For immediate release: 8 April 2021, Hong Kong

 

Sun Hung Kai & Co. Launches

 Real Estate Debt Strategy with US$100m Commitment

 

 

Sun Hung Kai & Co. Limited (SEHK: 86) ("SHK & Co.") announced the launch of a real estate debt fund managed by its in-house real estate investment group, Multiple Capital Investment Partners (MCIP). The team is targeting to raise between US$200 and US$300 million for the fund, which will invest in first and second mortgages for commercial and residential real estate in Asia-Pacific over its five-year life. SHK & Co. has committed US$100 million of capital.

 

MCIP is focused on investing in high-quality mortgage loans in developed markets, for development, repositioning or refinancing of the properties. Target markets include Australia and New Zealand, Greater China, South Korea, and Southeast Asia. The United Kingdom and selective European Union countries will also be considered on an opportunistic basis. The strategy aims to take advantage of Asia's secular growth trends while securing downside protection and generating yield, to provide investors carefully risk-managed access to the region's real estate markets.

 

The team is co-led by partners and portfolio managers Rai Katimansah and Simon Tozer, based in Singapore and Melbourne, respectively. Rai has more than two decades of real estate investment experience with various real estate funds and Standard Chartered Bank. Simon has likewise held several senior roles across 20 years, including with banks such as Nomura Securities and ABN AMRO Bank.

 

In addition to today's real estate debt fund announcement, SHK & Co. has made several other commitments in 2021 through its fund's management platform. They include US$150 million into East Point Asset Management, US$15 million into E15VC, and the ActusRayPartners European Alpha Fund, with a fundraising target of US$100 million.

 

Rai and Simon said, "We see compelling investment opportunities to make attractive risk-adjusted returns by extending loans to well-established borrowers across APAC markets where MCIP and SHK & Co. have strong deal sourcing networks and execution capabilities. The strategy is yield driven and offers downside protection for those looking for carefully risk managed access to both the real estate lending market and the APAC growth story."

 

Seng Huang Lee, Group Executive Chairman of SHK & Co. and member of the Investment Committee of MCIP, said: "Credit, including real estate lending, is a core business and competency of SHK & Co. We are excited to bring together the infrastructure and transparency of a listed company, the commitment and consistency of a family business and the experienced professionals in the MCIP team. This combination will offer an institutional quality product right from the start."

 

 

 

Lindsay Wright, CEO of SHK funds management, added "Simon and Rai are both recognised industry figures who SHK & Co has been working with for several years. We are excited to be launching this strategy and supporting the team's growth and deal activity across the region."

 

The launch of this strategy is further supported by the recent confirmation of SFC Type 1 & 9 licences in Hong Kong for Sun Hung Kai Capital Partners, the funds management platform of SHK & Co.

 

 

 

About Sun Hung Kai & Co.

 

Sun Hung Kai & Co. Limited (SEHK: 86) ("SHK & Co.", together with its subsidiaries, the "Group") is a leader in alternative investing headquartered in Hong Kong. Since its establishment in 1969, the Group has owned and operated market-leading platforms in Financial Services. The Group invests across public markets, alternatives and real assets and has an established track record of generating long-term risk adjusted returns for its shareholders. Most recently, it has extended its strategy to incubate, accelerate and support emerging asset managers in the Asian region. It is also the major shareholder of a leading Consumer Finance firm, United Asia Finance Limited. The Group currently holds about HK$44 billion in total assets as at 31 December 2020.

 

For more information about SHK & Co., please visit its corporate website www.shkco.com.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

About Rai Katimansah

 

Rai Katimansah has more than 24 years of real estate lending and private equity experience, spending the past 19 years in Asia completing real estate debt investments in Japan, Korea, China, Southeast Asia, and Australia. Prior to SHK & Co., Rai was the Head of Phoenix Property Investors' debt fund in Asia Pacific. His previous experience includes being the Head of Investments in Standard Chartered Bank's Principal Finance Real Estate Group, Head of Financial Products and Real Estate Mezzanine Fund in Mapletree Investments, and Lehman Brothers Global Real Estate Group.

 

About Simon Tozer

 

 

Simon Tozer has over 20 years of experience in banking and finance across Australia and Europe, including founding Multiple Capital in Australia where he managed over AUD 400 million of real estate mortgage loans and raised over AUD 250m of third-party capital. Previously he has held roles at Nomura Securities, ABN AMRO Bank and BHP Limited.

 

 

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