Mar 12 2019

Pune: Nitesh Estates sells its 1-million sq ft shopping mall to Era Realty

MUMBAI | BANGALORE: Realty developer Nitesh Estates has sold its 1-million-sq-ft shopping mall in Pune’s Koregaon Park and reduced consolidated debt by Rs 407.88 crore.

Through this deal, Goldman Sachs Investments (Mauritius), an investor in this development has been given its exit on debentures. With this de-leveraging, the company has brought down its net consolidated debt by over 30%.

The company has also announced its strategy focus, going forward, will only be on commercial offices, warehousing, data center, hotels and other rent-yielding assets. It has decided to exit residential property business.

The mall was sold to Era Realty, which is a part of the ABIL Group, the company said in a regulatory filing.

“We are happy to have started on a de-leveraging plan with this exit of a non-core asset and emerge as a strong and efficient real estate player in a difficult market,” said L.S Vaidyanathan, Executive Director, Nitesh Estates.

Late January, Nitesh Estates had announced its intention to reduce the overall debt by an around Rs 700 crore within 180 days.