Eredene Capital PLC announces third investment

November 14th, 2007 - 1:57 am ICT by admin  
This is the Eredene Group’s second real estate investment in a CFS in India, where there is rising demand for container service facilities, and its third investment since shareholder approval of its broadened investment strategy.

The Eredene Group has now made three new investments in line with the broadened investment strategy, with commitments totalling up to GBP 20.3 million, which represents 37 per cent of the net funds it raised in April 2006.

Commenting on this new investment, Alastair King, Eredene’s Chief Executive and founder said: “This is our second investment in CFS in India where the lack of container facilities has been a major impediment to the expansion of containerised freight. We see significant growth opportunities for real estate investments in this specialist port service sector.”

The Eredene Group is investing up to INR 233.3 million for a 40 per cent stake in a Special Purpose Vehicle (SPV) which is developing the first dedicated CFS at Pipavav, a fast-growing port in the south of Gujarat.

The initial planned 32-acre greenfield site for the Pipavav CFS is very close to the port gate.

The Eredene Group has invested an initial GBP 1.8 million in the project and construction has already commenced.

The Eredene Group may invest an additional GBP 1.2 million once further land acquisition milestones have been met. Revenue is due to come on stream by mid-2008.

The developers of this new CFS have a long and successful track record in the CFS and shipping sectors.

The Port of Pipavav is owned and operated by the international shipping company Maersk.

The CFS investment is in addition to the Eredene Group’s announcement on 28 September 2007 that it had invested GBP 850,000 for a 49 per cent stake in a SPV developing a new CFS near Chennai, which will serve both the ports of Chennai and Ennore.

The CFS in Tamil Nadu is located on a site totalling an expected 28 acres, some 12 kilometres from Ennore and 17 kilometres from Chennai, both strategically important and expanding ports.

Chennai Port has an established container terminal that is owned and operated by Dubai Ports World (formerly P and O Ports India).

Ennore’s container terminal is in development and is forecast to become operational in 2010.

The Eredene Group’s partner in the project in Tamil Nadu is the Sattva Group, a significant regional logistics operator. Construction has commenced and the facility is due to be completed and become revenue generating by mid-2008. (ANI)

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