Powered by MOMENTUM MEDIA
subscribe to our newsletter

Hong Kong investment group looks to Australian mortgages

A Hong Kong-based investment company has launched a real estate debt fund to invest in first and second mortgages for commercial and residential real estate in Australia and Asia Pacific.

Multiple Capital Investment Partners (MCIP), the in-house real estate investment group of Hong Kong investment company Sung Hung Kai & Co (SHK & CO), is launching a real estate debt fund that will invest in “high-quality mortgage loans” (first and second mortgages for commercial and residential real estate) in Asia Pacific over its five-year life. 

MCIP aims to raise between US$200 million and US$300 million ($263 million - $394 million) for the fund, with SHK & CO having already committed USD$100 million ($131 million).

The fund is focusing on Australia and other “developed markets”, such as New Zealand, Greater China, South Korea and south-east Asia.

It is being co-led by partners and portfolio managers Rai Katimansah and Simon Tozer, based in Singapore and Melbourne, respectively.

Advertisement
Advertisement

In a joint statement, Mr Katimansah and Mr Tozer 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, added: “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 [Hong Kong] 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.” 

PROMOTED CONTENT


SHK & Co was established in 1969 and invests across public markets, alternatives and real assets in Asia. It is also the major shareholder of consumer finance firm United Asia Finance Ltd (formerly known as Japan Finance (​International) Ltd). 

It recently extended its strategy to incubate, accelerate and support emerging asset managers in the APAC region.

Several Asian financiers and lenders have been looking to the Australian market recently, and vice versa.

Crowd Bank, a Japanese crowdfunding platform, entered into the Australian market after becoming an investor in marketplace lender Zagga, while Pepper announced earlier this year that it will enter the Japanese financial services market, after acquiring 100 per cent of Millennium Holdings KK, the holding company of Millennium Corporation (Millennium).

[Related:  Pepper enters Japanese market]

Hong Kong investment group looks to Australian mortgages
Hong Kong investment group looks to Australian mortgages
mortgagebusiness

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Tickets are on sale now. Work smarter, not harder, this year.

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Contact Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The Commonwealth Bank has indicated that it will cut opening hours across 90 regional branches, with impacted staff to spend the rest of the...

A report has found that home ownership is the single most important factor affecting a person’s perceived level of financial wellness. ...

The complaints authority has recruited three new ombudsmen (including from ANZ and Westpac), and promoted three others internally. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.