InfraRed NF, the leading Greater China real estate investment manager, has committed US$88m of mezzanine financing, along with co-investment partners, to continue a non-performing loan turnaround led by Keyne Properties, a regional developer with local roots in Yangzhou. The deal was structured with multiple downside protection mechanisms and is secured on a portfolio with an estimated gross asset value of c.US$900m.
InfraRed NF’s loan will assist the developer in completing a well-located residential-led, mixed-use development project of approximately 2 million square metres that had been originally acquired as a non-performing loan. InfraRed NF’s mezzanine financing is the second transaction with the borrower and its ninth such financing in total. To date, InfraRed NF has demonstrated its market leadership in providing innovative solutions to developers having committed over US$570m of mezzanine capital with seven completed exits.
The transaction was closed in 42 days from signing a term sheet and required InfraRed NF to work with one of the largest state-owned asset management companies in mainland China.
The mezzanine loan forms part of an investment strategy to focus on geographic locations set to be transformed by improvements in transportation infrastructure and a lack of supply. Two projects in the portfolio are near high-speed railway stations which, when completed between 2020 and 2021, will significantly reduce travel times to Shanghai from around three and half hours to just 90 minutes, adding substantial value to the area.
Grant Chien, Investment Director of InfraRed NF Investment Advisers commented:
“We are pleased to enter the non-performing loan sector with a repeat partner and will continue to explore more projects in this space. With ongoing liquidity tightening measures designed to improve macroeconomic stability, our team can capitalise by providing capital to create win-win partnerships. Coupled with a healthy pipeline of opportunities, we are well placed to continue delivering superior returns.”
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.