New Delhi: India’s second largest developer by market value, Unitech Ltd, has sold its office complex in south Delhi for a little over Rs500 crore to a high net- worth individual, an official familiar with the development said.
Cash crunch: Unitech managing director Sanjay Chandra. Harikrishna Katragadda / Mint
“We have received the token advance and we expect to get the entire amount by June,” the official said, requesting anonymity. “Our fund-raising plans are on track with our successful QIP and now the sale of the office complex.” The person declined to identify the buyer.
QIP is short for qualified institutional placement, a practice of selling equity shares or convertible instruments to institutional buyers approved by the market regulator. Unitech raised $325 million last month through such a placement.
An analyst at an international brokerage said he, too, had been told about the sale by the company. He declined to be named.
Separately, CNBC-TV18 reported the sale Wednesday evening.
Unitech’s complex in Saket is a six-floor, 220,000 sq. ft office space. The firm was earlier said to be in talks with banks such as HDFC Ltd and the Oriental Bank of Commerce for the sale.
The company, with a debt of Rs8,500 crore on its books, sold in February its 200-key Marriot Courtyard hotel in Gurgaon to Roop Madan, managing director of Sanya Motors, a dealer of Tata Motors Ltd in Delhi. The company hopes to finalise another hotel sale by the end of this month.
Unitech plans to sell four more hotels in Noida and Gurgaon, both near Delhi, and Kolkata within six months, according to an investor presentation made by the company during its QIP.
In an interview to CNBC-TV18 on 14 May, Unitech managing director Sanjay Chandra said the firm expects to raise around Rs1,600 crore from asset sales by March next year. Chandra had said in the interview that the company expected to reduce its debt to Rs6,000-6,500 crore through the QIP and asset sales.
Shares of Unitech closed 3.39% up at Rs73.30 on the Bombay Stock Exchange, a day the bourse’s main index contracted 1.69%.