German Bank Invests Rs 607 Crore In Trikona Projects

German investment bank SachsenFonds (SF) has bought stake in four realty projects of London Stock Exchange listed, India-focussed realty fund Trikona Trinity Capital for Rs 607 crore ($150 million). Trikona has made returns of 115% in the transaction.
In the Delhi-based Uppal IT park, SF raised its stake from 8% to 33%. In the Hyderabad-based residential and retail project Manjira, SF picked up 41%, thereby completely owning the project.
In the MK Mall being developed by DB Realty in Mumbai, SF picked up 40% and now owns 100% of the mall. SF also took 15% stake in Delhi’s Luxor Cybercity, owned by Trikona.
In another instance, Trikona and SF acquired 49 per cent in a redevelopment project in Bandra in Mumbai. The Mumbai-based Rustomjee Developers will undertake the development work, while SF and Trikona will contribute funds in the ratio of 55:45, Trikona said. Since SF is yet to set up its base in the country, Trikona is expected to manage all the assets.
Mr. Aashish Kalra, managing director of Trikona Trinity’s fund manager, Trikona Capital, said, “This transaction supports the company’s business plan and stated net asset value, and confirms our ability to deliver results. We have a solid, scalable investment and development platform and are confident that this transaction reinforces our leading position at the forefront of the Indian real estate and infrastructure markets.”
Trikona Trinity Capital (TC), a fund created for investing in Indian real estate and infrastructure, has entered into a binding agreement with SachsenFonds Holdings, a subsidiary of leading German public sector bank Sachsen, to divest a part of its portfolio and co-invest in new projects, at a transaction value of £74.15 million.
The transaction, which was first outlined in a memorandum of understanding (MoU) on April 1 this year, follows the partial divestment of Trikona TC’s asset portfolio to SF in December for an aggregate sale price of £32.11 million for a cash-on-cash return of 108%.
The current transaction has enabled Trikona TC to further divest a part of its portfolio for an aggregate sale price of €68.5 million (£54.10 million), realizing a gain of 115%.