Trinity Capital Regulatory News (TRC)

29 Oct 2007 08:59

Trinity Capital PLC29 October 2007 October 2007 Trikona Trinity Capital PLC ("Trikona TC" or "the Company") Further investment in South India development Trikona Trinity Capital PLC (AIM: TRC) managed by Trikona Capital Limited, afund created for investing in real estate and real estate related entitiesacross India, is pleased to announce the £3.1m* second tranche of investment inits retail, commercial and residential initiative in Hyderabad, South India. In January 2007, the Company subscribed to a 49% equity share capital stake inthe project company, Manjeera Retail Holdings ("MRHPL"). Trinity's partnershipon this venture with Manjeera Construction Limited, one of the city's premierconstruction companies, brings it strategic access to the thriving HITEC City,home to major technology firms such as Microsoft, Dell and Motorola. The Company committed £9.9m* to this £64.4m* venture which at 31 March 2007 demonstrated an NAV uplift of 64%. Significant progress has been made at the project level including: finalisingproject debt financing through HUDCO, OBC, Indian Bank, Bank of Baroda and SBI;receiving airport authority approval for height clearance; appointing Jones Lang La Salle Meghraj as sole marketing agents for the project; and beginningconstruction following approvals from regulatory authorities. Furthermore, MRHPLselected the renowned international architect firm RSA to work on the project. Strategically located on the main arterial road in Kukatpally, the projectbenefits from significant traffic to the key regional commercial hub of HITECCity. Additionally, the site is located at a distance of only 100 meters fromthe JNTU Campus, one of the leading technological institutes in the country.Aashish Kalra, Managing Director of Trikona Capital said: "This furtherinvestment by Trikona TC reinforces the success of this venture in an area ofsubstantial growth and is currently ahead of schedule. It is the firstconstruction of its kind in the area and will bring much needed retail andcommercial exposure to a densely residential suburb. Our collaboration with MCLshall further the evolution of Kukatpally from a residential locality to apremium suburban centre." * All figures calculated at an exchange rate of 81.08 at 25 October 2007. - ENDS - Enquiries: Trikona Trinity Capital PLC managed by Trikona Capital LimitedAashish Kalra, Managing Director +91 11 46596000Ashesh C. Shah, Head of UK and Global Head of Corporate Development +44 207 870 3454 Bell Pottinger Corporate & Financial +44 20 7861 3232Nick LambertAmy Rajendran Gutenberg CommunicationsHarjiv Singh (New York) +1 212 209 3863Pranav Kumar (New Delhi) +91 98100 77898 Numis Securities +44 20 7260 1000Jag MundiCharles Farquhar Notes: For further information and regular updates regarding the Fund'sactivities, please log on and sign up for news alerts at www.trinityplc.com Notes to Editors: •In January 2007, Trikona TC and MCL entered into a partnership for equity financing with a total commitment of INR 800m for a 49% share of MRHPL with an estimated IRR to meet or exceed 25%. This was broken into two tranches of INR 550m and INR 250m. •This will be a special purpose vehicle for the development of 2.7m sq.ft of real estate comprising of office, retail and residential space over two land parcels at Kukatpally, Hyderabad. •The project presents an opportunity to invest in the development of commercial (office and retail) and residential space in Hyderabad, one of Indian's fastest growing cities. Growth in the area has been driven by the city's expanding IT, pharmaceuticals, biotechnology and financial sectors. To address the growing need for good quality facilities, the project company will develop 1.27 million sq.ft of office space, 1 million sq.ft of retail and cine multiplex space and 419,000 sq.ft. of residential space within the next three and a half years. Trinity's investment will be utilised to pay for the land development rights and to fund the development activity. •Kukatpally is a residential and institutional area located 13km from the heart of the city in the western part of Hyderabad and is the fastest growing suburb in the area. Kukatpally - HITEC City connector has witnessed significant activity in the last 1-2 years that has been driven by the excellent connectivity from Cyberabad and other established residential areas. The venture is located in close proximity to the prominent 1,800 units residential apartment project "Rain Tree Park". •The development of modern office space in Kukatpally with competitive rents and excellent travel links have made the area an attractive location for major multinationals. In addition to this, the rise in employment and income levels has led to increased consumer purchasing power that has provided the catalyst for a rise in retail activity within the city. This information is provided by RNS The company news service from the London Stock Exchange