Unitech sells off 10 acres for Rs 130 cr to repay debt

Realty major Unitech has sold almost 10 acres of land in Bangalore and Mysore for about Rs 100-130 crore as part of its strategy to repay debt.

Unitech currently has debt of about Rs 6,200 crore, including Rs 150-200 crore from Life Insurance Corporation of India (LIC).

 There have been reports that LIC had declared Unitech a "wilful defaulter" and that the insurance firm has taken "notional possession" of a slice of Unitech's 350-acre land parcel in Noida.

Sources said that Unitech sold 2-3 land parcels in Bangalore and Mysore for about Rs 100-130 crore.

"These were non-core assets for the company. Proceeds would be utilised to repay debt," a source said, adding that the company has to repay about Rs 80 crore to LIC.

Unitech spokesperson declined to comment. In January, sources had said that it was looking to sell plots in south India  and had planned to divest two hotels in Noida and Gurgaon for about Rs 600 crore.

In 2009, it sold its office complex in south Delhi for over Rs 500 crore and hotel in Gurgaon for Rs 200 crore. 

Unitech Corporate Parks, a Unitech group firm listed in London, has been negotiating with PE firm Blackstone and Singapore's sovereign wealth fund GIC for past few months  to sell its IT SEZ in Gurgaon for about Rs 2,700 crore.