Nitesh Estates to raise funds for commercial portfolio

Nitesh Estates Ltd plans to raise about ?1,300 crore to build a commercial office portfolio even as it mulls exiting the residential business, the company’s top executive said. The Bengaluru-based developer will raise ?800 crore as equity and partner a foreign investor primarily to build a commercial office platform. Nitesh Estates also plans to raise up to ?500 crore of mezzanine capital or structured debt for three to four residential projects, which will be eventually converted into offices. Nitesh Estates has primarily been a premium residential developer, but given the slowdown in this segment and the several roadblocks faced by the sector, its focus is to finish under-construction projects, pare debt and then, look at rent-generating assets.