Unitech sees sale of 20 mn sqft developable area in FY'10

The country's second largest real estate player, Unitech, today said it expects a sale of 20 million sq ft of developable area during the current fiscal. "Asset sales are doing very well. The valuation are better than our expectations and it is also happening faster. Our target is to sell 20 million sq ft in this fiscal," Unitech Managing Director Sanjay Chandra told reporters after an extra general body meeting here. The company has already sold 400 apartments comprising about 4 million sqft of area, during the fiscal so far, he added. Chandra said the company has also increased prices by 2 per cent in its two projects in Gurgaon. "We have increased the prices in our ongoing projects just two weeks ago ... We will evaluate whether there is a need for raising the prices in other projects as well." The firm also received shareholders' approval for raising capital through issue of 100 crore shares in next 12 months. "We do not have any intention to raise capital immediately as we are in a comfortable position ... Debt is not an issue anymore," Chandra said. The company has rescheduled its outstanding Rs 7,800 crore debt into long-term ones and further plans to reduce it by Rs 900 crore within this month, he added. On its asset sales plan, Chandra said: "The company targets to sell properties worth Rs 1,700 crore in this fiscal, of which Rs 1,000 crore has already been raised by selling two hotels and an office space in Saket." Besides, Unitech would also raise Rs 1,150 crore by issuing warrants to its promoters. "After the issue, the promoters stake will increase to 61 per cent from 51 per cent at present. They will have to infuse 25 per cent of the total money immediately," Chandra said, adding that the entire transaction will be completed within 18 months.