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West Pioneer Props (WPR)

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Monday 07 November, 2011

West Pioneer Props

Update on Aurangabad Project

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: +44 (0) 20 7071 4300

 

Religare Capital Markets plc, Joint Broker


Tim Davis, Director, Corporate Finance

Tel: +44 (0) 20 7444 0539

Daniel Briggs, Director, Corporate Broking

Tel: +44 (0) 20 7444 0503

 

Media enquiries:

Abchurch Communications


Sarah Hollins / Mark Dixon / Oliver Baxendale

Tel: +44 (0) 20 7398 7729

[email protected]

www.abchurch-group.com

 

 


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