UCP gets bids up to Rs 2,700cr for Gurgaon SEZ

Unitech Corporate Parks (UCP), a Unitech group firm listed in London, has received bids of up to Rs 2,700 crore from six companies, including Blackstone, for sale of its IT special economic zone (SEZ) in Gurgaon.

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Listed on London's Alternative Investment Market and set up to invest in commercial real estate of India, UCP has a 60-percent stake in the Gurgaon SEZ comprising 3.6 million sqft commercial space. Unitech has remaining stake in the SEZ.

UCP has given the mandate to property consultant Jones Lang LaSalle India to find out potential buyers. According to sources, UCP, which has put the Gurgaon SEZ on the block, has received bids from US-based private equity firm Blackstone, Singapore's sovereign wealth fund GIC, investment firm Xander group, Canada's pension fund CPPIB, Kotak Group and Maple Tree.

The maximum bid was of Rs 2,700 crore, sources said, adding that the company is expecting the deal value to go up because of interest. The reserve price has been fixed at Rs 2,500 crore.

A Unitech spokesperson declined to comment when asked about the bidding process. The deal is expected to be announced by the end of August or early September, sources said.

Unitech is expected to garner Rs 1,100-1,200 crore from this deal and the amount will be used to retire debt and fund construction of projects, sources said. UCP raised about 360 million pounds by issuing and placing its ordinary shares on the AIM of the London Stock Exchange in December, 2006.

It had invested in six commercial projects in India in partnership with Unitech, of which five are in the National Capital Region and one in Kolkata. UCP has a 60-percent stake in these properties while Unitech has 40 per cent. That apart, Unitech holds a stake of around 13 percent in UCP.