Nitesh Estates plans ₹1,300-cr commercial space

Nitesh Estates, a Bengaluru-based developer, has decided to build a commercial office portfolio for which is in the process of generating ₹1,300 crore. It is raising ₹800 crore as equity and its partner, a foreign investor, will focus on the commercial office platform, CMD Nitesh Shetty in a media statement said that the company has mandated Industrial and Commercial Bank of China (ICBC) for the same. In addition, it is also raising about ₹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, is now focusing on finishing its under-construction projects, pare debt and then, look at rent-generating assets. The developer also plans to sell or exit a few land parcels, including those it owns as well as under joint development agreements to raise another ₹400 crore.