Indias second largest real estate developer, Unitech, has been on a selling spree to raise cash. Severe liquidity crunch and high debt has meant the developer reworked its strategy and shifted focus to affordable housing.
To lower debt burden and borrowings, the company has been selling its non-core assets. On Wednesday, the company announced the sale of its Saket corporate office for a sum of Rs 500 cr to an individual investor. Last month, the company, in another strategic move, raised $325 million through the qualified institutional placement (QIP) route. Unitech Wireless, the telecom unit of the company, also sold off a 67% stake to Norway-based telecom company Telenor ASA in October 2008. Also, the developer in its bid to monetise non-core assets, sold off its Marriot Courtyard property in Gurgaon for Rs 231 cr in February.
And now on the agenda over the next six months is the sale of more hotels in Noida, Kolkata and Gurgaon, as per the companys latest investor presentation. Besides these, the sale of a budget hotel and school plots in Gurgaon are also believed to be in advanced stages of negotiations. These decisions, according to analysts, will enable Unitech to focus on its core competency — housing and office spaces. It has managed to pull off a very large equity raising exercise under very difficult circumstances. It shows that there is definitely some interest in the right offering. The structural implications for the property sector are positive, Macquarie Securities stated in its report.
More : economictimes.indiatimes.com
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