New Delhi: New-York based Trikona Capital, an India-specific real estate fund, plans to come out with a second public offer to raise additional capital to invest in the Indian real estate market. The company plans to list either on the Indian stock market or at an international stock exchange.
“An initial public offer is one of the options we are looking at to raise funds,” said Aashish Kalra, managing director of Trikona Capital. Kalra declined to give the amount that the company plans to raise as it was still at a planning stage.
In 2006, Trikona, a real estate fund management firm raised approximately $500 million (Rs2,300 crore then) by listing one of its funds, Trinity Capital Plc., on the London Stock Exchange’s Alternative Investment Market.
Trikona plans to invest around $10 billion (Rs39,500 crore) over the next 10 years in the Indian real estate market. The company looks to raise capital for this investment through multiple options such as a second public offer, private equity investment and using the existing money within the fund.
High investments: Trikona Capital MD Aashish Kalra.
The timing of the public offer will depend on the market conditions, Kalra said. “Timing is a condition of the market... We could raise money in the Indian stock market or in the UK.”
In recent times, real estate funds are looking at raising additional capital in their second or third issues to invest in the fast growing Indian real estate market. The Singapore-based property developer, Ascendas Pte Ltd, that had launched a real estate fund in 2005, recently launched a second fund valued at around $325 million to invest in India.
According to a real estate report by Ernst & Young, nearly 24 US funds such as Blackstone Group, Goldman Sachs Group Inc. and Citigroup Property Investors are raising funds for investment in the Indian realty sector.
Real estate private equity funds played an aggressive role in 2006-07 and are likely to dominate the transaction activity in the sector in 2007-08 as well, the report said.
Trikona has already invested $450 million in the Indian real estate, construction, infrastructure and hospitality sectors through its first fund. The company has also committed to invest around $1 billion in various real estate projects in India.
Trikona is now looking at offloading some of its stake in the real estate projects it has invested in to generate funds. The company is looking atselling about 20% of its shares in some of its assets to other investors.