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News about Peninsula Land Limited

January 16th, 2008

The media had reports that Essar Group has bought Kurla commercial project of Peninsula Land Limited for about Rs. 1,200 crore.

The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the officials of the company.

Peninsula Land Limited has vide its letter inter-alia stated, “The Company has entered into a development agreement dated 31st March 2004 with Swan Mills Ltd. (Swan) in respect of Swan’s land at Kurla for constructing a four building complex known as “Peninsula Technopark Complex” (Complex). As per this Development Agreement, the entire development, execution and marketing of the project is being undertaken by the company for which the company is entitled to 22 percent revenue share in respect of the buildings being sold at the said complex. Further, in September, 2007 Swan had entered into: 1) An agreement for sale of two buildings located at the said complex having an aggregate area of 7.2 lakhs sq. ft. for an aggregate consideration of Rs. 1,065.00 crores to Essar Technology Park BKC Pvt. Ltd (Essar). A sum of Rs. 120 crores was received by Swan from Essar out of the aforesaid aggregate consideration and based on the development agreement; the company received a sum of Rs. 26.4 crores from Swan for the said transaction. 2) An agreement with Essar Information Technology Ltd. for leave & license for another building of 1,57,300 sq.ft in the said complex for a period of 60 months.”

Entry Filed under: Equity Markets, NSE, Infrastructure