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UTI-I sells a quarter of its realty holdings
Janaki Krishnan in Mumbai | April 07, 2005 11:36 IST
The Specified Undertaking of UTI or UTI-I has managed to dispose of around 25 per cent of the real estate assets held by it. Confirming this Ajeet Prasad, executive director UTI Mutual Fund said, "this disposal of the real estate holdings under UTI-1 started last year and we have managed to sell off around 25 per cent of it."
The renewed boom in the real estate market has encouraged the administrators of the scheme to sell off the assets. Just last year the former corproate headquarters of the fund at New Marine Line in South Mumbai was sold off to a government department.
The total real estate holdings under UTI-1 have been valued at over Rs 1,000 crore (Rs 10 billion) and consists of both commercial as well as residential properties.
Prasad indicated that the exercise might be completed by the end of the calendar year. The disposal of these assets is being managed by UTI Infrastrucure Company.
Meanwhile with regard to the equity holdings of US-64 -- especially the stake it holds in companies such as Crisil -- Prasad indicated that it would be participating in all open offers and offloading its stake as and when such opportunities occur.
Apart from this, it will also look at offloading its stake to other institutions but it would be done at a 'good' value, he said.
He however said that it would be done slowly over time and without destabilising the market in any way. Even in the case of open offers, it would not be dumping its stocks in bulk.UTI-1 also holds stake in a number of unlisted entities such as NSE, NSDL and Prasad said that it would have to transfer its stake in such entities only after getting a fair valuation for it.