Nitesh Estates hits the roof on tie up with Goldman Sachs

Nitesh Estates hit an upper circuit limit of 10% at Rs 16.01 at 13:40 IST on BSE after the company said it formed a partnership with global financial institution, Goldman Sachs, to jointly invest in income producing real estate properties in India.

The announcement was made during trading hours today, 14 May 2015.

Meanwhile, the BSE Sensex was down 105.68 points, or 0.39%, to 27,145.42.

On BSE, so far 6.89 lakh shares were traded in the counter, compared with an average volume of 1.72 lakh shares in the past one quarter.

The stock hit a low of Rs 14.50 during the day. The stock hit a 52-week high of Rs 18.70 on 9 June 2014. The stock hit a 52-week low of Rs 9.30 on 23 December 2014.

The stock had outperformed the market over the past one month till 13 May 2015, falling 1.75% compared with 6.17% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 38.14% as against Sensex's 6.34% fall.

The small-cap company has an equity capital of Rs 145.83 crore. Face value per share is Rs 10.

Nitesh Estates announced that it signed a partnership agreement with Goldman Sachs, a leading global financial institution, to jointly invest/acquire income producing office buildings, shopping malls and luxury hotels across India.

Under this arrangement, Goldman Sachs will make investments through Nitesh Estates special purpose vehicles, associates, subsidiaries, joint ventures, etc., as the case may be asset-class wise. This partnership is a significant development to the company and will increase the asset base of the company in next 3 to 5 years, the company said in a statement.

Meanwhile, the company during trading hours yesterday, 13 May 2015, announced acquisition of a shopping mall in Pune.

Nitesh Estates, through a 100% wholly-owned subsidiary, acquired the shopping mall in Koregaon, a upmarket prime location in Pune, the company said in a statement. This shopping mall is situated in a prime location of Pune on six acre land area with built up area of over one million square feet and houses some of the prominent brands, it added.

The mall will generate over Rs 45 crore of rental income per annum after a couple of years and will add significant top line revenue to the company and value creation. The mall asset will also enhance the consolidated asset value of the company, the company said.

On a consolidated basis, Nitesh Estates reported net loss of Rs 5.19 crore in Q3 December 2014 compared with consolidated net loss of Rs 4.68 crore in Q3 December 2013. Total income fell 23.2% to Rs 50.99 crore in Q3 December 2014 over Q3 December 2013.

Nitesh Estates the real estate arm of the Nitesh Group, is an integrated property development company headquartered in Bangalore, India, with presence across 4 asset classes.

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