Bhuwalka Steel signs agreement with Soul Space Realty

Last Updated: Tue, May 27, 2008 09:49 hrs

Mumbai: Bhuwalka Steel Industries Ltd has entered into joint development agreement (JDA) with Soul Space Realty Ltd (a B L Kashyap Group Company) pursuant to the MOU on November 22, 2007 for joint development of Bangalore property, where presently a TMT mill is situated.

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This existing unit shall be relocated to Bellary.

As per the JDA, the Bangalore property measuring more than 9 acres shall be developed by Soul Space Realty Ltd for commercial/retail purpose, the company informed Bombay Stock Exchange.

As per present guidelines, about 1.3 million sq ft area may be built up and 40 per cent of the same shall accrue to the company and 60 pc shall be retained by the developer. This will result in unlocking value of assets in the company. The value of property accruing to the company after the development will be about Rs 125 crores and the company expect a rental income of Rs 12 crore per annum in future.

The developer shall also pay interest-free refundable deposit of Rs 11.50 crore to the company, which will be refunded at the time of handing over of developed area. Of this amount, the company had already received Rs 8 crore (Rs 5 crore at the time of signing of MOU and Rs 3 crore at the time of signing of JDA) as refundable deposit from the JD partner.

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