This builder has gone from (best-ok-bad-worst) with delaying almost every single project they have initiated and lured customers in especially GGN and Noida.

I have been thinking to invest in either Uniworld gardens or Residency project in gurgaon but have been hearing lot of horror stories about this builder in terms of enduring delays, poor communication, and company's debt.

I am looking to buy a apartment for living purpose and early possession within
6-9 months of timeframe.


Also if someone has invested in either Uniworld gardens or Residency, it would be great if they can throw some light.

Need your inputs and help in deciding who to go with ?

Is it really safe to put hard earned money in any of these projects?
Thanks,
Sachin
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  • You have chosen the two best projects available currently from Unitech in gurgaon. The problem with Unitech is that they dont have the money to finish these projects and they are looking to get the money from newly launched project, then they will invest in the ongoing projects. The wait for 6-9 months may extend up to 1 year to 1.5 years. So, if you are investing in these projects the expect a good delay in possession.

    Unitech is a good builder, but due to high debt and no cash reserve, they are not able to deliver in time. If you look at any of the previous projects, the maintenance has been really good and people are living a luxurious life in all their previous projects.

    Now, its your decision which way you want to go.
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  • Dear Sir, you have chosen the projects which are not at all bad. the developer is still reliable. the only thing you have to wait for that the possession would be in 4 to 5 years rather than 3 to 3.5 years, because of the debts position of the developer.

    The projects you are talking about has already taken a good amount of appreciation in the market along with all the neighboring projects. Still the developer is in good stage and the happening with Mr. Chandra are not going to effect their Real Estate division as this is not going to make any impact on these projects, but due to less of cash reserve the company would deliver the projects in 4 - 5 years in place of 3 - 3.5 years.

    further its your own decision to take a step.
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  • Current situation of Unitech is really not good, ground realities also not encouraging to invest so much of money in unitech resale projects (or to en extent most of the projects in GGN, Unitech is mre bad than others because of it's tight situation).

    My view is to wait a little more, instead of giving good amount in premium and then waiting for unknown time.
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  • jo lagaiga vohi paiga.. ground reality is that no developer doing very well.. but still prices are increasing..
    unitech is still a good bet.. my 2 cents on unitech..
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  • Originally Posted by cheettu
    jo lagaiga vohi paiga.. ground reality is that no developer doing very well.. but still prices are increasing..
    unitech is still a good bet.. my 2 cents on unitech..


    Thanks for the response folks!

    I agree with you guys. Ground reality is that no builder is giving possession on time. I don't mind the wait to go from 9 months to a year or little more. Their debt is what has been a concern.

    Also like some others suggested, wait for a market direction, so if there is going tO be a some correction then do you guys see price of these flats getting dropped.

    I currently got a quote of 6400, middle floor for UG-2, not sure if it is on a high side considering the construction situation.
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  • Unitech has reduced its debt by 40% in the last 3 years

    Its debt equity ratio is 0.46..
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  • The reports stated that the the company have reduced our gross debt significantly from over Rs 90bn in March, 2009 to about Rs 55bn.
    Unitech has lowered debt by 40% in last two and half years and would further reduce the borrowing in coming quarters from operational cashflows, according to reports.
    The reports stated that the the company have reduced our gross debt significantly from over Rs 90bn in March, 2009 to about Rs 55bn.
    The company would infuse more funds on construction of ongoing projects for fast execution of about 80 projects across the country, adds report.
    There are also reports that the real estate firm cut debt by nearly Rs 4bn in the first half of this fiscal.

    Unitech cuts debt by 40%...Eyes more reduction
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  • the debt is further reduced and will reflect in coming qtr. the challenge with unitech is not money perse but of planning/capasity to execute the huge no of projects



    Originally Posted by amit001
    Unitech has reduced its debt by 40% in the last 3 years

    Its debt equity ratio is 0.46..
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  • Realty major Unitech has lowered debt by 40 per cent in last two and half years and would further reduce the borrowing in coming quarters from operational cashflows.
    “We have reduced our gross debt significantly from over Rs 9,000 crore in March, 2009 to about Rs 5,500 crore now. The trend will continue in the next two-three quarters after that we may not need to reduce further,” Unitech managing director Sanjay Chandra said in his first interaction after getting bail in 2G telecom scam.
    Besides gradual reduction in debt, he said the company would infuse more funds on construction of ongoing projects for fast execution of about 80 projects across the country. It invested Rs 1,300 crore on construction last fiscal.
    “We do not have any concern on the debt front. Operational performance is leading to continuous reduction in debt and not asset sales,” Chandra said.
    He noted that the company’s debt-equity ratio was in a comfortable position at 0.46 per cent and is very low compared to peer groups.
    Unitech, the country’s third largest realty firm, has cut debt by nearly Rs 400 crore in the first half of this fiscal.
    In 2009-10 fiscal, the company had raised about Rs 4,500 crore from qualified institutional placement of equity shares, out of which about Rs 2,200 crore was utilised to cut debt. After that reduction has been through operational cash flows.
    On sales performance, Chandra said: “We are not pricing our products too expensive that sales are affected. We should achieve sales booking of Rs 1,000 crore per quarter despite macro-economic deteriorating”.
    During the first half of this fiscal, Unitech has sold 3.71 million sq ft of area, mostly residential, worth Rs 2,088 crore. The company has launched projects comprising 6 million sq ft of saleable area and more projects are in pipeline.
    Chandra said the company would not shelve its plan to develop 13 shopping malls because of the government’s decision to put on hold its plans to open FDI in multi-brand retail.
    “We have nine malls under construction and we have land for another four malls. We will develop these malls,” he said, adding that the the company would invest up to Rs 3,000 crore in the next five years for this.
    Unitech’s share price fell by nearly eight percent on Friday to close at Rs 19.55 on the BSE. The scrip has plunged from Rs 68.05 on January 4 this year. The market cap of company stood at Rs 5,111.24 crore.

    Unitech cuts debt by 40%, to reduce it more: Sanjay Chandra
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  • D/E Ratio of Various listed companies:

    Unitech - 0.46
    DLF - 1.1
    Vipul - 0.68
    Shobha - 0.85
    Godrej - 0.86

    Source - Moneycontrol/Annual Reports
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  • Originally Posted by sashmaav1
    Thanks for the response folks!

    I agree with you guys. Ground reality is that no builder is giving possession on time. I don't mind the wait to go from 9 months to a year or little more. Their debt is what has been a concern.

    Also like some others suggested, wait for a market direction, so if there is going tO be a some correction then do you guys see price of these flats getting dropped.

    I currently got a quote of 6400, middle floor for UG-2, not sure if it is on a high side considering the construction situation.


    I have myslef bought in UG2 a month back...No other project comes close if you have to factor in

    1) location (malls, apartments everything is ready)
    2) ticket size (65-66 lacs all in)
    3) ready to move in 6 months or so (will have good rental potential as well because of commercial setup around sohna road and scarcity of 2BHK around this belt)
    4) Great Brand (Unitech)

    I bought in for 6300..i would say 6400 is a good price ..go for it..i have waited 3-4 months thinking market will go down and and paid 300-400 extra per sq feet.
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  • Originally Posted by vishals08
    I have myslef bought in UG2 a month back...No other project comes close if you have to factor in

    1) location (malls, apartments everything is ready)
    2) ticket size (65-66 lacs all in)
    3) ready to move in 6 months or so (will have good rental potential as well because of commercial setup around sohna road and scarcity of 2BHK around this belt)
    4) Great Brand (Unitech)

    I bought in for 6300..i would say 6400 is a good price ..go for it..i have waited 3-4 months thinking market will go down and and paid 300-400 extra per sq feet.


    Thanks Amit and Vishal for your valuable input and analysis. That give some comfort and nerves to invest in the project.

    Vishal btw at the time of purchasing UG2, did you actually had a chance to visit the location and see the progress? Just curious. :)
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  • Amit-sir, All

    Whilst Unitech may have lowest debt ratio, it also has one of the worst track records on delivery, if not 'the worst'

    BTW, I am also holding a unit with Unitech, so, not trying to take a dig at you guys, or trying to create panic. But at the same time, it is important to accept pitfalls as well. On a positive note, generally Unitech projects are of good quality, i.e when they deliver the project.


    Originally Posted by amit001
    D/E Ratio of Various listed companies:

    Unitech - 0.46
    DLF - 1.1
    Vipul - 0.68
    Shobha - 0.85
    Godrej - 0.86

    Source - Moneycontrol/Annual Reports
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  • Originally Posted by sashmaav1
    Thanks Amit and Vishal for your valuable input and analysis. That give some comfort and nerves to invest in the project.

    Vishal btw at the time of purchasing UG2, did you actually had a chance to visit the location and see the progress? Just curious. :)


    I stay in gurgaon and keep visiting the site every now and then...of late the pace of work has slowed down a bit...infact there is a group on FB of the UG2 members...people are planning to meet up unitech officals this week to voice the concern over slow pace of work...
    ...
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  • Do not invest with UNITECH. As an investor with them, and in Sector 117 Noida, I will ask anyone to stay away from Unitech. Their only aim now is to trap new people into their schemes and get money from them to complete their earlier projects. So in essence you are just paying instalments not for your own project but one of Unitech's earlier ones. And believe me - once they have your money with them, their customer service department will stop responding to your queries and will simply sit on your money without delivering the property you have booked. If you want to keep you money safe stay away from them.
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