UNITECH SELLS OFFICE SPACE FOR RS 500 CR TO REPAY DEBT
Located In Saket, New
Unitech, the country’s second-largest real estate developer,
said it sold an office space in Saket,
Unitech, DLF and other real estate
developers are stepping up asset sales to cut debt
and generate cash to complete unfinished projects. Realtors relied heavily on
borrowed funds to spur expansion but were caught in a trap after a global
slowdown curbed demand for office, shop and residential properties.
Unitech has about Rs 7,800 crore (Rs 78 billion) of debt on
its books and plans to cut this by at least Rs 1,000 crore (Rs 10 billion) by
the end of this fiscal year. Most of the repayment is expected to come from
additional capital infusion into the company by promoters and by asset sales.
The company aims to raise Rs 1,600 crore (Rs 16 billion) in
the fiscal year ending March 31 from the sale of non-core assets, including the
Saket office complex and four additional hotel properties located in Noida,
Kolkata and Gurgaon. The developer
had earlier indicated plans to raise at least Rs 900 crore (Rs 9 billion) by
June from such asset sales.
"The cash flow from asset sales will put the company's
financial condition back on track," said a Mumbai-based analyst.
Unitech's promoters raised Rs 1,625 crore (Rs 16.25 billion)
in April from the sale of shares to qualified institutional investors. The
company's board on day approved a plan to allow the promoters to infuse an
additional Rs 1,000 crore (Rs 10 billion) through issue of warrants that are
convertible into shares at a later date.
Courtesy:- BS dt:-
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