Singapore-backed Australian Securities Exchange newcomer, Aquaint Capital, is looking to buy up to $400 million in distressed or run down property assets on the eastern seaboard.
Chief executive Tan Yang Po is in Melbourne and Sydney this week looking for two properties, in the range of $30 million to $200 million apiece.
A capital raising is expected over the next few months to help the Singapore-Malay group purchase the property assets.
Tan is also in town to increase the profile of Aquaint Capital, which hit the ASX boards in November. It is the holding company of the Singapore-based property seminar empire of the same name.
The group runs 20 property funds and says it has about 4,000 investors, mainly in Singapore, the US, Germany and the UK. Investors are picked up through funds promoted at its seminars.
“Our strategy is to buy properties below market value, that are either distressed or that the owners have let become run down,” Tan told DataRoom.
For mature markets like Melbourne and Sydney where there are few bargains to be had in the inner city, Aquaint’s strategy is to look at assets – mainly office or retail -- in the surrounding areas.
Aquaint then spruces up the properties and holds them for three to five years before selling them at a profit.
However, in the less dense markets of Brisbane and Perth, Tan was looking at prime real estate in the CBD, where she thinks there are still bargains to be had. Areas enjoying investment in infrastructure by local government was also a key attraction.
Aquaint announced earlier on Thursday it would take stakes in four Malaysian properties, for a sum of $61 million. It may also tap the markets for equity over the next few months to fund the purchases.
The company raised $2.8 million to list last November at 60 cents a share.
Despite its success running property seminars in Asia, it is understood Aquaint Capital has all but ruled out following suit in Australia, largely because of negative local public perception around the practice.
“We are not doing the education part in Australia because there have been companies who don’t do it properly, we are not going to follow that,” Tan says.
Aquaint group’s pool of backers are said to be attracted by the transparency of the Australian property market.
Tan runs Aquaint with fellow property entrepreneur Soo Ming Chiang, who is a director.
Aquaint has also invested in property development funds with land in India and mortgages over heritage-listed houses in Germany.
Aquaint Capital is trading at around 55 cents, just short of its listing price.
(Reporting by Amanda.saunders@businessspectator.com.au
Editing by Victoria.Thieberger@businessspectator.com.au )