MUMBAI: Mumbai seems to be the next destination for India’s biggest realty companies, Unitech and DLF, to try and restart some of their projects which were put on the backburner. Both these companies have been in the midst of overcoming some serious liquidity problems that they were confronted with.
Unitech, which recently raised $325 million through the qualitative institutional placement (QIP) route has restarted three of its residential projects in Dadar and Chembur. For DLF, which had bought 17.5 acres from NTC in Lower Parel for Rs 702 crores in 2005, construction has commenced again. It was here where it initially planned a retail-cum-entertainment centre. Now, the plan is to have commercial establishments largely offices apart from the possibility of some residential apartments as well.
An official spokesperson for DLF said, “Yes, it is true that the work at NTC mill had stopped for some time, but that was because we had some FSI related formalities which are now in place.” Meanwhile, R Nagaraju, head, corporate planning, Unitech, said, “We have a number of slum redevelopment projects in Mumbai. We also have a focus
on affordable housing and some projects will be announced by the end of 2009.”
Industry trackers point out that Unitech has commenced the pre-sale process for its three projects. The company also has land banks in other parts of central and western Mumbai. A company official said that the focus would now be on residential projects and prices would be lower than the prevailing market rates. It is learnt that Unitech is considering building a commercial project in Lower Parel.
Together, Unitech and DLF, have a combined debt of over Rs 20,000 crore. While Unitech raised funds through the QIP route, DLF brought in $800 million through a share sale.
Source:The Economic Times