Trinity Capital Plc has exited its investment in a
SEZ project, Luxor Cyber City, which was being developed in Gurgaon by the Uppal group, by selling the 33% stake which it held to Uppal Group for 9.2 Mn pounds, ET states. The exit is made at a deep discount incurring a loss of R200 Cr on its investment.
Trinity Capitalhad invested R303 Cr in Luxor Cyber City, a special purpose vehicle (SPV) formed for developing an IT-ITeS special economic zone near Gurgaon. LCC was a JV between B.K. Uppal (promoter of Uppal Housing ) and D.K. Jain(promoter of Luxor Group), in June 2007.
The SPV was floated by the two companies to develop 10 Mn square feet on a 67-acre plot for upcoming notified SEZ's in Gurgaon. Of the total space, 6.5 Mn square feet will be used directly as IT space and 3.5 Mn square feet will be developed for supporting usage.
The project was put aside due to the slump in demand for office space after the financial crisis that began in 2007, and changes in tax laws.
The Uppal Group established in 1979, is a real estate developer with interests in various segmentd of real estate including premium residential complexes, commercial plazas, luxurious hotels, IT and IT enabled facilities and retail.
The group has delivered more than 5000 units and 10 Mn sq ft till date and another 20 Mn square feet of space is under planning & development.
Trinity and its Exits
Trinity Capital PLC, was created in 2006 for the purpose of investing in real estate and real estate-related entities across India, with a particular focus on the office, retail, hospitality and residential sectors.
Trinity Capital Plc is an AIM-listed real estate fund focused with an estimated portfolio of $250 Mn, and its Indian investment is managed by Ajay Piramal-backed Indiareit Fund Advisors Pvt. Ltd.
Trinity’s other investments include Uppal IT Park (Gr. Noida), Lokhnadwala (Mumbai), DB Realty (Mumbai), Jodhana Developers ( Rajasthan), MK Malls (Mumbai), Horizon Countrywide Logistics (Mumbai).
In 2011, Trinity Capital Plc has exited Enigma Constructions Pvt. Ltd - developer of Rustomjee Evershine Global city in Virar by selling it's stake for Rs48Cr. In the same year, it had exited Kapstone Constructions Pvt Ltd, a subsidiary firm of Mumbai-based developer Keystone Realtors Pvt Ltd (also known as Rustomjee Group), by selling its 16% stake for around R90 Cr (12.6 Mn pounds).
In 2010, Trinity sold its stake in Pipavav Shipyard Ltd, four years after it invested in the company. It also exited its investment in DB Hospitality Pvt. Ltd, a group company of DB Realty Ltd, the same year and also exited Fortis Healthcare.
Another fund to have exited the sector at a deep discount is Eredene Capital. In 2008, the fund had invested R131 Cr in Matheran Realty and its subsidiary Gopi Resorts for developing a low-cost housing complex near Mumbai.
The Indian office and residential real estate markets have been sluggish and been witnessing drop in sales and lease. Office leasing has dropped from 37 million sq ft in 2011 to about 27 million sq ft in 2012.
In this space, Blackstone was likely to sell its entire stake of 30% in one of the subsidiaries of property firm BPTP for $40 Mn; Tata Realty and Infrastructure was planning to sell its four malls one each in Punjab, Nagpur, Gurgaon and Bangalore; Credit Suisse had offloaded its entire stake in realty firm Parsvnath Developers for an estimated R19.28 Cr; L&T Realty was planning to sell its 1.15 Mn sq ft mall, a 400,000-sq ft office building, and its under-construction Hyatt Regency hotel in Chandigarh on sale with a view to exit its non-core business.
Source : dealcurry.com