Unitech to mop up Rs 3,100cr via London float

The country's largest publicly traded real estate firm Unitech announced its plans to raise over Rs 3,100 crore (£360 million) through the listing of a newly floated company on the London Stock Exchange.

The realty major has incorporated a new real estate investment company, Unitech Corporate Parks, in the Isle of Man and plans to list it on the London Stock Exchange's Alternative Investment Market with an institutional placement of its shares.

Unitech Corporate Parks Plc, which intends to invest in the Indian commercial real estate sector, said in a regulatory filing that the offer size is expected to be about £360 million ($700 million).

The company plans to use the offer proceeds for acquisition of majority stakes in six commercial real estate development projects "" including four IT SEZs and one IT Park development in the NCR region and also one IT SEZ in Kolkata.

The company expects to co-invest in the initial portfolio alongside Unitech Ltd and its affiliates.

Unitech Ltd is the largest listed real estate developer in India by market capitalisation, which stood at about $8.9 billion as on November 28, 2006.

Unitech's London listing plans follows a successful IPO by Ishaan Real Estate earlier this month on LSE's AIM market.

A number of other real estate firms including Hiranandani are also reportedly mulling over plans to list in London as rules for raising capital through sale of shares are considered to be less stringent there, investment bankers said.

Atul Kapur, who will be Chairman of UCP, said, "We will be primarily focusing on the key growth markets of the IT and ITES industries which we believe currently offer some of the most attractive real estate prospects in India."

Aubrey Adams, who will be a non-executive director of UCP, added, "The company will have an attractive opportunity to co-invest alongside India's largest listed real estate company with a highly successful track record of developing and managing quality assets and established relationships with some of the largest multi-national companies currently operating in India.

The company has appointed Nectrus Ltd, an affiliate of Unitech, as the Investment Manager

.UCPs board will comprise five non-executive directors chaired by Atul Kapur, formerly a Managing Director at Goldman Sachs Internationals Principal Strategies Group in Europe. The Board will also include Aubrey Adams, Group Chief Executive of Savills plc.

Deutsche Bank AG and Morgan Stanley and Co International Ltd have been appointed as Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers to the Offer. Deutsche Bank will act as the companys Nominated Adviser.