DLF, Unitech to restart Mumbai projects
The Economic Times, June 25, 2009, Page 4
Sachin Dave MUMBAI
MUMBAI seems to be the next destination for India’s biggest realty companies, Unitech and DLF, to restart some of their projects which were put on the backburner. Both these companies have been in the midst of overcoming some serious liquidity problems that they were confronted with.
Unitech, which recently raised $325 million through the qualified institutional placement (QIP), has restarted three of its residential projects in Dadar and Chembur. For DLF, which had bought 17.5 acres from NTC in central Mumbai’s Lower Parel for Rs 702 crore in 2005, construction has commenced again. It was here where it initially planned a retail-cum-entertainment centre. Now, the plan is to have commercial establishments — largely offices — apart from the possibility of some residential apartments.
An official spokesperson for DLF said, “Yes, it is true that the work at NTC mill had stopped for some time, but that was because we had some FSI related formalities which are now in place.” Meanwhile, R Nagaraju, head, corporate planning, Unitech, said, “We have a number of slum redevelopment projects in Mumbai. We also have a focus on affordable housing and some projects will be announced by the end of 2009.”
Industry trackers point out that Unitech has commenced the pre-sale process for its three projects. The company also has land banks in other parts of central and western Mumbai like Lower Parel, Worli, Dadar, Ghatkopar and Malad. A company official said that the focus would now be on residential projects and prices would be lower than the prevailing market rates. It is learnt that Unitech is considering building a commercial project in Lower Parel where the asking price will be Rs 7,000 per square foot. This compares with the current price range of Rs 12,000 to Rs 18,000 per square foot.
Together, Unitech and DLF have a combined debt of over Rs 20,000 crore. While Unitech raised funds through the QIP route, DLF brought in $800 million through a share sale. Both companies have also been selling their land parcels and some property as well to raise liquidity.
The Economic Times, June 25, 2009, Page 4
Sachin Dave MUMBAI
MUMBAI seems to be the next destination for India’s biggest realty companies, Unitech and DLF, to restart some of their projects which were put on the backburner. Both these companies have been in the midst of overcoming some serious liquidity problems that they were confronted with.
Unitech, which recently raised $325 million through the qualified institutional placement (QIP), has restarted three of its residential projects in Dadar and Chembur. For DLF, which had bought 17.5 acres from NTC in central Mumbai’s Lower Parel for Rs 702 crore in 2005, construction has commenced again. It was here where it initially planned a retail-cum-entertainment centre. Now, the plan is to have commercial establishments — largely offices — apart from the possibility of some residential apartments.
An official spokesperson for DLF said, “Yes, it is true that the work at NTC mill had stopped for some time, but that was because we had some FSI related formalities which are now in place.” Meanwhile, R Nagaraju, head, corporate planning, Unitech, said, “We have a number of slum redevelopment projects in Mumbai. We also have a focus on affordable housing and some projects will be announced by the end of 2009.”
Industry trackers point out that Unitech has commenced the pre-sale process for its three projects. The company also has land banks in other parts of central and western Mumbai like Lower Parel, Worli, Dadar, Ghatkopar and Malad. A company official said that the focus would now be on residential projects and prices would be lower than the prevailing market rates. It is learnt that Unitech is considering building a commercial project in Lower Parel where the asking price will be Rs 7,000 per square foot. This compares with the current price range of Rs 12,000 to Rs 18,000 per square foot.
Together, Unitech and DLF have a combined debt of over Rs 20,000 crore. While Unitech raised funds through the QIP route, DLF brought in $800 million through a share sale. Both companies have also been selling their land parcels and some property as well to raise liquidity.
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