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Real Estate developer Unitech plans selling land assets to raise cash

Crippled by a cash crunch, real estate firms are getting rid of their one expensive asset – land, and trying to find buyers by offering deep discounts.

Debt-ridden developer Unitech now wants to sell its land assets to pay off loans and raise cash to fund its business.

The company may sell land blocks in some of its integrated township projects to healthcare, hospitality and education companies.

Unitech has large integrated township projects going on in Noida, Gurgaon, Mumbai, Hyderabad and Kolkata and sources said that their sale may help it raise up to Rs 1,000 crore. However, the company’s management declined to comment on the news.

A few of Unitech’s hospitality projects acquired at a premium during the boom time are on the block. It includes a service apartment project which is a joint venture with Marriot in Gurgaon which may be sold for about Rs 250 crore. Furthermore, two more under-construction hotels will also be put up for sale.

In the boom days, when money was easy to come by, real estate companies had rolled out ambitious integrated township projects, where they wanted to do everything on their own, from homes, to schools to hospitals.

Now, with liquidity drying up, the companies are getting back to focussing on their core competence.

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