Piramal to sell part of its Ratmalana land for Rs. 350 mn. Extent to be sold not disclosed

I was waiting for GLAS to go up so its done

thank god...

Wonder what % if land was sold.


Complete land was valued at 700m. but must be worth more now.

slstock wrote:Wonder what % if land was sold.


Complete land was valued at 700m. but must be worth more now.

Yes have to see,

Hope they will utilize the proceeds to settle some of the interest bearing liabilities

Yes, and also maybe some small additional benefit for shareholders.

Gaja wrote:

slstock wrote:Wonder what % if land was sold.


Complete land was valued at 700m. but must be worth more now.

Yes have to see,

Hope they will utilize the proceeds to settle some of the interest bearing liabilities

slstock wrote:Wonder what % if land was sold.


Complete land was valued at 700m. but must be worth more now.

Yes. It's a very shady announcement. I think companies should respect investor’s right to information. Their entire land at Ratmalana is 21 acres. It's a 3,360 perches. I think it's worth more than 1.5 billion.

700m/3300 perches = 2.1 laks.

Does anyone know the value of land at 148 Maligawa rd, Borupana?

2.1 Laks does seem low in Ratmalana. But 700m was not a recent valuation

This was long due. rest of the land they could sell for higher value. IF they reduce the debt EPS would increase further.

slstock wrote:
700m/3300 perches = 2.1 laks.
Does anyone know the value of land at 148 Maligawa rd, Borupana?
2.1 Laks does seem low in Ratmalana. But 700m was not a recent valuation

Someone known to me sold his land in Lunawa and closer to sea at Rs 600,000 a perch and I am pretty sure lands in Borupana and on the landside (not seaside) must be fetching over a million a perch or more but not less.

Kithsiri wrote:

slstock wrote:
700m/3300 perches = 2.1 laks.
Does anyone know the value of land at 148 Maligawa rd, Borupana?
2.1 Laks does seem low in Ratmalana. But 700m was not a recent valuation

Someone known to me sold his land in Lunawa and closer to sea at Rs 600,000 a perch and I am pretty sure lands in Borupana and on the landside (not seaside) must be fetching over a million a perch or more but not less.

So I think 600,000/- per perch is fair as this is a bigger land. So we are talking about 2 billion.

Piramal Glass PLC Friday said in a Stock Exchange filing that it was selling part of its Ratmalana land at 148, Maligawa Road, Borupana, Ratmalana for a consideration of Rs.355 million to Messrs. Prime Lands (Pvt) Limited, No.75, D.S. Senanayake Mawatha, Colombo 8.

The company did not disclose the extent to be disposed but merely said it was selling part of its Ratmalana property with the transaction likely to be completed on or before June 30.

Prior to its move to the Seetawaka Industrial Park in Avissawella, Ceylon Glass Company Limited and its successor, Piramal Glass PLC. were located on an extensive property at Ratmalana originally acquired by Ceylon Glass.

Analysts believe that the company retained this land even after moving its factory to a new location waiting for the right price. However, the Stock Exchange filing did not disclose the extent of the land to be sold or the value per perch.

In a second filing the same day, Piramal Glass announced a first and final dividend of Rs.0.38 per share for the financial year 2012/13 with dates to be notified.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=77743

If I'm not mistaken this 'Prime Lands' is a company which has some sort of a land bank and resells these in small portions. If that's the case, it's highly unlikely that GLAS would have realized the fair value from this sale as they probably would have sold at a discount

This is not what we expected.

There will be an impact only if they sell the total extent at a fair rate. They are finding it difficult to attract buyers to dispose the total extent due to many factors.

350 million is just 35 cents per share.

I am really surprised that they have not disclosed the extent of land they have sold for Rs 350 million. what is the CSE and SEC doing ? This is material public information that has an definite impact on the share price. since some people know this info, it is unfair on the shareholders of Glass. They should halt trading and disclose these details on monday itself. Zero points for transparency & disclosure !

Agree , why hide. Hope they did not under sell the market values by a lot.

The Alchemist wrote:I am really surprised that they have not disclosed the extent of land they have sold for Rs 350 million. what is the CSE and SEC doing ? This is material public information that has an definite impact on the share price. since some people know this info, it is unfair on the shareholders of Glass. They should halt trading and disclose these details on monday itself. Zero points for transparency & disclosure !

I don't think land in lunava has that much value. needs to check with lahipita (lankadeepa). also check with ikman.lk

slstock wrote:Agree , why hide. Hope they did not under sell the market values by a lot.

The Alchemist wrote:I am really surprised that they have not disclosed the extent of land they have sold for Rs 350 million. what is the CSE and SEC doing ? This is material public information that has an definite impact on the share price. since some people know this info, it is unfair on the shareholders of Glass. They should halt trading and disclose these details on monday itself. Zero points for transparency & disclosure !

refer to my comment on the corporate disclosure thread. (shouldn't we merge the two)

The buyer is a reseller of lands and thus the price is possibly at a discount to market value.

npp wrote:

slstock wrote:Agree , why hide. Hope they did not under sell the market values by a lot.

The Alchemist wrote:I am really surprised that they have not disclosed the extent of land they have sold for Rs 350 million. what is the CSE and SEC doing ? This is material public information that has an definite impact on the share price. since some people know this info, it is unfair on the shareholders of Glass. They should halt trading and disclose these details on monday itself. Zero points for transparency & disclosure !

refer to my comment on the corporate disclosure thread. (shouldn't we merge the two)

The buyer is a reseller of lands and thus the price is possibly at a discount to market value.

Topics merged.

Can this deal be held back ?
Anyone plan to take up the issue at the AGM ?

http://www.ft.lk/2013/04/29/piramal-to-divest-part-ratmalana-land-for-rs-355-m/

Gaja wrote:http://www.ft.lk/2013/04/29/piramal-to-divest-part-ratmalana-land-for-rs-355-m/

10 acres for 350 million.

350m / 1600 perches = 218,000 per perch. !

Prime Lan kaarayonta hondyi.

allow for internal road ways 350 / 130 = 270,000 per perch. + development cost .. say 50 million
400 / 130 = 300,000 / perch

They can sell this for attractive prices.
--
+ point = lankawe honda idamak nomile wage Indian kaarayonta giya. dan in bagayak me gaanata aapahu lankawe samagamakata labuna.

Ithuru akkara11 th perch ekak 300,000 gaanata 10 perch lot walata bedala denawa nam nikamma wikineyi.

sapumal wrote:I don't think land in lunava has that much value. needs to check with lahipita (lankadeepa). also check with ikman.lk

Access to this land is situated between Golumadama Junction and Katubedda.
You have to go about 1 km inland along Borupana Road (at Golumadama juct) or Maligawa Road or by Thelawala Road. You can also come from Boralesgamuwa via Verahera along Gangarama Road.

If you google you can see a bare land at the end of the roads near Weras River.

Distance from main roads is the major problem to get high value for this area. 2-3 years ago land values were higher than now in some areas in Ratmalana.

sapumal wrote:I don't think land in lunava has that much value. needs to check with lahipita (lankadeepa). also check with ikman.lk

Agree with you. Some of the sellers are absolutely mad..!
Looks some of these sellers believe they are selling gold mines.

fair play Prime Lands

This is a win-win situation for both..