Co-development in Noida

Alpha Tiger Property Trust Limited
25 March 2008

25 March 2008

                       Alpha Tiger Property Trust Limited


  ALPHA TIGER TO CO-DEVELOP 1.2 MILLION SQUARE FEET BUSINESS PARK-LED SPECIAL
                          ECONOMIC ZONE (SEZ) IN NOIDA



Highlights

•          1.2 million square feet business park-led development in SEZ within
           NOIDA, a high growth office market in the National Capital Region 
           ('NCR') of India

•          £14.7 million equity commitment

•          Site ideally located to take full beneficial advantage of rapid
           growth in demand for business space from IT and IT Enabled Services 
           companies

•          Transaction expected to deliver high total returns to shareholders

•          Experienced local partner

•          Development expected to be completed in phases within 36 months

•          Alpha Tiger has now conditionally committed approximately 93% of the
           net equity proceeds raised at flotation



Introduction

Alpha Tiger Property Trust Limited (the 'Company' or 'Alpha Tiger') is delighted
to announce that it has successfully agreed to acquire a 50 per cent. interest
in a Special Purpose Vehicle ('SPV'), IT Infrastructure Park Private Limited,
which will develop an IT/IT Enabled Services ('IT/ITES') SEZ on 11.2 acres of
land in NOIDA, in the National Capital Region ('NCR') of Delhi, India.  The
Company will invest in partnership with Logix Group ('Logix'), one of the
leading developers of business parks in North India, who will retain ownership
of the residual 50 per cent of the SPV.  The SPV will develop approximately 1.2
million square feet of business park-led space.

The SPV has an agreement to sub-lease 45 per cent. of a larger 24.8 acre plot
which was originally leased to Sarv Mangal Realtech Pvt Limited ('Sarv Mangal')
from NOIDA on a 90 year lease.  Development of an SEZ has been formally approved
by the Indian Government's Board of Approval.  The SPV has also executed a
co-development agreement with Sarv Mangal, providing equivalent development
rights and benefits.

Alpha Tiger has committed INR 1147 million (£14.7 million) to acquire a 50 per
cent. equity interest in the SPV which sub-leases the land and will undertake
the development for an aggregate construction cost of c. INR 2100 million (£26.9
million).

The Development

Under the SEZ regulations prescribed by the state government (Uttar Pradesh),
the land plot can be subdivided and sub-leased by the owner, being Sarv Mangal,
to the co-developer of the SEZ, being the SPV.

The SPV and Sarv Mangal will prepare an integrated master plan for the SEZ site
although the subsequent design and construction within each zone shall be
executed independently by either party.

The total area of the sub-leased land is approximately 11.2 acres with the
proposed development of approximately 1.2 million sq ft of landmark office
development together with the provision of other support facilities, including
potentially retail, non-IT offices, serviced apartments and hotels.  It is
anticipated construction will be completed in phases with the entire development
completed within 36 months.

Location

NOIDA is a large planned surburban township located South-East of Delhi, within
the NCR.  Given NOIDA's proximity to Delhi (15km to Delhi CBD), the area has
evolved into an established location for IT/ITES businesses seeking a large pool
of skilled resource, with over 1 million people residing in NOIDA and a further
7 million people within the catchment area.

The site is located at Sector-140a within the NOIDA Master plan 2021 and is
categorised as an industrial/SEZ zone on which IT/ITES office and support usages
are permitted.  The site is situated just off the main NOIDA Expressway
connecting Noida with the township of Greater NOIDA, which itself is developing
as a residential and institutional satellite for NOIDA.

The SEZ site is well-located for large-scale IT and ITES companies, and other
business park tenants, that are expanding in the NCR.  The NOIDA Expressway
locality encompasses a cluster of technology firms and other commercial
businesses that have been attracted by the improving infrastructure and
affordable office rents compared to other suburban locations like Gurgaon.  The
growth of this location is also generating demand for retail and hospitality
services, and the site is positioned to benefit from this potential demand.

Transaction Structure

Alpha Tiger has agreed to acquire a 50 per cent. equity interest in the SPV,
which has an agreement to lease the land, and additionally will contribute
equity towards the proposed construction costs.  It is anticipated that third
party debt can be secured in respect of over 70 per cent. of the projected
construction costs and the residual equity requirement shall be shared equally
between the SPV's joint venture partners.  Consideration for the SPV interest
and construction equity will be satisfied using the existing cash resources of
the Company.  The key terms of the investment are as follows:

•          Subject to certain conditions precedent (which maybe waived by the
           Company), Alpha Tiger will be acquiring certain shares and issued new
           equity in the SPV resulting in a 50 per cent. equity and voting 
           interest.  Consideration to acquire and be issued shares shall be 
           INR 1147 million (£14.7 million);

•          Logix is responsible for arranging a third party loan facility to
           fund the proposed construction of the business park.  The land will 
           be provided as security against the loan facility.  Any shortfall in 
           funding in excess of the loan facility to complete the construction 
           project shall be the equal responsibility of both joint venture 
           partners.

All profits of the SPV shall be distributed after the repayment of interest on
any third-party loans.  Alpha Tiger has a priority return of an IRR of 19 per
cent. on equity with subsequent upside shared with Logix.



Investment rationale

This investment by Alpha Tiger represents an excellent opportunity to develop a
high grade business park in an IT/ITES SEZ in the high growth NOIDA market of
the NCR.  The development benefits from a strong local partner with a track
record of developing business parks within the NOIDA area.  Alpha Tiger has
developed a strong relationship with Logix.  This is the second executed
transaction with Logix following the successful execution of a business park
development project at Sector 132, NOIDA.




Alpha Tiger equity commitments

This transaction, together with the equity commitment assumptions outlined in
prior transaction announcements, mean that the Company now has total equity
conditionally committed in excess of £67 million or approximately 93 per cent.
of the net equity proceeds raised at the time of flotation.





Contact:

Alpha Tiger Property Trust Limited

David Jeffreys, Chairman, Alpha Tiger                [phone]

Brad Bauman, Alpha Tiger Fund Manager                [phone]



Panmure Gordon, Nominated Adviser to the Company

Richard Gray/Andrew Potts/Stuart Gledhill            [phone]



Notes to Editors:

An exchange rate of £1 = INR 78 is used in this announcement.



About Alpha Real Capital LLP

Alpha Real Capital is a value-adding international property fund management
group with operations in the Indian and other international real estate markets.
Alpha Real Capital was established by Phillip Rose and Sir John Beckwith.

Alpha Real Capital is the Investment Manager to Alpha Tiger.  Alpha Real
Capital's Indian CEO, Brad Bauman is Fund Manager to Alpha Tiger.  He has 18
years' experience in the real estate and finance industries, and has been
responsible for Alpha Real Capital's Asian investment programme since 2005.

Alpha Real Capital is regulated in the United Kingdom by the Financial Services
Authority.



About Alpha Tiger Property Trust Limited

Alpha Tiger is a Guernsey registered closed-ended investment company investing
in and developing Indian real estate.  The Company floated on AIM in December
2006, raising £75m.



Further information is available at www.alphatigerpropertytrust.com






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