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Eredene moves into profit, seeks more funds
Wed, 08 Feb, 2012
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Eredene moves into profit, seeks more funds
Mon, 19 May 2008, 09:25:00
India-focused property investor <b>Eredene</b> moved into profit in 2007 as it broadened its strategy to include investments in Indian infrastructure in sectors such as logistics, distribution warehouses and port services.<br /><br />Pretax profit for the year to December 31 totalled £200,000, compared with a loss of £1.1m the previous year. The company said it now has six investments in India, of which six are revenue-generating.<br /><br />Given the strong outlook for the Indian economy and the government's commitment to improving infrastructure, Eredene, which runs offices in London and Mumbai, says it plans to raise up to £200m to continue investing in Indian projects. <br /><br />It said it will decide this year whether it will place more shares to raise the money or seek third party funds, which would involve it acting as a fund manager.<br /><br />Chief executive Alastair King said that a number of third parties had already contacted Eredene to ask about having funds managed.<br /><br />"We're looking to invest a further £200m in Indian infrastructure and we've already been talking to potential investors," he said.<br /><br />"This would be preferable to a share placing given the current level of Eredene's share price," he added.<br /><br />Eredene shares have lost around a quarter of their value in the past year, a fall which King ascribed to the company being "unfairly lumped alongside real estate companies." King told Sharecast the company should be seen as an infrastructure company.<br /><br />"To give an example, with only 65% to 70% of Indian goods being sent by container compared with around 95% in the UK and other advanced economies, there is clearly strong potential for medium-term growth in India's infrastructure."
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