Sun Hung Kai & Co launches real estate debt strategy with USD100m commitment
Sun Hung Kai & Co (SHK & Co) has launched 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 USD200 and USD300 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 USD100 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 USD150 million into East Point Asset Management, USD15 million into E15VC, and the ActusRayPartners European Alpha Fund, with a fundraising target of USD100 million.
Katimansah and Tozer says: “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, says: “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, adds: “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.