Realty company Nitesh Estates on Wednesday announced the acquisition of 1 million sq ft of commercial space in Pune through a wholly-owned subsidiary. The Bengaluru-based firm acquired Koregaon Park Plaza Centre, a shopping mall, from Israeli firm Elbit Imaging, which is a holding company with activities in real estate, medical imaging, hotels, shopping malls and retail. Company sources told FE that the total worth of the acquisition was Rs 250 crore.
“The mall will generate over Rs 45 crore of rental income per annum to Nitesh Estates 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,” company sources said in a report to the BSE.
The shopping mall is spread over 6 acres in the prime upscale locale of Koregaon in Pune, company sources said.
With this acquisition, the 10-year-old company’s shopping mall portfolio is now 2.2 million sq ft. The company is currently developing a 1.2-million-sq ft shopping mall in the upmarket locale of Indiranagar in Bangalore.
The Koregaon Park shopping mall can accommodate 130 retail stores, an extensive food court and can house around 1,000 cars in the parking space. The mall already has a PVR cinema with seven screens and major brands.
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.”