IL&FS in $100 million realty venture with Trinity Capital arm
07 Aug 2006
Mumbai: Infrastructure Leasing & Finance Services Investment Managers (IL&FS Investment Managers) has entered into a co-investment partnership agreement with Trikona Capital, the fund manger of Trinity Capital PLC, to invest in real-estate development in India.
The joint venture, IL&FS Trikona Infrastructure, will focus on infrastructure projects in India such as ports, airports, roads, special economic zones. It will also look for opportunites to develop real estate around these infrastructure assets.
The new partnership, IL&FS Trikona Capital, will bring together two of India's largest real estate funds to build a substantial platform for real estate investment and development.
The initial funding of $100 million will be done on a 50:50 basis with both Trikona and IL&FS Investment Managers providing an equal share in the joint venture.
IL&FS and Invest Managers has been an active investor in India and today is one of India's largest domestic private equity funds, managing over $900 million on behalf of leading Indian and international institutions. IL&FS Investment Managers has recently raised over $500 million solely focused on investments in real estate in India.
"Today there are a number of factors that make the real estate sector an attractive asset class. However, with a large number of developers and investors entering the market, size, innovation and quality of execution will be crucial to successful real estate development. The co-investment platform will allow IL&FS Investment Managers and Trikona to take on development projects that are innovative and differentiated from those of other players in the market," said Shahzaad Dalal, vice chairman and managing director, IL&FS Investment Managers.
Aashish Kalra, managing director of Trikona Capital, added: "This partnership will create one of India's largest investment platforms focused on real estate. We believe the partnership approach generates significant advantages for Trinity and we expect to announce similar ventures in the near future specialising in other sectors including hospitality."