Trikona Capital, SachsenFonds Cut Infrastructure Development Deal

Trikona Capital Ltd. has taken a third step in its partnership with SachsenFonds Holdings GmbH, based just outside of Munich in Haar, Germany, with the closing of a $156 million deal. The agreement calls for Trikona, a top fund management firm for institutional investment in Indian infrastructure and real estate, and SachsenFonds to invest over $70 million in four new projects involving infrastructure development in the economically blossoming country. Trikona and SachsenFonds have not disclosed extensive details regarding the infrastructure projects, including specific locations. However, according to a report by real estate services firm Jones Lang LaSalle, funds that are active in India’s real estate market list solid physical and urban infrastructure as the primary criterion for selecting cities in which to invest. The recently completed transaction marks the third in a series of deals between Trikona and SachsenFonds. The two entities established their relationship in December 2007 with Trikona’s selling of assets in its Trikona Trinity Capital PLC fund to SachsenFonds for approximately $65 million. The two partnered again in June of this year on a deal valued at $150 million and involving, in part, the restoration of middle-class housing and luxury homes on four acres in Mumbai. Collectively, the three transactions have yielded proceeds totaling $300 million, constituting an average return of 117 percent. Trikona invests in India’s high growth industry sectors. The company’s portfolio of real estate investments involves residential and commercial properties, as well as infrastructure development. SachsenFonds is a division of Kanam Gruppe, a leading German fund manager boasting over $21 billion in investments.