Asian Real Estate

InfraRed has had a market presence in Asia since 2007 and is one of the leading investors 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’s real estate operations in Greater China are conducted through a joint venture known as InfraRed NF. Our joint venture partner, Vervain, is a Hong Kong-headquartered real estate owner, operator and developer (which includes entities operating under the former name of “Nan Fung China”).

InfraRed Capital Partners and Vervain both play significant dual sponsorship roles, bringing together best-in-class fiduciary and technical skills with a powerful Greater China network and extensive local expertise. Together, this strong and complementary partnership has built a solid foundation for investment success.

To date, our team have completed over 20 investments in Greater China investing US$1.6 billion of capital. We have developed an expertise to exploit capital market inefficiencies in China to lend to real estate developers with solid track records and proven execution capabilities. Our team has completed nine mezzanine financings to 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.

In respect of value-add investing, InfraRed NF’s investment strategy focuses on identifying projects in first tier cities including Shanghai, Beijing and Hong Kong targeting 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.

Our current portfolio comprises investments in China, Hong Kong and Vietnam across all major sub-sectors. Recent activity includes an investment in a Hong Kong self-storage company (https://www.redboxstorage.com.hk/) and a US$88m mezzanine financing to continue a non-performing loan turnaround led by Keyne Properties, a regional developer with local roots in Yangzhou, China.

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