Indian real estate firm Unitech will sell non-core assets such as land, IT parks and SEZs to pay off debt, which is at Rs 5,300 crore. The company has also managed to tie up debt of about Rs 550 crore from two public sector banks in the last few months, after facing significant debt financing crisis in the last 6 months. For debt reduce, Unitech follow DLF method.
Mr. Ajay Chandra, MD, Unitech “ Our company would raise Rs 300-400 crore this year by selling land parcels, including one in Tiruvanathapuram . Unitech has also started talks with various PE funds as well as overseas real estate investment trusts to sell its four SEZs and one IT park.”
The company has close to 55 lakh sq ft of rent producing office space and another 20 lakh sq ft will be ready in the next 18 months. This is spread over four SEZs and one IT Park.
In the April-June 2011 quarter, the company reduced its debt by Rs 203 crore through its cash flows. Unitech's debt has come down from a peak of Rs 10,500 crore at the end of December 31, 2008, to Rs 5,300 crore now.
For the last 6 months, Unitech has had to face severe debt financing issues, both because of the problems around the industry as well as the 2G scam, in which, one of the company's promoters is in jail for the last 4 months. In the last couple of months though, the company has seen some movement among banks.
"We got a first sanction from a PSU bank in the month of July for Rs 350 crore, which we will take in tranches," said Chandra.
It has also tied up Rs 200 Crore from another PSU bank, which will be disbursed in the next few months.
Mr. Ajay Chandra, MD, Unitech “ Our company would raise Rs 300-400 crore this year by selling land parcels, including one in Tiruvanathapuram . Unitech has also started talks with various PE funds as well as overseas real estate investment trusts to sell its four SEZs and one IT park.”
The company has close to 55 lakh sq ft of rent producing office space and another 20 lakh sq ft will be ready in the next 18 months. This is spread over four SEZs and one IT Park.
In the April-June 2011 quarter, the company reduced its debt by Rs 203 crore through its cash flows. Unitech's debt has come down from a peak of Rs 10,500 crore at the end of December 31, 2008, to Rs 5,300 crore now.
For the last 6 months, Unitech has had to face severe debt financing issues, both because of the problems around the industry as well as the 2G scam, in which, one of the company's promoters is in jail for the last 4 months. In the last couple of months though, the company has seen some movement among banks.
"We got a first sanction from a PSU bank in the month of July for Rs 350 crore, which we will take in tranches," said Chandra.
It has also tied up Rs 200 Crore from another PSU bank, which will be disbursed in the next few months.
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