Unitech eyes Rs 500 cr selling 20 hotel plots

Unitech, the second-largest real estate developer, is looking to raise Rs 500 crore by selling about 20-25 hotel land parcels as its hospitality expansion plans have been deferred due to low demand.

The New Delhi-based developer is expecting to raise the funds by the end of the current fiscal. When contacted by DNA Money, Unitech spokesperson declined to comment on the developments.

Unitech currently has debt of around Rs 7,000 crore, which it expects to slash to Rs 4,000 crore by the fiscal end. As part of its fund raising strategy, the developer is looking to sell its non-core assets to raise funds.

It has raised about Rs 930 crore through asset sales in its first quarter, from which it has received about Rs 650 crore and rest is expected to come within the second quarter. It sold an office in south Delhi and two hotels in Gurgaon.

The developer has also sold 5,000 residential apartments since March and one million sq ft of commercial projects. By the end of the first quarter, it has been able to sell 6.9 million sq ft of its projected plan to sell 20 million sq ft of developable area in the current fiscal. It plans to sell over 20,000 homes this year under its Uni Homes brand, which develops its affordable housing range.

It has tripled employment of construction labourers from 3,500 in March to 10,600 to help it execute all processes in time. The developer has been able to get liquidity to fund its projects by raising $850 million through a couple of qualified institutional placements of shares.