The Board of USI Group Holdings AG ('USI' or the 'Company') is pleased to announce that it has entered into an agreement to acquire 80 acres of land for development in proximity to the East Coast Road ('ECR') near Chennai, India (the 'ECR Property'). This acquisition, which is subject to certain conditions, is part of a transaction to acquire and develop up to 120 acres in that area. The ECR Property is located in the vicinity of several major road arteries with busy commercial activity. An international real estate valuation firm has placed a development value on the ECR Property at more than $90 million and the acquisition cost will be at a discount to that amount.
The ECR is a national highway which has witnessed extensive development during the last 20 years, primarily due to the extension of Chennai's urban limits and scenic coastal roads. Real estate and other commercial development have accelerated in both Chennai and Pondicherry in the past few years which has greatly contributed to development along the ECR, which is currently being expanded to a six-lane highway. There are a large number of villas, living communities and retirement homes (primarily catering to upwardly mobile, rich and non-resident Indians) being constructed there. It is expected that the ECR Property will be developed for residential and related commercial use.
Dr. Volkert Klaucke, the Chairman of USI commented, 'We are delighted to have added this attractive parcel of real estate to USI's Indian real estate portfolio. While the acquisition of the ECR Property is subject to a number of conditions, we are working to satisfy them as soon as possible. A further announcement will be made in due course.'
Full information concerning the Company's Board members and other matters are available from the Company's website at www.usigroupholdings.ch.
USI Group Holdings AG
Dr. Volkert Klaucke (Chairman)
Full information concerning the Company's Board members and other matters are available from the Company's website at www.usigroupholdings.ch
Further information:
Dr. D. Srinivas
Director and Investor Relations Officer
Phone: +44 20 7766 7000
SIX Swiss Exchange - symbol USIN, security number 227.101, ISIN CH0002271010
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