Crestmount Capital to put $76.3m in Australian realty player Piety Investments

Sydney Opera House in Sydney, Australia

Sydney-based residential developer Piety Investments, a shariah-compliant fund manager, has secured an A$100 million ($76.3 million) investment from Middle Eastern fund Crestmount Capital.

Crestmount Capital is a portfolio company of KBW Investments managed by Prince Khaled bin Alwaleed bin Talal, a member of the Saudi Arabian Royal family. He is the son of Prince Alwaleed bin Talal al Saud, chairman of Saudi Arabian investment major Kingdom Holding Company. The development was initially reported by the Australian Financial Review.

KBW Investments, based in Dubai, works across a sectors including construction, manufacturing, engineering, property, project management, automation, technology, finance, and hospitality.

According to its website, Piety Investments “specialises in structuring and managing Shariah compliant investment funds across both residential development and commercial real estate within Australia.”

While recent years have seen Chinese investment shape the Australian property market, it has not been impacted by Middle Eastern funds. This is due to requirements that see Middle Eastern funds needing to be shariah-compliant, coupled with the fluctuations in value experienced by Middle Eastern currencies relative to the Australian dollar, that render such transactions outcomes difficult to predict.

The capital from Crestmount Fund I is to be deployed into five separate Australian Sharia-compliant projects, which are residential developments.

“Crestmount Capital is KBW’s flagship entry into the Islamic finance segment. Having explored a variety of investment vehicles and types, the company’s interest has now increasingly turned to activating our existing strengths in finance to work for the advantage of the sophisticated Islamic investor,” said Prince Khaled.

Shariah-compliant investments stay away from domains linked to alcohol, pornography and gambling. They are also required to specific audits and formats. This leads to Middle Eastern investors target investments in property, logistics and industrial assets that are stable and possess long lease terms.

Piety Investments is partnered with joint-venture residential development entity TH Properties (THP), a Malaysian integrated property, project development and asset and facilities management group owned by the Malaysian government’s Lembaga Tabung Haji (Pilgrims’ Fund Board).

Piety and TH Properties explain they have structured a mezzanine-type deal for Crestmount that will enable it to invest in a basket of projects with differing life cycles, permitting it to hedge against volatility.

Also Read:

Italian govt-backed PE Simest backs Morrow Sodali’s buyout of Australia’s GPS

Australia’s Square Peg raises $180m for debut fund, beats target of $154m

Australia’s Downer launches $1b bid for struggling Spotless Group

India: Adani Group plans to start coal mining in Australia in 2020

Australia: SproutX closes $7.6m agritech fund backed by Artesian, Hostplus

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.