Alpha Real Regulatory News (ARTL)

4 Jun 2007 07:01

Alpha Tiger Property Trust Limited04 June 2007 4 June 2007 - EMBARGOED FOR RELEASE AT 7AM Alpha Tiger Property Trust Limited ('Alpha Tiger' or the 'Company') Trading Update The Company announced on 29 May 2007 a framework agreement with Xansa plc('Xansa') to purchase 40 acres of development land and the sale and leaseback ofXansa's real estate interests in India. The agreement also appoints Alpha Tigeras Xansa's preferred real estate supplier in India. Today's trading update provides further details on the agreement with Xansa. Italso provides an update on pipeline projects that the Investment Manager isadvancing, and outlines the further expansion of the Investment Manager's teamin India. Agreement with Xansa Alpha Tiger has conditionally agreed to acquire approximately 40 acres ofdevelopment land and six investment properties in Chennai, Pune and Noida for upto £36 million, with the capacity to develop up to 3.4 million sq. ft. of newbusiness park space. The company currently intends to initially commit up to £40million of additional capital to build 1.7 million sq. ft of business parkspace. Alpha Tiger initially intends to finance the investment properties with equityand refinance at 50 per cent. of gross value with third party debt in duecourse. The 40 acres of development land will be financed with equity. Alphaintends to target borrowing levels on developments at 60 per cent. ofconstruction cost. In aggregate, the initial commitment, following refinancing,will require approximately £43 million of equity, representing over 50 per cent.of the net proceeds raised at flotation. The purchase price for the investment properties of approximately £19 million isbased on an initial rental yield of approximately 11 per cent. with 15 per cent.rental uplifts every three years. The purchase price for the development land isapproximately £17 million. Investment Properties Noida (Delhi NCR) The properties in Noida consist of two separately located office buildings; onetwo-storey building (with ground and basement level) over 42,000 sq. ft. offloor area; and a four-storey building (with ground and two basement levels)over 180,000 sq. ft. of floor area. Pune The property in Pune comprises two two-storey buildings (Phase I with basement,ground floor, first floor, and canteen; Phase II with two basements, groundfloor, and first floor), in a campus style setting with a combined floor area ofover 95,000 sq. ft. Chennai (Madras) The property in Chennai is a campus style development with two buildingsrepresenting a floor area of over 165,000 sq. ft. Development Land Chennai - 25 acres The Chennai site is a long leasehold with development rights over 25 acres ofundeveloped land (with SEZ approval, subject to notification) providingdevelopment potential for approximately 2.2 million sq. ft of floor space. It isintended that the site will be developed in four phases over four to five years. Pune - 15.7 acres The Pune site is a long leasehold with development rights over approximately15.7 acres. This site has the ability to develop up to an additional area ofapproximately 1.2 million sq. ft of floor space. The intention is to developthis site in three phases over three to four years. Pipeline The Investment Manager is evaluating additional investment with potential Indianpartners and international companies, which could involve in excess of 3 millionsq.ft. of real estate. NAV The unaudited NAV per share as at 31 March 2007 was 96.8 pence per share. Investment Management Team The Investment Manager has continued to build a strong team locally in India andhas recently appointed the following personnel: Anurag Munshi, Transaction Partner Anurag joined Alpha from Citigroup where he was responsible for the acquisition,structuring and execution of real estate transactions in India. He has a strongunderstanding of the regional risks and regulatory framework across the countrywith experience in executing projects in business parks (information technologyand information technology enabled services) (IT/ITES), residential and budgetand luxury hotel ventures. Prior to Citigroup he was the head of StrategicConsulting and Research for Jones Lang LaSalle in India ('JLL') and the JLL RealEstate Account Director for Accenture in South Asia. Anurag has more than 10years' experience in real estate and is a qualified planner and financeprofessional with an MBA. Philippe Davis, Director of Development & Construction Philippe has 25 years' international experience in the development, design andconstruction industries. He has worked in Europe, USA, Africa, Middle East andAsia including four years in Vietnam. Philippe has managed industrial,commercial and residential projects and has worked as a general contractor indesign and build firms, for the most part as an owner's representative. He alsohas multiple project roll-out experience and was previously the Director ofConstruction for an office and residential developer in the San Francisco BayArea. For further information please contact: David Jeffreys, Chairman, Alpha Tiger +44 (0) 1481 723 450Brad Bauman, Fund Manager, Alpha Tiger +44 (20) 7591 1615 (UK) +91 9980 00 11 22 (India) Phillip Rose, CEO, Alpha Real Capital +44 (20) 7591 1609Edward Orlebar, M:Communications +44 (20) 7153 1523 Notes to Editors: About Alpha Real Capital LLP 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 £75 million. Further information is available at www.alphatigerpropertytrust.com This information is provided by RNS The company news service from the London Stock Exchange