Alpha Real Regulatory News (ARTL)

29 May 2007 07:02

Alpha Tiger Property Trust Limited29 May 2007 Alpha Tiger Property Trust Ltd 29 May 2007 Alpha Tiger Property Trust reaches £35million real estate framework agreement with Xansa Alpha Tiger Property Trust Ltd announces it has entered into a legally bindingframework agreement with Xansa plc to effect the purchase of 40 acres ofdevelopment land and the sale and leaseback of Xansa's real estate interests inIndia. The agreement also appoints Alpha Tiger, as preferred supplier of realestate to Xansa in India. The acquisitions and sale and lease-backs areconditional, inter alia, on local and central government and other relevantapprovals, and on the underlying documentation being finalised. This agreementformalises the non-binding memorandum of understanding entered into with Xansaat the time of Alpha Tiger's flotation in December 2006, and it is expected thatthe transactions will be completed in stages. The cost of the transaction to Alpha is expected to be approximately £35 millionbefore expenses and represents an investment of approximately 50% of AlphaTiger's equity. This transaction is Alpha Tiger's first investment since flotation. The Xansaassets, in addition to providing a high quality tenant, offer significantdevelopment opportunities of up to 3.4 million square feet in prime real estatelocations in Pune and Chennai. Alpha Tiger intends to commit a total of £75million of equity and debt to acquire and develop these sites. For Xansa, a leading outsourcing and technology company, the agreementestablishes a strategic relationship with a real estate partner, to facilitatebest-in-class development and management of the properties. Alpha will be astrategic real estate supplier for Xansa's continuing business expansion inIndia. Alpha Real Capital India has established a strong local team in India, locatedin Bangalore, Mumbai, Delhi, and Pune, led by Brad Bauman, Fund Manager forAlpha Tiger, and CEO Alpha Real Capital India. His team will be responsible forthe management of the existing real estate to be leased to Xansa, together withensuring the development of the adjacent land as a world class master plannedbusiness park environment. Brad Bauman, Fund Manager for Alpha Tiger commented: "Alpha Tiger will be providing a high quality, long term solution for Xansa'soccupational requirements in India, allowing Xansa to grow with greaterflexibility, speed and at lower risk. Alpha Tiger looks forward to developing upto an additional 3.4 million square feet of quality space, with the intention ofproviding business parks for Xansa and other leading international companies inIndia." Contact: Alpha Tiger Property Trust Limited David Jeffreys, Chairman, Alpha Tiger +44(0)1481 723 450 Phillip Rose, CEO, Alpha Real Capital +44(0)20 7591 1609 Brad Bauman, Alpha Tiger Fund Manager +91(0)9980 001122 Edward Orlebar, M:Communications +44(0)20 7153 1523 Notes to Editors: Details of assets in the transaction: - the long leasehold and development rights of 25 acres of undevelopedland (with SEZ approval) at the existing Xansa site in Chennai (Madras),providing development potential of 2.2 million square feet; - the long leasehold and development rights of 8 acres of undevelopedland at the existing Xansa site in Pune, providing development potential ofapproximately 620,000 square feet; - the leaseback to Xansa of the existing property assets at Noida (Delhi), Pune and Chennai: o at Noida, the assets consist of two office buildings - a two storeybuilding (with ground and basement level) with over 42,000 square feet of floorarea, and a four storey building (with ground and two basement levels) of over180,000 square feet; o at Pune, the property comprises two, two storey buildings (each with afurther level of basement accommodation) in a campus style setting with acombined floor area of over 95,000 square feet - these buildings are onapproximately 9 acres of land, representing additional development potential ofover 595,000 square feet of floor area; and o at Chennai, the property is a campus style development with twobuildings representing a floor area of over 165,000 square feet in aggregate. About Alpha Real Capital LLP Alpha Real Capital is a value-adding international property fund managementgroup with operations in the Indian and other international real estate markets.Alpha Real Capital was established by Phillip Rose and Sir John Beckwith. Alpha Real Capital is the Investment Manager to Alpha Tiger. Alpha RealCapital's Indian CEO, Brad Bauman is Fund Manager to Alpha Tiger. He has 18years' experience in the real estate and finance industries, and has beenresponsible for Alpha Real Capital's Asian investment programme since 2005. About Alpha Tiger Property Trust Limited Alpha Tiger is a Guernsey registered closed-ended investment company investingin and developing Indian real estate. It floated on AIM in December 2006,raising £75m. Further information is available at www.alphatigerpropertytrust.com. About Xansa plc Xansa is a UK-based outsourcing and technology company with over 8,000 people inthe UK and India. With a 44-year history of sustaining long-term relationshipsand pioneering better ways of working, Xansa drives real and long-term costreductions and performance improvements for its clients. Committed to deliveringguaranteed business outcomes through a combination of technology and processexpertise, Xansa gives clients across the private and public sectors the freedomto do more. Xansa is listed on the London Stock Exchange (XAN.L) with revenuesfor 2006 of £357.3 million. Further information on Xansa can be found at: www.xansa.com This information is provided by RNS The company news service from the London Stock Exchange