Unitech Corporate Parks Plc has proposed to sell stake in three of its development projects for £234.1 million.
LONDON: Unitech Corporate Parks Plc, a real estate investment firm listed on AIM market of London Stock Exchange, has proposed to sell stake in three of its development projects for £234.1 million (Rs 1,830 crore).
The company will seek the shareholders' approval for the conditional sale of its interests in three out of its six development projects in India, the company said in a filing to the London Stock Exchange.
Unitech Corporate Parks is also planning to expand its investment strategy to real estate projects in hospitality, retail and other commercial and mixed-use sectors in India.
The company intends to dispose of its entire interest in its InfoSpace projects in Gurgaon, Noida and Kolkata to wholly-owned subsidiaries of Unitech Office Trust (UOT).
UOT, a Singapore-based business trust established with the principal objective of investing in real estate in India, intends to raise the consideration for the acquisition by way of an international placement to investors and an offering to the public in Singapore.
Unitech Office Trust is also a wholly-owned indirect subsidiary of India's second largest real estate firm Unitech Ltd.
Combined, the projects upon completion, would cover a total of 92.4 acres and would provide a lettable area of over 10 million square feet of commercial property for the IT and IT Enabled Services sectors, it said.
The minimum consideration payable to Unitech Corporate Parks for these assets would represent an average project level Internal Rate of Return (IRR) of 38.9 per cent, assuming completion on March 1, 2008, it added.
However, the proposed sale would be conditional upon the successful completion of the UOT's offering and the listing of the units on the Singapore Stock Exchange. If the transaction is not be completed, the company intends to continue to develop the projects itself.
"We intend to reinvest the proceeds of the disposal into early stage Indian real estate development projects and are seeking approval to widen Unitech Corporate's investment strategy to include the hospitality, retail and other commercial and mixed-use sectors."
As we are of the firm belief that, in addition to our focus on the real estate requirements of the high growth Indian IT and IT Enabled Services sectors, these are areas where we can also create significant shareholder value," Unitech Corporate Parks Plc chairman Atul Kapur said.
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