Trinity Capital Regulatory News (TRC)

21 Apr 2006 08:00

Trinity Capital PLC21 April 2006 21 April 2006 Trinity Capital PLC First Day of Dealing on AIM and Placing Trinity Capital PLC ("Trinity" or "the Fund"), the Indian property fundestablished to invest in real estate and real estate related entities acrossIndia, today announces its flotation on the Alternative Investment Market("AIM") under the ticker symbol TRC. The placing raised £250 million and will represent one of the first UK publiclyquoted funds specialising in real estate assets in India. It is intended that the funds raised, together with local partner equity, will be used to create a geared property portfolio of over £1 billion. Placing Statistics Placing Price 100p Number of new Ordinary Shares being placed on behalf of 250 millionthe Company Estimated net proceeds receivable by the Company £238.1 million Number of Ordinary Shares in issue immediately following 252.5 millionAdmission Approximate market capitalisation following the Placing £250 millionat the Placing Price Background • Trinity represents an opportunity to invest in the rapidly expanding Indian real estate market, with the Fund primarily investing in commercial development sites or under-construction developments in the office, retail, hospitality and, to a lesser extent, residential sectors. • Trikona Advisers Limited (the "Manager" or "Trikona") will serve as the Manager of the Fund. • The Fund intends to invest in development projects where expected total return IRR's are likely to be in excess of 25 per cent. • Trikona Capital is presently in varying stages of negotiation on a number of real estate development opportunities, with an equity value in excess of £100 million. • The Fund's investment model is a partnership driven model. The Fund will select appropriate developers with whom to invest who have demonstrated a track record in the specific development type and/or in the local market. These developers will typically have the financial capability to invest significant equity in the transaction and provide appropriate construction guarantees as required. • Investments will be in equity or debt, in real estate or real estate related entities and will typically be structured as active interests in special purpose vehicles or joint ventures and investments in equity, with a target size of between £5m and £30m per transaction. • India has one of the fastest growing GDP's in the world; between 2003 and 2007 GDP growth rate is estimated to be 6.8%. • The Indian real estate market is estimated at US$12 billion and has the potential to reach $90 billion in ten years. In the Directors opinion, significant barriers to entry and critical shortages of investment capital create the potential for high risk adjusted returns. • India property development costs are among the lowest in the world. Yields on investments in commercial property in Indian Metros are around 10.5% which are amongst the highest in the world. • Indian government policy over the last 10 years has been determined with a view generally towards encouraging foreign direct investments and economic development. Foreign direct investment and repatriation of investment and returns is allowed in the sectors in which the Fund will invest. In many instances tax holidays are also provided. The Board • The Chairman of the Fund is Michael Cassidy. Michael is also non-executive Director of The British Land Company plc and UBS Limited. • The Fund also has as non-executive Directors: Paul Orchard-Lisle who is presently the Chairman of Slough Estates plc and formerly the Chairman of Cushman & Wakefield Asia, William Hamilton-Turner non-executive Director of Dawnay, Day Carpathian plc, an AIM listed property investment fund and the commercial property division of the Antler Property Group and Philip Scales who is the Managing Director of IOMA Fund and Investment Management Limited and Rak Chugh. About Trikona • Trikona has a highly experienced management team. Founded by Aashish Kalra and Rak Chugh both born and raised in India, they have been focused on developing Indian real estate opportunities since the beginnings of change in the political climate nearly two years ago towards foreign investment in Indian real estate. In that time they have assembled a series of partnerships with the leading players in the Indian property sector, together with a strong operational team responsible for managing the individual development projects. • The team includes the ex-CEO of Jardine Fleming's asset management and unit trust operations in India and Chief Executive Officer of the Unit Trust of India Mr. Mahesh Gandhi, and the former head of Finance and Strategy at Omaxe, Mr. Manish Gupta. John Charlton is the Chief Financial Officer of the Manager. Dr Charlton worked with the ICI Group for over 30 years, including a tenure in India, and more recently was CFO of Kvaerner ASA. • The advisory team of Trikona includes - Mr. Arthur Mirante the former President and CEO of Cushman & Wakefield. Kas Kasturirangan who has held senior executive management positions in Unilever in India and internationally, including Chairman/CEO of Unilever, Phillipines. Toby Greenbury, a former senior partner of DJ Freeman. • The Manager will be responsible for providing portfolio management services to the Fund, including investigating, analysing, structuring and negotiating potential investments, monitoring the performance of the investments and advising the Fund as to realisation opportunities although the Manager may, where appropriate, outsource these functions to third parties. Further enquiries: Numis Andrew Dawber 020 7776 1500 Bruce Garrow Cardew Group Tim Robertson 020 7930 0777 M: 07900 927 650 Sofia Rehman M: 07771 683 185 This announcement does not constitute or form any part of an offer or invitationto sell or issue, or any solicitation of an offer to purchase or subscribe for,any shares in Trinity, nor shall it or any part of it or the fact of itsdistribution form the basis of, or be relied on in connection with, anycontract thereof. The contents of this announcement have not been approved byan authorised person and recipients of this announcement who intend to purchaseor subscribe for shares in Trinity following its publication of anadmission document in final form are reminded that any such purchase orsubscription may only be made on the basis of the information contained in suchdocument which may be different from the information contained in thisannouncement. Accordingly, no reliance may be placed for any purpose whatsoeveron the information contained in this announcement or on its completeness. Norepresentation or warranty, express or implied, is given by Trinity, itsdirectors, Trikona, Numis, Cardew Group or any other professional adviser as tothe accuracy or completeness of the information and opinions contained in thisannouncement and no liability is accepted for the same. This information is provided by RNS The company news service from the London Stock Exchange