It's real: IL&FS inks JV with Trikona, to invest $1 bn

NEW DELHI: It is a partnership that could pave the way for several big-ticket transactions in the infrastructure and real estate space. Infrastructure major IL&FS is entering into a partnership with private equity fund Trikona Capital Group, to deploy around $1bn for development of infrastructure projects in the country over the next four-five years.

To start with, IL&FS Trikona Infrastructure will deploy $100m, of which Trikona will contribute $90m and the remaining will come from IL&FS. Trikona Capital Group, which has offices in London and New York, raised around $450m through a public offering of its Trinity Capital Fund on London Stock Exchange in April.

This will be the India-dedicated fund’s first deployment in the country targeting the infrastructure and real estate sectors. Trikona Capital co-founder and managing director Aashish Kalra told ET from London that the initial corpus will be directed at projects that include expansion and acquisition of existing infrastructure assets over the next 12 months.

This includes ports, airports, roads and SEZs, while at the same time build upon real-estate opportunities around these infrastructure assets such as gas stations, hotels, residences and warehouses. “We will make strategic investments that will help developers of infrastructure and real estate to go national,” he said.