Textile / home industry and wine making company - Alok has forayed into the real estate market now.
Alok Industries has entered into an agreement to acquire 0.6m sq ft of office space in Peninsula Business Park (Dawn Mills) and 0.1m sq ft of office space in Ashford Centre, both at Lower Parel in Mumbai. The total consideration
payable for these two assets is Rs12.22bn, of which the company has already paid Rs1.15bn. Management is continuously exploring various options for funding the balance Rs11bn, while this is still in a preliminary stage, we have assumed this to be largely debt funded in our NAV calculations.
Alok has also acquired 183 acres of land at Silvassa for development of a textile SEZ. Of these 183 acres, the company intends to use 20 acres for its own garment and home textiles plant has already sold 15 acres at an average realization of
Rs20m per acre.