"We are very pleased to have successfully completed the thirdstage of our portfolio sales to SachsenFonds," says Aashish Kalra,co-founder and managing director of Trikona, in a statement. "Ourmost significant deal with Sachsen to date, this agreement furtherillustrates the strength of our relationship, as well as our robustbusiness model."

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The German-based fund previously partnered with the firm for twoother transactions, starting in December of 2007. Sachsen purchasedassets from the Trikona Trinity Capital PLC portfolio for $65million, as well as partnering again for a $150-million-deal inJune of 2008. The June 2008 deal will partially fund aco-investment with Trikona of $40 million to Mumbai, India torefurbish four acres of middle-class housing and build high-endluxury homes as part of Trikona's urban rejuvenation platform.Sachsen is contributing 55% of the investment cost.

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"One of our biggest projects is urban rejuvenation in Mumbai,"Aashish Kalra, managing director of Trikona tells Globest.com. "Ifyou went to America and you didn't invest in New York or you wentto the United Kingdom and you didn't invest in London, that's likecoming to India and not investing in Mumbai. Because [Mumbai] is anisland city, you have to rejuvenate the existing infrastructure."The middle-income cooperative housing that was built in the 1970swas capped off at two buildings, Kalra explains, whereas today, sixbuildings are allowed. "So, instead of [people] living in two, yousay, 'you can live in four and the extra two is what we'll sell tothe market'," he says. "And that's what that transaction was allabout."

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The current deal will co-invest, with Trikona, roughly $70million into four infrastructure projects that are in developmentin India, each within asset portfolios from Trikona; SankalpBuildwell Private Ltd.; Jodhana Developers Private Ltd.; EnigmaConstructions Private Ltd.; and Horizon Countrywide Logistics Ltd.The rest of the money, $86 million, will be divested into otherTrikona portfolios, following a similar structure of previousdeals.

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Trikona stresses that the partnership with SachsenFonds is farfrom over and future deals are already being worked out, althoughundisclosed at this time. In India, illiquid partnerships cannot besold for three years to someone, Kalra says. "That's thegovernment's law," he points out. Emphasizing their rare ability tosell assets under these laws, Kalra explains, "it is predicated onthe fact that we have allowed our partner to build anotherbusiness, a mutual fund business on this," he says. "We believe[SachsenFonds] can repackage Indian risk and repackage it inGermany."

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Trikona is a multi-national firm with offices in New York,London, Delhi, India and Mumbai, India. According to Trikona, theyhave made $250 million on a cash-on-cash basis and generated inexcess of 120% return.

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