Unitech unveils Rs 7,000 crore investment

Enthused by the robust first quarter growth, real estate firm Unitech has chalked out a Rs 7,000-crore investment plan to develop 15 hotels and seven IT parks in the next five years.

"We are planning to construct 15 hotels in next five years which will involve an investment of Rs 3,000 crore," Unitech managing director Sanjay Chandra said. Also, the company will invest Rs 4,000 crore to develop seven IT parks, he added.

The Delhi-based company has reported an eight- fold increase in its net profit at Rs 74 crore for the quarter ended June 30 against Rs 8.24 crore in the year-ago period.

Its total income during the period under review rose by 114 per cent to Rs 306.21 crore compared to Rs 141.76 crore in the corresponding period last year. "The entry into the new markets has led to better financial results," Chandra said, commenting on the results.

Elaborating on hotel plans, he said the new hotels of 250 rooms each would be part of the company's large real estate projects, and added that the funding would be done through internal accruals and debts.

The company, which has recently forayed into hospitality sector, is already constructing a hotel and a service apartment in Gurgaon and two hotels in Noida and Kolkata and has entered into an agreement with the Marriott Group for management of hotels.

He said Unitech was in talks with other brands as well for managing its hotels.

Besides, the company has in-principle approval for developing seven IT SEZ parks, the project cost of which is about Rs 4,000 crore, he said. The IT parks will be constructed in cities like Gurgaon, Kolkata, Noida/Greater Noida, Kochi and Chennai.

Unitech is also planning to construct multi-product IT parks in Kundli, Haryana. On the Noida Expressway project, Chandra said the company would invest Rs 2,500 crore for constructing more than 4,000 apartments.

"We have already invested about Rs 1,700 crore to purchase 340 acres land. We will invest Rs 2,500 crore for construction purpose," he said, adding that the project would Be completed in 5-6 years though marketing of the product will commence by the year-end.

In one of the largest land deals, Unitech had bought 340 acres at Noida Expressway for Rs 1,583 crore.

"We are not concentrating on tier II cities. We want to be in cities where there is employment generation and economic activities," Chandra said.