INRnews - Indian Real Estate News

On August 4, 2006, Trikona Capital (“Trikona”), the asset manager for Trinity, announced a $100 million partnership with IL&FS for investments in real estate and infrastructure. Today’s announcement represents the first allocation of this investment.

ITNL is a vehicle promoted by IL&FS to spearhead its initiative in the transportation sector and is the premier institution in India for transportation infrastructure development. ITNL has existing relationships with several State Governments and the Central Government in India and has sectoral know-how in acquiring and implementing transport sector projects. ITNL currently has a portfolio of 10 road sub-sector projects already in development and a pipeline of further such projects which are in the planning phase. One of the projects in the current portfolio is the Noida Toll Road; ITNL is the promoter for this
project and in addition owns 22.6% of Noida Toll Bridge Co.Ltd, a publicly listed company on AIM.

This is an exciting investment for Trikona for two principal reasons. First, the investment will allow participation in ITNL’s future growth and it is believed this investment will meet the investment criteria as set out at the time of the IPO. Second, the partnership with IL&FS will also benefit from the opportunities to invest in allied projects including real
estate development along the transport corridors being developed by ITNL.

Availability of infrastructure is a prerequisite for population migration and development. Rights to develop around highways usually accrue to the developer of the infrastructure projects in the vicinity. The process of urbanisation in India is happening at a rapid pace, largely driven by the establishment of core essential services such as the ITNL infrastructure projects.

ITNL and Trikona aim to harness the opportunities arising from the need for infrastructure investment and development. ITNL’s expertise in managing and operating infrastructure projects and Trikona’s expertise in development and financing make this a natural partnership.

Aashish Kalra, Managing Director, Trikona Capital, said, “This is an important strategic acquisition which gives access to one of the largest drivers of transport infrastructure and allied investments in India. Given that infrastructure is the biggest bottleneck to urbanization in India, this is a unique opportunity to create the next generation of developments in India. ITNL is working on a number of exciting projects and we expect to benefit from participation in the Company and from the spin-off opportunities it will create to invest in allied activities alongside the infrastructure projects.”

About Trinity Capital

Trinity Capital PLC (“Trinity”), was created in 2006 for the purpose of investing in real estate and real estate related entities across India, with a focus on the office, retail, hospitality and, to a lesser extent, residential sectors.