Trikona to fund Indian township

On the heels of recent residential and IT investments, Trikona Capital has announced a JV to invest in a mixed-use township center in Thane, Mumbai.

Trikona Capital, a London-listed fund focused on Indian real estate, has committed capital to another project in India, a township development in Thane, 40 kilometers from the city center of Mumbai. Called Rustomjee’s Township, the project is a joint venture with Nanpada-based developer Kapstone Constructions.

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Trikona’s Trinity Capital fund is providing £10.6 million ($20 million; €16 million) for a 16 percent stake in the development. The firm has the option to increase its investment by £3.5 million for a 21 percent share.

“The rapid urbanization of India requires integrated townships as they are convenient and offer a better quality of life,” Aashish Kalra, managing director and co-founder of Trikona, said in a statement. “Rustomjee’s Township also has the added advantage of being located close to Mumbai and is ideally connected to Mumbai by road and rail.”

According to the release, Rustomjee will have more than 7 million square feet of residential, commercial and IT space, as well as a mall, school, medical facilities and recreation area. Construction is expected to begin in December of this year. 

In an interview with PERE prior to the announcement, Kalra said that the firm was looking to invest in Mumbai as the government continues its campaign to foster development in the city.

“The only way you can do this is by rehabilitating the city centers,” he said.

Rustomjee is the fund’s third investment in the past month and the fourth investment overall. Earlier in the month, Trikona announced a residential project in Worli, Mumbai. The fund is investing £11.6 million in the project, which is valued at £56 million. The firm has also acquired a stake in an IT park in Greater Noida for £215 million, with Trinity committing £28.3 million to the project. In August, the firm announced it was investing $100 million alongside investment bank IL&FS to develop Indian infrastructure.

Trikona has offices in Mumbai, Delhi, Bangalore, New York and London. Kalra co-founded the firm with Rak Chugh earlier this year.