9 Sep 2008 08:00
9 September 2008
Trikona Trinity Capital PLC
("Trikona TC" or "the Company")
Trikona TC strengthens strategic partnership with SachsenFonds
Trikona Trinity Capital PLC (AIM: TRC), a fund created for investing in Indian infrastructure and real-estate, and managed by Trikona Capital, extends its ongoing strategic partnership with SachsenFonds Holdings GmbH ("SF"), a leading German fund manager with €14.7 billion assets under management, by signing a Memorandum of Understanding (the "MoU") with a transaction value worth up to £90 million.
Under the terms of the MoU, SF will invest in a portfolio of up to eight development projects; three existing Trikona TC projects for approximately £45 million and jointly co-invest £45 million with Trikona TC in five new development projects.
This will represent the third in a series of ongoing transactions with SF since December 2007, when Trikona TC established its partnership with SF and first divested part of its asset portfolio for £32.1 million realizing a gain of 108% on its investment. In June this year, Trikona TC strengthened its partnership with SF by divesting a further part of it portfolio for £54.33 million alongside a co-investment by both parties of £20.04 million to invest in MIG Bandra. The transaction will bring the total proceeds from the three sales to SF to approximately £130 million and aggregate co-investments of the parties to up to £65 million, with an average cash-on-cash return of 117%.
Completion of the divestment to SF, including simultaneous funding of the transaction, is expected to take place in two stages. The first stage will be funded by 30 September 2008 when a more detailed announcement will be made, while the remaining stage is expected to be completed by 31 March 2009.
Aashish Kalra, Managing Director of Trikona Capital, said: "Our strategic partnership with SF continues to develop and this agreement with SF; our most significant deal with SF so far, further demonstrates the strength of our relationship and business model. We look forward to continuing our successful partnership with SF this year and expanding it in 2009. Despite challenging market conditions, we have been able to build on the company's momentum and will continue to develop our portfolio through strategic investments and disinvestments, creating a robust and dynamic portfolio that delivers sustainable returns."
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Enquiries:
Trikona Trinity Capital PLC managed by Trikona Capital Limited
Aashish Kalra, Managing Director
Sally Lewis, Director of Investor Relations +44 750 7683 720
Bell Pottinger Corporate & Financial +44 207 861 3232
Mike Davies / Sarah Williams
Numis Securities +44 207 260 1000
NOMAD: Lee Aston, Head of Corporate Finance
Corporate Broking: Charles Farquhar
Fairfax I.S. PLC +44 207 598 5368
Paul Richards, Head of Corporate Finance
About Trikona Trinity Capital PLC:
Trikona Trinity Capital PLC (AIM: TRC) was listed on the London Stock Exchange as Trinity Capital in 2006, raising £250m of equity. The fund invests in real estate and infrastructure related entities across India, with a target size of between £5m and £30m per transaction. Becoming fully invested six months ahead of schedule, its investment strategy is unique - Trikona TC selects developers with a proven track record in the asset class or in the local market, with the specific notion of contributing to India's growth. The Company also adopts a socially aware attitude to development, investing in projects which will actively improve India's underdeveloped social and physical infrastructure. The Company is managed by Trikona Capital, a leading fund manager focused on investing in Indian real estate and infrastructure.
www.trikonatrinitycapitalplc.com