Sun Hung Kai (SHK & Co) has committed US$100m (€85m) to a new real estate debt strategy managed by its in-house real estate investment group.

The Hong Kong-listed investment manager said Multiple Capital Investment Partners (MCIP) is planning to raise between US$200 and US$300m for the newly launched fund which will invest in first and second mortgages for commercial and residential real estate in Asia-Pacific over its five-year life.

Rai Katimansah and Simon Tozer, partners and portfolio managers at MCIP, 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.”

To read the digital edition of the latest IPE Real Assets magazine click here.

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