Trikona Trinity Capital PLC (AIM: TRC), a fund created for investing in Indian real estate and infrastructure, announces its Preliminary Results for the year ended 31 March 2008.
- Successfully invested £74 million in three new projects to bring total number of projects to 12 since launch
- Net Asset Value (“NAV”) up 22% to £351 million or 151 pence per share at 31 March 2008 (31 March 2007: 124 pence per share)*
- The portfolio showed a realised investment IRR of 119% and an unrealised investment IRR of 99% as at 31 March 2008
- Profit before tax of £64 million (2007: £34 million) on an IFRS basis
- Earnings per share of 26.9 pence (2007: 13.6 pence) on an IFRS basis
*Note due to the turmoil in the global credit markets and upon the advice of our professional advisers, the Directors increased the Weight Average Cost of Capital (WACC) from 12.88% to 15.54% in calculating the Net Asset Value for development projects.
Realisation of assets
- In November 2007, Trikona TC divested part of its investment portfolio for £32.1 million to SachsenFonds GmbH (“SachsenFonds” or “SF”), a leading German fund manager and became the first AIM-quoted fund focused on India to realise significant returns on investment
- The divestment represented a gain of 108% over the holding periods ranging from nine to 14 months and successfully established a strategic partnership with SachsenFonds
In June 2008, Trikona TC completed a second divestment of part of its equity holdings with SachsenFonds for an aggregate sale price of GBP 54.33* million realising a 115% gain
- Pipavav Shipyard Limited (“PSL”) - Equity Holding 8: In November 2007, Blackstone invested in PSL at a valuation of INR 80 per share - an uplift of 220% from Trikona TC’s initial investment at INR 25 per share in January 2007
- Uppal IT Park “Tech Oasis” - Development Project 1: In January 2008, the project was granted Special Economic Zone (“SEZ”) status
- In March 2008, Trikona TC’s investment manager (“Trikona Capital”) announced the addition of six senior managers to the team. The manager now employs one of the larger dedicated investment management teams in infrastructure and real estate in India
- In June 2008, Trikona TC completed a second divestment of part of its equity holdings with SachsenFonds whilst strengthening its strategic partnership by co-investing in a new project
|--||The divestment was completed for an aggregate sale price of GBP 54.33* million, realising a 115% gain. It also marked Trikona TC's sale of 100% of its interest at the Mauritian SPV level in Development Project 3 and Development Project 5|
|--||With this transaction Trikona TC will have realised cash-on-cash returns on five of its twelve initial investments|
|--||SF and Trikona TC will co-invest GBP 20.04** million into a new project, MIG Bandra (Development Project 13), a redevelopment located within the MIG Bandra area in partnership with Rustomjee Constructions Pvt. Ltd.|
- In April 2008, Trikona Capital further strengthened its team with the appointment of Dr. P.S. Rana, former Chairman of India’s Housing and Urban Development Corporation (HUDCO), to lead the development of the company’s infrastructure and real estate projects throughout India
Michael Cassidy CBE, Chairman of Trikona Trinity Capital PLC, said:
“This was a year of exceptional performance and growth for the Company. Trikona TC has consistently delivered on its IPO promises and we are the only AIM-listed fund focused on India to realise significant cash returns on investments in the real-estate sector. We remain committed to further expanding and diversifying our portfolio and believe future growth in the business will be achieved through a greater focus on Indian infrastructure, continued reinvestment and consolidation of our portfolio into attractive investment platforms.”
“Despite the downturn in global market conditions, our pipeline remains healthy and we continue to create value and make profits for our investors. Our strong execution capabilities enable us to retain our leadership position in a challenging and competitive sector and we are well-placed to capitalise on new opportunities. The Board remains confident of continued enhanced returns for our shareholders.”
* Exchange Rate is EUR 1.2606 = £1
** Exchange Rate is INR 80.79 = £1
About Trikona Trinity Capital PLC:
Trikona Trinity Capital PLC (AIM: TRC) was listed on the London Stock Exchange as Trinity Capital in 2006, raising £250 million of equity. The fund invests in real estate and infrastructure related entities across India, with a target size of between £5 million and £30 million per transaction. 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.
For complete RNS release, please visit www.trikonatrinitycapitalplc.com.
managed by Trikona Capital Limited
Aashish Kalra, + 91 11 4659 6000
Ashesh C. Shah, + 44 207 870 3454
Head of Corporate Development
Bell Pottinger Corporate & Financial
Charles Cook / Sarah Williams/ Amy Rajendran
+ 44 207 861 3232
Kerri Hazama, + 1 212 239 8741
Pranav Kumar, + 91 981 007 7898
NOMAD: Jag Mundi, + 44 207 260 1000
Head of Corporate Finance
Corporate Broking: Charles Farquhar, + 44 207 260 1000
Fairfax I.S. PLC
Paul Richards, + 44 207 598 5368
Head of Corporate Finance
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