Nitesh Estate to invest Rs 700 cr in realty

Bangalore, Feb 1 | Updated: Feb 2 2006, 06:05am hrs
Nitesh Estate, a Bangalore-based property development company, plans to invest over Rs 700 crore to develop high-end residential and commercial properties in Bangalore, Kolkata, Delhi and Goa during this calendar year.

This includes Rs 450 crore investment made by the New York-based private equity firm Siachen Capital in Nitesh Estate.

Currently, Nitesh Estate is working on 10 projects worth Rs 500 crore covering 3 million to 4 million square feet (sq ft) of land which is expected to be completed within the next six months to nine month. The company would increase its scale of operation and expects to develop projects worth Rs 1,000 crore, over 6 million to 7 million sq ft, by the end of 2006.

The company plans to raise a debt of around Rs 100 crore from banks and other financial institutions to fund these new projects.

The investment from Siachen would be directed towards development of township over 2 million to 3 million sq ft of land, said Nitesh Shetty, managing director, Nitesh Estate.

Talking to FE on land prices, Mr Shetty said, "prices are a little concern at the moment". He expects the prices in central business districts (CBD) across the country to see a further hike due to lack of supply.

However, prices in sub-urban areas may see a correction in near future due to over supply of land, he said.