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2 Oct 2008 07:00
2 October 2008
Trikona Trinity Capital PLC
("Trikona TC" or "the Company")
Pre-Close Update
Trikona Trinity Capital PLC (AIM: TRC), a fund created for investing in Indian real estate and infrastructure, and managed by Trikona Capital, announces a pre-close update ahead of its preliminary results for the period ended 30 September 2008.
Notwithstanding current market conditions, recent transactions serve to underpin existing valuations. By divesting significant parts of its portfolio, the Company continues to be cash generative and will use a portion of these proceeds to fund existing commitments and obligations.
The impact to the Company of the global economic turmoil should be minimal in comparison to sectors with greater exposure to the US financial markets. Moreover, the underlying holding company has no debt and the debt level within each individual special purpose vehicle is minimal.
Development Projects and Divestments
Board Review
In lieu of the current market conditions, the Board has decided to actively undertake a review of mechanisms designed to address the gap between the Company's share price and its NAV, and will announce the outcome as part of the Company's interim results statement. During the review period, the Company shall refrain from making any new investments, reserve any cash resulting from dispositions and return such cash through the selected mechanism other than where required to support current and future dispositions.
Outlook
Michael Cassidy CBE, Chairman of Trikona Trinity Capital PLC, said: "Over the last six months we have continued our strong track record of delivering results and creating significant value for our shareholders. Not only have we sourced a number of exciting new investment opportunities but we have demonstrated our execution capability by realising further returns through our partnership with SF, a partnership that continues to go from strength to strength."
- ENDS -
Enquiries:
Trikona Trinity Capital PLC managed by Trikona Capital Limited
Aashish Kalra, Managing Director +91 11 4659 6000
Sally Lewis, Director of Investor Relations +44 207 148 5360
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
Appendix
Project Highlights:
Development Project 1: Uppal IT Park - "Tech Oasis"
Development Project 2: Rustomjee's Township
Development Project 10: Luxor Cyber City - "SEZ" IT/ITES Development
Development Project 13: MIG Bandra
In May 2008, Trikona TC and SF invested £20.04 million to acquire 49% of a redevelopment project located within the MIG Bandra area in partnership with Rustomjee Construction Pvt. Ltd., the SPV promoted by Keystone Group, which holds the remaining 51% of the underlying asset.
The project site is in close proximity to the Secondary Business District (SBD) of Mumbai known as the Bandra Kurla Complex, which is fast outgrowing the traditional/preferred Central Business District of Nariman Point. As more and more corporate offices are moving into the Bandra Kurla Complex, there is an increasing demand for quality residential real estate space in the adjoining areas.
Our percentage ownership in the project is also protected by any downturn in markets due to our first right of cash flow in the project returns.
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
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