InfraRed NF China Real Estate Fund II has agreed to extend a US$50m mezzanine financing to a Singapore listed developer.
The mezzanine loan is secured on a mature villa development project in Foshan, Greater Guangzhou with the loan proceeds being used to develop out the remainder of the site with mid and high rise residential units.
The loan benefits from a share of sales revenues in the underlying project. The loan was structured with share charges over corporate entities owning the pledged assets with further protection from personal and corporate guarantees.
Commenting on the transaction, Stuart Jackson, Chief Executive Officer at InfraRed NF Investment Advisers Limited, said:
“We are pleased to close another mezzanine loan in China. The deal is our 3rd mezzanine investment so far in Fund II. The Fund is generating an exceptional income yield far in excess of what can be achieved by direct investment in commercial property.”