Indian Economy News

Nitesh Estates buys Pune’s Koregaon Park Plaza for Rs250 crore

  • Livemint" target="_blank">Livemint
  • May 14, 2015

Bengaluru: Real estate firm Nitesh Estates Ltd has bought Park Plaza Centre, a shopping mall, in Pune’s Koregaon area for Rs.250 crore from Israeli firm Elbit Imaging Ltd as the developer looks to expand its retail project portfolio.

The Bengaluru-based firm has been in talks for more than nine months with Elbit, whose subsidiary Plaza Centers NV has constructed the one million sq ft mall. Property advisory Jones Lang LaSalle India was the transaction advisor.

Confirming the transaction, managing director Nitesh Shetty said that Park Plaza property also has an additional 200,000 sq. ft of office space, which the company plans to develop after a year or so. With this 6-acre acquisition, Nitesh Estates enters the Pune property market.

The realtor, known for its city-centric, high-end residential projects, has an upcoming mall in Bengaluru besides the Pune mall. “We are in talks for a couple of more malls and plan to take the 2.2 million sq. ft mall space that we own to about 5 million sq. ft,” he said.

The Park mall in Koregaon was opened in 2012 and has a multiplex, a Spar supermarket besides stores of brands such as Tommy Hilfiger, Collective, M.A.C, Calvin Klein, U.S. Polo Assn., Swarovski and Crossword.

“Koregaon Park shopping mall is undergoing a refurbishment and will soon sport a new food court in addition to fine dining restaurants,” said Ashwini Kumar, executive director and chief operation officer, Nitesh Estates. In 2013, Nitesh Estates ventured into the hospitality sector and opened India’s first Ritz Carlton hotel in Bengaluru.

The shares of Nitesh Estates gained 9.47% to close at Rs.14.56 per share on Wednesday on the BSE, while the benchmark Sensex gained 1.39% to close at 27,251.10 points and the BSE Realty Index lost 0.34% to close at 1545.29 points.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.