5 Million Sq.Ft Of Office Spaces To Be Built By Nitesh Estates In The Next 3 Years
Nitesh, which is well known for its residential developments for the middle and the high-income groups will now focus on developing commercial spaces at a cost of Rs. 1,500 crore across the city.
BENGALURU: In the next 3 years, the property developer Nitesh Estates will develop Grade A office spaces at a cost of Rs. 1,500 crore. Nitesh has so far focused on the residential projects across the city of Bengaluru. Now that it has shifted its focus on commercial segment, the company has decided to invest Rs 1,500 crore in the next 3 years, by mix of debt, equity and private equity. A sum of Rs. 300 crore has been deployed already.
Mahesh Laxman, chief executive of Nitesh's commercial & rental business, said,"The company has plans to set up half a million sq ft of office spaces in the central business district and also between the Electronic city and outer ring road. At the same time, we would also address the lack of Grade A office spaces in the city".
The company is expecting an annual rental income of Rs. 350-400 crore after the entire project is completed which will be in 2020. The company also has plans to expand its operations in Pune, Hyderabad and Chennai.
By embarking on this new project, the company will diversify its revenue source. The residential segment has been very unenergetic in India for a long time. Nitesh has also tied up with Goldman Sachs to invest $250 million in income producing commercial rental assets in India.
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