Establishment of The REITs to Capture Opportunities Along Eurasia
HONG KONG – (ACN Newswire) – Affluent Partners Holdings Limited and its subsidiaries (the “Group”; stock code: 1466), are principally engaged in purchasing, processing, designing, production and wholesale distribution of pearls and jewellery products and operation of strategic investment and financial services, has announced that it has entered into a collaboration agreement (the “Collaboration Agreement”) with Equitativa Real Estate Limited (“Equitativa”) in relation to setting up REITs (the “REITs”) in order to capture more business opportunities along Eurasia.
The Group will act as an advisor and work closely with Equitativa in relation to the REITs, facilitating the implementation of the REITs, referring clients for investment and identifying assets to seed the REITs. Being part of the Equitativa Group which is the leading regional asset manager, Equitativa or its affiliates will be appointed as the manager and are responsible for the establishment and management of the REITs. After the establishment of the Collaboration Agreement, the Group shall be entitled to a referral fee equivalent to certain percentage of the transaction value of any assets acquired by the REITs and for any investments in the REITs introduced by the Group. The Group will also be entitled to a one-off performance fee upon the successful listing of the REITs on a recognized stock exchange on a pro rata basis as relative to the assets identified and referred by the Group and acquired by the REITs.
Mr. Archambaud-Chao Percy Henry Junior, Executive Director of Affluent Partners Holdings Limited, said, “We are very excited to be partnered with Equitativa, a leading regional asset management company in the industry. Equitativa has a fantastic and proven track record in the set up and management of REITs. Together with the Group’s network in the People’s Republic of China and across Asia, the Group will work alongside Equitativa in identifying potential asset acquisitions and suitable investors for the REITs. We are expecting to identify assets around USD500 million to seed the REITs. This collaboration allows Equitativa and the Group to work closely together in the development of the REITs whilst taking advantage of the natural synergy between the parties. Affluent Partners is confident that the Group will benefit from real estate owners and investors along the Eurasia countries contributing to the REITs. Looking into the future, the Group will continue to explore new business opportunities in order to maximize shareholders’ value.”
On 4 October 2018, the Group has also entered into a non-binding memorandum of understanding with Rosebery Capital Limited in relation to a formation of a joint venture (the “JV”), which proposes to invest in real estate projects in the United Kingdom, specially seek to acquire and develop properties in the student housing, serviced apartments and built to rent sectors. The JV would seek support from institutional and individual investors for the acquisition and financing of suitable real estate projects.
About Affluent Partners Holdings Limited (stock code: 1466)
Affluent Partners Holdings Limited and its subsidiaries is one of the world’s largest merchants, purchasers and processors of pearls. The Company was listed on the Main Board of the Stock Exchange of Hong Kong Limited in October 2014. Starting from FY2017, the Group has commenced to engage in the operation of strategic investment and financial services segment, and has invested in the realty market in the United Kingdom through the subscription of an investment fund and loan notes.
For more details about Affluent Partners, please visit its official website: www.affluent-partners.com/
About Equitativa Real Estate Limited
Equitativa is part of The Equitativa Group which is the leading regional asset manager focuses on creating and managing real estate investment trusts and is based in the United Arab Emirates (“UAE”). Having established the UAE’s first Shari’a compliant REIT, Emirates REIT (CEIC) Limited (“Emirates REIT”) incorporated in the Dubai International Financial Centre, Equitativa is today considered the largest REIT Manager in the Gulf Cooperation Council countries and the biggest REIT Manager for Shari’a Compliant REITs in the world. The Equitativa Group has about US$2 billion of assets under management. Equitativa is an independent REIT manager. It manages Emirates REIT which is listed on Nasdaq Dubai and The Residential REIT, the latter incorporated in Abu Dhabi Global Markets. Equitativa is further diversifying its REITs by launching a hospitality REIT, a logistics REIT, and several other REITs in emerging markets.