Trinity Capital Regulatory News (TRC)

18 Mar 2008 10:24

Trikona Trinity Capital PLC18 March 2008 Trikona Trinity Capital PLC ("Trikona TC" or "the Company") Investor Update Trikona Trinity Capital PLC (AIM: TRC), a company created for investing in real estate and real estate related entities across India, announces an investor update ahead of its pre-close update and preliminary results for the period ended 31 March 2008. Key Highlights and Current NAV Drivers: •Completion of £32.1 million sale of assets to SachsenFonds GmbH, a subsidiary of leading German public sector bank Sachsen LB at a 108 per cent. gain. •A landmark deal which makes Trikona TC the first London listed company focused on India to successfully realise significant returns on some of its investments. •Development Project 1, Uppal IT Pvt. Ltd "Tech Oasis" based in Greater Nodia, Delhi received Special Economic Zone notification on 18 January 2008. €10 million sq. ft. mixed use development. •Considerable savings and improved marketability of the project following the SEZ notification. •Equity Holding 8, Pipavav Shipyard Limited ("PSL") announced its intention to float on the Bombay Stock Exchange on 18 January 2008. •In January 2007, Trikona TC acquired 45.9 million shares at a price of INR 25 per share. •The proposed public listing and the recent US$50 million investment at INR 80 per share by Blackstone into the project, provides Trikona TC with confidence that there is significant potential uplift in the value of the Company's investment. •In January 2008, Trikona TC announced the £18.26 million offer by Trikona Hospitality Vertical ("THV") to acquire Dynamix Balwas Hospitality Pvt. Ltd. ("DBH") (Development Project 6). THV is a wholly owned subsidiary of Trikona Capital Limited. •The offer is at a 10 per cent. premium to the £16.6 million valuation stated in the Interim Results for the six months ended 30 September 2007. •The proposed transaction will yield an IRR of 74 per cent. on the invested capital. Company Objectives The Company is committed to adding value to its portfolio assets through carefulplanning, intensive management and action. To capitalise on the value of the Company's portfolio, Trikona TC intends tocontinue to sell assets offshore to generate cash-on-cash returns. The proceedsof these sales will be re-invested into new opportunities with an emphasis onreal estate related infrastructure. Trikona TC will continue to actively managepartner relationships in India. To further crystallise the value of the remaining assets, Trikona TC willactively incorporate relevant projects into new platforms valued appropriatelyin various public and private markets. The management of Trikona TC remains committed to maximising shareholder valueby taking all necessary action intended to promote convergence of share priceand NAV. Strategy In the near term, the Company intends to sell a further significant portion ofits existing real estate portfolio and re-invest the sale proceeds into realestate infrastructure assets. Both PSL (Equity Holding 8) and DBH (DevelopmentProject 6) will be transformed into platform holdings and the Company isconfident of further opportunistic sell downs of holdings in itsremaining real estate assets. In the mid term, Trikona TC seeks to make additional sales of stakes in itsremaining real estate investments as well as to exit PSL (Equity Holding 8).Additionally, ITNL (Equity Holding 9) and DB Realty (Development Project 11)will become platform holdings with an option to exit. The Company will alsoincrease investment in real estate based infrastructure assets. Longer term, Trikona TC will look to consolidate its portfolio so that the majority comprises of investments in real estate based infrastructure assetswhere it sees the greatest opportunity to create shareholder value. Aashish Kalra, Managing Director of Trikona Capital Limited, said: "The Companyremains committed to investing, realising and re-investing in the Indian realestate market. "Since listing in April 2006, Trikona TC has successfully invested more that£196 million in 12 high profile investments where expected average IRRs areprojected to exceed 25 per cent. Our milestone agreement with SachsenFonds inNovember 2007 validated our differentiated business model that invests in andbuilds early stage companies and projects. We have proven our ability to convertan idea to an operating company or a development project and from there intocash. We have successfully institutionalised all our investments and thetransaction with SachsenFonds further strengthens the Company's position as afund that gives investors real and visible upside to the real estate market inIndia. We offer follow-on investments at higher values and are well positionedfor 2008 to create multiple exit opportunities. "We have over the last few years established a significant presence and positionand we believe our access to deal flow is unparalleled. We look forward to 2008as yet another year to exploit the potential of our portfolio and to generatehigh returns to shareholders." Trikona TC will be holding an investor conference call on Wednesday 19 March2008, dial in details are as follows: Tel: +44 870 240 7821 PIN: 5 7 0 4 8 2 7 3 #The relevant company presentation can be found at http://www.trinitycapitalplc.com/investor/company_presentations.html - ENDS - Enquiries: Trikona Trinity Capital PLC managed by Trikona Capital Limited Aashish Kalra, Managing Director +91 11 46596000Ashesh C. Shah, Global Head of Corporate Development +44 20 7870 3454 Bell Pottinger Corporate & Financial +44 20 7861 3232Nick LambertAmy Rajendran Gutenberg CommunicationsMichael Sherrill (New York) +1 212 239 8741Pranav Kumar (New Delhi) +91 98100 77898 Numis Securities +44 20 7260 1000Jag Mundi, Head of Corporate Finance Notes to Editors: About Trikona Trinity Capital PLC: Trikona Trinity Capital PLC (AIM: TRC) joined the Alternative Investment Market(AIM) as Trinity Capital in 2006 and is a company that is focused on investingin real estate and real estate related entities across India. Investments aretypically structured as special purpose vehicles or joint ventures, andinvestments in equity, with a target size of between £5 million and £30 millionper transaction. Trikona TC holds a diverse portfolio of projects ranging acrossseven asset classes and became fully invested six months ahead of schedule. In November 2007, the Company became the first London listed fund of its kind tosuccessfully realise significant returns on its investments. Attracting anumber of blue-chip investors, Trikona TC is rapidly becoming a leading fund forforeign investment into a lucrative area. The Company currently has a market capitalisation of £234 million. Trikona TCis managed by Trikona Capital, the leading real estate management firm in India. www.trikonatrinitycapitalplc.com This information is provided by RNS The company news service from the London Stock Exchange