* US$25 million has been committed for phase one of the multi-family platform project in Thailand
* Targeting co-investment of US$150 million alongside NOON Capital in at least six Thailand real estate projects, the first of which is in Phuket.
* NOON Capital uniquely deploys blockchain to manage real estate projects.
SINGAPORE and PHUKET, THAILAND, 17 December 2018 – NOON Capital, a Southeast Asia-based property developer and manager, has announced its partnership with private real estate investment firm, Asia Capital Real Estate (ACRE). The two companies have launched the first US$25 million project of a Thailand focussed real estate fund which is targeted to grow up to US$150 million across at least six multi-family development projects. The first project will kickstart in Phuket followed by further expansion across cities such as Pattaya, Chiang Mai and Bangkok.
“A project of this magnitude reaffirms our property development capabilities, and we are thrilled to have ACRE on board with us,” said Luca Dotti, Managing Partner of NOON Capital. “We have received an extremely positive response from prominent institutional investors since the launch of the fund, and we are aiming to close its next phase within the next six to 12 months.”
The strategic partnership leverages ACRE’s expertise in the multi-family space, with their ability to position purpose-built real estate in the market while generating outstanding results. Recently, the firm invested over US$750 million through three funds, with the first fund being fully divested.
“We are excited to collaborate with NOON Capital as they are a reliable local partner with proven expertise in property development that apply high standards of construction even in more affordable products,” said Blake Olafson, Managing Partner at ACRE. “We share an optimistic outlook towards Thailand’s rental market, and we look forward to our continued collaboration with NOON Capital.”
The decision to focus on Thailand is due to its increasing demand for mid and long-term rental residences. With wages in Thailand growing at 5.5%per year and tourism at 10%, job opportunities are increasingly drawing expats, as well as Thai nationals from rural areas, to urban centres. The first project to commence will be in Phuket Town, the epicentre of the island, owing to it being the 11th most visited city in the world with 12 million visitors per year, and a significant population of permanent residents. The residence will look to feature an iconic infinity pool at the rooftop, with magnificent landscaping and design-oriented apartments, offered at very accessible rates to local residents.
Property Management on the Blockchain
NOON Capital is seeing interest around building estate management solutions on the blockchain. The company is piloting blockchain on their existing revenue generating and development phase projects, that are both for rent and for sale. Due to the dual source of cashflows, these properties are part of a portfolio to be listed on blockchain and can be liquidated in a relatively short time frame.
Receiving positive feedback from investors, NOON Capital has finalised the legal and compliance infrastructure. The onboarding process is now available, with assets soon to be deployed onto blockchain. Although the digital certificates offer embedded liquidity, NOON Capital are in talks with upcoming security token exchanges to provide additional avenue for investors to trade on a secondary market.
Once the digital securities are consolidated, NOON Capital plans to apply the same process to the multi-family projects, giving access to smaller investors. The process has garnered interest from family offices and high-net-worth individuals, creating a new avenue for traditional real estate investors if they are searching for innovative ways to gain exposure.
The power of blockchain allows for digital certificates to be issued that grant transparency, efficiency and secondary market liquidity. This technology layer added to the final leg of investment provides full legal recourse on assets, similar to a traditional real estate transaction. At this stage, NOON Capital are driving investments in Thailand but are planning expansions into other Southeast Asian countries.