Nitesh Estates to raise funds for commercial portfolio
Nitesh Estates Ltd plans to raise about ₹1,300 crore to build a commercial office portfolio even as it mulls exiting the residential business, the company’s top executive said. The Bengaluru-based developer will raise ₹800 crore as equity and partner a foreign investor primarily to build a commercial office platform.
Nitesh Estates also plans to raise up to ₹500 crore of mezzanine capital or structured debt for three to four residential projects, which will be eventually converted into offices.
Nitesh Estates has primarily been a premium residential developer, but given the slowdown in this segment and the several roadblocks faced by the sector, its focus is to finish under-construction projects, pare debt and then, look at rent-generating assets.