TIDMISH
RNS Number : 8275Z
Ishaan Real Estate PLC
21 March 2012
21 March 2012
Ishaan Real Estate plc
Trading Update
Ishaan Real Estate Plc ("Ishaan" or the "Company") announces
progress made on the letting and the development of the Company's
portfolio since the interim results announcement on 9 December
2011.
Letting Update
Further to the letting reported in the interim results
announcement on 9 December 2011, net addition of c.570,000 sq. ft.
(including options exercised over 186,500 sq. ft.) has been made to
the area let or with terms agreed across the following projects in
the portfolio:
-- c.205,000 sq. ft. at Mindspace, Airoli, Navi Mumbai
-- c.136,000 sq. ft. at Mindspace, Pocharam, Hyderabad
-- c.209,000 sq. ft. at Mindspace, Madhapur SEZ, Hyderabad
-- c.20,000 sq. ft. at Inorbit, Pune and Bangalore
As a result, the aggregate area let or terms agreed has
increased to c.8.6 million sq. ft., representing c.79% of the
lettable area constructed or under construction as at 29 February,
2012 and c.49% of the aggregate lettable area of the portfolio.
Project Area let Terms Aggregate Area % of
agreed area constructed area
or constructed
under or
construction under
construction
(b) (c)=(a+b) (c)/(d)
(a) (d)
------------------------------- ---------- ---------- ---------- ------------- -------------
Mindspace, Airoli, Navi
Mumbai 1,440,000 1,661,000 3,101,000 4,220,000 73%
------------------------------- ---------- ---------- ---------- ------------- -------------
Mindspace, Pocharam 26,000 136,000 162,000 336,000 48%
------------------------------- ---------- ---------- ---------- ------------- -------------
Mindspace, Madhapur (SEZ) 1,281,000 1,033,000 2,314,000 2,804,000 82%
------------------------------- ---------- ---------- ---------- ------------- -------------
Mindspace, Madhapur (non-SEZ) 1,662,000 2,000 1,664,000 1,700,000 98%
------------------------------- ---------- ---------- ---------- ------------- -------------
Inorbit, Hyderabad 690,000 690,0000 780,000 *88%
------------------------------- ---------- ---------- ---------- ------------- -------------
Inorbit, Pune 498,000 7,000 505,000 546,000 *92%
------------------------------- ---------- ---------- ---------- ------------- -------------
Commerzone, Bangalore 159,000 159,000 446,000 *59%
------------------------------- ---------- ---------- ---------- ------------- -------------
Total 5,597,000 2,997,000 8,595,000 10,832,000 79%
------------------------------- ---------- ---------- ---------- ------------- -------------
* For retail space at the respective projects
In addition to the above letting, the area under options/ROFRs
is currently c.1,020,000 sq. ft.
Project Area under option
/
ROFR
(sq. ft.)
-------------------------------- ------------------
Mindspace, Airoli, Navi Mumbai 502,000
-------------------------------- ------------------
Mindspace, Madhapur (SEZ) 302,000
-------------------------------- ------------------
Mindspace, Pocharam, Hyderabad 216,000
-------------------------------- ------------------
Total 1,020,000
-------------------------------- ------------------
While rentals across the projects in the portfolio have remained
stable, Mindspace, Airoli, Navi Mumbai has seen a rise in the
rentals.
Development Update
Since the interim results announcement on 9 December 2011,
construction has commenced on an additional area of c.518,000 sq.
ft. as follows:
-- c. 343,000 sq. ft. at Mindspace, Airoli, Navi Mumbai
-- c. 175,000 sq. ft. of commercial space at Commerzone, Whitefield, Bangalore
The total area under construction now stands at c.11.8 million
sq. ft.
Maharashtra Industrial Development Corporation (MIDC) has been
successful in a dispute with a third party on an area of land
adjacent to the existing Mindspace, Airoli, Navi Mumbai project
land. Consequently, this portion has been handed over to Serene
Properties Private Limited (Serene), the SPV developing this
project, thereby increasing the development area at the project by
c.140,000 sq. ft. The total planned development at this project is
now 4,576,000 sq. ft. As a result of this increase in area, the
completion schedule of this project has been extended by a year to
September 2014.
Details of the area constructed and under construction as at 29
February, 2012:
Area sq. ft.
------------------------------- -----------------------------------------------------------------------------------
Project Area constructed Area under Area constructed Area for Total planned
construction and under future development
construction development (e = c
(a) (c = a (d) + d)
(b) + b)
------------------------------- ----------------- -------------- ----------------- ------------- --------------
Mindspace, Airoli, Navi
Mumbai 1,660,000 2,560,000 4,220,000 356,000 4,576,000
------------------------------- ----------------- -------------- ----------------- ------------- --------------
Mindspace, Pocharam 336,000 - 336,000 1,734,000 2,070,000
------------------------------- ----------------- -------------- ----------------- ------------- --------------
Mindspace, Madhapur (SEZ) 1,100,000 1,704,000 2,804,000 1,995,000 4,799,000
------------------------------- ----------------- -------------- ----------------- ------------- --------------
Mindspace, Madhapur (non-SEZ) 1,700,000 - 1,700,000 - 1,700,000
------------------------------- ----------------- -------------- ----------------- ------------- --------------
Inorbit, Hyderabad 780,000 - 780,000 322,000 1,102,000
------------------------------- ----------------- -------------- ----------------- ------------- --------------
Inorbit, Pune 546,000 - 546,000 97,000 643,000
------------------------------- ----------------- -------------- ----------------- ------------- --------------
Commerzone, Bangalore
** - 446,000 446,000 65,000 511,000
------------------------------- ----------------- -------------- ----------------- ------------- --------------
Mindspace, Juinagar,
Navi Mumbai - - - 2,250,000 2,250,000
------------------------------- ----------------- -------------- ----------------- ------------- --------------
Sub-Total 6,122,000 4,710,000 10,832,000 6,819,000 17,651,000
------------------------------- ----------------- -------------- ----------------- ------------- --------------
Vivarea, Mumbai - 620,000 620,000 240,000 860,000
------------------------------- ----------------- -------------- ----------------- ------------- --------------
Commerzone, Bangalore
*** - 360,000 360,000 - 360,000
------------------------------- ----------------- -------------- ----------------- ------------- --------------
Total 6,122,000 5,690,000 11,812,000 7,059,000 18,871,000
------------------------------- ----------------- -------------- ----------------- ------------- --------------
**Area under construction comprises retail and commercial space
and future development comprises multiplex space.
*** Area under construction comprises hotel development.
Project cost update
Continued high levels of inflation over most of the previous
year and depreciation of the rupee together with the increase in
planned development area has resulted in an increase in the
estimated construction cost at Mindspace, Airoli, Navi Mumbai.
Similarly at Vivarea, Mumbai, high inflation and rupee
depreciation, besides changes to the development regulations in
Mumbai, have contributed to an increase in the estimated statutory
and other costs of the project.
In aggregate, the total estimated cost of the projects in the
portfolio is being revised from c.INR 55.9 bn (c.GBP717 million) to
c.INR 58.0 bn (c.GBP744 million).
The estimated impact of these cost increases would have been to
reduce Ishaan's Adjusted Net Asset Value per share as at 30
September 2011 by approximately 3-5 pence. This estimate does not
reflect any positive impact of the rentals currently being achieved
at the Mindspace, Airoli project as described above.
Grant of electricity distribution approval to Serene Properties
Private Limited
Serene Properties Private Limited, the SPV developing Mindspace,
Airoli, Navi Mumbai project, has been accepted as a deemed
distribution licensee for distribution of electricity at this
project. Serene is the first developer in the state of Maharashtra
to have been granted this approval. This will enable Serene to
source power from third parties and distribute this power to the
tenants at the project, thereby eliminating dependence on utility
companies for the project's power requirements. Since Serene is the
first developer in the state to receive this approval, there are no
precedents to ascertain the potential benefits that would flow to
Serene through distribution of electricity at this project. While
this is not expected to materially raise the valuation of the
project, it would enable Serene to generate a reasonable return on
its investment in the project's infrastructure.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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