Hirco PLC (AIM: HRCO), the investment vehicle for Hiranandani, India’s largest developer of prestigious mixed-use townships, today announced that sales of residential units in Phase 1 of its Chennai township development, Hiranandani Palace Gardens, continue to be strong both in terms of volume of residential units sold and the level of pricing achieved.

As of 6 January 2008, sales consideration has been accepted on approximately 1,381,951 square feet at an average price of Rs 3,834 (£49.84) per square foot. This represents a significant increase over figures reported in September 2007 of 1,005,106 square feet at an average price of Rs 3,809 (£47.19).The total value of contracts signed as of 6 January 2008 was Rs. 5,299 million (£68.89 million).

Niranjan Hiranandani, Chairman of Hirco, commented: “We are very pleased with the continued response to Hiranandani Palace Gardens as demand continues to be strong. These results demonstrate the strong quality of our product and the high standard of living provided by our mixed-use townships”

Pre-construction sales for the Chennai township started in May 2007 and construction began in August 2007. Hiranandani Palace Gardens has a total buildable area of approximately 30.1 million square feet, 21.5 million of which will be residential. Palace Gardens will offer a range of apartment sizes and styles designed to appeal to the employees of major international companies located within the township’s catchment area.

The township will be constructed over three phases, all building to a unique master plan. Hiranandani Palace Gardens will be a self-sustaining community with offices, schools, health care facilities, shops, recreational facilities, and public space set within 369 acres. The township, located south west of Chennai, has easy access to the international airport, the national highway system, and rail transport.

About Hirco

Hirco PLC is the investment vehicle for Hiranandani, India’s largest developer of prestigious mixed-use townships for the country’s increasingly affluent middle class. Our modern, large-scale developments – combining high-quality residential, commercial and retail components with green space and social and recreational facilities – are strategically located in suburban areas outside major city centres. Hirco’s four current projects – in Chennai in southeast India and Panvel, in the Mumbai Metropolitan Region – feature a combined total of 66.4 million square feet of buildable mixed-use space.

At the time of its admission to trading on AIM in December 2006, Hirco was the largest-ever real estate investment company IPO on AIM and that year’s largest AIM IPO.

Infrastructure and Amenities Charge:

In a move likely to be welcomed by those concerned with unplanned growth and poor infrastructure, the Tamil Nadu Government has decided to charge builders an infrastructure and amenities charge of between Rs 200 - 1,000 per sq.m excluding non-FSI and parking areas.

The charges are levied based on the category of the building: Institutions at Rs 200/sq.m, Industrial use at Rs 300/sq.m, Commercial & IT buildings at Rs 500/sq.m and Multi-storey buildings at Rs 1,000/sq.m .

CMDA is set to raise over Rs 500 crore via this levy within the first year itself. In other jurisdictions the local planning authorities will collect the charges. It can only be hoped that the authorities will deploy these resources wisely for the provision and upgradation of infrastructure and civic amenities.