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Unitech Corporate Parks Falls on Weakening Rupee: London Mover

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Aug. 21 (Bloomberg) -- Unitech Corporate Parks Plc had its biggest two-day drop in three years as a sliding rupee may pare earnings even after the owner of Indian office parks reported gains in leased space, rental income and property values.

The shares fell 3.1 percent to 38.75 pence in London, taking the two-day drop to 9.9 percent, the most since June 2010. The volume of shares traded was 37 percent more than the three-month daily average.

The rupee fell to a record against the British pound today, extending its slide this year to 11 percent. India’s economic growth is at its lowest in a decade, Unitech said yesterday when it published results for the year ended March 31.

“This will continue to affect our results expressed in sterling,” the company said in the statement. “The reduced rate of growth in the Indian economy does not directly affect the company, and we do see modest improvement in the global business sentiment.”

The amount of space leased rose 8.8 percent in the fiscal year, while Unitech’s share of rental income increased 19 percent to 16.4 million pounds ($25.7 million) from a year earlier. Net asset value rose 11 percent to 58 pence a share.

Unitech is in talks with two bidders for G2, its most advanced office-park development, it said. The company is considering how it can return cash to investors, probably in the first half of next year, once the asset is sold.

Some of the proceeds may be deferred and Unitech may retain some cash because selling its principal income-producing asset will crimp its ability to borrow, the company said.

To contact the reporter on this story: Peter Woodifield in Edinburgh at pwoodifield@bloomberg.net.

To contact the editor responsible for this story: Douglas Lytle at dlytle@bloomberg.net