Apr 04 2019

Nitesh Estates pares Rs. 450 cr debt via asset sale

Bengaluru-based Nitesh Estates Ltd has sold a 21,000 sq. ft. residential plot for Rs. 55 crore in the city’s upscale Cunningham Road as part of its effort to pare debt and exit residential projects.

With the transaction, signed on Mondya, Nitesh Estates has repaid Rs. 40 crore borrowed from HDFC Ltd, the company said. The plot was sold to a high net-worth individual investor, whose details were not disclosed.

Nitesh Estates, in March, sold the Plaza Centre Mall in Pune, comprising 1 million sq. ft. to Era Realty Pvt. Ltd, part of ABIL Group.

Goldman Sachs Investments (Mauritius), an investor in the development, has exited with this deal, the company said.

Nitesh Estates, which had a net debt of ₹1,500 crore as of 31 December, has cut it by around ₹450 crore through these two deals.

“We had aimed to reduce ₹700 crore of debt, so the remaining ₹250 crore will be pared through the sale of assets in Bengaluru and by bringing in strategic partners or investors into specific projects,” chairman and managing director Nitesh Shetty said in an interview.