Agincourt Launches RMB Bond Fund For Aussie Real Estate

Jul 8 2011 | 8:24am ET

Real estate fund manager Agincourt Capital will launch a renminbi secured convertible offshore bond fund for Australian real estate—the first of its kind.

The Hong Kong-based firm will launch the fund on July 14. AC hopes to raise about AUD$500 million ($529 million) from the five-year bond. The bonds are senior secured convertible debt with a yield of 4% per annum.

“Agincourt Capital recognizes that Chinese and other international investors are seeking safe-haven real estate investments while looking to hedge foreign exchange fluctuations, and they also know that Australia is experiencing steady stable growth parallel to that of China.

“Our investment strategy focuses on providing maximum return at minimum risk, tax effectiveness, and transparent, independent funds administration, and we take pride in offering superior investment services by applying our in-depth knowledge of the Australian residential and commercial property markets,” said AC CEO Craig Turnbull.

The fund targets net IRR of 10-20%+ and, according to Turnbull, boasts strong fund governance, a low withholding tax rate and fair and equitable management dees. Deutsche Bank will act as bond trustee and escrow agent. Cushman & Wakefield and DTZ are the preferred real estate services providers.

AC’s Australian RMB Fund will invest in both commercial and residential real estate, taking both a long-term income approach and short-term development and redevelopment projects. The fund will target institutions, pension funds and high net worth individuals in China, Australia, Brazil and other countries whose economies are expected to grow beyond the global average over the next 20 years.

AC has offices in Hong Kong, London and Melbourne.


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