Unitech in talks with OBC to sell office building at Saket
The Economic Times, March 2, 2009, Page 14
Sanjeev Choudhary NEW DELHI
REAL estate firm Unitech is in talks with Oriental Bank of Commerce (OBC) to sell its office building in Saket, New Delhi, a top company executive said. If the deal materialises, it could fetch Unitech around Rs 500 crore. The company is also simultaneously in talks with 7-8 wealthy individuals to sell floors in that office, in the event of a deal with OBC not working out.
“We are working on two options of either selling the entire building to one buyer or different floors to multiple buyers,” Unitech MD Sanjay Chandra said. The six-floor 2.2 lakh sqft office, which is almost ready to be occupied can fetch around Rs 500 crore, if sold to one buyer and higher if sold floorwise to multiple buyers.
“Our aim would be to maximise realisation for us. But the deal will also depend on how soon we can close it,” Mr Chandra said, adding that the negotiation process with Oriental Bank of Commerce has been initiated. He said negotiations with 7-8 wealthy property investors, who generally buy such properties with an eye on regular rental income, too is underway.
Unitech, which has a total debt of Rs 10,000 crore on its balance sheet, has been looking to raise fresh funds through sale of its assets to repay debt and cover for its operational expenditure. Besides its Saket office, Unitech is also in the process of selling it’s mid-segment hotel in Gurgaon.
It is understood that the company has entered into an agreement with Delhi-based auto dealer Roop Madan to sell its hotel for around Rs 230 crore. Unitech has also sold off some land parcels in Gurgaon lately to raise funds.
These asset sale would help the firm get fresh capital, but wouldn’t be enough to sail it through the tough times. That’s why the company is also looking at diluting stake to private equity funds at project as well as company level to raise fresh funds. “We expect to raise around $500 million through private equity deals at company as well as project level,” Mr Chandra said.
“We are talking to 6-7 real estate funds to raise capital for our mid-income residential housing projects in the national capital region and Mumbai,” Mr Chandra said. The company is also in talks with three private equity funds to raise capital at the company level.
MONEY MATTERS
The company is also in talks with seven-eight wealthy individuals to sell floors in the office.
The office can fetch around Rs 500 cr, if sold to one buyer and higher if sold floor-wise to multiple buyers.
Unitech is also in the process of selling its mid-segment hotel in Gurgaon for around Rs 230 crore.
It is looking at diluting stake to private equity funds at project as well as company level to raise fresh funds .
The Economic Times, March 2, 2009, Page 14
Sanjeev Choudhary NEW DELHI
REAL estate firm Unitech is in talks with Oriental Bank of Commerce (OBC) to sell its office building in Saket, New Delhi, a top company executive said. If the deal materialises, it could fetch Unitech around Rs 500 crore. The company is also simultaneously in talks with 7-8 wealthy individuals to sell floors in that office, in the event of a deal with OBC not working out.
“We are working on two options of either selling the entire building to one buyer or different floors to multiple buyers,” Unitech MD Sanjay Chandra said. The six-floor 2.2 lakh sqft office, which is almost ready to be occupied can fetch around Rs 500 crore, if sold to one buyer and higher if sold floorwise to multiple buyers.
“Our aim would be to maximise realisation for us. But the deal will also depend on how soon we can close it,” Mr Chandra said, adding that the negotiation process with Oriental Bank of Commerce has been initiated. He said negotiations with 7-8 wealthy property investors, who generally buy such properties with an eye on regular rental income, too is underway.
Unitech, which has a total debt of Rs 10,000 crore on its balance sheet, has been looking to raise fresh funds through sale of its assets to repay debt and cover for its operational expenditure. Besides its Saket office, Unitech is also in the process of selling it’s mid-segment hotel in Gurgaon.
It is understood that the company has entered into an agreement with Delhi-based auto dealer Roop Madan to sell its hotel for around Rs 230 crore. Unitech has also sold off some land parcels in Gurgaon lately to raise funds.
These asset sale would help the firm get fresh capital, but wouldn’t be enough to sail it through the tough times. That’s why the company is also looking at diluting stake to private equity funds at project as well as company level to raise fresh funds. “We expect to raise around $500 million through private equity deals at company as well as project level,” Mr Chandra said.
“We are talking to 6-7 real estate funds to raise capital for our mid-income residential housing projects in the national capital region and Mumbai,” Mr Chandra said. The company is also in talks with three private equity funds to raise capital at the company level.
MONEY MATTERS
The company is also in talks with seven-eight wealthy individuals to sell floors in the office.
The office can fetch around Rs 500 cr, if sold to one buyer and higher if sold floor-wise to multiple buyers.
Unitech is also in the process of selling its mid-segment hotel in Gurgaon for around Rs 230 crore.
It is looking at diluting stake to private equity funds at project as well as company level to raise fresh funds .
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