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| Exchange Disseminated Time | Shivalik Global Ltd has informed BSE that the Company and RPS Infrastructure (RPS) one of Northern India's leading real estate developers, jointly announced that they have entered into a definitive agreement providing for the joint development of the Company's property at 12/6 Mile Stones, Mathura Road, Sarai Khawaja, Faridabad, Haryana into a IT / Commercial complex. The total size of the deal is estimated to be Rs 630 Cr spread over a period of 4 years. Of the total realizations the Company share along with that of a group Company (Gandhar Exports Ltd) is estimated to be over Rs 280 Cr. An amount of Rs 50 Cr. shall be paid by RPS Infrastructure as advance deposit.
Commenting on the deal, S K Agrawal, Executive Director, of the Company said "Today it is a truly exciting day for Shivalik Global Ltd. The cash flows from this deal over a period of time will help Shivalik Global scale up in weaving, spinning and garmenting to become globally competitive. RPS is a strong player in the Faridabad region and is well positioned to market the real estate project. This agreement will unlock significant shareholder value and help us generate significant returns on our underperforming assets."
The details of the deal are as follows:
- The plot size is 36,723 Sq Yards (7.58 Acres) and is jointly owned by the Company and Gandhar Exports Ltd in the ratio 64:36
- The total cost of development and construction of the project shall be borne and met by RPS Infrastructure
- The marketing and selling costs will be borne by RPS Infrastructure
- RPS infrastructure shall give an advance of Rs 50 Cr which will be shared in the ratio of 64:36 between the Company and Gandhar Exports Ltd
- The Revenue sharing is as given below:
(i) For Development of IT Park - the Company & Gandhar Exports Ltd will get 44% of the Gross sale proceeds
(ii) For Development of Commercial Complex - the Company & Gandhar Exports Ltd will get 41% of the Gross sale proceeds
(iii) The Gross Sales proceeds in turn will be shared between the Company & Gandhar Exports Ltd in the ratio 64:36
The Company expects good value for the joint development project in view of the infrastructure being established for commonwealth games and the accelerated growth being witnessed in the Delhi-Badarpur border Faridabad area along the Mathura Road.
In order to vacate the land where the current factory is located, the Company will be relocating to 4 Acre plot of Land that has been allotted to the Company by HUDA in sector 58, Faridabad, Haryana. The construction work has already started in April 2007 and is expected to be completed by the end of this year. The Company plans to set up state of art plant with modern machineries and replace obsolete machineries in the existing plant. The relocation is planned to be done in phases to minimize production stoppages.
The cash flows from the real estate foray would help the Company in retiring long term debts besides funding future expansions. |
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