Unitech sells land for Rs. 130 crore to repay debt

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Realty major Unitech has sold almost 10 acres of land in Bangalore and Mysore for about Rs. 100-130 crore as part of its strategy to repay debt, according to sources.

Unitech has sold 2-3 land parcels in the cities to local developers, they said.

At present, Unitech has debt of about Rs. 6,200 crore, including Rs. 150-200 crore from Life Insurance Corporation of India (LIC).

There have been reports that LIC had declared Unitech a “wilful defaulter” and that the insurance firm has taken “notional possession” of a slice of Unitech’s 350-acre land parcel in Noida.

“These land parcels were non-core assets for the company. Proceeds would be utilised to repay debt,” a source said, adding that the company has to repay about Rs. 80 crore to LIC.

When contacted, a Unitech spokesperson declined to comment.

In January, sources had said that Unitech was looking to sell plots in south India for about Rs. 400 crore and had planned to divest two hotels in Noida and Gurgaon for an estimated Rs. 600 crore.

Unitech has an operational 200-room hotel in Gurgaon. It is also constructing a 250-room hotel in Noida.

In 2009, Unitech sold its prime office complex in south Delhi for over Rs. 500 crore and a budget hotel in Gurgaon for about Rs. 200 crore.

Unitech Corporate Parks, a Unitech group firm listed in London, has been negotiating with private equity firm Blackstone and Singapore’s sovereign wealth fund GIC over the past few months to sell its IT special economic zone (SEZ) in Gurgaon for about Rs. 2,700 crore.