In a bid to improve its liquidity position, Unitech Ltd has asked Noida Authority for flexibility in current norms to allow it to go for ‘strata sales’ or sell buildings in its IT Park individually to various investors. If permitted, the move could see Unitech - which is reeling under an acute financial crunch – unlock further capital, sources said.
Unitech’s IT Park is being executed through a Special Purpose Vehicle (SPV) and will have about 2 million sq ft of space. Overall, Unitech has 20 million sq feet of commercial space currently under construction.
“As things stand today, either the IT Park space can be leased or a sale can happen only at a project level - that is through an investor picking up equity at the SPV level. But given the current environment, there may be no takers for the entire project of this size. So the company has initiated a dialogue with the Noida Authority to remove the ‘restrictive clauses’ and allow the ‘strata sale’, as it can then sell various buildings in the project to investors,” sources said.
The first phase of the IT Park has already been completed, and lease agreements firmed-up. It will see occupancy from the next quarter.
“The permission to sell the project building-by-building will improve the liquidity position substantially for the company,” sources pointed out.
Meanwhile, Unitech, the country’s second largest real estate company, has said it would mobilise up to Rs 4,000 crore through sale of some assets and equity to retire part of its Rs 8,400 crore debt by March 2009.
This would include transfer of about Rs 1,200 crore loans to Unitech Wireless, about Rs 1,200-1,500 crore through sales realisation (that is sale of hotels and office property), and Rs 1,000 crore from private equity funding into residential projects.
The company plans to largely sell those hotels and office projects that are completed or are nearing completion.
0 comments:
Post a Comment