainty. As such, the focus of many retailers has shifted towards tier II and tier III cities, where demand continues to increase and where existing consumers are currently not as well-serviced. Given West Pioneer's focus on tier II cities, the Company views this as a positive market trend for its retail operations.   

 

Residential

Following a period of volume-led demand and price increases, the sector is expected to stabilise in higher end markets. Demand remains robust in the middle segment of this market, driven predominantly by India's growing middle class and their increasing levels of disposable income. This provides opportunities for developers like West Pioneer operating in extended suburbs and tier II cities.

 

Company Strategy

West Pioneer's strategy is to be a leading developer and operator of shopping malls and mixed use developments in west and south India. By capitalising on the synergies created through building and operating mixed use developments, the Company is not solely a mall developer and operator but also one that has direct access to consumers through its residential and commercial projects. By leveraging this mixed use development strategy, West Pioneer is in a strong position to create value, generate sustainable operating income and achieve breakeven at project launch levels through pre-leasing and advance sale bookings. The Company continues to focus its activities in tier II cities where rapid growth and competitive land pricing is more achievable than in established tier I cities.

 

Financial Review

In the year ended 31 March 2012, West Pioneer achieved revenue and other income of US$4.3m (2011: US$8.7m), including property rentals and other operating income of US$4.1m (2011: US$4.4m).  (Loss)/ Profit before tax was US$(2.4m) (2011: US$3.15m) and basic loss per share was US$(0.012) (2011: earnings US$0.053). Net assets at the year end were US$57.8m (2011: US$67.1m), including cash and short term deposits of US$0.8m (2011: US$2.2m). Interest bearing loans and borrowings increased from US$7.8m to US$10m during the period, inclusive of debt repayments.

 

The Company has also continued to manage its working capital carefully and after having invested $8m in increasing its inventory, the Board is pleased to still be able to report $0.8m of cash on its balance sheet.

 

In turn, the Company is also pleased to report that it has successfully refinanced its existing bank loans during the period. These loans were previously repayable over a two year period but the new arrangement has extended the repayment period to nine years; in addition, the Company has secured its bank loans at reduced interest rate levels. The new facility includes an unutilised additional $5m of finance which will ensure the Company has sufficient liquidity for the foreseeable future.

 

Operating Review

Kalyan

The Company has been successful in implementing its retail-led mixed use development model at Kalyan. As a mixed use development, West Pioneer has the benefit of direct access to consumers through the residential and commercial projects, which in turn offers valuable consumer insight and synergies for use in the mall itself. As previously announced, these insights have resulted in the strategic focus for the mall shifting to consumer value and the successful positioning of the mall as a value and lifestyle destination. 

 

Kalyan - Retail

Phase I of the 500,000 sq. ft. mall has been developed and includes a fully functional food court and entertainment zone on the second floor, along with three restaurants and a five screen multiplex cinema. However, over the last year the Company has undertaken a repositioning exercise focused on establishing the mall as a leading value shopping and lifestyle destination.

 

This repositioning has led to a re-engineering of the tenant mix towards larger lifestyle retailers and also to the reorganisation of certain floor compositions. As part of this, Shoppers Stop, a leading national department store, has entered into an agreement to lease 48,620 sq. ft. of retail space. In the long term attracting retailers of Shoppers Stop's scale and profile will prove extremely beneficial to the development but in the short term the reorganisation required to accommodate Shoppers Stop has materially affected the footfall and resulting revenues of the mall. These disturbances resulted in around an 8% decline in footfall numbers over the corresponding period in the previous year. However, the Company is confident that this decline is temporary and that footfall will return to higher levels as the repositioning exercise nears its completion.

 

Leasing levels at the mall remained steady at 74% during the period and the Company is currently in negotiation with a number of other major brands to lease the remaining retail space. 

 

Kalyan - Residential

The Board is particularly pleased with the good progress that has been made at Phase II of the development at Kalyan, the three-tower residential project of 560,000 sq. ft. The first tower is now completed to the 23rd floor and the Company expects the development to be fully completed with a positive contribution to income in the financial year ended 31 March 2013. The second tower is also developing well and is currently completed to the 11th floor. In turn, the Company is pleased to report that 87% of the units are pre-sold in the first two towers and pre-sales in the third tower are expected to commence later this year. The residential development maintains its status as the premium development in the Kalyan area and units have achieved a 50% increase from their sale price at launch.

 

Phase III of the development, a commercial plaza ("Metro Plaza") of 68,000 sq. ft. of office space, is also progressing at an encouraging pace with construction underway. The Board expects that this will be completed in the current financial year, which, together with the completion of the first tower of Phase II, is expected to result in a positive income contribution for the full year to 31 March 2013. The development will have small commercial units for leasing on the ground floor and units for sale on the first and second floors, with the target market being self-employed professionals such as doctors, lawyers and architects. The response to the development continues to be very positive with 38% of the sale space pre-sold (an increase from 20% at 28 June 2011) at an estimated 50% premium over current residential sale rates, which is in line with the management's strategy to take advantage of opportunities where the maximum value can be generated. The Board believes that the Metro Plaza project is likely to generate a net cash inflow from sales during the financial year ended March 2013.

 

In March 2012, West Pioneer announced that it had acquired an additional 35,035 square feet of land along with the freehold rights of the Company's leased land of 686,922 square feet at Kalyan for a total consideration of 190 million Rupees (US$3.7m), spread over 18 months. This land will provide West Pioneer with the capacity to build an additional tower of residential space. The planning approval process for a fourth tower of residential units is currently underway and the Company expects this approval to be received during the course of this year. Both the third and fourth towers are proposed to have an increased capacity of 27 floors, making them larger than towers one and two. The Board believes that this is a significant opportunity to enhance the existing value of the Kalyan development. The fourth tower is expected to increase the total residential space from 560,000 square feet to 810,000 square feet.

 

Nashik

The Nashik development is moving at a slightly slower pace due to various site specific reasons including delays in receiving development approvals. However the Company is convinced of the intrinsic values this property brings to the Company and is confident of receiving the necessary development approvals within the coming two months.

 

Aurangabad

The Company has commenced development of retail and warehousing space at Aurangabad with an intention to sell on completion. The development is currently running behind schedule.

 

Outlook

The Company's key short term goals are to continue with the repositioning of the Kalyan development as a value and lifestyle destination in order to drive further footfall and to maximise the rental values and quality of tenants and tenant mix rather than short-term occupancy. The Board intends to continue to develop Kalyan's commercial plaza alongside the development of the residential site, and sees particular opportunity for the fourth tower that is currently going through the planning approval process.

 

The Board is confident of making further progress in the development of the Nashik and Aurangabad sites in the current financial year and will update shareholders on the progress of these projects. In the current financial year the Company is also expected to benefit from the completion of the commercial plaza and first residential tower at Kalyan. Overall, the Board believes that West Pioneer is continuing to make good progress towards developing a brand that is recognised by retailers and consumers alike for quality and attractive pricing and the Board remains confident of the Company's ability to deliver growth over the longer term.

 

 

Amit Jatia

Chairman

20 July 2012

 

 

CONSOLIDATED INCOME STATEMENT

For the year ended 31st March 2012

 

 

 



Year ended 31st March



2012

2011

                        


$

$

Revenue




Property rentals


2,073,669

2,100,805

Other operating income


2,065,872

2,272,500

Total Revenue


4,139,541

4,373,305

Property revaluation gains


-

4,117,148

Finance and other income


152,904

184,749

Total Income


 4,292,445

8,675,202





Expenses




Property revaluation loss


(1,417,226)

-

Direct operating expenses for  rent-earning properties


(2,145,383)

(2,063,289)

Administrative expenses


(1,911,094)

(1,922,748)

Selling and distribution costs


(282,927)

(490,176)

Finance costs


(930,419)

(1,048,174)

Total expenses


 (6,687,049)

(5,524,387)





(Loss)/Profit before tax


 (2,394,604)

3,150,815

Income tax credit


 1,468,574

1,092,426





(Loss)/Profit after tax


 (926,030)

4,243,241





Attributable to:




Equity holders


 (926,030)

4,243,241

 

 




Earnings per share (attributable to equity holders)




Basic


(0.012)

0.053

Diluted


(0.012)

0.053

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31st March 2012

 

 

 



Year ended 31st March



2012

2011



$

$

(Loss)/Profit for the year


 (926,030)

4,243,241





Exchange (loss) on translation of foreign operations


 (8,434,296)

(510,093)





Other comprehensive (loss) for the year, net of tax


 (8,434,296)

(510,093)





Total comprehensive (loss)/income for the year, net of tax


 (9,360,326)

3,733,148





Attributable to:




Equity holders


  (9,360,326)

3,733,148





 

  

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31st March 2012

 



As at 31st  March



2012

2011 



$

$

 Assets




 Non-current assets




 Property, plant and equipment


 1,671,041

3,455,261

 Investment properties


54,329,562

75,018,955

 Intangible assets


6,321

12,755

 Other non-financial assets


16,103

-

 Other financial assets


322,879

313,781

 Advance income tax


308,076

482,167



56,653,982

79,282,919

 Current assets




 Inventories


29,557,631

9,953,710

 Investments - held for trading


438,592

549,527

 Trade and other receivables


 966,668

 1,121,141

 Prepayments & Other non-financial assets


575,194

 312,965

 Cash and short-term deposits 


771,640

2,191,013



32,309,725

14,128,356

 Total Assets


 88,963,707

93,411,275

 Equity and Liabilities




 Equity attributable to the equity holders




 Issued capital


7,996,130

7,996,130

 Share premium


45,717,870

45,717,870

 Retained earnings


  16,664,475

17,449,183

 Employee equity benefit reserve


559,427

690,216

 Foreign currency translation reserve


(13,177,091)

(4,742,795)

 Total Equity


57,760,811

67,110,604

 Non-current liabilities




 Interest bearing loans and borrowings


4,453,381

3,744,675

 Advance from sale of units


8,269,352

5,001,611

 Other financial liabilities


3,817,688

1,076,772

 Other non-financial liabilities


6,282

28,276

 Employee benefit liability


48,620

51,900

 Deferred tax liability


6,488,338

9,013,315



23,083,661

18,916,549

 Current liabilities




 Trade and other payables


1,442,463

2,151,057

 Interest bearing loans and borrowings


5,552,766

4,116,708

 Other financial liabilities


1,107,284

1,066,790

 Other non-financial liabilities


16,722

49,567



8,119,235

7,384,122

Total Liabilities


31,202,896

26,300,671

Total Equity and Liabilities


88,963,707

93,411,275


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31st March 2012

 

 

                                                                                                Attributable to equity holders of the parent                          


Issued

Share

Retained

Employee equity    benefits

Foreign currency translation

Total


capital

Premium

Earnings

reserve

 reserve

Equity


$

$

$

$

$

$

Balance as at 1st April 2011

7,996,130

45,717,870

 17,449,183

690,216

(4,742,795)

67,110,604

(Loss) for the year

-

-

(926,030)

-

-

(926,030)

Other comprehensive loss

-

-

-

-

(8,434,296)

(8,434,296)

Total comprehensive income

-

-

(926,030)

-

(8,434,296)

(9,360,326)

Share based payment

-

-

-

10,533

-

       10,533

Transfer to retained earnings on options forfeited

-

-

141,322

(141,322)

-

-

Balance as at 31st March  2012

7,996,130

45,717,870

16,664,475

559,427

(13,177,091)

57,760,811








Balance as at 1st April 2010

7,996,130

45,717,870

 13,192,220

650,152

(4,232,702)

63,323,670

Profit for the year

-

-

4,243,241

-

-

4,243,241

Other comprehensive loss

-

-

-

-

(510,093)

(510,093)

Total comprehensive income

-

-

4,243,241

-

(510,093)

3,733,148

Share based payment

-

-

-

53,786

-

53,786

Transfer to retained earnings on options forfeited

-

-

13,722

(13,722)

-

-

Balance as at 31st March  2011

7,996,130

45,717,870

17,449,183

690,216

(4,742,795)

67,110,604










CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31st March 2012

 


Year ended 31st  March


2012

2011


$

$

 Operating activities



 (Loss)/Profit before tax

(2,394,604)

3,150,815

 Adjustments to reconcile profit before tax to net cash flows



 Depreciation and amortization

29,572

       58,036

 Provision for doubtful debts

126,694

277,638

 Share based payment expense

10,533

53,786

 Decrease/(Increase) in fair value of investment properties

1,417,226

 (4,117,148)

 Decrease/(Increase) in value of investments held-for-sale

54,402

      (24,462)

 Net (Gain) on sale of investment

(5)

             -  

 Dividend income

(8,763)

       (8,845)

 Interest income

(109,377)

      (72,744)

 Interest expense

870,500

   1,040,439


(3,822)

357,515

 Working Capital adjustments



 Decrease in prepayments (current)

1,877

19,592

 (Increase)/Decrease in trade and other receivables

(234,988)

     1,269,711

 (Increase) in other assets (current)

(339,927)

(126,609)

 (Increase) in other assets (non-current)

(61,611)

          (304)

 (Increase) in Inventories

(7,894,027)

      (2,191,193)

 Increase/(Decrease) in trade and other payables (current)

982,054

   (1,270,559)

 (Decrease)/Increase  in other liabilities (current)

(29,353)

292,348  

 Increase  in other liabilities (non current)

4,208,378

   2,665,077


(3,367,597)

658,063

 Income tax Refund/(paid)

240,253

    (128,986)

 Net cash flows (used in)/from operating activities

(3,131,166)

886,592 

 Investing activities



 Proceeds from sale of held-for-trading investments

3,002,010

     250,538

 Purchase of property, plant and equipment and intangible assets

(79,671)

       (2,930)

 Purchase of held-for-trading investments

(2,894,555)

    (174,150)

 Capital expenditure on investment property

(561,302)

    (713,746)

 Dividend income

8,763

    6,735

 Interest received

58,182

     22,855

 Net cash flows (used in) investing activities

(466,573)

(610,698) 

 Financing activities



 Proceeds from borrowings

12,327,312

          1,646,012

 Repayment of borrowings

(9,204,106)

(1,388,856)

 Interest paid

(808,561)

(930,753)

 Net cash flows from/(used in) financing activities

2,314,645

       (673,597)

 Net (Decrease) in cash and cash equivalents

(1,283,094)

(397,703)

 Net foreign exchange difference

(136,279)

 15,294

 Cash and cash equivalents at 1st April 2011

2,191,013

      2,573,422

 Cash and cash equivalents at 31st March 2012

771,640

   2,191,013

 

  

Notes:

 

 

1.   Foreign currency translation

 

The foreign currency translation reserve is used to record exchange difference arising from translation of the financial statements of WPPIPL and WEPL, the foreign subsidiaries. The foreign currency translation during the period ended 31st March 2012 of $8.43 million is on account of the depreciation of the Indian Rupee against the United States Dollar between 31st March 2012 and 31st March 2011.

 

 

2.   Investment Property

 

 

Movements during the period


31st March 2012


31st March 2011


Completed

Under Construction

Total

Completed

Under Construction

Total


$

$

$

$

$

$

Balance at 1st April

45,418,498

29,600,457

75,018,955

45,328,291

27,730,769

73,059,060

Transfers from property, plant and equipment

-

-

-

57,329

-

57,329

Transfer to inventory

-

(11,519,216)

(11,519,216)

-

(2,373,460)

(2,373,460)

Additions during the period comprising







-Subsequent expenditure

90,471

385,668

476,139

142,283

522,188

664,471

-Acquisition of lands

551,855

35,495

587,350

-

-

-

Adjustment to fair value

(2,544,489)

970,660

(1,573,829)

58,687

3,863,343

3,922,030

Income from straight lining (reversed)

156,603

-

156,603

195,118

-

195,118

Foreign currency translation

(5,708,723)

(3,107,717)

(8,816,440)

(363,210)

(142,383)

(505,593)

Balance at 31st March

37,964,215

16,365,347

54,329,562

45,418,498

29,600,457

75,018,955

 

 

Fair value adjustments

 

Fair Value Adjustments comprise:

31st March 2012

31st March 2011


$

$

Adjustment to fair value of completed properties (includes income from straight lining $156,603 (March 31st 2011:$195,118))

(2,387,886)

253,805

Adjustment to fair value of investment property under construction arising in the period

970,660

3,863,343

 

Total fair value adjustment for the year

(1,417,226)

4,117,148




 

 

  

Significant assumptions 

 

The fair value of Group's investment properties have been assessed by the directors and confirmed at 31st March 2012 & 2011 by an independent valuation performed by Cushman & Wakefield (India) Private Ltd as at 31st March 2012 and 2011 in accordance with Royal Institute of Chartered Surveyors (RICS) and International Valuation Standards Committee (IVSC) Valuation standards. 

 

The Company has used the income approach for arriving at fair value of completed investment property in Kalyan.

 

The methodology and key estimates for the valuation are as follows:

 

·    The effective gross annual income of the property has been estimated based on expected rentals and other income arising out of mall operations.  The inflows considered for calculating the value of the property are lease revenue, parking income, kiosks & marketing income, and interest on security & utility deposits.

·    The outflows considered for calculating the value of the property are brokerage for lease and sale and capital expenditure.

·    Net operating income has been calculated for ten years of operation and capitalized at the end of this period.

 

The Company has used the comparable land transactions method for its Nashik property and income approach for arriving at the fair value of Kalyan Phase II property.

 

 

Significant assumptions (on the basis of weighted averages) used in the valuations as of 31st March 2012 are presented below:


31st March 2012

31st March 2011


$

$

Completed Investment property



Average rental rate per sq ft per month

0.66

0.72

Rate used in capitalising the terminal year income stream (10 year model)

11%

11%

Discount rate

14%

13%

Vacancy

5%

5%

 

Investment property under construction (at fair value)



Rate used in capitalising the terminal year income stream (10 year model)

12%

12 %

Discount rate

19.5%

18.2%

Average % complete

12%

0%

Estimated average development profit

10%

10%

Effective average development profit

0%

0%

 

The completed investment property at Kalyan is subject to first charge to secure the term loan facility availed by WPPIPL from the Ratnakar Bank Limited.

 

On 27th March 2012 WPPIPL acquired 67,071.50 square metres of land (including the existing lease land of 63,816.60 square metres)  from Hardcastle & Waud Manufacturing Company Limited, a related party, for a total consideration of $3,650,469 of which $3,458,339 is payable on 27th September 2013. The present value of this consideration aggregating $2,338,221 net of the payables to Hardcastle & Waud Manufacturing Company Limited on the date of purchase has been added to the assets in respect of which the land is to be used as follows:

 


$

Investment Properties

464,965

Inventory

1,842,686

Investment properties under construction

30,570

Total

2,338,221

 

The purchase consideration of $3,650,469 has been assessed by the directors and confirmed by an independent valuation report of the land by Knight Frank.

 


$


Newly acquired Land

881,763

Based on Land comparable method

Existing Land

2,768,706

Based on difference between fair value of freehold land on Land comparable method and lessee's right in the leasehold value and lessor's right in the land

Total

3,650,469


 

In October 2011 WPPIPL entered into a non-binding Memorandum of Understanding (MOU) to develop and sell, subject to contract, its asset in Aurangabad, India for a total cash consideration of approximately $14,400,839. Under the terms of the MOU, the Company will develop the project as a retail space and warehousing space.

 

Upon commencement of construction the company has transferred the amounts in respect of the Aurangabad property aggregating $1,468,721 and $11,519,216 from property, plant and equipment and investment property, respectively, to inventory.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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