20th Nov 2007 07:02
Trikona Trinity Capital PLC20 November 2007 Trikona Trinity Capital PLC ("Trikona TC" or "the Company") Trikona Trinity Capital Announces 108% Gain Following Sale of Interests in Real Estate Assets Trikona Trinity Capital PLC (AIM: TRC), a fund created for investing in Indianreal estate and infrastructure and managed by Trikona Capital, announces thesale and realisation of significant gains on part of its portfolio. The Company will divest part of its equity share holdings in four of itsoff-shore entities that own Indian residential and commercial projects for anaggregate sale price of £32.1 million to an affiliate of SachsenFonds GmbH("SF"), a subsidiary of Sachsen LB, a leading German public sector bank. Uponcompletion, this divestment will provide a realised gain of 108% over a holdingperiod ranging from 9 months to 14 months. The transaction also helps supportthe Company's previously stated Net Asset Value ("NAV"). This landmark deal makes Trikona TC the first AIM-quoted fund focused on Indiato successfully realise significant returns on some of its investments. Highlights • SF is a German closed end fund and an investor in global real estate assets with total assets under management of approximately €4 billion as of December 2006 • The sale by the Company is at the offshore entity level and not at the project company level • SF will acquire a minority interest in off-shore entities that own Uppals IT Projects Private Limited, Lokhandwala Kataria Construction Private Limited, Manjeera Retail Holdings Private Limited and MK Malls & DevelopersPrivate Limited • The transaction is scheduled to close on 27 December 2007 • In line with the Company's growth strategy and ongoing commitment to realisations and dispositions, Trikona TC intends to reinvest the proceeds to strengthen its established real-estate platform. Trikona TC continues to see a healthy pipeline of attractive opportunities and expects to redeploy the realised capital readily The Transaction For an aggregate purchase price of £32.11 million, SF will acquire a minorityinterest in the following Mauritius entities: • 8% of Trinity Capital (One) Limited which owns a 100% interest in Development Project 1: Uppal IT Park - "Tech Oasis" ("Uppals IT") • 41% Trinity Capital (Five) Limited which owns a 49% interest in Development Project 4: Lady Ratan Seasons ("Lockhandwala") • 41% of Trinity Capital (Six) Limited which owns a 49% interest in Development Project 5: Manjeera Retail Holdings Limited ("Manjeera") • 40% of Trinity Capital (Ten) Limited which owns a 28.99% interest in Development Project 3: MK Malls Limited ("MK Malls") The table below displays Trikona TC's cost basis for the shares being sold andthe price SF has agreed to pay for those shares. Mauritius Underlying Company Sale Multiple on Company's Entity Development Asset Cost Price Investment (£ mm) (£ mm) TrinityCapital (One) Limited DP1: Uppals IT 2.3 6.48 2.86x TrinityCapital (Five) Limited DP4: Lokhandwala 4.8 9.71 2.04x TrinityCapital (Six) Limited DP5: Manjeera 3.7 6.47 1.73x TrinityCapital (Ten) Limited DP3: MK Malls 4.7 9.44 2.01x TOTAL 15.44 32.11 2.08x Aashish Kalra, Managing Director of Trikona Capital said: "This milestoneagreement with SF makes Trikona TC the first fund of its kind to make money fromIndian real estate. As the leader in foreign direct investment into Indian realestate, this transaction validates our business model and demonstrates tangiblegains to our shareholders. We remain committed to investing, realising andre-investing in this lucrative market. This divestment truly establishes theCompany as a fund that gives investors real and visible upside to the realestate market in India. We remain focused on crafting exits through a range ofmethods for better shareholder returns." - ENDS - Enquiries: Trikona Trinity Capital PLC managed by Trikona Capital Limitedashish Kalra, Managing Director +91 11 46596000 Ashesh C. Shah, Head of UK and Global Head of Corporate Development +44 207 870 3454 Bell Pottinger Corporate & Financial +44 20 7861 3232Nick LambertAmy Rajendran Gutenberg CommunicationsMichael Sherrill (New York) +1 212-239-8741Pranav Kumar (New Delhi) +91 98100 77898 Numis Securities +44 20 7260 1000Jag MundiCharles Farquhar Notes: For further information and regular updates regarding the Fund's activities, please log on and sign up for news alerts at www.trinityplc.com Notes to Editors The Agreement Trikona Trinity Capital will divest part of the equity share capital of four ofits Mauritius Special Purpose Vehicles ("SPVs") which have invested in theUppals IT Projects Private Limited, Lokhandwala Kataria Construction PrivateLimited, Manjeera Retail Holdings Private Limited and MK Malls & DevelopersPrivate Limited projects for an aggregate consideration of £32.11 million. Underthe terms of the agreement, Trikona Capital Limited, the investment managers tothe Company will remain advisers to SF's investments in the respective Mauritiusassets. The transaction is expected to provide Trinity a 2.08x return on its investedcapital, with an opportunity to reinvest the cash with other partners. SachsenFonds GmbH ("SF"), a German closed end fund and an investor in globalreal estate assets will purchase a minority stake in each of these SPVs fromTrinity Capital Mauritius Limited. The deal is still subject to certain conditions which the Company anticipateswill be fulfilled by the 27 December 2007. SachsenFonds GmbH SachsenFonds GmbH ("SF") is a subsidiary of Sachsen LB, a leading German publicsector bank, with total asset under management of approximately €4 billion as ofDecember 2006. The bank is based in and owned by the German state of Saxony.State-owned Landesbank Baden-Wuerttemberg (LBBW) has recently agreed to acquireSachsen LB for USD 750 mm, and this transaction is expected to complete by 27thDecember 2007. The acquisition by Landesbank is not expected to impact SF'stransaction with Trinity. SF's fund business is mainly geared towards structuring and distributing yieldoriented fund products for retail and institutional investors. SF's productrange largely consists of high-yield investments in Germany and foreign realestate, in renewable energy technologies and in private equity. In 2006, SFexpanded its funds under management for more than 40,000 investors to over €14billion. SF also recently entered into the Australian real estate market withthe issue of a new fund for private German investors and exploited growthopportunities in the market for institutional with the launch. Over the years ithas significantly expanded fund management for third parties and now boasts morethan ten third-party funds under management. About Trikona Trikona Capital is the leading fund management firm for institutional investinginto Indian real estate and infrastructure. Trikona Capital's unique investmentmodel combines a team of experienced professionals in India, strong U.S.-basedgovernance and investor reporting standards, and partnerships with leading realestate and development companies in each of India's high growth areas. Trikona'sdiversified portfolio of investments span the residential, commercial,infrastructure, hospitality and industrial sectors, creating a completeecosystem of projects to assist in India's continued economic and socialdevelopment. Trikona also manages Trikona Trinity Capital PLC (AIM: TRC), a £250million fund created in 2006 on the Alternative Investment Market (AIM) that hasbeen fully invested in real estate and infrastructure projects in India. Formore information, go to www.trikonacapital.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
The Revel Collective