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.”

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