Nitesh Estates to launch Rs 800 cr residential project

Anjana Chandramouly Bangalore | Updated on October 12, 2011

Real estate developer Nitesh Estates plans to launch four million sq ft of development in the next three-six months with a project outlay of Rs 800 crore.

“Most of these developments would be in the residential space,” Mr L.S. Vaidyanathan, Executive Director, Nitesh Estates, told Business Line. About 70 per cent of these projects would be in the mid-market segment, while the rest would be in the luxury segment, he pointed out.

This quarter, the company plans to launch a villa joint-development project near Jakkur in Bangalore. Spread over six acres, the project would see development of about six lakh sq ft, said Mr Vaidyanathan, adding that the company would finalise pricing and other project details in the next two weeks. Besides, the company plans two other project launches in January 2012. Nitesh Estates is looking at couple of opportunities in Chennai, he added.

The company plans to commence construction of its mall this quarter. The 1.2-million-sq-ft Nitesh Mall would come up at a cost of Rs 550 crore, of which Rs 350 crore would be funded through debt.

On funding for the project outlay of Rs 800 crore, he said that a major portion of the planned investments would be self-funded, while debt would form 15-20 per cent of the project cost. “We are under-leveraged today, and have no problem raising debt,” he added. The company's current debt-equity ratio is 0.1.

On sales during the first half of this fiscal, Mr Vaidyanathan said, “Negative sentiments and interest rates have played spoilsport to what could have been achieved,” however, adding that the company did well in new launches. The company launched development of seven lakh sq ft of saleable space with expected revenues of Rs 310 crore in the first half of the fiscal.

Published on October 12, 2011

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