Unitech's Mumbai joint venture falls apart

Unitech Ltd, India’s second-largest realtor by market capitalisation, has parted ways with Omkar, its Mumbai joint venture partner for slum rehabilitation projects. Omkar is a part of the Ghasiram Gokalchand Group, a steel business house in the metropolis. Both partners held equal stake in the venture, called Unitech Omkar.

Unitech has already infused Rs 250 crore into the venture, which had launched projects at discounted prices in prime localities like Worli in order to raise cash upfront. The projects were being executed at the entity level. Following the parting of ways, ongoing projects will continue as special purpose vehicles (SPVs).

Unitech has a portfolio of 42 million square feet through joint ventures in Mumbai of which 50% is its own share. The Unitech Omkar joint venture has launched projects in Worli, called The Residences. It has pre-sold around 20% of the project. Another one is in Chembur where Phase I has been sold out and it was expected to launch the second phase, apart from the Woodside and Ascot projects in Dadar, central Mumbai.