Nitesh Estates To Raise Funds For Residential Projects

Nitesh Estates Limited is planning to raise R400 Cr PE investment through its subsidiary – Nitesh Housing Developers for its residential projects.

The company is planning to provide exit to HDFC Asset Management Co. Ltd by the end of March by buying back its stake. HDFC AMC invested Rs.80 crore for a 11% stake in a subsidiary special purpose vehicle in 2009, as stated by Mint.

Last February, HDFC Property Ventures Limited sold its 50% stake in JV project - Nitesh Indiranagar Mall to JV partner Nitesh Estates Limited. In November, JP Morgan Global Fund invested $40Mn for a 45% stake in a Nitesh Estate SPV which was executing three projects totalling 4 mn sqft in Bangalore and Chennai.

Founded in 2004 by Nitesh Shetty, Bangalore-based Nitesh Estates is engaged in the development of residential real estate & commercial projects. It has brought more than 18 million sq ft of space under development as premium living, working, lifestyle and leisure space.

The company received investments from Citigroup in 2006 and Och Ziff in 2007, thus becoming one of the first few companies in India to attract FDI in real estate.

Nitesh Estates undertake most of its projects through the joint-development model as compared to acquiring a freehold or leasehold interest in the land, which reduces the upfront cost of land acquisition and its total project financing costs.

Earlier this year, Nitesh launched a luxury villa project, Napa Valley, in Bangalore. The company is currently developing its first hospitality project, 'Ritz-Carlton' brand hotel in India which expected to get ready for launch in the next 3-4 months.

Nistesh estates is also planning to bid for the upcoming Four Seasons hotel and residences project.

Some of its residential projects in Bangalore includes Nitesh Hyde Park, Nitesh Forest Hills, Nitesh Flushing Meadows among others and Nitesh Wimbledon Gardens, a residential and commercial project in Kochi.

In real estate segment, Xander Group, the real estate focused PE firm, was planning to acquire the retail and hotel project of Ozonegroup for around R350 Cr. Sun Apollo was set to invest upto $50 Mn in projects developed by Sobha Developers, a South India based realty developer.

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November 23, 2012 03:23 PM

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