Unitech arm to list on LSE for Rs 3,100 crore

New Delhi, Nov 29 | Updated: Nov 30 2006, 08:34am hrs
Gurgaon-headquartered real estate developer Unitech Ltd on Wednesday said its newly floated investment company Unitech Corporate Parks Plc (UCP) would be raising over Rs 3,100 crore ( 360 million) on the Alternative Investment Market (AIM) of the London Stock Exchange. The AIM is an international market for small, fast-growing companies.

The Unitech scrip dropped 0.05% on the BSE to close at Rs 491.90 on Wednesday.

The listing of UCP, based in the Isle of Man, would help Unitech raise funds to acquire significant stakes in six major real estate projects, including four IT SEZs, one IT Park in the NCR and an IT SEZ in Kolkata.

Unitech now joins Hiranandani Constructions, K Raheja Corp, and West Pioneer Properties Ltd who have either listed or plan a listing on the AIM, chiefly because its listing rules are less stringent than that of other exchanges.

UCP is expected to offer property development services while Unitech will pursue land acquisition plans. Atul Kapur, chairman-elect of UCP, said, We will primarily focus on the key growth markets of the IT and ITeS sectors which we believe currently offer some of the most attractive real estate prospects. UCP non-executive director-elect Aubrey Adams said, The company will have an opportunity to co-invest alongside Indias largest listed real estate company.

Raising capital in that way will allow them to continue their land expansion and current programmes Their gearing is quite high; they are looking at alternative sources to fund their growth profile, Hong Kong-based senior property analyst Matt Nacard said.

UCPs assets include 500 million sq ft of land worth around 40,000 crore. It would jointly invest with Unitech and its affiliates in portfolio assets.

Unitech is the largest listed realty developer by market value in India, with a marketcap of around $8.9 billion. UCPs board will comprise five non-executive directors chaired by Atul Kapur, who was managing director at Goldman Sachs IPS Group in Europe.