facebook-page-view
Advertisement

London-listed Alpha Real Trust wins arbitration against Logix’s IT SEZ Galaxia in Noida

By PTI

  • 29 Jan 2015
London-listed Alpha Real Trust wins arbitration against Logix’s IT SEZ Galaxia in Noida

London-based investment fund Alpha Real Trust today said it has won an arbitration award on valuation of its investment in an IT SEZ project of Noida-based realty firm Logix Group.

Logix, however, said the ruling of the arbitration panel was flawed as one of the arbitrators had given a dissenting note. The company will challenge the award in High Court.

Alpha Real Trust had formed a 50:50 joint venture with Logix to develop a 11.2 acres IT SEZ project 'Galaxia' at Noida. The fund had invested Rs 45 crore equity in December 2009.

Advertisement

However, the project did not take off due to a dispute between the two companies soon after the investment.

"The company is pleased to announce that following conclusion by the International Court of Arbitration, the award with respect to its investment in Galaxia...has been declared in favour of the company," Alpha Real Trust joint joint fund manager Brad Bauman told reporters here.

"The total award amounts to 9.2 million pounds (about Rs 85 crore) based on current exchange rate," he added.

Advertisement

The three-member arbitration panel in a majority decision on January 20 asked Logix group to return the Rs 45 crore invested by Alpha together with interest as well as legal and arbitration costs incurred, Alpha Real Trust said.

The arbitration proceeding, which was held in the national capital, started in early 2010. Retired Chief Justices A M Ahmadi and V N Khare were the co-arbitrators, while Christopher Lau SC was the Chairman of the Arbitral Tribunal.

Stating that the arbitral tribunal gave the judgement that Logix had breached terms of shareholders agreement, Alpha Real Trust said that the arbitration awarded the company "return of its entire capital invested of Rs 45 crore along with interest rate at 18 per cent per annum from January 31, 2011 to January 20, 2015".

Advertisement

When contacted, Logix CMD Shakti Nath told PTI: "This judgement is illegal in terms of FDI exit norms. One judge has given a dissenting judgement in our favour. We are moving the High Court within a fortnight against this judgement to seek necessary relief".

Nath said that Alpha Real Trust wanted to exit from the project due to recession in IT sector and decline in valuation of the land. He also informed that the fund had exited from two other projects planned with Logix.

"We still have very credible FDI partners like Apollo Global, ICICI Prudential and Taib Capital," Nath said.

Advertisement

Alpha Real Trust is a registered investment company listed on the London Specialist Fund Market of London Stock Exchange. It has also informed about this development on LSE.

The company targets investment and development opportunities in real estate, including real estate operating companies, securities, services and other related businesses that offer high total returns. The trust is managed by Alpha Real Capital, an International Funds Management Group.

Advertisement

Share article on

Advertisement
Advertisement