Bhuwalka enters development agreement deal

Bangalore: Bangalore-based Bhuwalka Steel Industries has entered into a 40:60 joint development agreement (JDA) with Soul Space Realty (a BL Kashyap Group company) to develop nine acres of its factory land located at Whitefield.

The MoU to this effect was signed in November 2007.
The company, in a release to exchanges, said, 'This will result in unlocking real estate assets of the company. The value of the property accruing to the company after the development will be about Rs 125 crore and the company expects a rental income of Rs 12 crore per annum.'

Bhuwalka Steel plans to relocate its thermo-mechanically treated (TMT) steel mill to Bellary.
The developer (Soul Space Realty) is to 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 has already received Rs 8 crore (Rs 5 crore at the time of signing the MoU and Rs 3 crore at the time of signing the JDA) as refundable deposit from the joint developer partner,' the company said.

As per present guidelines in the area, about 1.3 million square feet of built-up area is achievable and of this Bhuwalka Steel's share is 40 per cent while the balance is to be retained by the developer.