Trinity to raise additional funds of $ 1bn for Indian realty

UK-based real estate fund Trinity Plc is planning to raise fresh funds. India-focused real estate fund Trikona Capital is the asset management company of Trinity promoted by two US-based entrepreneurs Rakshid Chugh and Aashish Kalra. This brings Trinity’s total fundraising to $1 bn this year. Trinity earlier had raised about $500 mn at London Stock Exchange’s AIM market last year. In addition to a secondary listing at the AIM market, it will also raise another private equity fund.

The secondary listing at the AIM market is expected to garner nearly $500 mn and the remaining will be raised through a PE fund. Trikona has declined to confirm the break-up of how the funds would be raised. The additional funding will be ploughed into the real estate sector.

Trikona is already in talks with several foreign investors to raise this additional funding. It has till now deployed funds worth $250 mn in the real estate sector and has committed funds worth $1 bn. Trikona has recently made investments in IL&FS Transportation Networks. It has also invested $20 mn to pick a 16% stake in a project owned by Kapstone Constructions. In October last year, Trikona entered into a JV with real estate developer Lokhandwala Builders for a residential project in Mumbai at an estimated cost of $103.4 mn. The fund picked a 49% stake in the venture for $21.5 mn.

Read The Economic Times article.

Goldman Sachs to pick up 5% stake in ITNL for Rs. 90 crores

Goldman Sachs is about to pick a 5% equity stake in IL&FS Transportation Networks (ITNL) for around Rs. 90 crores. ITNL is a vehicle promoted by IL&FS to spearhead its initiative in transportation infrastructure development.

This will be the second private placement in ITNL in the last three months. In October 2006, US-based private equity fund Trikona Capital bought 2.5% stake in the company for around Rs. 40 crores. Trikona also announced a $100-mn partnership with parent company IL&FS for investments in real estate and infrastructure.

ITNL is the promoter of the Noida toll road project and owns 22.6% equity in Noida Toll Bridge Company. Noida Toll Bridge is listed on the AIM market in London Stock Exchange. ITNL currently has a portfolio of 10-11 road sub-sector projects, which are in the development phase and a pipeline of such projects in the planning phase. The company, which has got road projects in Ahmedabad, Rajasthan, has recently won an annuity contract in Chhattisgarh. Incorporated in 2000, IL&FS has domiciled most of its transport sector investments and resources in ITNL for its surface transportation projects. The company also intends to participate in green field projects and provide advisory services. Already, the holdings of IL&FS and existing financial investors in the IL&FS sponsored projects are being transferred to ITNL.

Last week, Goldman Sachs bought a 5% stake in the National Stock Exchange. IL&FS was one of the deal makers in the transaction.

Read The Economic Times article.