InfraRed NF, the leading Greater China real estate investment manager, is pleased to announce the closing of the RMB 465m (c.US$73.8m) acquisition of the Hongkou Brilliant Shopping Center in Shanghai to be converted into a residential and retail site. The value-add transaction complements InfraRed NF’s strategy of delivering superior returns through a combination of mezzanine financing and value-add investing.
The transaction is a joint venture with Nova Property Co. Ltd and represents the second deal with Nova following the successful acquisition of the Shanghai Puxi Kaiyuan Hotel for c.US$95m in 2017. The joint venture will leverage InfraRed NF’s extensive expertise in retail operations with Nova’s strong serviced apartment conversion track record. The deal follows InfraRed NF’s recent appointment of two Investment Directors in Shanghai to expand its operations in China.
The asset was acquired below replacement cost in keeping with InfraRed NF’s investment strategy of acquiring under-performing retail and hotel properties that can be converted into mixed-use assets.
The site will be converted into a modern community comprising approximately 400 rental apartment units accompanied by F&B led retail. The property is ideally located in close proximity to the North-South Elevated Road and the Inner Ring Road in Shanghai, providing easy access to People’s Square CBD and Nanjing Road West CBD and within walking distance of multiple subway stations.
Hans Kang, Chief Investment Officer at InfraRed NF, said:
“We are delighted to make this investment which provides a compelling opportunity for us to deliver superior returns in keeping with our value-add strategy. We see further strong investment opportunities and our deal pipeline is extremely healthy with both mezzanine and value-add deals.”
Tulchan Communications | +65 6222 3765 | InfraRedNF@tulchangroup.com
About InfraRed NF
InfraRed NF is a Hong Kong-based joint venture between InfraRed Capital Partners and Vervain. Established in 2007, InfraRed NF is a leading investor in the Greater China real estate market with a proven track record of delivering superior returns through a combination of mezzanine financing and value-add investing.
InfraRed Capital Partners is a leading global investment manager focused on infrastructure and real estate. It operates worldwide from offices in London, Hong Kong, New York, Seoul and Sydney and has launched 17 funds including two listed on the London Stock Exchange. With over 130 professionals, it manages in excess of US$10bn of equity in multiple private and listed funds, primarily for institutional investors across the globe.
Vervain (which includes entities operating under the former name of “Nan Fung China”) is a Hong Kong-based private group of companies established in 2004. Vervain has a diversified real estate business, including property investment, property development, project management, real estate private equity investment as well as other financial and mezzanine financing investment. Vervain’s property portfolio comprises high quality residential, commercial, industrial, serviced apartments and hotel properties in Hong Kong, London, New York, Seoul, Tokyo and Vietnam.