Unitech to Borrow Rs 3000 Crore for Housing Project in Noida, Delhi
Unitech Ltd is expecting revenues of Rs 15,000 crore from the new luxury housing project it is planning in Noida near New Delhi.
Unitech had acquired land for the project at Rs 1,582 crore in May last year. The total cost of the project in Noida will be Rs 6,000 crore, for which company is planning to borrow Rs 2500-3000 crore from local lenders.
After this borrowing, the cost of debt for the Unitech will increase by 300 basis points, as the government has put restrictions on overseas borrowings by real estate companies.
On May 18, the government banned real estate companies from borrowing funds overseas to develop townships, a measure aimed at slowing foreign exchange inflows that has led to rupee gaining against dollar.