Unitech to raise up to Rs 2,500 cr to retire debt partly

7 Dec 2008, 1201 hrs IST, PTI

NEW DELHI: Reeling under acute financial crunch, realty major Unitech today said it will mobilise up to Rs 2,500 crore through sale of some assets and equity to retire part
of its Rs 8,000 crore debt by March, 2009. "We are working on many options to raise funds," Unitech Chairman Ramesh Chandra said, adding it could be through sale of
some completed projects or offloading equity at project level to private equity funds.

"Debt is about Rs 8,000 crore. I feel that in another 4-5 months, we should be able to bring it to half. Disposal of assets could be anything between Rs 1,200-1,500 crore. Private equity will be another Rs 1,000 crore. And transfer of loans to telecom business will be about Rs 2,000 crore," Chandra told PTI in an interview.

Unitech, the country's second largest real estate firm, has forayed into telecom business and recently tied up with Norway-based Telenor to launch mobile services. Chandra pointed out that the company would have anyways dispose of its completed assets, but probably it would now be doing six months earlier.

Giving details about sale of properties, Chandra said the company would mainly sell completed or nearing completion hotels and office buildings. He also highlighted that the company had always planned to exit from hotel business after developing it.

"Hotels we anyway sell. In office, there are two choices, either you give it on lease or you sell it. So in current scenario, if you can sell it, that is better," Chandra said. Real estate industry is currently facing slowdown in demand due to credit crunch and high interest rates on housing loans.

via:E.T