HK-based InfraRed NF closes $92.2m mezzanine financing deal

Hong Kong

Hong Kong-based real estate investment manager InfraRed NF on Tuesday announced that it has provided a $92.2-million mezzanine loan to Hong Kong-listed property developer Fullsun International Holdings Group.

The financing was provided by InfraRed NF and Firewave Management Limited, an indirect wholly owned subsidiary of Singapore-listed Metro Holdings Limited.

The loan will be used by Fullsun International to fund further construction and project acquisitions from smaller developers. The property developer is an offshore listed vehicle of a large mainland Chinese developer, Fusheng Group. The loan was structured with the additional benefit of recourse to the Hong Kong-listed parent company.

According to InfraRed NF, the loan is secured against a portfolio of two ring-fenced, partially completed residential development projects in Changsha, with additional credit enhancement provided from a mature office asset in Hong Kong. The estimated gross portfolio value of the ring-fenced collateral is more than $380 million.

“Fullsun International has a strong acquisition pipeline of distressed opportunities and we look forward to continue working with them across Tier One and select Tier Two cities,” said InfraRed NF Invesments Advisers special situations head Grant Chien.

InfraRed NF has completed 10 mezzanine investments, seven of which have been repaid. The latest loan is part of its investment strategy to focus its lending activity on projects in regional hubs, benefiting from infrastructure investment, with strong economic fundamentals and sizeable population bases, it said.

“A window of opportunity has arisen for InfraRed NF from the well-publicised contraction of available credit within China. China’s deleveraging is creating an attractive investment environment for us resulting in a healthy pipeline of mezzanine and value-add deals,” said InfraRed NF Investment Advisers CEO Stuart Jackson.

InfraRed NF is a joint venture between Hong Kong-based Vervain and InfraRed Capital Partners, a global investment manager focused on infrastructure and real estate.

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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.