Unitech to invest Rs 4,000 cr to develop 30 mn-sq-ft

NEW DELHI: The country's second largest real estate developer Unitech today said it will invest Rs 4,000 crore in construction of up to 30 million sq ft of residential and commercial spaces to be launched by next year.

The company is also planning to hike the prices of its upcoming properties by 10-12 per cent in 2010.

"We are going to launch 25-30 million sq ft of spaces next year, of which 90 per cent will be residential... It will require us to invest about Rs 4,000 crore for developing these properties," Unitech Managing Director Sanjay Chandra told reporters here.

The company's focus in the residential segment would be to roll out more affordable homes under UniHome brand, which would comprise about 70 per cent of the total launches in the housing sector, he added.

Unitech has launched 21 million sq ft of affordable homes of the targeted 30 million sq ft for this year, he said.

Asked if the company would raise prices of its products in near future with the demand picking up, Chandra said: "About 10-12 per cent price rise should happen next year... If it does not affect sales, we will increase (the prices), if it affects sales, then we will not increase (the prices)."

On fund raising exercise by Unitech, he said the company did not have any immediate plans to raise equity capital, but would raise through debt