Our Business

InfraRed NF has developed a successful model investing in value-add projects and mezzanine financing transactions.

Value-add investments

  • We focus on identifying real estate projects in first tier cities including Shanghai, Beijing and Hong Kong.
  • We target to transform well-located and often poorly managed commercial properties.
  • Business plans follow a systematic approach, frequently combining change of use, upgrading and asset management to achieve higher rents, additional revenue streams, improved occupancy and better operating margins.
  • The team has 11 years of on the ground implementation and asset management experience across all major sub-sectors (office, residential, retail, logistics, hospitality and self-storage).
  • Attractive self-storage market opportunity with significant growth potential. InfraRed NF has invested in the second largest self-storage operator in Beijing¬†(click here for the news update and here for the company website)

Mezzanine financing

  • We seek to provide mezzanine financing to developers with offshore ownership structures for a loan term of two to four years.
  • Capital market inefficiencies in China have provided the platform with opportunities (predominantly in the residential sector) to lend to real estate developers with solid track records and proven execution capabilities.
  • Attractive risk-adjusted returns are generated through careful selection of creditworthy business partners, meticulous assessment of the underlying collateral value and via deal structuring.
  • The team has completed eight mezzanine financings to both listed and non-listed, national and local developers in China through a number of market cycles. There has been no realised loss in any single mezzanine financing transactions to date.
  • See one example here