West Pioneer Properties Limited Trading Update (9161Z)
March 13 2013 - 6:30AM
UK Regulatory
TIDMWPR
RNS Number : 9161Z
West Pioneer Properties Limited
13 March 2013
Press Release 13 March 2013
West Pioneer Properties Limited
("West Pioneer" or "the Company")
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, today provides the following update on
trading.
Retail
The repositioning of the Kalyan mall (the "Mall") from a value
Mall to a leading value and lifestyle destination is progressing
well. A key component of this exercise is the opening of a Shoppers
Stop Department Store. Shoppers Stop is one of India's leading
lifestyle department store operators. The fit-out of the store is
nearing completion and is expected to open to customers in April
2013.
The ongoing fit-out process has caused disruption in the Mall
and a short term decline in footfalls, both of which have had an
impact on revenues. Revenues for the financial year ended 31 March
2013 are now expected to be around 7% below market expectations.
Profits are expected to be slightly below market expectations. This
is due to lower than expected finance costs. Finance costs have
reduced as a result of a delay in the drawdown of debt to finance
expenditure on Towers 3 and 4 until after the financial year end.
The Company expects uplift in revenues once the Shoppers Stop
Department Store is open.
Kalyan - Residential
This sector is growing steadily in terms of both volume and
price. In established markets, developers are producing luxury
developments with ultra modern amenities. As units are becoming
more expensive in established markets, further projects are being
launched in extended suburbs to meet the demand in middle and lower
segments. The outlook of the residential sector remains positive
with ample opportunities in various micro markets catering to
different income levels.
Construction of Towers A and B is progressing well. Tower A is
expected to be completed by the end of June 2013 whereas completion
of Tower B is expected in November 2013. These identical towers
with ground plus 23-storey structures were launched as premium
apartments with a target segment of middle to higher middle income
group in that market. All the apartments are of
2-bedroom-hall-kitchen type, adding up to an area of 375,000 sq. ft
and of the total 356 available apartments, around 90% are
pre-sold.
Designs and approvals for Towers C and D are at the final stage
and the Company expects to ground break in April 2013. Towers C and
D will be a larger development than that of Towers A and B and will
have advanced features and amenities.
Kalyan - Commercial Plaza
Significant progress has been made in Phase III of the
development, a commercial plaza ("Metro Plaza") of 68,000 sq. ft.
of office space with the building structure nearing completion.
Work is progressing well and the entire development is expected to
be completed in the next few months. Metro Plaza 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
encouraging with 40% of the space pre-sold at an estimated 50%
premium over current residential sale rates. This is in line with
the Company's strategy to take advantage of opportunities where the
maximum value can be generated.
-Ends-
For further information:
West Pioneer Properties Limited
Nitin Dattani, Executive Director Tel: +44 (0) 20 8424
0690
Shore Capital & Corporate Limited
Anita Ghanekar / Edward Mansfield Tel: +44 (0) 20 7408
4090
Media enquiries:
Abchurch Communications
Sarah Hollins / Joanne Shears Tel: +44 (0) 20 7398
7709
joanne.shears@abchurch-group.com www.abchurch-group.com
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 structure of Metro
Plaza, the commercial office space development at Kalyan.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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