New Delhi,Real estate major Unitech Ltd, faced with cash crunch, has for $175 million sold 50 percent stake in the initial phase of its Santa Cruz project in Mumbai to Lehman Brothers Real Estate Partners, it said in a regulatory statement Thursday.

The company June 16 announced it would sell 50 percent stake in the project to the real estate arm of Lehman Brothers for $175 million (Rs.7 billion).

Unitech and some Mumbai developers are jointly developing the project. The initial phase entails development of one million square feet of office space, out of the total developable area of approximately 18 million square feet.

Unitech has been chasing private equity investors to tide over a cash crunch caused by rising lending rates, high inflation and falling stock markets. The company withdrew its initial public offering in Singapore last month.

Apart from the private equity route, its Unitech International Real Estate Fund has also raised $300 million (Rs.12 billion) from international investors.The fund is expected to raise another $300 million by September for various projects.

According to media reports, a Japanese bank and some Europe-based individuals have invested in this fund.

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