Nitesh Estates enters Pune with mall buyout

Bengaluru-based premium property developer, Nitesh Estates has announced its entry into the Pune market, with the acquisition of the ailing 1 million sq. ft. Koregaon Park Plaza Centre -- an A-grade shopping mall -- spread over 6 acres in the prime upscale Pune suburb of Koregaon, from Israeli firm Elbit Imaging, which is owned by Israeli billionaire Mordechai Zisser in a deal valued at approx INR 250 crore.

With this acquisition the company's shopping mall portfolio now stands at approx 2.2 million sq. ft. They are also developing a 1.2 million sq. ft. shopping mall in the upmarket locale of Indiranagar in Bengaluru.

The Koregaon Park shopping mall can accommodate 130 retail stores, an extensive food court and can house around 1000 cars in the parking space. The mall already has a PVR cinema with 7 screens and Spar supermarket along with leading lifestyle brands like Tommy Hilfiger, Collective, M.A.C, Calvin Klein, U.S. Polo Assn., Swarovski and Crossword.

Elaborating on the rationale behind this latest acquisition, Ashwini Kumar, Executive Director & COO, Nitesh Estates said, "Over the years, Pune has emerged as an important real estate market. We are delighted to acquire this top quality asset and build our shopping portfolio. Koregaon Park shopping mall is undergoing a refurbishment and will soon sport a new food court in addition to fine dining restaurants.

"The changes will take place while the mall remains operational. Nitesh Estates plans to bring their legacy of design driven and cutting edge facades fashioned by one of the best architects for the mall makeover," he added.

In a related development Nitesh Estates has joined hands with global investment bank Goldman Sachs to jointly invest up to US$250 million in income producing commercial real estate assets in India.

Making the announcement recently, NItesh Shetty, CMD, Nitesh estates said, “This landmark investment announcement with Goldman Sachs, an experienced investor in Indian and global real estate, will accelerate our firm's foot print across the country by providing capital where it is needed as well as through acquisitions of existing projects".

In addition to this venture, Goldman Sachs has also provided a financing commitment of US$37 million for Nitesh Estates' acquisition of the Koregaon Park Plaza at Pune.

"Like Koregaon Park Plaza, future target real estate investments will be in leased, income-producing A-grade office buildings and luxury commercial and hospitality facilities throughout India's Tier I cities," added Shetty.

Goldman Sachs is the latest to join a growing number of global investors like Blackstone, Qatar Investment Authority, GIC and Brookfield Asset Management who have bought high quality income producing office space over the last few years.


About Nitesh Estates Limited:

Founded by entrepreneur Nitesh Shetty in the year 2004, Nitesh Estates is a leading integrated property development company headquartered in Bengaluru. The company provides world-class products and services and has presence across four asset classes, Homes, Hotels, Office Buildings, and Retail Spaces.

Since inception, Nitesh Estates has created a niche for itself by pioneering some of the finest real estate projects in the cities of Bengaluru, Chennai, Goa and Kochi. Nitesh Estates currently has 20 mn. sq.ft under development. The company also owns India's first Ritz Carlton Hotel, a 277 rooms luxury five star hotel in downtown Bengaluru.