Unitech sells a commercial office building in Delhi

Unitech strikes it rich; sells a commercial office building in South Delhi for a whopping Rs 500 Cr

Realty major Unitech has sold a commercial office building in South Delhi to a high net individual for Rs 500 crore, and is in the last leg of negotiations to sell one of its hotels to another HNI for Rs 200 crore.
Unitech has sold 200,000 sq ft corporate office in Delhi to HNI for Rs 500 crore. The company has received token advance, and will receive full payment by end-June. The company is also in final negotiation to sell 180-room hotel in Gurgaon to another HNI for approximately Rs 200 crore.

However, the Unitech management has declined to comment. Earlier the management said that it would raise Rs 1,000 crore this quarter from asset sales.

There are no major cash flows into the company from these transactions and the company will use the proceeds from these sales to repay debt. With this, the debt of the company will come down to Rs 7,800 crore from Rs 10,500 crore.

The company aims to reduce debt to Rs 6,000 crore this quarter and up to below Rs 5,000 crore by H2FY11.