90014 Investors following Unitech. Share this News with them.
0
Like this story, share it with millions of investors on M3
Unitech to raise $500 m via SPVs
Delhi-based Unitech is looking towards Mumbai's highly lucrative property market to boost its revenues. Lehman Brothers agrees with this business plan and plans to invest USD 500 million in two of Unitech's SPVs.
Delhi-based Unitech is looking towards Mumbai's highly lucrative property market to boost its revenues. Lehman Brothers agrees with this business plan and plans to invest USD 500 million in two of Unitech's SPVs.
Almost a year after the country's second largest developer Unitech started acquiring properties in Mumbai, it is all set to raise USD 500 million from Lehman Brothers. The funds will be routed through two SPVs for projects in Mumbai.
Unitech currently holds 50% stake in these two SPVs. While Mumbai's Rohan Group, with interests in industrial and residential construction has a 20-25% interest in them, the rest is held by undisclosed partners.
Sources say all the promoters of the two SPVs will reduce their shareholding in a proportionate manner to accommodate an approximate 35% stake for Lehman. The capital raised will be used to develop 1 million sq ft each at Worli and Santa Cruz East.
An announcement is likely to be made next week. The Santa Cruz East property is part of Mumbai's Slum Rehabilitaion Project. Unitech can develop about 8 million square feet but sources indicate the private equity infusion is only for 1 million square feet.
Sources say Unitech has already tied up more than 15 million square feet in Mumbai and is still scouting for more. Even though this represents just 2% of Unitech's total land bank of 700 million square feet, revenues from Mumbai are expected to make up a lion share in the long-term.
By Nayantara Rai, CNBC-TV18
