InfraRed NF China Real Estate Fund II has subscribed for US$20m of 20% guaranteed secured notes issued by Cheung Wo International Holdings Limited, an experienced real estate developer listed on the Hong Kong Stock Exchange (HK:0009). The issuer will apply the proceeds to continue developing its real estate projects in Mainland China. The financing, benefiting from a guarantee and securities documented under Hong Kong Law, is secured on the borrower’s real estate portfolio which comprises a mature income-generating commercial asset and one mixed-use residential developments in high growth provincial capitals in Central and Western China.
Commenting on the transaction, Alex Mong, Senior Investment Director at InfraRed NF Investment Advisers Limited, said:
“This deal will be our sixth mezzanine investment in China and the third in InfraRed NF’s China Real Estate Fund II which is now generating a 19% p.a. portfolio income yield. In addition we have an exciting pipeline of value-add refurbishment opportunities in the office and retail sectors in Tier 1 cities in China.”