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Citigroup is investing around $250 million in
Bangalore-headquartered real
estate major Nitesh Estates. However, the
exact quantum of stake could not be ascertained.

The deal, the single-largest in India’s
hospitality sector, will see Citi partner Nitesh
in the latter’s hospitality foray, which involves
setting up at least five luxury hotels, said
sources close to the deal.

Citigroup Property Investors will invest directly
from its global fund into holding entity Nitesh
Estates as well as special purpose vehicles
(SPVs) for setting up properties, which may also
include shopping malls. Citi’s Asia-Pacific real
estate fund head David Schaefer led the
investment into the 31-year-old Nitesh Shetty-
managed realty group.

However, Nitesh Estates executive director LS
Vaidyanathan declined to comment on the deal.
Citigroup is picking up a minority stake in the
holding company. Citi will, however, hold
substantial slakes in individual SPVs setting up
the chain of hotels, sources added.

The latest deal with Citigroup does not include
India’s first Ritz-Carlton property, which Nitesh
is developing in