CO-INVESTMENTS

Bridging Asian Capital to US Real Estate Opportunities

Value Creation

FGI has invested significant time and resources building its market network and strategic partnerships to allow FGI to effectively and efficiently tap into opportunities in the fast recovering US real estate market.

Consequently, FGI's investment platform also offers an excellent bridge for Asian-based investors to US real estate opportunities which may not be accessible to stand-alone investors.  In this regard, FGI can offer co-investors superior risk-adjusted returns through:

• Access to special situation real estate investment opportunities  (e.g. off-market, portfolio sale, distress/rehabilitation deals) 

• Access to non-recourse financing  (fixed-rate, high LTVs)

• Access to larger-value real estate projects and the benefits of economies-of-scale of such investments

• Fully managed investment, with FGI actively monitoring and undertaking asset improvement and management of the acquired properties to optimise yield and capital gains for the investment group 

Risk Mitigation

In addition to value-creation propositions, FGI can offer co-investors comfort in investing overseas by:

• Direct ownership of underlying properties, i.e. no intermediate 'fund' layer 

• No mark-ups on entry : Co-investors will enter the investment alongside FGI and at the same valuations

• Due-diligence process before acquisition :  FGI and its local partners will undertake comprehensive legal, operational and market due-diligence before the acquisition

• One -stop conduit :  Co-investors will have access to support from FGI's Hong Kong and Singapore offices on Asian time for their US investments

Target Investment Returns

While investments yields and returns will vary between different projects (depending on risk, timing, structure, etc), FGI targets to generate between 8-10% net yield  (net of all operating expenses, taxes and fees),  and between 15-20% IRR for co-investors over an average 5-year investment period.

Investment Options

Co-investors can chose to either :

(i)   participate in FGI's investments from US$250,000  per investment; or

(ii)   underwrite an entire investment with a minimum investment of US$2 million, whereby FGI will structure and facilitate a customised investment for the co-investor to preference.

In both cases, FGI will provide the necessary support for a hassle-free access to solid real estate opportunities in the US. 

Investors who are interested to participate in FGI-led investments are invited to contact FGI for more information.

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