Trikona Trinity set to appoint Indiareit as new fund manager

Trikona Trinity Capital (TRC), the London Stock Exchange AIM-listed property fund, has finalised Ajay Piramal group-promoted Indiareit Fund Advisors as the new portfolio manager for its Indian investments, said two persons close to the development.

In December last year, Trikona Trinity, the £250 million India-focussed fund, terminated contract with Trikona Advisors (TAL), alleging breaches by the latter. TAL moved the London Court of International Arbitration against TRC and said it would claim £112 million (Rs 800 crore) in damages from the latter for “unlawful attempt to terminate” the management agreement with it.

When contacted, Indiareit Managing Director Ramesh Jogani said the company was one of the shortlisted candidates, but the deal was not finalised yet. TAL Managing Director Ashish Kalra could not be contacted for comments.

Trikona appointed Rothschild and DTZ to look for a new portfolio manager. “It was the first instance of shareholder activism in the listed fund wherein the investors took over the board and replaced the fund manager. We can see many more cases in the near future,” said a person involved in the search. However, according to TAL sources, hedge funds, QVT and Carrousel, had forced changes in the TRC board and its representatives now had major positions on it.