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| Exchange Disseminated Time | With reference to earlier letter dated May 07, 2015, regarding Outcome of Board Meeting, Indian Hume Pipe Company Ltd has now informed BSE that the Company has on May 14, 2015 signed a Memorandum of Understanding with Sobha Ltd., a developer of repute having pan India operations, for the development of Company’s industrial land at Badarpur, New Delhi, admeasuring about 27,504.78 sq. mtrs. equivalent to 2,96,062 sq. ft. for Group Housing Residential project as per applicable laws (the said Land).
Consequent upon the signing of the Memorandum of Understanding, the Company has also given a limited Power of Attorney to Sobha Ltd., for obtaining all permissions, sanctions and approvals including conversion of the said land.
The Memorandum of Understanding envisages that a formal Agreement for Development will be executed between the Parties closer to the date of conversion of the said land from Industrial to Residential.
After the signing of the Agreement for Development, the transaction will envisage that:
The revenue generated from the sale of developed property will be shared in the ratio of 48.50% to the Company and 51.50% to Sobha Limited.
The Company will bear the conversion charges and land related charges while Sobha Limited will bear and pay all development and other project related costs as agreed upon by the parties. |
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