Public sector Oriental Bank of Commerce has dropped a plan to buy a prime office property in South Delhi’s Saket area from debt-laden realtor Unitech Ltd, with talks believed to have broken down over its high valuation.
“We are not interested in buying any of Unitech’s properties,” a top official at the bank told Hindustan Times. He said the bank was now considering other locations for its headquarters.
Officials close to the development had earlier said that Unitech was in advanced stage of talks with OBC and some high net worth individuals to sell the 2.2 lakh square feet office for Rs 500 to Rs 600 crore.
The head of a real estate consultancy, who did not want to be identified, said in the current market, the property was estimated closer to Rs 300 crore as the per-square foot price of comparable buildings had fallen by at least 20 to 25 per cent over the past six months.
Unitech officials could not be reached for comments.
Unitech, saddled with long-term debt of Rs 8,400 crore, sold a hotel property in Gurgaon for Rs. 235 crore this year and last week set plans to raise $325 million through a private placement of shares.