Nitesh Estates Plans To Raise RS 1KCR Via SPV Share Sale

Delhi, India (PressExposure) November 29, 2009 -- Bangalore based real estate developer Nitesh Estates is learnt to have planned to raise nearly Rs 1,000 crore through sale of shares of a special purpose vehicle (SPV) to finance setting up Ritz Carlton hotel in Chennai.

A person close to the matter said the hotel SPV would sell shares to private equity investors prior to its listing with a foreign stock exchange, preferably Singapore or London. The company would dilute over 70% stake through stake sale and foreign listing, he added. While this buzz is doing the rounds all over, executive director LS Vaidyanathan refused to comment on the issue.

Last week, the company entered into an agreement with US-based Ritz Carlton, a wholly owned subsidiary of Marriott International, to set up a 200-room hotel and 80 serviced residences in Chennai. The project, which will be located on 9 acres of land in Chennai's posh Boat Club area, will also have one lakh sq ft of luxury retail space. The cost of the project is estimated to be around 1500 crore.

It is believed that the company is also working with the foreign company to develop a hotel in Bangalore in next two years. This is going to be another prime project of the company.

Daiwa Securities and Nomura are learnt to be in discussions with Nitesh Estates for the overseas listing of the SPV in next six months.

Meanwhile, the company is also expected to hit the market with a Rs 550 crore initial public offer (IPO) in January. It has learnt to have appointed Morgan Stanley, Enam, Kotak and JM Financial as advisors to the IPO. It might divest anywhere around 35% stake through the IPO.

Courtesy:- ET dt:- 20-11-2009

About Bhardwaj Buildtech Pvt Ltd

Last week, the company entered into an agreement with US-based Ritz Carlton, a wholly owned subsidiary of Marriott International, to set up a 200-room hotel and 80 serviced residences in Chennai. The project, which will be located on 9 acres of land in Chennai's posh Boat Club area, will also have one lakh sq ft of luxury retail space. The cost of the project is estimated to be around 1500 crore.

Press Release Source: http://PressExposure.com/PR/Bhardwaj_Buildtech_Pvt_Ltd_.html

Press Release Submitted On: November 30, 2009 at 2:00 am
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