Unitech in talks to sell stake in six real estate projects

 

Bangalore: Unitech Ltd and its real estate investment unit have been approached separately to sell their stakes in half a dozen industrial enclaves and information technology parks that, according to analysts, are valued at Rs.3,500-4,000 crore.

Unitech on Thursday said the India-focused Unitech Corporate Parks Plc. (UCP) is in talks with an investor for selling Candor Investments Ltd, the holding company for its 60% interest in the six real estate projects.

Unitech said it, too, was separately approached by a third party for a possible acquisition of all or part of its stake in the special economic zones (SEZs) and IT parks and for a strategic alliance for carrying out the remaining development.

Unitech also said it has suspended talks announced in December for selling its SEZ in Gurgaon, the largest in Candor’s portfolio.

UCP has a 60:40 joint venture with Unitech, one of India’s largest property firms, to develop the SEZs and the IT parks. Additionally, Unitech has a 14% stake in UCP, taking its effective stake in the portfolio to 48%.

Sandipal Pal, an analyst at Motilal Oswal Securities Ltd, said if UCP sells its entire stake in Candor, Unitech will get 14% of the transaction value (in line with its stake in

“In both cases, liquidity of Unitech should improve, while the quantum will be contingent. The developer may use the money to retire debt or for project construction,” he said.

On Thursday, Unitech’s shares gained 1.61% to close at Rs.14.56 on BSE, while the Sensex fell 0.19% to 22,509.07 points and the S&P BSE Realty index lost 0.44% to 1,476.87 points.

NAME MANISH SAINI

 PGDM 2nd sem