HDFC Property Ventures Limited has sold its 50 per cent stake in its JV project, Nitesh Indiranagar Mall to JV partner Nitesh Estates Limited. HDFC’s real estate arm invested $20 million in Nitesh’s 1.5-million-square feet mall project at Indiranagar in Bangalore in 2009 and given the rate of 20 per cent return on investment, it may have exited for $24 million.
Nitesh Estates is engaged in the development of residential real estate & commercial projects. It is also developing a hospitality project in Bangalore, and a residential and an office project in Kochi. It is headquartered in Bangalore. Other than that, Nitesh Estates is as well building an Rs.100 crore luxury residential project in Bangalore which is expected to be completed in two years.
Nitesh’s residential projects in Bangalore include Hyde Park, Nitesh Forest Hills, Nitesh Flushing Meadows among others and Nitesh Wimbledon Gardens, a residential and commercial project in Kochi. In 2010, Nitesh raised Rs.450 crore via IPO to fund its projects.
HDFC Property Ventures Limited, the real estate arm of HDFC, is also planning to exit some of its other investments spread across Pune, Bangalore, Chennai and Hyderabad. HDFC has investments in some of Embassy Group’s big IT park projects in Pune and Bangalore, which are on lease rental to clients such as IBM and Cognizant.
Embassy Golf Links is a commercial real estate project in Bangalore. The stake may be worth 2.55 billion rupees. Both high net worth individual investors and rental yield funds, are in talks with HDFC Property for the short-listed property.
HDFC intends to offload some investments and is believed to have shortlisted six properties in Mumbai, Bangalore, Pune and Hyderabad to be either part-sold to individual buyers or wholly to another fund. Embassy Property Developments Ltd is understood to be raising private equity even as it is awaiting Securities & Exchange Board of India (Sebi) clearance for a planned public offer.
HDFC Property Ventures Limited is a real estate investment arm of Housing Development Finance Corp. Ltd.
The Nitesh Mall, in the up-market Indiranagar was built with world-class amenities and is going to offer great shopping and entertainment experience, making it the most sought after mall in the Central Business District of Bangalore.
The project estimated to be about Rs. 500 crore, is being designed by globally renowned retail design firm Callison of Seattle. Nitesh Mall aims to become the most convenient retail destination for avid shoppers.