Nitesh Estates raising funds to build its commercial office platform

In its attempt to build a commercial office portfolio, leading realty player Nitesh Estates is all set to raise around 1,300 crores. Headquartered in Bangalore, the company will raise 800 crores as equity and partner a foreign investor primarily to build a commercial office platform, said chairman and managing director Nitesh Shetty. This move is sure to enhance his presence and current stature in the industry.

The developer further aims at raising up to 500 crores of mezzanine capital or structured debt for three to four residential projects, which will be eventually converted into offices. It is also looking forward to raising another 400 crores, with the bulk of the proceeds to be used for managing debt and the remaining to complete ongoing projects and other exit formalities.

“…Our objective first is to complete our seven residential projects and finish our consumer commitment and exit the residential space. Along with this, our senior team is focusing on the shift to rental assets and in the next two years, come out strongly with our pipeline and build a platform with a global institution,” Shetty said.

Talking about the current market scenario, Ram Chandnani, managing director, advisory and transaction services, India at CBRE South Asia said, “India’s commercial office market is on an upswing and given the kind of absorption of office space last few years, we are bullish about the asset class and expect it to see continued growth. For commercial real estate, it is important to have strong financial support from institutional investors.”

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