Trikona Trinity Exits Phoenix Mills At 46% Loss
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Trikona Trinity Exits Phoenix Mills At 46% Loss

By Pallavi S

  • 16 Nov 2009

AIM-listed India-focused fund house Trikona Trinity Capital has exited Mumbai-based real estate developer Phoenix Mills at a 46% loss on its two-and-half-year-old investment.

It sold its entire 1.2% stake for £3.9 million (Rs 30 crore) in the open market last week at a price of Rs 170 a share. The share price has risen over 10% since then.

Trikona Trinity had acquired the shares in June 2007 for £7.3 million and has exited at an absolute loss of approximately £3.4 million. However, it managed to recoup the sharp drop in valuation that it suffered in the stock market crash between September 2008 and March 2009.

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As of March 31, 2009, the value of its investment in Phoenix Mills had whittled down to just £1.7 million. Other PE investors in Phoenix include New Vernon India who held 4% in the company as of September 30.

Phoenix Mills, which has a market cap of Rs 2,700 crore ($580 million), reported consolidated net profit of Rs 76 crore against Rs 43 crore in 2007-08.

Phoenix Mills is into large format retail-led mixed use development of real estate in city centres. Originally, a textile manufacturing company owning large tract of land at Lower Parel in Mumbai, the company was listed in the Bombay Stock Exchange way back in 1959.

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It entered into real estate in late 80s and in 1992 built the first multi-storied Phoenix residential towers on the Phoenix Mills Land. Over the last decade, it entered into various ventures to tap opportunities in the entertainment segment, retail malls and commercial space.

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