NITCO to Earn Rs 100 Crore from Thane Property Lease

New Delhi, Mar 31 (PTI) Building material player NITCO on Monday said it is targeting about Rs 100 crore profit in the next 2-3 years from the Thane property deal with Manometer India.

In a statement, NITCO Ltd said it has successfully assigned leasehold rights for its prime industrial property in Thane, Maharashtra, to Manometer (India) LLP, formerly Manometer (India) Pvt Ltd.

Under the terms of the agreement, NITCO will receive a monetary consideration of Rs 11,00,000 and a substantial non-monetary benefit including a guaranteed constructed carpet area of 7,459.2 square meters, or 25 per cent of the total Floor Space Index (FSI) area in the development project, whichever is higher.

This strategic arrangement is projected to yield approximately Rs 100 crore of profit in 2-3 years for NITCO.

"This strategic lease assignment underscores our commitment to optimizing our asset portfolio and driving sustainable growth," stated Vivek Talwar, Chairman & Managing Director of NITCO Ltd.

This achievement builds upon NITCO's recent success in securing significant product orders, including contracts with Prestige Estates and Hindustan Associates, totalling Rs 200 crore.

"By leveraging our real estate assets effectively, we are unlocking significant value for our shareholders and reinforcing our position as an industry leader. This initiative aligns with our broader vision of expanding NITCO's presence in premium development projects," Talwar added.

The transaction involves the assignment of Plot No. F-6/3, a 4,144 square metre property including a factory building, located within the Trans Thane Creek Industrial Area, MIDC, Village Panchpakhadi, Thane, a statement said.