It is reported that Bhuwalka Steel Industries Limited has entered into joint development agreement with Soul Space Realty Limited pursuant to the MoU on November 22nd 2007 for joint development of Bangalore property, where presently a TMT mill is situated.

As per the joint development agreement, the Bangalore property measuring more than 9 acres shall be developed by Soul Space Realty Limited for commercial and retail purpose.

As per present guidelines, about 1.3 million square feet area may be built up and 40% of the same shall accrue to the company and 60% shall be retained by the developer. This will result in unlocking value of assets in the company. The value of property accruing to the company after the development will be about INR 125 crore and the company expect a rental income of INR 12 crore per annum in future.

The developer shall also pay interest free refundable deposit of INR 11.50 crore to Bhuwalka Steel, which will be refunded at the time of handing over of developed area. Of this amount, it had already received INR 8 crore.