West Pioneer to raise Rs 240 cr

Plans foray into smaller cities

MUMBAI: West Pioneer Properties Ltd (WPPL), the Mumbai-based developer and operator of shopping malls in western and southern India, is planning to raise $60 million (Rs 240 crore) to fund its expansion in these regions.

WPPL said the first phase of Metro Junction, its maiden value mall project in Kalyan, will be operational by March this year. Work on the remaining 2,50,000 square feet (phase II) is expected to be completed in 12-16 months.

The company had raised $52 million from AIM of the London Stock Exchange in 2006.

Amit Jatia, chairman of West Pioneer Properties, said around $60 million has been invested so far.
 
Sources said the company will get the $60 million funding in six months. The money will be primarily used to acquire real estate. The company is in the process of identifying properties and negotiating with owners to acquire real estate in tier II and tier III cities such as Goa, Pune, Nagpur and Surat. 

“We are almost a zero debt company. Going forward, the idea is to have a 1:1 ratio between equity and debt. There are a lot of funding options to explore, including another issue in the AIM market. We are not very keen to dilute equity at this stage by bringing in funds and private placements,” said Jatia.

t_ashish@dnaindia.net