Unitech to invest 1 lakh crore

Enthused by its robust financial performance in third quarter, real estate major Unitech on Thursday said it will invest about Rs 1,00,000 crore over the next 7-8 years to develop various properties across the country.

"We have a land bank of over 20,000 acres, but our economic interest is for about 15,000 acres that comprises 675 million sq ft of developable area," Unitech Managing Director Sanjay Chandra told reporters.

He said the existing land bank would get developed over the next seven-eight years.

"The investment for developing 675 million sq ft will be about Rs 1,00,000 crore, including the land cost," Chandra said. It would cost an average of Rs 1,500 to develop per sq ft of area, including land and construction cost, he added.

Unitech already has 60 million sq ft under construction. It plans to develop 48 malls and shopping centres in India at an investment of Rs 20,000 crore in the next six years.

Asked about sources of funding for the massive investment, he said it would be done through a combination of advances from customers against sales, internal accruals and debts.

The company has posted a 39 per cent growth in its consolidated net profit at Rs 525.78 crore for the third quarter of 2007-08. Its turnover rose by 19 per cent at Rs 1,165.11 crore during the review period.

Unitech, India's second largest real estate firm, is also planning to borrow 250 million dollars (about Rs 1,000 crore) in the current quarter to fund its various projects.

On the company's plan for Qualified Institutional Placement (QIP), Chandra said: "We have no intention to raise capital in short term in Unitech Ltd." He added that the company has an enabling approval to raise funds.