New York, Jan 29 (ANI/Business Wire India): Trikona Capital Ltd., the leading fund management firm for institutional investment in Indian real estate and infrastructure, announced it received Special Economic Zone (SEZ) status approval from the Indian Government for a new development in the rapidly growing city of Greater Nodia near the national capital.
Trikona Capital invested 56 million dollars in the 76-acre mixed-use Tech Oasis project, a planned development of 10 million square feet of IT, residential and commercial space located in a specially designated area, known as Tech Zone, which promotes the development of the IT services industry.
Tech Oasis is situated along the Taj Expressway, which will connect the site to a new proposed international airport and provide direct access to Agra, Faridabad and Gurgaon.
Since acquiring the project in March 2007, Trikona Capital has actively managed the investment from developing the project's master plan to working closely with the Ministry of Commerce and the Government of Uttar Pradesh to receive formal SEZ status.
Final project plans will now be submitted for approval.
The SEZ approval gives Trikona Capital control of two of the four multi-product SEZs in the National Capital Region of Delhi, a popular location for multinational IT services firms.
SEZs were created in India as export hubs to entice investment and spur economic develop outside India's congested major metros.
Both developers and tenants of SEZs receive significant tax benefits for more than a decade.
By decreasing the operation costs for Trikona and its tenants, these incentives have the ability to dramatically boost the value of Trikona's investment.
Prior to SEZ approval, the project had increased to a net asset value of more than 162 million dollars, based upon a valuation by real estate services firm CBRE.
In November, Trikona sold an eight per cent stake in Tech Oasis at nearly three times the purchase price to an affiliate of SachsenFonds GmbH, a subsidiary of the German public sector bank Sachsen LB.
"The SEZ designation reinforces Trikona Capital's position as one of most established real estate fund managers in this region," said Aashish Kalra, Managing Director of Trikona Capital.
"This approval is another example of our ability to execute institutional transactions through the entire investment lifecycle and navigate the complexities of this emerging market," Aashish added.
The Tech Oasis investment is one of 12 in the portfolio of Trikona Trinity Capital PLC, a 500 million dollars fund listed on the Alternative Investment Market in 2006 that has been fully invested in real estate and infrastructure projects in the country.
Starting with the public Trikona TC fund, management firm Trikona Capital plans to invest 10 billion dollars of public and private equity in India in the next 10 years.