Unitech Corporate Park - In Rough Waters

Unitech Corporate Park [Listed on AIM London] is now facing Approval delays and a really difficult business environment. Weak rentals and an increase in interest rates have only added to its woes.

A report released by Deutsche Bank just minutes ago said,

Unitech, has been significantly affected by government delays in regulatory approvals for its five IT SEZ projects, and weak demand delaying its Noida IT park, lower-than–expected rents in four of its six projects, and tightening liquidity resulting in a sharp increase in interest rates – which resulted in a 200bp increase in cap rates to 10% and a 100bp increase in discounting rates to 17%.

Deutsche has reduced the target price by 28% in-line with most Realty companies downgrade in India.