Trikona Capital has agreed to sell part of its holdings in four of its off-shore entities for about $65m (£32.1 million) to an affiliate of SachsenFonds, a German closed end fund which is a unit of Sachsen, the German public sector bank.
The sale price is double the $32 million Trikona paid for these stakes less than a year ago, and will provide a realised gain of 108 percent over a holding period ranging from nine to 14 months. This makes the fund the first AIM-listed real estate fund focused on India to turn a profit.
The assets being sold include a portion of a mixed-use IT park in Greater Noida, outside of Delhi, a condominium project in Mumbai, a condo-retail mixed project in Hyderabad, and a commercial and retail center in Mumbai which is part of a slum rehabilitation project.
Trikona was founded by Aashish Kalra and Rak Chugh in early 2006 to take advantage of India’s burgeoning real estate market. It floated Trinity on London’s Alternative Investment Market last April. The firm has so far invested £28.3 million in a £215 million IT Park project in Greater Noida and £10.6 million for a 16 percent stake in a township development outside Mumbai. The fund has also invested £11.6 million in a residential project in Worli, Mumbai and says it is investing $100 million alongside investment bank IL&FS to develop Indian infrastructure.