AIM-listed India focused real estate fund Trikona Trinity Capital PLC has exited its investment in DB Hospitality Private Limited by selling its shares for Rs 100 crore (£14.7 million).
The firm that is expected to appoint Ajay Piramal Group-promoted Indiareit Investment Management Company (Indiareit) as its investment manager in India had acquired the shares in two tranches in December 2006 and January 2008 for a total consideration of £12.2 million. It has realised a profit on investment of approximately £2.5 million (Rs 17 crore), as per a disclosure to the stock exchange.
Trikona Trinity had appointed Rothschild (as lead adviser) and DTZ (as co-adviser) to assist in finding new fund manager after terminating the deal with Indian advisors, Trikona Advisors Ltd (TAL) citing "breaches". The termination is disputed.
Trikona Trinity is also facing a claim of around $168 million from a large German investor SachsenFonds Holdings GmbH who has formally commenced proceedings against the firm besides Aashish Kalra and Rakshitt Chugh (who together control TAL) in the Supreme Court of Mauritius.
The sale of DB Hospitality shares marks another exit for Trikona Trinity that successfully exited from its three-and-half-year-old investment in IL&FS Transportation Networks Limited during its IPO early this year. Trikona sold its entire 2.5% stake at a price of Rs 258 per share or £ 15.4 million as compared to cost of purchase of Rs 101 a piece in October 2006 at a total cost of £5.1 million. It also exited its three-year-old investment in healthcare chain Fortis Healthcare with an 11.85% return.