Unitech is planning to sell all 3 hotels that it is currently developing. The company has already tied up with hospitality chain Carlson for the Gurgaon property, and with Marriott for both the Noida and Kolkata hotels.
The 3 hotels put together will have 600 rooms. The sale of these 3 hotels is part of the company’s strategy to exit most of its non-residential businesses once it’s up and running.
Mr. R Nagaraju, VP (corporate planning), Unitech said “Negotiations have not started yet for selling the hotels, Rising interest rates had impacted the company The interest outgo was estimated at Rs 600 crore for the current financial year, similar to the previous year’s level.”
Unitech is targeting to raise Rs 500 crore to Rs 700 crore per year from the sale of non-residential projects, which some refer to as its non-core assets. The other assets that could be partially or fully sold by Unitech include its shopping malls, office space, IT parks and land parcels in SEZs. Besides the hotels that are under construction, Unitech has land meant for the hospitality business.
On whether real estate prices would witness a correction soon due to visible signs of an economic slowdown, the Unitech executive argued that cost reduction was not likely in this market. However, he added that the increase in real estate prices was likely to be arrested.
Although new projects are rare in the real estate market at present. Unitech has been able to regularly launch projects.
The new markets that it has ventured into include Chennai, Ambala, Bhopal, Rewari, Bangalore, and Kochi.
The 3 hotels put together will have 600 rooms. The sale of these 3 hotels is part of the company’s strategy to exit most of its non-residential businesses once it’s up and running.
Mr. R Nagaraju, VP (corporate planning), Unitech said “Negotiations have not started yet for selling the hotels, Rising interest rates had impacted the company The interest outgo was estimated at Rs 600 crore for the current financial year, similar to the previous year’s level.”
Unitech is targeting to raise Rs 500 crore to Rs 700 crore per year from the sale of non-residential projects, which some refer to as its non-core assets. The other assets that could be partially or fully sold by Unitech include its shopping malls, office space, IT parks and land parcels in SEZs. Besides the hotels that are under construction, Unitech has land meant for the hospitality business.
On whether real estate prices would witness a correction soon due to visible signs of an economic slowdown, the Unitech executive argued that cost reduction was not likely in this market. However, he added that the increase in real estate prices was likely to be arrested.
Although new projects are rare in the real estate market at present. Unitech has been able to regularly launch projects.
The new markets that it has ventured into include Chennai, Ambala, Bhopal, Rewari, Bangalore, and Kochi.
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