Agincourt Capital, a global real estate funds management company based in Hong Kong and with offices in London and Australia, today (14 July) launched its RMB-denominated converPARA_BREAK_SENTINEL_9f8e7d6c

Agincourt Capital, a global real estate funds management company based in Hong Kong and with offices in London and Australia, today (14 July) launched its RMB-denominated convertible offshore bond fund focused on Australian real estate: the first such fund to launch. As pointed out by AsianInvestor, the fund is unique in several ways: firstly, that it is a RMB-denominated, AUD-settled senior secured convertible bond fund; secondly, its target group is Chinese professional investors wishing to diversify into Australian real estate; and thirdly, that it offers three different levels of risk. Agincourt hope to raise USD529million (AUD500million) from the five-year bonds which are expected to be issued within eight weeks and which will offer investors an annual coupon of 4 per cent. Post-issue, the RMB or ‘Dim Sum’ bonds will trade like all other RMB bonds listed on the Hong Kong Exchange on its secondary bond market. Investors can choose to convert their bonds into equity over the first three years.

Agincourt Capital’s CEO, Craig Turnbull (pictured), commented that Chinese and other international investors were looking for “safe-haven” real estate investments and knew that Australia was experiencing stable growth similar to that of China. “We take pride in offering superior investment services by applying our in-depth knowledge of the Australian residential and commercial property markets,” said Turnbull. A target IRR of 10–20 per cent has been set, based on three levels of risk. SPV Core will offer investors 10-12 per cent, SPV Fusion 15-17 per cent and SPV Opportunity 18-22 per cent. Cushman & Wakefield and DTZ are the preferred real estate services providers whilst Deutsche Bank have been appointed as bond trustee and escrow agent.