Valor Estate Ltd

Dear Shareholders,

The global economy has been facing a lot of challenges lately, thanks to a host of contributing factors like war situations, inflation among others. As uncertainties plagued the economy, several industries bore the brunt of unexpected setbacks and disruptions. The real estate sector in India has however been resilient despite the global ups and down. As one of the pioneering real estate firms, we are delighted to inform you that we have made remarkable progress with persistent efforts.

Upward trend in Indian real estate

The Indian real estate sector flourished during the last year and set new sales records of 68% YoY. Industry reports state that the top 7 prime residential markets in India recorded the highest sales during the first half of the financial year 2022-23 as compared to the last 10 years. As demand for residential properties rose, we made further advancements in the real estate sector by collaborating with the best names in the business to bring to the market thoughtfully designed spaces that cater to the tastes of the modern homebuyer.

Real estate sector in 2023

The residential segment will remain steady while commercial and industrial real estate will witness strong growth in 2023. Sustainability will receive more attention as the government is focusing on green initiatives to be incorporated into real estate projects. RBI's borrowing policies will have an impact on the sector and the increased cost of borrowing may lead to a decline in demand for a short period. The impact however will not be long-term and the real estate sector will continue its upward journey in 2023.

Our performance & future plans

During FY 2022-23, as you are aware, the Company converted its Convertible Warrants issued to the Promoter and Investors (Non-promoters) in the previous year into equity shares, and additional capital was infused to the tune of approx. Rs. 355 crores during the year. The said equity was utilised for the main objective of raising capital i.e. it strengthen its financial position by debt repayment of the Company and to meet its working capital requirements. Once the entire Convertible warrants are converted into equity, your Company will be placed amongst the top 10 capitalized Real Estate companies in India with a very minimal debt to equity ratio. The Company continues to carry out work on its project Ten BKC with Adani GoodHomes Private Limited being appointed to manage and supervise the construction and implementation of the project. The project is expected to be completed in the next financial year.

The Group remains committed to de-leverage its balance sheet and as a result had repaid and entered Settlements with its lenders during the year. Further, a wholly owned subsidiary of the Company entered into joint venture with Godrej Properties Limited for development of land admeasuring 19,434 sq. mtrs. situated at Byculla, Mumbai /project. The project will be developed by Godrej Residency Private Limited, wherein the wholly owned subsidiary of the company holds 49.99% and balance 50.01% is held by Godrej Properties Limited.

Further, subsequent to the Financial year 2022-23, the Company / its WOS has executed Agreements for proposed transfer of its entire stake in Prestige (BKC) Realtors Pvt Ltd., joint venture between the Company and subsidiary of Prestige Group executing "BKC 01" Project at Bandra Kurla Complex, Mumbai. Post-sale of aforesaid shares, the Company/ its WOS shall cease to hold shares in the said Joint Venture. Under the agreements, the Company has option to acquire 4.57 lakh sqft carpet area on terms and conditions contained therein.

The Company also has executed agreements for proposed transfer of its entire 50% rights, interest and share in Turf Estate Joint Venture LLP, joint venture between the Company and subsidiary of Prestige group executing "Liberty Tower Project" at Dr. E. Moses Road, Mahalaxmi, Mumbai. Post transfer of partnership interest, the Company/ its WOS shall cease to hold stake in the said joint venture. Under the agreements, the Company has option to acquire 6.70 lakh sqft carpet area on terms and conditions contained therein.

The equity exits are in line with the aim of the Company to de-leverage its balance sheet largely through the monetisation of its assets.

In the makeover business strategy, the Company is keen on unlocking the value of its substantial land holdings spread over more than 600 acres prime land mostly situated in MMR and materialise pursuing the joint venture/joint development approach for its ongoing and upcoming projects in the immediate future.

We thank customers, shareholders, employees, and all stakeholders including new investors who have subscribed to the Convertible Warrants for their continued trust and support and for being an unshakable pillar of strength in our pursuit of relentless commitment to our core values. Together, let's take the real estate sector of India to new heights of growth and success