The Revel Collective Regulatory News (TRC)

25 Jan 2007 07:01

Trinity Capital PLC25 January 2007 For Immediate Release 25 January 2007 Trinity Capital PLC ("Trinity") Mixed Use Development in Hyderabad Trinity Capital is pleased to announce a £9.1m investment to develop commercial,retail and residential space in Hyderabad in South India. Trinity will subscribeto 49% of the equity share capital of the project company. Manjeera ConstructionLimited, one of the city's premier construction companies, will partner Trinityin the development of this project. Estimated IRR will meet or exceed the 25%investment criteria as set out at the time of the IPO. Hyderabad, one of India's top IT centers, has witnessed rapid growth inpopulation levels due to increased employment opportunities in the city'sexpanding IT, pharmaceuticals, biotechnology and financial sectors. To addressthe corresponding need for good quality commercial, retail and residentialfacilities, Trinity with its project partner, will seek to develop 1.27 millionsq.ft of office space, 1 million sq.ft of retail and cine multiplex space and419,000 sq ft. of residential space within the next three and a half years. Although commercial real estate in Hyderabad has grown, there is still aprojected 3.4m sq.ft supply gap by the end of 2008 in office space. Trinity'sdevelopment therefore will address the needs of a captive market and willbenefit from being situated in the rapidly expanding Secondary Business District('SBD's) of Kukatpally in western Hyderabad. Kukatpally is the fastest growing area in terms of residential and commercialconstruction activity within the city. An Ernst & Young study from late lastyear identified Kukatpally as one of three growth centers of Hyderabad.Moreover, development of modern office space and competitive rents has made thearea an attractive location for major multinationals. The development willfurther benefit from being closely located to Hi-Tec City -that housesmultinational companies such as Microsoft, Dell and Motorola. Travel timebetween Kukatpally and Hi-Tec City is expected to be further reduced by theopening of a new bridge connecting the two areas. The rise in employment and income levels has led to increased consumerpurchasing power and has provided the catalyst for a corresponding rise inretail activity within the city. Malls such as Shopper's Stop, Lifestyle and BigBazaar which are located in the Central Business District have proved to besuccessful and underline the potential value of retail space. Given thedevelopment of a new SBD in Kukatpally and the lack of mall or multiplexfacilities, the 1 million sq.ft of retail space that Trinity is developingshould be well received. Given the high levels of commercial development in the west of Hyderabad, therewill be a significant rise in the demand for residential space. Currently, themajority of residential developments in Hyderabad are focused in the westernsuburbs, especially Kuktapally. Developed in the 1980's, Kukatpally has retainedits position as one of Asia's largest townships due to its proximity to Hi-TecCity. Trinity's development therefore will cater to the needs of a captivemiddle class audience who are migrating to this area in increasing numbers. Partnering Trinity on this project is Manjeera Construction Ltd. Established in1987; Manjeera is one of Hyderabad's leading construction companies. The Companyis ISO 9001:2000 certified, has developed over 2 million sq.ft of commercial,hospitality and residential space in Hyderabad and has a forward order book todevelop an additional 2 million sq.ft of real estate space. Aashish Kalra, Managing Director of Trikona Capital, said: "The city ofHyderabad is undergoing a rapid transformation driven by the growth of its ITindustry. This project represents an exciting opportunity for Trinity to addressthe need for state of the art commercial and retail facilities and build asustainable community that will appeal to businesses and individuals alike." ENDS Enquiries: Trikona Capital Aashish Kalra +91 11 2620 7257 Cardew Group Tim Robertson +44 20 7930 0777 Sofia Rehman (London) Gutenberg Communications Harjiv Singh (New York) +1 212 209 3863 Pranav Kumar (Delhi) +91 98100 77898 Numis Iain McDonald +44 20 7776 1567 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 This information is provided by RNS The company news service from the London Stock Exchange