Shivalik, RPS JV to develop property worth Rs 630cr

New Delhi, May 29 (UNI) Shivalik Global Ltd today said the company and RPS Infrastructure (RPS) have entered into an agreement providing for the joint development of the company's property with an investment of Rs 630 crore over a period of four years.

Of the total realisations, the company share along with that of a group company (Gandhar Exports Ltd) is estimated to be over Rs 280 crore. An amount of Rs 50 crore will be paid by RPS Infrastructure as an advance deposit.

RPS, one of northern India's leading real estate developers, and Shivalik will provide for the joint development of the company's property at 12/6 Mile Stones, Mathura Road, Sarai Khawaja, Faridabad, Haryana into a IT/Commercial complex.

''The cash flows from this deal over a period of time will help Shivalik Global scale up in weaving, spinning and garmenting to become globally competitive. RPS is a strong player in the Faridabad region and is well positioned to market the real estate project,'' Company's Executive Director S K Agrawal said in a statement.

''This agreement will unlock significant shareholder value and help generate significant returns on our underperforming assets,'' he added.

The company expects good value for the joint development project in view of the infrastructure being established for commonwealth games and the accelerated growth being witnessed in the Delhi-Badarpur border and Faridabad area along the Mathura Road.

In order to vacate the land where the current factory is located, the company will be relocating to four acre plot of land that has been allotted to the company by HUDA in sector 58, Faridabad, Haryana.

The construction work has already started in April this year and is expected to be completed by the end of this year. The company plans to set up state-of-the-art plant with modern machineries and replace obsolete machineries in the existing plant, the statement said.

The relocation is planned to be done in phases to minimise production stoppages.

The cash flows from the real estate foray will help the company in retiring long term debts besides funding future expansions, the statement added.

UNI