Nitesh Estates to raise Rs 400 cr fund from PE firms
Bangalore- Nitesh Estates Ltd is planning to raise Rs.400 crore from private equity (PE) firms, for developing residential projects. Nitesh Housing Developers, which is a subsidiary of the company will be raising the big fund.
The developer has been planning to launch five new projects of which, two will be luxury residential projects while the rest will be priced at about Rs. 4,500 per sq. ft. All five are expected to be launched in this financial year. The company has launched Napa Valley, a luxury villa project, earlier this year.
Though Nitesh Estates have built a strong launch pipeline, delay in project execution is what hindering the growth. The renowned real estate firm witnessed a growth of 8.42% to Rs 30 crore in the third quarter of this year while its losses increased from Rs 61 lakh in 2011 to Rs 12.56 crore.
Nitesh Estates has planned to buy back its stake from HDFC Asset Management Co. Ltd by the end of March.
Diverting its focus from residential projects, the firm has formed joint ventures to develop four prime central business district office buildings with an annual revenue potential of Rs.100 crore. It is also building a shopping mall in Indiranagar, Bangalore, which is expected to be completed in 30 months.
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