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Rediff.com  » Business » Trinity Capital lines up $10 bn to develop 3 metros

Trinity Capital lines up $10 bn to develop 3 metros

March 14, 2007 14:37 IST
The New York-based real estate investment fund Trinity Capital has lined up $10 billion, which may go up to $12 billion, to develop three satellite cities on the outskirts of three major metros - Mumbai, New Delhi and Bangalore.

Each of the satellite townships, to be built over a 1,000 acre spread, will see an investment of $ 2-4 billion.

Trinity is also in the process of lining up $2.5 billion for investing across 10,000 hotel rooms in the country over the next five years.

Disclosing the fund's investment plans, Aashish Kalra, managing director of Trikona Capital, the asset manager for Trinity's funds, said, "We will bring in the best of breed planners and developers for our projects in both township development and our hospitality projects."

Kalra added, "We have put in place a team of senior American town planners and real estate experts to create the master plan. The locations are being identified by our Indian team. We expect to launch the projects by the year-end."

On the township development, he said, "Each of the townships will be built from the scratch with local partners. We are in the process of identifying the partners."

About the fund's strategy for investment in the burgeoning hospitality industry, Kalra said, "Our aim is to build 10,000 hotel rooms, which translates into around 400 hotels, in the next five years. In the first two years, we expect 40 hotels along the highways being built by IL&FS Transport Networks in which we have   10 per cent stake. In year three and four we expect to construct around 100 hotels each but the real growth will come in the year five when we will build around 200 hotels."

Kalra said the group had already tied up with the Meridien and Hyatt groups in the luxury segment and the Intercontinental group in the mid market segment to manage its properties.

"We will also be looking to develop our own hotel brands in these five years," he added.Trinity Capital, promoted by Aashish Kalra and Rak Chugh, is an India-focussed real estate fund which has been investing in commercial and retail properties and township developments.

Gayatri Ramanathan in Mumbai
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