21st Dec 2006 08:01
Alpha Tiger Property Trust Limited21 December 2006 21 December 2006 THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THEUNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF IRELAND, THE REPUBLIC OF SOUTHAFRICA OR JAPAN. ALPHA TIGER PROPERTY TRUST LIMITED ("ALPHA TIGER" OR THE "COMPANY") _____________ First Day of Dealings on AIM and Placing Alpha Tiger is pleased to announce its admission to trading today on AIM. ThePlacing has raised gross proceeds of £75 million. The Company's share capitalcomprises 75,000,000 Ordinary Shares (ticker: ATPT) issued at 100p per share. THE COMPANY The Company is a recently incorporated, Guernsey-registered, closed-endedinvestment company, which has been established for the purposes of investing inand developing real estate in India. The Company's property activities will be managed by Alpha Real Capital LLP("Alpha Real Capital"), an FSA regulated property fund management business.Alpha Real Capital has an established office and team in India. Kinmont and Panmure Gordon are joint financial advisers to Alpha Tiger. PanmureGordon and Execution are joint stockbrokers to the Placing. INVESTMENT OBJECTIVE AND POLICY The Company intends to target investment and development opportunities focusedon business parks in seven of India's largest cities (Bangalore, Chennai, DelhiNCR, Hyderabad, Kolkata, Mumbai and Pune). The Company intends to focus on sites with planning and zoning consent inestablished locations with existing infrastructure. The Company intends to focusits investments on strong covenants (including multinationals with an operatingbase in India), long leaseholds (particularly where tenant fit-out commitmentsconstitute a substantial part of the overall build cost) and buildings withflexible space (to give good re-leasing potential). The Company's strategy is to build, own and operate a high yielding portfolio ofdiversified business park assets. Brad Bauman, Fund Manager, Alpha Tiger said "the Investment Manager hasextensive experience of working with multinational occupiers and will workclosely in partnership with tenants to provide flexible real estate solutions". INDIAN ECONOMIC BACKGROUND In a global context, India is the seventh largest country by land mass, thefourth largest economy on a purchasing power parity basis and the tenth largesteconomy in GDP terms. English is the primary business language and the legalsystem is based on English law and practice. Today's positive outlook forinvestment in India owes its roots to a period of reform which began with thechange of government in 1991, opening the Indian economy over time to foreigninvestment and liberating a new entrepreneurial business environment. Such hasbeen the catalytic effect of the post 1991 reforms that in real terms the sizeof the Indian economy has more than doubled since 1991. A major driver of economic growth in India is a growing and aspirational middleclass workforce. Some 70 per cent. of India's population is less than 36 yearsof age. Moreover, India is home to some 20 per cent. of the world's populationunder the age of 24. This position contrasts greatly with most of the developedworld, which faces a shortage of working age inhabitants and the growing socialcost of an ageing population. The Indian economy now comprises a strong base of international and domesticcorporations. Well over 200 of the Fortune 500 companies have a presence inIndia. This has not only been important in establishing India's new commercialbase, but has contributed to growing bilateral trade between India and thesecompanies' home nations. Investments in India by Fortune 500 companies span anumber of industry sectors, including consumer goods, automotives, computer andsoftware, petrochemicals and food and beverages. There are 23 stock exchanges inIndia with a total market capitalisation of over US$700 billion. Over 100 Indiancorporations now have a stockmarket value of US$1 billion or more. OVERVIEW OF THE REAL ESTATE OPPORTUNITY India's large and diverse industrial base is predicted to be one of the driversfor growth in the real estate infrastructure required to support the commercialdevelopment of the economy. Estimates from leading market analysts suggest that the commercial real estatesector is expanding by 30 per cent. per annum. Should the sector maintain thismomentum, the market could potentially be worth US$45-50 billion within fiveyears and in excess of US$90billion in less than 10 years. In 2005, total FDIinflows to India were estimated to have totalled US$6 billion, a 20 per cent.increase on 2004. Real estate markets are expected to capture approximately 18to 20 per cent. of total Foreign Direct Investment (FDI) in 2005-6. India remains the preferred offshore location for sourcing a broad range ofbusiness services, including call centre help-desks, industry specific researchand development and human resources for the tele-marketing and financialsectors. Industry experts believe that India can sustain its global leadershipposition and grow its offshore IT and BPO industries at an annual rate in excessof 25 per cent. over the medium-term. Phillip Rose, Chief Executive of Alpha Real Capital today commented "we aredelighted with the level of support from institutional investors and lookforward to deploying the funds raised and generating value for shareholders inthis exciting real estate opportunity in a high-growth and scaleable market.Progressive reforms are facilitating investment in the real estate sector and wecan bring our development and property management skills to a market wheredomestic and international tenants are increasingly looking for internationalstandards of service and construction". For further information please contact:Phillip Rose, CEO, Alpha Real Capital 020 7591 1609Brad Bauman, Fund Manager, Alpha Tiger 020 7591 1615John O'Malley, Kinmont 020 7493 8488Richard Gray, Panmure Gordon 020 7614 8383Andrew Potts, Panmure Gordon 020 7614 8390Bill Osborne-Young, Execution 020 7456 1130 This announcement shall not constitute or form any part of an offer orinvitation to subscribe for, underwrite or otherwise acquire, or anysolicitation of any offer to purchase or subscribe for, securities including inthe United States. This announcement does not constitute an offer of securities for sale in theUnited States of America. Neither this announcement nor any copy of it may betaken or distributed in the United States of America or distributed orpublished, directly or indirectly, in the United States of America. Any failureto comply with this restriction may constitute a violation of US securities law.The securities referred to herein have not been and will not be registered underthe US Securities Act of 1933, as amended (the "Securities Act"), and may not beoffered or sold in the United States to or for the benefit of US persons unlessthey are registered under the Securities Act or pursuant to an availableexemption therefrom. No public offering of securities is being made in theUnited States. The distribution of this announcement and information containedherein may be restricted by law in other jurisdictions and therefore personsinto whose possession this announcement or information contained herein comesshould inform themselves about and observe any such restrictions. Kinmont Limited and Panmure Gordon are authorised and regulated by the FinancialServices Authority, are acting exclusively for the Company and no one else inconnection with the Placing and will not be responsible for anyone other thanthe Company for providing the protections afforded to their respective clientsnor for providing advice in relation to the Placing. Information in this announcement cannot be relied upon as a guide to futureperformance. Notes Alpha Real Capital is a value-adding international property funds managementgroup. Alpha Real Capital was established by Phillip Rose and Sir John Beckwithand is active in a number of real estate markets including the UK, France,Germany, Spain and India. Upon Admission, Alpha Real Capital and certain membersof Alpha Real Capital, its management team and related parties of Alpha RealCapital and its management team will be subscribing for 5 million OrdinaryShares pursuant to the Placing. Phillip Rose has 25 years' experience in the real estate, fund management andbanking industries in Europe, the USA and Australasia. He has been Head of RealEstate for ABN AMRO Bank, Chief Operating Officer of European shopping centreinvestor and developer TrizecHahn Europe (where he was responsible for a €1billion European investment and development programme from 1999-2000), ManagingDirector of Lend Lease Global Investment where, during his tenure from 1994 to1999, he was responsible for managing European property investments andExecutive Manager of listed fund General Property Trust. He is currently anon-executive director of Great Portland Estates and a member of the ManagementCommittee of the Hermes Property Unit Trust. Sir John Beckwith has been involved in property investment and other investmentfor his entire working life. He founded London & Edinburgh Trust PLC ("LET") in1971 where he was Chairman and Chief Executive Officer and developed it into oneof the top ten listed real estate companies in the UK. Following the sale ofLET, he established Pacific Investments through which he founded a number ofsuccessful asset management businesses, including Liontrust Asset Management andThames River Capital. Brad Bauman has 18 years' experience in the real estate and finance industries,and has been responsible for the Investment Manager's Asian investment programmesince 2005. His experience includes seven years with CB Richard Ellis where hewas Managing Director of CBRE Financial Services, and from 1994 to 1997 wasinvolved in acquiring and managing distressed debt portfolios. Prior to joiningAlpha Real Capital, Brad was Executive Director, Real Estate Investment Bankingat Lehman Brothers. Brad will have day to day fund management responsibility forAlpha Tiger. Further information is available at www.alpharealcapital.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Alpha Real