New Delhi: New York-based Trikona Capital, an India-specific real-estate fund floated by a few India-born entrepreneurs, is looking to enter the construction business, executing real-estate projects on its own.
So far, Trikona has invested in real-estate projects with partners such as Kapstone Constructions and Lokhandwala Construction. “We do not want to be passive financial consultants. We prefer to develop projects with our partners. But we could look at executing projects on our own,” said Aashish Kalra, managing director of Trikona Capital.
Trikona plans to develop about 10% of its projects on its own. Kalra, however, ruled out floating a new company for its construction business.
In the past six months, Trikona has invested about $250 million to develop over 50 million sq. ft in India. Over the next three years, the company plans to develop 100 million sq. ft. But analysts caution that developing projects on its own could be a challenge. “Trikona has a good background in real estate. They can execute projects on their own, but they will have to be a little cautious,” said Nitin Gupta, associate director of the accounting and consulting firm, PricewaterhouseCoopers.
Trikona also plans around 300 hotels with its hospitality partners. “We plan to have 75% of the hotels in the mid-market segment and 25% in the luxury segment,” Kalra said. Trikona has tie-ups with Dynamix Balwas, the Intercontinental Group and Starwood Hotels.
Funds for Trikona’s expansion plans will come from the $500 million it raised last year from listing one of its funds, Trinity Plc, on the London Stock Exchange’s Alternative Investment Market.