Unitech gets Rs 750 crore from Lehman

MUMBAI: Unitech Ltd has managed to get some much-needed money in times of extreme cash crunch.

Lehman Brothers, one of the top 5 investment banks in the world, signed on the dotted line last week to invest Rs 750 crore into Unitech’s 97-acre project in Koliwada, Santacruz in north Mumbai.

But this is only half the money required for the massive commercial cum residential development, for which India’s No. 2 realtor has formed an equal-stake joint venture with Rohan Group, a Pune-based developer.

The total cost of the project is Rs 2,000 crore.  Unitech brought in Rs 500 crore and got a 50% stake in the venture, while the Rohan Group, by virtue of owning the 97 acres, holds the balance stake.

Unitech was in talks with Deutsche Bank and Lehman Brothers to bridge the Rs 1,500 crore funding gap.

Deutsche, however, decided against investing after a couple of rounds of talks last month.

Lehman will now hold a substantial part of Unitech’s 50% stake in the venture.
A Unitech spokesperson refused to comment.

Lehman also recently signed a memorandum of understanding (MoU) with Peninsula Land Ltd, the realty major belonging to the Ashok Piranal Group, for investing $125 million or over Rs 500 crore for land acquisition and project development.

Lehman holds a 40% stake in Peninsula’s Hyderabad project, where an information technology park cum integrated township is being planned. Construction will begin in the third quarter of 2008.