Rajesh Exports to develop five properties from its land bank

Rajesh Exports Ltd has announced that the Board of the Company on June 12, 2007, decided to initiate the development of 5 selected properties from the Company's existing land bank of 32 properties. This is the first phase of development that the Company will be undertaking from the 32 strategically located properties owned by the Company. The details of the properties selected for development are as follows:

1. Survey no's. 28/2, 28/3, 28/4, 28/5 & 28/7
Kumbulgodu, Mysore Road, Bangalore.

Size: 4 Acres 32 guntas. This property is located just off the Bangalore-Mysore high way at a distance of about 14 Kilometers from the city center. This land is ideal for a residential project. Approximately 2,08,000 sq.ft of land is available for development. The developed value of the residential project would be about Rs 80 crores covering a saleable area of about 3,65,000 sq.ft.

2. Survey No. 45, Kundanahalli,
Devanahalli, Bangalore.

Size: 10 Acres. This land is located in close proximity to the new upcoming International Airport and is suitable for a residential project. The Company would develop a mid level housing project on this approximately 4,35,000 sq.ft of land. The developed value of this project can be estimated at about Rs 137 crores accounting for about 7,61,000 sq.ft of saleable area.

3. Survey no.121, Akkupete,
Devanahalli, Bangalore

Size: 1 Acre and 8 guntas. This property is strategically located on the National high way near the main entrance of the new under construction International Airport. Comprising of roughly around 52,275 sq.ft of commercial land. The developed value of this project is estimated at about Rs 16 crores with approximately 92,000 sq.ft of saleable commercial space.

4. Survey No.122, Akkupete,
Devanahalli, Bangalore.

Size: 2 acres 25 guntas. This property is strategically located on the National high way near the main entrance of the new under construction International Airport. Comprising of roughly around 1,14,000 sq.ft of commercial land. The developed value of this project is estimated at about Rs 60 crores with approximately 1,99,000 sq.ft of saleable commercial space.

5. No.775, O.T.C. Road,
Chickpet, Bangalore-53.

Size: 17,160 sq.ft. A prime property in the heart of Bangalore city comprising of 17,160 sq ft with three sides road. This property is planned to be developed in to a ground + three floor building with the ground floor comprising roughly of 11,000 sq ft and the I, II & III floors comprising of roughly 11,500 sq ft of space each. This is the most prime commercial property of Bangalore city. There are rarely properties available in this area. The average size of existing properties in this area is around 400-500 sq.ft. A property of 17,160 sq.ft in this area is a rarity. At a very conservative estimate the Company expects this property to fetch a developed value of about 121 crores.

The Board members have appointed Mr. Kalpesh Sagar (General Manager of the property division) to analyze the projects and decide on the method of development. The Board has proposed self development, Joint Venture development and takeover of midsize development Company. The Board has also authorized Mr. Kalpesh Sagar to start evaluating the various sanctions required and apply for the same.

The total land area to be developed works out to about 8,26,435 Sq ft. and the total saleable developed area works out to about 14,62,500 Sq Ft., which would fetch attractive value to the Company.

Mr. Rajesh Mehta, Executive Chairman of the Company commenting on the outcome of the Board Meeting said "We believe that our strategic investment in real estates at low prices from the year 1990 onwards has fetched us very good returns. We feel that this is the right time to explore opportunities to unlock the true value of our investments and enhance share holder's worth. The Company has a land bank of 32 properties at prime locations in this fast developing city of Bangalore city and in various cities of Kerala. We feel that even though the development may require time, it would be worth as it would fetch very attractive valuations compared to selling of the land bank".

Source : Equity Bulls

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