[2007-08-10]  Communique-Caudan Bassin Project to be abandoned
The Board of directors of the company has, after careful consideration, reached the conclusion that the Caudan Bassin Project initiated by the previous Board will not be in the best interest of the group and has decided it should be abandoned in its present format.
Amongst the factors that the Board has considered in reaching its decision are:
(1) the lack of interest for the project from prospective partners and tenants;
(2) the high construction cost per square metre for the project, in excess of current selling prices for prime office space;
(3) an insufficient yield from the project; and
(4) the fact that the project does not make full use of the potential of the site.
In accordance with accounting standards, the expenditure incurred by the group and relating to the above project which amounts to approximately Rs 25.0 M, mainly incurred up to October 2006, will be written off in the income statement of the group for the year ended 30 June 2007.
The Board believes that this prime site calls for a landmark development with the participation of a strategic partner of international repute having an excellent track record in property and preferably waterfront development. Accordingly, the Board has embarked on preliminary discussions with a number of interested parties with a view to identifying the right partner for United Docks Ltd so as to optimise the value to be generated from the development, in the best interest of the group.
Shareholders of United Docks Ltd and the investing public will be kept informed of future developments.
By order of the Board
Abacus Corporate Services Ltd
Corporate Secretary
Dated this 10th day of August 2007
“This communiqué is issued pursuant to Listing Rule 11.3.
The Board of Directors of UDL accepts full responsibility for the accuracy of the information contained in this communiqué”.

Source: © 2003 Associated Brokers Ltd.