Nitesh Estates may raise Rs 300 cr to fund growth
Bangalore-based real estate developer Nitesh Estates is planning to raise around Rs 300 crore of debt in the next one year to fund its projects in residential and retail verticals.
While the publicly-listed company is likely to raise around Rs 100 crore of construction debt for three of its residential projects, around Rs 200 crore will be raised for its shopping mall project in Bangalore.
“Three of our residential projects may need around Rs 30 crore-Rs 40 crore of construction finance in the present fiscal. Also, we may require Rs 200 crore of debt for our upcoming retail project in Bangalore,” Nitesh Shetty, chairman and managing director of Nitesh Estates, said.
Though the company is in talks with financial institutions, nothing concrete has come up yet in this regard, he added.
Nitesh Estates, which is planning to launch around 6 million sq ft of space in the present fiscal, it is presently developing its retail project ‘Nitesh Mall’ in the city. The project is coming up on 5.5 acres. The mall is being designed by Seattle-based architecture firm Callison and is expected to be ready by the end of this year.
“We have already infused around Rs 170 core of equity on the shopping mall project which is being used in developing the project. We will raise debt after the equity part is utilised in this retail space,” Shetty added.
Presently, around 75 per cent of the company’s reve-nue is coming from residential segment with the rest coming from commercial space. However, the com-pany is betting big on retail with plans of new projects in Bangalore, Chennai among other cities.
“We hope retail will contribute around 20 per cent to our total revenues in the next three to five years,” he said.
Nitesh Estates has pos-ted a consolidated net profit of Rs 10.92 crore in the last financial year. The total sales of the company stood at Rs 124.11 crore during the period.
The company has achieved sales of 1.14 million sq ft of space and the total bookings last fiscal were 801 residential units for the realtor.
Nitesh Estates has around 20 million sq ft of space under various stages of development and it is planning to sell around two-three million sq ft of space in the present financial year.