Nitesh Estates, the Bangalore-based realtor, has won the bid to develop a 1.5 lakh square feet residential project in Aga Abbas Ali Road, close to MG Road, in Bangalore. Nitesh Shetty, managing director of the company, confirmed the development and said, “The project would add approximately Rs 35 crore to the company’s bottomline.” The developer would hold 45 per cent stake in the project, which it expects to sell for Rs 20,000 per sq ft. It is also looking for another development of 3 lakh sq ft, which would add Rs 65 crore to the net profit next year, according to a report published in DNA. “We have already launched two projects this year and we will launch another eight. We have sold 330 units and expect to reach our target of 1,000 flats this year. We are expecting a net profit of Rs 175-200 crore through the sales,” Shetty was quoted as saying. The construction on the two properties has just begun. The Street is also abuzz with the news that Nitesh Estates is hiking its stake in its hotel project in Bangalore — the first Ritz Carlton property in India. It has 26 per cent stake in the project and the rest 74 per cent is owned by Citigroup Property Investors, which is being bought by Apollo Management. In about 90 days, executives from Apollo are expected to take over. The construction cost of the Ritz Carlton project is close to Rs 700 crore and the property is expected to come up by late 2011. Shetty denied increasing his stake in the hotel property, but sources said that the promoters are looking at raising 10-15 per cent stake in the project as it makes sense going forward. Nitesh is looking at selling around 80-85 per cent of its Kochi property and the project will have investment of around Rs 400-800 crore. The company will sign the deal with an Indian operator by the end of the month, a source said.
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Nitesh Estates Awarded with Bangalore Residential Project
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