Unitech to reduce debt by selling its non-core land parcels
Unitech Chairman Ramesh Chandra has said in a recent statement that the realty firm plans to sell its non-core land parcels. The move being mulled by the company is essentially aimed at reducing its debt.
In addition to the sale of its non-core land parcels for reducing its debt, Unitech is also planning the monetisation of some commercial assets.
About the moves being planned by Unitech to trim its debt, Chandra said in a message to the shareholders in the company’s annual report that the sale of non-core land and monetization of some commercial assets will result in a 15-20 percent reduction in the company’s consolidated debt when these transactions are completed.
With Unitech’s cash flow evidently having suffered blows from adverse market conditions and consequent slowdown in sales, Chandra said that the mentioned plans for reducing debt mark a conscious strategic decision by the company.
Noting that Unitech has “a large land bank,” Chandra said that the company “will develop and increase the speed of new launches and sales as and when the market situation improves.” Chandra further added that till the situation improves, Unitech will sell land which is non-core to the business “to improve liquidity and reduce debt exposure risks.”
Source – The Hindu Business Line
Brookfield Asset Management, commercial assets, Gulshan Homz, non-core land parcels, Ramesh Chandra, Real-estate developer, Unitech, Unitech Chairman
