Nitesh Estate wins Chennai realty deal

Nitesh estates has pipped heavyweights such as Unitech, DLF and HDFC Realty with a Rs 642-crore offer to bag a church property in the heart of Chennai city.
The deal gives the Bangalore-based real estate and construction player — managed by the 31-year-old Nitesh Shetty — access to a nine-acre plot just off the city’s high-profile Boat Club area.
At Rs 642 crore excluding registration, the transaction is the costliest land deal in south India and jostles for a place among the biggest deals nationally. The Chennai archdiocese had put the land parcel on Chamiers Road on a 66-year lease and called bid for the same, with some 30 expressions of interest coming in the initial round itself.
The just-concluded transaction could well be the fifth-largest land deal in India after Adani’s Rs 2,250-crore pact with HDIL, DLF’s Rs 1,675-crore acquisition of DCM Shriram property in Delhi, Unitech’s Rs 1,586-crore purchase in Noida and DLF’s Rs 702-crore acquisition of National Textile Mills’ land in Mumbai. Earlier this year, hospitality major Leela Group purchased a three-acre plot at Chanakyapuri in Delhi for Rs 635 crore.
The Chennai deal follows Citigroup’s $250-million investment into Nitesh Estates, as reported by ET last week. When contacted, a Chennai archdiocese representative declined to comment. Hugh Britto, senior vice-president, business development, at Nitesh Estates offered no comments. The deal size could well be in excess of Rs 700 crore, including registration value.
Sources said realty bigwigs like Sobha Developers and RMZ were in the fray. Unitech had tied up with local player Arihant for the bid. Unconfirmed bids suggested interest from corporate giants like Reliance Retail and ITC. It is believed that Nitesh could look at developing over one million sq ft of mixed use development on plot. The nearly a decade-old Nitesh group is in the midst of an expansion acorss key cities. It is also planning a foray into the hospitality industry and has plans to set up at least five luxury hotels.
Last year, Nitesh inked a definite deal to bring Ritz Carlton to India with the first property in Bangalore. While Nitesh is not the exclusive partner to Ritz Carlton in India, it could well be the preferred party for future expansion, sources said. The Ritz Carlton arrangement as well as an earlier investment by the $26-billion global hedge fund Och-Ziff have catapulted Nitesh into national limelight in recent times. Citigroup’s $250 million infusion was the biggest by the global financial powerhouse in the domestic realty sector.

 

ET