Press Release Summary: Indian developers to become minority stakeholders and provide support for Indian activities First product launch is Cordea Nichani Indian Opportunities No.1 Limited, with a fund size of USD 200 Million
Press Release Body: Cordea Savills, an international property fund manager, and the Nichani Group, an established Indian family business, have today launched a joint venture, which will provide fund products that will give investors access to one of the world’s largest and fastest growing economies. The joint venture’s first product is Cordea Nichani Indian Opportunities No.1, which offers access to land and development opportunities in high growth regions of India targeting net returns of 25% per annum. The joint venture will be named Cordea Nichani and it brings together a unique combination of skills and experience. Cordea Savills is an international fund manager with over USD 5.6 billion in assets under management and a proven investment and risk management framework. The Nichani Group is a 60-year-old family business operating out of Chennai, Bangalore and New York with strong contacts and relationships with other families and businesses. The family is experienced in real estate investments and also operates successful businesses in movie financing, information technology and equity investments. The Indian developers cover all major sectors of the market, and will be minority shareholders in Cordea Nichani. The Indian developers will participate on Cordea Nichani Indian Advisers Private Limited’s Management Advisory Board and Investment Advisory Committee. Velankani Infrastructure, the Sastry Group (a substantial land developer), Caliber Construction (an experienced construction company), and another established Mumbai developer, comprise the India developers and their affiliates supporting the joint venture. Cordea Nichani Indian Opportunities No.1 is a closed-ended private limited company incorporated in Mauritius that will concentrate predominantly on opportunities in Southern India and Maharashtra. These regions are characterised by rapid economic and population growth, a young, ambitious and highly educated workforce and political stability. The Company has access to an extensive deal pipeline in key cities, especially those with exposure to the booming information technology sector.
The Company will have four key investment themes: • Residential development: There is a widening shortfall of homes (the government estimates 74 million dwellings will be required in the five year period, 2007-2011) to meet the demands created by increasing urbanisation, strong economic growth and a rapidly emerging middle class. There is the potential for high returns and strong cash flow from well-positioned sites; • Special Economic Zones (SEZs): These have been created by the government to serve the twin purposes of ensuring job creation and meeting the exponential growth in demand for facilities in various sectors, with the government also providing tax breaks for developers and tenants of SEZs. This offers the opportunity to achieve attractive investment returns; • Hotel and leisure development: Economic growth has created a severe shortage of hotel space that can only be addressed through new development. Leisure facilities are also in increasing demand. Hotel, golf and leisure complexes provide particularly good development opportunities, and • Serviced land: The Company will be able to invest and hold land where it supplies infrastructure prior to onward sale to end-users. Returns are generated by both rises in the value of the land as amenities are added and from obtaining re-zoning consents.
John Partridge, Executive Chairman of Cordea Savills, comments, “We are delighted to launch a joint venture with the Nichani group and to receive the support of our Indian developer shareholders. The combined knowledge, disciplined research and risk management framework, contacts, investment expertise and experience of the parties, are the perfect mix to exploit the outstanding investment opportunities in the region.” Suresh Nichani, Executive Director of Nichani Holdings, LLC., adds, “The powerful demographics of India coupled with a huge middle class and a driven young population will provide sustained growth in many real estate sectors, including serviced land, office space and hotels. Our target is to build a world class real estate fund management business to provide investors with superior risk-adjusted returns.” Cordea Nichani Indian Opportunities No.1 is a closed-ended private limited company incorporated in Mauritius. A cornerstone investor has already been secured and the target equity raising is USD 200 million with a first closing in November 2007. Cordea Savills and Nichani Group, through their affiliates, will be co-investors in the Company. Indian Opportunities No.1 is an unregulated investment scheme which is only available to certain categories of investors outside of India. This press release is issued by Cordea Savills and Nichani Holdings, LLC. to members of the press and media only. The information contained herein should not be construed as a prospectus, invitation to offer, financial promotion, advertisement or investment advice. ENDS For further information, contact Cordea Savills Nichani John Partridge Suresh Nichani Cordea Savills Nichani Holdings, LLC. Tel: +44 (0)7870 555 814 Tel: +1 (212) 873-1194 Patrick Evans / Stephen Sheppard Mahesh S Citigate Dewe Rogerson, UK Brand - Comm Tel: +44 (0)20 7638 9571 Tel: +91-94482-59429
Notes for Editors: Cordea Savills • Cordea Savills is an international property fund manager offering services on a pooled fund or segregated mandate basis. Funds are invested either directly in property, in investment vehicles, or both. Investment styles range from core to opportunistic. • As at 30 June 2007, Cordea Savills managed £2.8 billion (€4.2 billion/USD 5.6 billion) of gross assets for a range of clients including corporate, occupational and local government pension funds, fund of funds, charities and professional investors. • Cordea Savills is the brand name for entities in the Cordea Savills group, including Cordea Savills LLP, Cordea Savills Investment Management Limited, Cordea Savills Advisors SpA, Cordea Savills SGR SpA and Cordea Savills GmbH. • Cordea Savills LLP is a limited liability partnership registered in England No: OC306423. • More information on Cordea Savills can be obtained from www.cordeasavills.com
Nichani Group • Nichani is a 60 year old established business house and business family operating out of Chennai, Bangalore and New York. • Nichani has Interests in various businesses including film financing, information technology, modest equity holdings (in private and public companies), real estate holdings and real estate funding. The Indian businesses are guided by Harilal G. Nichani and Amarlal G. Nichani. • The group has financed over 250 movies to date, predominantly in southern India. Many movies that were financed by the Nichani family were awarded state and other national awards. • The group recently sold one of its information technology companies, Exinom Technologies Inc., to NEC Solutions America. Exinom was founded in 1995 in New Jersey and served many multinational Fortune 500 companies at the time of sale. • The family also owns many properties in southern India and has considerable experience in transacting real estate in India. • The Nichani family is also known for its philanthropy. A Charitable Trust was created in the 1960s by the group, which has made contributions towards building hospitals, schools, colleges, meditation centres and libraries. • More information on Nichani can be obtained from www.nichani.com
Velankani Infrastructure • A leading Bangalore development company specialising in IT parks and hotels, responsible for some of Bangalore’s most respected technology parks. • The Velankani group has a 20 year history servicing the telecommunications industry. In November 1999, 23 acres of land in phase ll of Electronics City Bangalore was acquired from the Karnataka Industrial Areas Development Board (KIADB). The subsequent development, Velankani Technology Park, provides world-class infrastructure to the IT sector housing 8,000 professionals. • Velankani Technology Parks Pvt. Ltd (VTPPL), a 100% subsidiary, was incorporated in 2006. VTPPL is developing an “Electronic Hardware Manufacturing and ITES” SEZ at Sriperumbudur Taluk, Kancheepuram District, Tamil Nadu. The site encompasses approximately 162 acres. • Velankani is also active in the hospitality sector. Current projects include a 5-star hotel project in Electronics City, catering primarily to IT-related business customers. • More information in Velankani can be obtained from www.velankaniindia.com
Sastry Group • A substantial land developer and serviced land provider of over 50,000 sites in India. • Sastry Group has been in operation since 1961 and has developed some of the largest residential layouts in India. It is one of the leading land acquisition and development houses in Southern India. • A total of more than 40 million sq ft of space has been developed for residential societies, federal, state and private enterprises. • Sastry currently has approximately 1,000 acres of land that are in various stages of development. • Latest ventures include a 300 acre golf course and a premium residential project in Mysore. • More information on Sastry can be obtained from www.sastrygroup.in
Caliber Construction • A construction company involved in the building of hotels, IT parks and Special Economic Zones (SEZs) in southern India.Caliber Construction Company Pvt Ltd., headquartered in Bangalore, is a group associate company of Velankani Information Systems Pvt Ltd. • Caliber has a presence in Bangalore, Chennai, Cochin, Mumbai and Hyderabad. • Caliber is known for its rapid turn around times, transparent dealings and attention to costs. The company’s reputation for reliable construction and international quality standards has enabled it to expand from its origins in Bangalore. • More information on Caliber Construction Company can be obtained from www.calibercompany.com
2022
