Yatra Capital announces investment in real estate in India

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Yatra Capital announces investment in real estate in India

Yatra Capital Limited, the first Euronext quoted company with a focus to invest in Indian real estate, announce its seventh investment, following a commitment of €4.88 mn in equity for 20% holding in the joint venture, Alliance Hospitality Services Private Ltd, to develop premium star category hotel and serviced apartments in Pune, Maharashtra.

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Yatra Capital Limited ("Yatra") the first Euronext quoted company with a focus to invest in Indian real estate, is pleased to announce its seventh investment, following a commitment of  €4.88  million  in  equity  for  a  20%  holding  in  the  joint  venture,  Alliance  Hospitality Services   Private   Limited,   to   develop   a   premium   star   category   hotel   and   serviced apartments in Pune, Maharashtra.

Yatra has now committed €80.5 million of the initial €100 million raised in December 2006.On the 19th  October 2007 the company announced that it has successfully raised a further €120 million to be invested into Indian real estate.

The approximately 290,000 square feet ("sq ft") hotel and serviced apartment is located on a prime site on Nagar Road, a key arterial road into Pune city, and is surrounded by mid to high  end  housing,  as  well  as  prominent  office  buildings  and  technology  parks,  housing multi-national corporations.  The hotel forms part of the 1.5 million sq ft „Market City retail development where Yatra recently acquired a 24% stake. This investment underlines Yatra's stated strategy of diversifying into different asset classes where the Board believes there is opportunity to deliver shareholder value.

The property, targeted to be completed by late 2009, will be positioned as a premium star category  hotel  offering  an  estimated  319  rooms  and  96  serviced  apartments  catering primarily  at  business  travellers  due  to  its  location  near  a  large  number  of  global organisations such as Accenture, Mahindra British Telecom and IBM. 

Yatra's joint venture partner, Atlas Hospitality Company Private Limited ("AHPL"), is part of the Ruia group [promoters of The Phoenix Mills Limited ("Phoenix"), a leading Indian real estate developer].

Accelerated business growth by both Indian and international companies is driving the need for  additional hotel  rooms  in Pune, which is      currently lacking high-end hotel accommodation.  According  to  the  Cris  Infac  Hotels  Annual  Business  Review  (2006),  the average annual occupancy for hotels in Pune is 84%, and, at present only 10201  rooms are available in the luxury segment in the city. It is further estimated that only an additional 4702  rooms will be developed over the next two years falling well short of the estimated demand.

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