Trikona Capital to raise Rs1,500 cr India realty fund

TrikonaCapital to raise Rs1,500cr India realty fund

Mumbai: New York-based, India-focused real estate investment company Trikona Capital, plans to raise a Rs1,500 crore domestic fund. Trikona’s co-founder and managing director Ashish Kalra said the fund would be “by-invitation-only" with “a minimum ticket size of Rs25 crore."

It will invest in residential and commercial properties. The fund, which is to be launched in December, will be the largest rupee-denominated real estate fund to be raised so far.

Kotak Realty recently closed its domestic realty fund at Rs1,200 crore.

Trikona Capital president Mahesh Gandhi said the fund would be deployed in the company’s second series of investments in India.

Trikona also plans to launch a $1 billion (Rs3,940 crore) infrastructure fund.

Trikona raised its first fund of £250 million (Rs2,032.5 crore) in April 2006 on the London Stock Exchange’s Alternative Investment Market (AIM) and has completely invested this.

Its present portfolio stands at 27.7 million sq. ft of real estate, including 7.9 million sq. ft of residential space, 16.5 million sq. ft of commercial space, 2 million sq. ft of retail space and 1.3 million sq. ft of hotel space.

Gandhi said Trikona also had options for over 70 million sq. ft of space.

Kalra said Trikona plans to invest around $10 billion over the next 10 years in Indian real estate.

Trikona’s deals to date include a 16% stake in two projects of Kapstone Construction, a Mumbai-based company; a 5.72% stake in DB Realty, another Mumbai-based firm; an undisclosed stake in a commercial property being developed at Bandra Kurla Complex in Mumbai with Dynamix Balwas; and an undisclosed stake in Luxor Cyber City, promoted by the writing instruments major Luxor and Delhi-based developer, Uppal group.

A report on the real estate sector by consulting firm Ernst & Young says that around two dozen funds are lining up funds worth over $3 billion targeting real estate in India.

Other international funds considering investments in real estate in India include Blackstone, Morgan Stanley, GE Commercial, Citigroup Property, Berggruen Holding and Bluestone Quantum Management Pvt. Ltd.